Claflin

The Claflin project is located in the Racetrack Hill Area of the Edison Field near Bakersfield, California, in Kern County.  Tri-Valley holds a 100% working interest and an 87.5% net revenue interest on this three-parcel leasehold. In 2010, we started up oil production at four of eight existing wells. We plan to acquire new 3-D seismic data and drill up to 22 new wells at Claflin during 2011, including nine horizontal wells and 13 vertical wells, and we plan to upgrade the existing facilities on the lease. We anticipate the majority of these wells will be producing by year-end 2011, using CSS to produce the oil. These additional wells at the Claflin project should significantly increase total production, and the 100% working interest ownership makes it especially attractive for Tri-Valley.

We also own the adjoining Brea lease which will be developed after Claflin development is completed.  Tri-Valley has a 100% working interest and an 83.3% net revenue interest in the Brea property.