TIV » Topics » Liquidity and Capital Resources

These excerpts taken from the TIV 10-K filed Apr 2, 2009.

Liquidity and Capital Resources

The recoverability of our oil and gas reserves depends on future events, including obtaining adequate financing for our exploration and development program, successfully completing our planned drilling program, and achieving a level of operating revenues that is sufficient to support our cost structure. At various times in our history, it has been necessary for us to raise additional capital through private placements of equity financing. When such a need has arisen, we have met it successfully. It is management’s belief that we will continue to be able to meet our needs for additional capital as such needs arise in the future. We may need additional capital to pay for our share of costs relating to the drilling prospects and development of those that are successful, and to acquire additional oil and gas leases, drilling equipment and other assets. The total amount of our capital needs will be determined in part by the number of prospects generated within our exploration program and by the working interest that we retain in those prospects.

 

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During 2008, we expect to expend approximately $25 million on drilling activities. Funds for the majority of these activities will be provided by sales of partnership interests in the Opus-I drilling partnership, which will still be raising funds for development purposes. Tri-Valley’s portion is expected to be approximately $6 million. We are evaluating and finalizing results of recently drilled Pleasant Valley and Moffat Ranch in order to design the optimum development plan for the property. We expect to drill several wells there in 2008. Our ability to complete our planned drilling activities in 2008 depends on some factors beyond our control, such as availability of equipment and personnel. Our actual capital commitments for fiscal year 2008 are less than $4 million, but to expend $25 million we will require additional capital from the OPUS partnership or other outside parties.

In 2008, we expect expenditures of approximately $ 0.8 million on mining activities, including mining lease and exploration expenses.

Should we choose to make an acquisition of producing oil and gas properties, such an acquisition would likely require that some portion of the purchase price be paid in cash, and thus would create the need for additional capital. Additional capital could be obtained from a combination of funding sources. The potential funding sources include:

 

Cash flow from operating activities,

 

Borrowings from financial institutions (which we typically avoid),

 

Debt offerings, which could increase our leverage and add to our need for cash to service such debt (which we typically avoid),

 

Additional offerings of our equity securities, which would cause dilution of our common stock,

 

Sales of portions of our working interest in the prospects within our exploration program, which would reduce future revenues from its exploration program,

 

Sale to an industry partner of a participation in our exploration program,

 

Sale of all or a portion of our producing oil and gas properties, which would reduce future revenues.

 

Our ability to raise additional capital will depend on the results of our operations and the status of various capital and industry markets at the time such additional capital is sought. Accordingly, there can be no assurances that capital will be available to us from any source or that, if available, it will be on terms acceptable to us. The Company has no off balance sheet arrangements.

Liquidity and Capital Resources



The recoverability of our oil and gas reserves depends on future events, including obtaining adequate financing for our exploration and development program, successfully completing our planned drilling program, and achieving a level of operating revenues that is sufficient to support our cost structure. At various times in our history, it has been necessary for us to raise additional capital through
private placements of equity financing. When such a need has arisen, we have met it successfully. It is management’s belief that we will continue to be able to meet our needs for additional capital as such needs arise in the future. We may need additional capital to pay for our share of costs relating to the drilling prospects and development of those that are successful, and to acquire additional oil and gas leases, drilling equipment and other assets. The total amount of our
capital needs will be determined in part by the number of prospects generated within our exploration program and by the working interest that we retain in those prospects.



 






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During 2008, we expect to expend approximately $25 million on drilling activities. Funds for the majority of these activities will be provided by sales of partnership interests in the Opus-I drilling partnership, which will still be raising funds for development purposes. Tri-Valley’s portion is expected to be approximately $6 million. We are evaluating and finalizing results of recently drilled
Pleasant Valley and Moffat Ranch in order to design the optimum development plan for the property. We expect to drill several wells there in 2008. Our ability to complete our planned drilling activities in 2008 depends on some factors beyond our control, such as availability of equipment and personnel. Our actual capital commitments for fiscal year 2008 are less than $4 million, but to expend $25 million we will require additional capital from the OPUS partnership or other outside
parties.



