Opus I Partnership

In 2002, Tri-Valley created a limited partnership called the OPUS-I Drilling Program LP. The purpose of this partnership was to raise $100 million by selling partnership interests to conduct wildcat exploration. This purpose was amended in 2006 to include development of producing properties of which the partnership now has several.

By year end 2009 the OPUS I partnership had raised approximately $100 million total since inception and had invested it in drilling several non-commercial wells and in acquiring producing properties. Tri-Valley owns 25% of the OPUS-I Program and is the partnership manager as well as the projects operator.

For the year ended December 31, 2008, OPUS I partnership raised $22.1 million for drilling and development and spent $22.8 million primarily on the drilling of seven more horizontal wells on the Pleasant Valley leases in the Oxnard Oil Field and infrastructure expansion and facilities. In addition OPUS spent $2.6 million on the purchase of steam generators and heater treaters for their Pleasant Valley leases, and $4.4 million on additional operations.

At the end of 2005, with the acquisition of Pleasant Valley, Temblor Valley and Moffat Ranch East on behalf of the partnership, it was determined to end the raising of funds for the remainder of exploration plays in favor of capitalizing development of the properties to build production and revenue to achieve a high multiple return to Opus investors rather than continue further exploration risk for the Opus I partners. A new partnership is envisioned for further exploration.