In a move to strengthen its balance sheet and complete key projects, Tri-Valley Corporation is initiating a $30 million dollar capital infusion program. The raise will be managed by the Company with some components managed by an investment bank yet to be selected. The Company is considering several options including placement of preferred stock, project financings in the form of working interest sales or sale and lease back of equipment and facilities.
"Along with hundreds of other big and small concerns, Tri-Valley was adversely impacted by the 'global meltdown' to the point where our auditors gave the company a going concern exception in an otherwise unqualified opinion on our 2008 financials. We are moving to eliminate that concern as well as accelerating the advance of our current main oil and gold projects," said F. Lynn Blystone, president and chief executive officer.
Tri-Valley is presently focused on developing its Vaca Tar Sands project in the Oxnard, California oilfield where it has developed and successfully tested new technology to produce the heavy oil reservoir at exceptionally high rates and lower costs. Extended test rates indicate the eight horizontal wells could potentially deliver in the range of 500 barrels per day each for weeks after each steaming cycle. Such combined volume requires additional facilities. Funds will be used to retire vendor obligations and to pay for expanded facilities to accommodate the higher production rates.
While the Company continues to raise capital from its project partners for ongoing needs, the velocity of subscriptions fell dramatically after the "meltdown" and is just now beginning to recover in concert with the strengthening oil prices which has encouraged Tri-Valley to initiate a formal raise sufficient to develop its project to profitable status.
Tri-Valley believes that its mineral subsidiary, Select Resources Corporation, has assembled a compelling data package on its Shorty Creek gold project near Livengood, Alaska that will attract a capable joint venture partner to prove up a minable deposit. The data continues an anomalous trend from an adjacent property held by International Tower Hill whose drill program has indicated a resource of up to 6.7 million probable and possible ounces so far. Select will endeavor to drill the strong geo-chem anomalies at Shorty Creek either with some of the capital raised or through a joint venture partner, whichever comes first.
"Tri-Valley has been capital constrained the last two quarters due to investors being impacted by the dramatic global economic shift beginning last fall, but it has a 45-year track record of being able to support its exploration and development even in severely difficult times. The Company has a very strong, cohesive shareholder and project partner base focused, like management, on persevering to add value to Tri-Valley shares and project partner interests. We are all confident that supply, demand and ineffective government policies will assure higher oil prices and government policies will produce strong inflation that will result in higher gold prices. Our oil and gold projects are timely and beneficial in that regard," Blystone said.
He noted the Company had incurred substantial liabilities on behalf of its working interest investors from investing forward in its projects. He also said the Company had not foreseen the length and severity of the global economic crisis and its adverse impact on the rate of new investor subscriptions that would have been be used to extinguish those liabilities. But the nearness of a ramp-up in heavy oil production at Oxnard will allow the Company to improve its balance sheet and restore profitability once sufficient capital is raised. Tri-Valley is interviewing investment banks for assisting in its raise.
Tri-Valley has been in business as a successful operating company since 1963, and has been a full reporting 12 (g) publicly traded Delaware Corporation since 1972. Tri-Valley Corporation stock is publicly traded on the New York Stock Exchange Alternext US under the symbol "TIV." Our company website, which includes all SEC filings, is www.tri-valleycorp.com.
CONTACT:
Egan Gost
Director of Public and Investor Relations
1-800-579-9314
source yahoo
"Along with hundreds of other big and small concerns, Tri-Valley was adversely impacted by the 'global meltdown' to the point where our auditors gave the company a going concern exception in an otherwise unqualified opinion on our 2008 financials. We are moving to eliminate that concern as well as accelerating the advance of our current main oil and gold projects," said F. Lynn Blystone, president and chief executive officer.
Tri-Valley is presently focused on developing its Vaca Tar Sands project in the Oxnard, California oilfield where it has developed and successfully tested new technology to produce the heavy oil reservoir at exceptionally high rates and lower costs. Extended test rates indicate the eight horizontal wells could potentially deliver in the range of 500 barrels per day each for weeks after each steaming cycle. Such combined volume requires additional facilities. Funds will be used to retire vendor obligations and to pay for expanded facilities to accommodate the higher production rates.
While the Company continues to raise capital from its project partners for ongoing needs, the velocity of subscriptions fell dramatically after the "meltdown" and is just now beginning to recover in concert with the strengthening oil prices which has encouraged Tri-Valley to initiate a formal raise sufficient to develop its project to profitable status.
Tri-Valley believes that its mineral subsidiary, Select Resources Corporation, has assembled a compelling data package on its Shorty Creek gold project near Livengood, Alaska that will attract a capable joint venture partner to prove up a minable deposit. The data continues an anomalous trend from an adjacent property held by International Tower Hill whose drill program has indicated a resource of up to 6.7 million probable and possible ounces so far. Select will endeavor to drill the strong geo-chem anomalies at Shorty Creek either with some of the capital raised or through a joint venture partner, whichever comes first.
"Tri-Valley has been capital constrained the last two quarters due to investors being impacted by the dramatic global economic shift beginning last fall, but it has a 45-year track record of being able to support its exploration and development even in severely difficult times. The Company has a very strong, cohesive shareholder and project partner base focused, like management, on persevering to add value to Tri-Valley shares and project partner interests. We are all confident that supply, demand and ineffective government policies will assure higher oil prices and government policies will produce strong inflation that will result in higher gold prices. Our oil and gold projects are timely and beneficial in that regard," Blystone said.
He noted the Company had incurred substantial liabilities on behalf of its working interest investors from investing forward in its projects. He also said the Company had not foreseen the length and severity of the global economic crisis and its adverse impact on the rate of new investor subscriptions that would have been be used to extinguish those liabilities. But the nearness of a ramp-up in heavy oil production at Oxnard will allow the Company to improve its balance sheet and restore profitability once sufficient capital is raised. Tri-Valley is interviewing investment banks for assisting in its raise.
Tri-Valley has been in business as a successful operating company since 1963, and has been a full reporting 12 (g) publicly traded Delaware Corporation since 1972. Tri-Valley Corporation stock is publicly traded on the New York Stock Exchange Alternext US under the symbol "TIV." Our company website, which includes all SEC filings, is www.tri-valleycorp.com.
CONTACT:
Egan Gost
Director of Public and Investor Relations
1-800-579-9314
source yahoo
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