In 2008, we expect expenditures of approximately $ 0.8 million on mining activities, including mining lease and exploration expenses.



Should we choose to make an acquisition of producing oil and gas properties, such an acquisition would likely require that some portion of the purchase price be paid in cash, and thus would create the need for additional capital. Additional capital could be obtained from a combination of funding sources. The potential funding sources include:













 





Cash flow from operating activities,















 





Borrowings from financial institutions (which we typically avoid),















 





Debt offerings, which could increase our leverage and add to our need for cash to service such debt (which we typically avoid),















 





Additional offerings of our equity securities, which would cause dilution of our common stock,















 





Sales of portions of our working interest in the prospects within our exploration program, which would reduce future revenues from its exploration program,















 





Sale to an industry partner of a participation in our exploration program,















 





Sale of all or a portion of our producing oil and gas properties, which would reduce future revenues.





 



Our ability to raise additional capital will depend on the results of our operations and the status of various capital and industry markets at the time such additional capital is sought. Accordingly, there can be no assurances that capital will be available to us from any source or that, if available, it will be on terms acceptable to us. The Company has no off balance sheet arrangements.



These excerpts taken from the TIV 10-K filed Mar 30, 2009.

Liquidity and Capital Resources

The recoverability of our oil and gas reserves depends on future events, including obtaining adequate financing for our exploration and development program, successfully completing our planned drilling program, and achieving a level of operating revenues that is sufficient to support our cost structure. The Company had a cash balance of $2.0 million as of December 31, 2008 which has subsequently decreased. Current liabilities as of December 31, 2008 were $5.2 million which has subsequently increased. The Company is dependent upon continued capital formation for operating and general and administrative expenses for fiscal 2009.

A primary source for this capital has been investors in the TVOG Opus I Drilling Program LP and the private placement of our common stock. Although we have always been successful in the past at attracting sufficient capital, we do not know – particularly in the current economic climate – if additional financing will be available when needed. Insufficient funds may prevent us from continuing our operations.

The ability of the Company to continue as a going concern is dependent on additional sources of capital and the success of the Company’s plan. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Should we choose to make an acquisition of producing oil and gas properties, such an acquisition would likely require that some portion of the purchase price be paid in cash, and thus would create the need for additional capital. Additional capital could be obtained from a combination of funding sources. The potential funding sources include:

 

Cash flow from operating activities,

 

Borrowings from financial institutions (which we typically avoid),

 

Debt offerings, which could increase our leverage and add to our need for cash to service such debt (which we typically avoid),

 

Additional offerings of our equity securities, which would cause dilution of our common stock,

 

Sales of portions of our working interest in the prospects within our exploration program, which would reduce future revenues from its exploration program,

 

Sale to an industry partner of a participation in our exploration program,

 

Sale of all or a portion of our producing oil and gas properties, which would reduce future revenues.

 

Our ability to raise additional capital will depend on the results of our operations and the status of various capital and industry markets at the time such additional capital is sought. Accordingly, there can be no assurances that capital will be available to us from any source or that, if available, it will be on terms acceptable to us. The Company has no off balance sheet arrangements.

Liquidity and Capital Resources



The recoverability of our oil and gas reserves depends on future events, including obtaining adequate financing for our exploration and development program, successfully completing our planned drilling program, and achieving a level of operating revenues that is sufficient to support our cost structure. The Company had a cash balance of $2.0 million as of December 31, 2008 which has subsequently decreased. Current liabilities as of December 31, 2008 were $5.2 million which has subsequently increased. The Company is dependent upon continued capital formation for operating and general and administrative expenses for fiscal 2009.



A primary source for this capital has been investors in the TVOG Opus I Drilling Program LP and the private placement of our common stock. Although we have always been successful in the past at attracting sufficient capital, we do not know – particularly in the current economic climate – if additional financing will be available when needed. Insufficient funds may prevent us from continuing our operations.



The ability of the Company to continue as a going concern is dependent on additional sources of capital and the success of the Company’s plan. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.



