Property Descriptions

Pleasant Valley:
This property lies in Ventura County in the Oxnard Oil Field in an area we call Pleasant Valley. During 2007, we initiated thermal development of the heavy oil Upper Vaca Tar Sands by commencing the drilling of seven additional horizontal wells completing the drilling in April 2008 followed by initiating cyclic steam production operations on the wells and steaming them on a cyclical basis. After several such steam/soak/produce cycles, some of the well bores produced at short term test rates over 1,000 barrels of oil per day and are presently constrained until infrastructure and handling facilities can be expanded.

Other key operational activity includes the ongoing procurement and refurbishment of a steam generator fleet, which now includes 18 units, to support our thermal, heavy oil developments. Four of these units were restored to field-ready status and have been mobilized and are currently being used in our field developments at Pleasant Valley.

Temblor Valley West/South Belridge Field:
Our South Belridge lease includes 50 wells, 28 producing, 18 idle and 4 injector wells, plus five new drill wells over the last two years, the Lundin-Weber D352-30, D540-30, D344-30, D188-30, and D24-30 which served to extend the known oil bearing formations to the west by over a half mile. The latter three wells were drilled in 2007. In mid-2007, two of these wells, D-352-30 and D-344-30, supported a regulatory-approved cyclic steam stimulation pilot in the Diatomite zone utilizing two of our recently refurbished, and company owned steam generators. A small-scale waterflood pilot in the Etchegoin formation was also initiated in mid-2007 including the conversion of two wells to injector service to evaluate incremental recovery potential and water movement prior to a planned waterflood expansion. Well test facilities were also installed and upgraded in 2007 to support the evaluation of pilot project production. Several idle wells were also returned to production in 2007, which included remedial well work to upgrade several wellbores to support our pilot operations.

In 2008, we continued to further evaluate the waterflood potential via sustained and filtered injection and the injection of radioactive tracers to pinpoint water movement and waterflood efficiency. We worked on a detailed design to expand the waterflood operation. The objective of the water flood is the potential recovery of some 2.5 million barrels of oil from the Etchegoin zone. In 2008, we did additional Diatomite cyclic steaming operations of uphole intervals and production tests on other Etchegoin and Tulare formations in our five most recently drilled wells. If results from our waterflood and/or cyclic steaming projects are favorable, additional drilling and facility upgrades in the field and procurement of a permanent water or steam source may follow. In 2009 we plan a steam test of the top of the Tulare Zone.

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Temblor Valley East/Edison Oil Field:
This property consists of four separate leases in the Edison and Edison Grove Fields consisting of 31 total wells. It includes the Shields & Arms area, consisting of 7 wells including 3 producers, 1 injector, and 3 idle wells. In late 2007, all three current producers were restored to full-time production service and water injection was diverted to lower intervals to boost production. In 2009, we plan to continue to restore production to the other producing leases which include 24 idle wells.

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Ekho
In 2005, we successfully hydraulically fractured the Ekho #1 well in the Vedder Zone of completion in the interval between 18,018 feet and 18,525 feet injecting approximately 5,000 barrels of fluid, which carried approximately 118,000-pounds of bauxite propping material. While very successful mechanically, the operation did not result in the well producing hydrocarbons at commercial rates. This well still has multiple targets to evaluate further up the hole. We have been reviewing the resulting data from the fracturing operation both internally and with outside firms and believe the potential reserve of the Vedder Zone cannot be commercially produced. Accordingly, we plan to come up hole and complete the next oil-bearing zone, the Santos Shale from 17,500 feet to 18,000 feet as funds permit.

We hold approximately 17,000 acres in Nevada, all chosen from proprietary data as prospective for oil and gas exploration. We have producing interests in gas fields in the Sacramento Valley of Northern California including the Rio Vista and Dutch Slough Gas Fields. In 2007, we performed remedial rig work on the top Rio Vista producing well, which served to more than double historical production rates from the well/field. Our 2009 plans include additional work on our Rio Vista gas wells to boost gas production.

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Oil King
The Oil King Project is a very large exploration target located in California’s Great Central Valley, a region that already hosts four different billion barrel oil fields and 22 others that have produced more than 100 MMBOE. Presently the Project is being leased.

The drilling and leasehold planning is currently underway in support of a 2008 deep well to approximately 15,500'. Drilling rigs capable of drilling this deeper well have been identified.

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Railroad Valley
Tri-Valley has three large oil projects totaling 11,000 acres in the Railroad Valley, located in eastern Nevada. These projects are targeting the Devonian carbonates that have been completed elsewhere in Eastern Nevada and Western Utah. For this project, Tri-Valley intends to use its own rig (Rig 2000) and its own crews in between contract assignments with other operators.

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