The company has expanded its lease position in the area it believes will enable it to achieve 2,000 barrels of oil equivalent per day by the end of 2008.
Tri-Valley is finalizing permits to drill another 12 wells in 2008 and believes its present holdings could accommodate up to 80 horizontal well bores just for the Vaca Tar Sand formation plus additional vertical wells for deeper targets.
The company recently added another 120 acres of adjoining lands containing 20 idle vertical well bores. Tri-Valley intends to re-work these to put back on production as many as possible while it readies a horizontal well bore campaign on that property as well.
Robert Bell, vice president of operations for Tri-Valley Oil & Gas, the company’s operating subsidiary, said: We are extremely pleased with the results of this campaign as we experience high initial flow rates after steaming the up to 1,500 feet horizontal well bores. Our cyclic steaming results indicate that continuous steaming could sustain several hundred barrels per day per well production rates.