Should we choose to make an acquisition of producing oil and gas properties, such an acquisition would likely require that some portion of the purchase price be paid in cash, and thus would create the need for additional capital. Additional capital could be obtained from a combination of funding sources. The potential funding sources include:











 



Cash flow from operating activities,













 



Borrowings from financial institutions (which we typically avoid),













 



Debt offerings, which could increase our leverage and add to our need for cash to service such debt (which we typically avoid),













 



Additional offerings of our equity securities, which would cause dilution of our common stock,













 



Sales of portions of our working interest in the prospects within our exploration program, which would reduce future revenues from its exploration program,













 



Sale to an industry partner of a participation in our exploration program,













 



Sale of all or a portion of our producing oil and gas properties, which would reduce future revenues.





 



Our ability to raise additional capital will depend on the results of our operations and the status of various capital and industry markets at the time such additional capital is sought. Accordingly, there can be no assurances that capital will be available to us from any source or that, if available, it will be on terms acceptable to us. The Company has no off balance sheet arrangements.



This excerpt taken from the TIV 10-K filed Nov 13, 2007.

Liquidity and Capital Resources

 

The recoverability of our oil and gas reserves depends on future events, including obtaining adequate financing for our exploration and development program, successfully completing our planned drilling program, and achieving a level of operating revenues that is sufficient to support our cost structure. At various times in our history, it has been necessary for us to raise additional capital through private placements of equity financing. When such a need has arisen, we have met it successfully. It is management’s belief that we will continue to be able to meet our needs for additional capital as such needs arise in the future. We may need additional capital to pay for our share of costs relating to the drilling prospects and development of those that are successful, and to acquire additional oil and gas leases, drilling equipment and other assets. The total amount of our capital needs will be determined in part by the number of prospects generated within our exploration program and by the working interest that we retain in those prospects.

 

During 2007, we expect to expend approximately $27 million on drilling activities. Funds for the majority of these activities will be provided by sales of partnership interests in the Opus-I drilling partnership, which will still be raising funds for development purposes. Tri-Valley’s portion is expected to be approximately $7 million. We are finalizing results of four recent development test wells on our Temblor West producing property adjoining the South Belridge oil field in order to design the optimum development plan for the property. We expect to drill several wells there in 2007. Also, at our Pleasant Valley property in the Oxnard oilfield we project one vertical development test well, one horizontal injector and one horizontal producer in 2007. We will drill at least one shallow well in the Moffat Ranch East gas field and one deep wildcat exploration well for an aggregate expenditure in the range of $30 million of which Tri-Valley’s share will be in the range of $7 million as most of the expense will be carried by joint venture partners. Our ability to complete our planned drilling activities in 2007 depends on some factors beyond our control, such as availability of equipment and personnel. Our actual capital commitments for fiscal year 2007 are less than $3 million, but to expend $ 27 million we will require additional capital from the OPUS partnership or other outside parties.

 

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In 2007, we expect expenditures of approximately $ 1.8 million on mining activities, including mining lease and exploration expenses. We believe that proceeds from the sale of our interest in Tri-Western Resources are more than sufficient to fund our remaining mining activities as well as our operating capital needs for the balance of 2007.

 

Should we choose to make an acquisition of producing oil and gas properties, such an acquisition would likely require that some portion of the purchase price be paid in cash, and thus would create the need for additional capital. Additional capital could be obtained from a combination of funding sources. The potential funding sources include:

 

 

Cash flow from operating activities,

 

Borrowings from financial institutions (which we typically avoid),

 

Debt offerings, which could increase our leverage and add to our need for cash to service such debt (which we typically avoid),

 

Additional offerings of our equity securities, which would cause dilution of our common stock,

 

Sales of portions of our working interest in the prospects within our exploration program, which would reduce future revenues from its exploration program,

 

Sale to an industry partner of a participation in our exploration program,

 

Sale of all or a portion of our producing oil and gas properties, which would reduce future revenues.

 

Our ability to raise additional capital will depend on the results of our operations and the status of various capital and industry markets at the time such additional capital is sought. Accordingly, there can be no assurances that capital will be available to us from any source or that, if available, it will be on terms acceptable to us. The Company has no off balance sheet arrangements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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