The first phase of the company’s plan for Claflin includes acquisition of 3-D seismic data for the property and the drilling of five new vertical wells by June 2011.
This initial phase is estimated to require $2m in new capital including expenditures for upgrades to facilities and infrastructure to reduce operating costs associated with current and future oil production.
The company said it is in the process of contracting the 3-D seismic acquisition work and arranging for a rig to spud the first well.
The full development plan for Claflin is expected to include 13 vertical and nine horizontal wells.
It is estimated that completion of the total program will return about 1.7 million net barrels of oil for Tri-Valley over 15 years.
Tri-Valley president and CEO Maston Cunningham said that the company has a 100% working interest in both the Claflin and the adjoining Brea lease, and as a result, these two 80-acre leases offer an excellent opportunity to substantially increase its net oil production.
The company now has four reactivated wells in production at Claflin, averaging approximately 30 barrels of oil per day with an average API gravity of 16 degrees from a cyclic steaming program.
