Recommendation Expected in Fall 2010
Jun. 24, 2010 (Business Wire) -- Tri-Valley Corporation (NYSE Amex: TIV) announced today that it has established an OPUS Advisory Committee to assist the Company, as Managing Partner of the TVC OPUS 1 Drilling Program L.P. (“OPUS”), to identify and evaluate strategic alternatives to maximize the value of the jointly-owned Pleasant Valley oil sands project in Oxnard, California. The Committee will also consider a possible reorganization of the partnership to attract the required capital for full development of the Oxnard properties. Tri-Valley expects to present a comprehensive plan for approval to the OPUS partnership in the fall of 2010 that will incorporate recommendations developed by the OPUS Advisory Committee.
Currently, OPUS partners own a 75% working interest in the Pleasant Valley project with the Company owning the remaining 25%. The Committee is comprised of representatives from Tri-Valley’s management and Board of Directors, and from among OPUS Partners who were invited to participate by the Company primarily based on their experience with large business transactions or oil and gas investments, and who comprise more than 51% of the Partnership’s total ownership. The Committee has had initial discussions and is moving forward to develop alternatives to identify the best means to maximize the value of the Oxnard assets, including ownership structures and financing options.
“The Pleasant Valley project is a significant and promising asset, with an estimated 128 million barrels of gross original oil in place," said Maston Cunningham, president and CEO of Tri-Valley. “Upon the successful implementation of Steam-Assisted Gravity Drainage (SAGD) at Oxnard based on independent reservoir engineering evaluations, we anticipate that we will be able to recover up to 50% or more of the original oil in place. The Advisory Committee’s work will allow us to make sure we are maximizing the potential opportunity of Pleasant Valley for both OPUS investors and TIV shareholders.”
About Tri-Valley
Tri-Valley Corporation explores for and produces oil and natural gas in California, and has two exploration-stage gold properties and a high grade calcium carbonate quarry in Alaska. Tri-Valley is incorporated in Delaware and is publicly traded on the NYSE AMEX exchange under the symbol "TIV." Our company website, which includes all SEC filings, is www.tri-valleycorp.com.
Forward-looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. Actual results, events and performance could vary materially from those contemplated by these forward-looking statements which includes such words and phrases as exploratory, wildcat, prospect, speculates, unproved, prospective, very large, expect, potential, etc. Among the factors that could cause actual results, events and performance to differ materially are risks and uncertainties discussed in "Item IA. Risk Factors" and "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" contained in the company's Annual Report on Form 10-K for the year ended December 31, 2009 and in "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations" as disclosed in the company's Quarterly Report on Form 10Q for the most recent quarter ended March 31, 2010.
