By OGJ editors
HOUSTON, Jan. 25 – Tri-Valley Oil & Gas CO., Bakersfield, said it will attempt to establish oil production after obtaining extension of a lease in the Racetrack Hill area of Edison oil and gas field near Bakersfield in eastern Kern County, Calif.
The company holds 100% working interest and 87.5% net revenue interest in three parcels known as the Claflin lease. Two oil zones at 650-750 ft average 15 b/d/well on adjacent leases. The company is mobilizing a portable generator for cyclic steaming.
The lease primary term is extended by 1 year until May 10, 2010, by which date production must begin. Proved reserves are independently estimated at 2.3 million bbl of oil.
Tri-Valley plans to reactivate four of eight existing wells that formerly produced 13-14° gravity oil and has been granted permits to drill 29 new vertical development wells. Horizontal wells also may be drilled.
