**Tri-Valley      Corporation**

**    Delaware**
**84-0617433**

**4550      California Avenue, Suite 600, Bakersfield, California      93309**

**(661)      864-0500 **

|                     |                                                                      | Page                                                                                                               |   |
|--------------------------|---------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------|--------|
|                     |                                                                      |                                                                                                               |   |
| PART                I -  | FINANCIAL                INFORMATION                                      |             3                                          |   |
|                     |                                                                      |                                                                                                               |   |
| Item                1.   | Consolidated                Financial Statements                          |             3                                          |   |
|                     |                                                                      |                                                                                                               |   |
| Item                2.   | Management's                Discussion and Analysis of Financial          |                                                                                                               |   |
|                     | Condition                and Results of Operations                        |                                 14 |   |
|                     |                                                                      |                                                                                                               |   |
| Item                3.   | Quantitative                and Qualitative Disclosures about Market Risk |                                 17 |   |
|                     |                                                                      |                                                                                                               |   |
| Item                4.   | Controls                and Procedures                                    | 17                                                                                                                 |   |
|                     |                                                                      |                                                                                                               |   |
| PART                II - | OTHER                INFORMATION                                          | 18                                                                                                                 |   |
|                     |                                                                      |                                                                                                               |   |
| Item                1A.  | Risk                Factors                                               | 18                                                                                                                 |   |
|                     |                                                                      |                                                                                                               |   |
| Item                2.   | Unregistered                Sales of Equity Securities                    | 18                                                                                                                 |   |
|                     |                                                                      |                                                                                                               |   |
| Item                6.   | Exhibits                                                                  | 18                                                                                                                 |   |
|                     |                                                                      |                                                                                                               |   |
| SIGNATURES               |                                                                      | 19                                                                                                                 |   |
|                     |                                                                      |                                                                                                               |   |

----

**Part      I - FINANCIAL INFORMATION**

**TRI-VALLEY      CORPORATION**

**CONSOLIDATED      BALANCE SHEETS**

**ASSETS**

|                                               |   | June                30, |       | December                31, |   |
|----------------------------------------------------|--------|-------------------------|------------|-----------------------------|--------|
|                                               |   | 2007                    |       | 2006                        |   |
|                                               |   | (Unaudited)             |       | (Audited)                   |   |
|                                               |   |               |       |                   |   |
| Current                assets                      |   |                    |       |                        |   |   |   |
| Cash                                               |   | $                       | 15,563,143 |                        | $      | 15,598,215 |   |
| Accounts                receivable, trade          |   |                    | 446,539    |                        |   | 377,278 |   |
| Prepaid                expenses                    |   |                    | 411,410    |                        |   | 42,529 |   |
|                                               |   |                    |       |                        |   |   |   |
| Total                current assets                |   |                    | 16,421,092 |                        |   | 16,018,022 |   |
|                                               |   |                    |       |                        |   |   |   |
| Property                and equipment, net         |   |                    |       |                        |   |   |   |
| Proved                properties                   |   |                    | 1,345,591  |                        |   | 1,407,925 |   |
| Unproved                properties                 |   |                    | 2,715,988  |                        |   | 2,792,340 |   |
| Rigs                                               |   |                    | 6,331,001  |                        |   | 5,371,593 |   |
| Other                property and equipment        |   |                    | 3,465,951  |                        |   | 2,504,185 |   |
|                                               |   |                    |       |                        |   |   |   |
| Total                property and equipment, net   |   |                    | 13,858,531 |                        |   | 12,076,043 |   |
|                                               |   |                    |       |                        |   |   |   |
| Other                assets                        |   |                    |       |                        |   |   |   |
| Deposits                                           |   |                    | 159,833    |                        |   | 309,833 |   |
| Investments                in partnerships         |   |                    | 17,400     |                        |   | 17,400 |   |
| Investment                in marketable securities |   |                    | 380,000    |                        |   | - |   |
| Goodwill                                           |   |                    | 212,414    |                        |   | 212,414 |   |
| Other                                              |   |                    | 20,413     |                        |   | 20,413 |   |
|                                               |   |                    |       |                        |   |   |   |
| Total                other assets                  |   |                    | 790,060    |                        |   | 560,060 |   |
|                                               |   |                    |       |                        |   |   |   |
| **Total                assets**                    |   | $                       | 31,069,683 |                        | $      | 28,654,125 |   |

----

**LIABILITIES      AND STOCKHOLDERS' EQUITY**

|                                                                                                                                            |   | June                30, |        | December                31, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|-------------|-----------------------------|--------|
|                                                                                                                                            |   | 2007                    |        | 2006                        |   |
|                                                                                                                                            |   | (Unaudited)             |        | (Audited)                   |   |
| Current                liabilities                                                                                                              |   |                    |        |                        |   |
| Notes                payable                                                                                                                    |   | $                       | 369,181     |                        | $      | 619,069 |   |
| Notes                payable - related parties                                                                                                  |   |                    | 53,112      |                        |   | 501,036 |   |
| Accounts                payable and accrued expenses                                                                                            |   |                    | 1,995,438   |                        |   | 2,237,116 |   |
| Amounts                payable to joint venture participants                                                                                    |   |                    | 138,609     |                        |   | 280,815 |   |
| Advances                from joint venture participants, net                                                                                    |   |                    | 8,569,985   |                        |   | 5,408,909 |   |
|                                                                                                                                            |   |                    |        |                        |   |   |   |
| Total                current liabilities                                                                                                        |   |                    | 11,126,325  |                        |   | 9,046,945 |   |
|                                                                                                                                            |   |                    |        |                        |   |   |   |
| Non-Current                Liabilities                                                                                                          |   |                    |        |                        |   |   |   |
| Asset                retirement obligation                                                                                                      |   |                    | 228,714     |                        |   | 216,714 |   |
| Long-term                portion of notes payable - related parties                                                                             |   |                    | 671,879     |                        |   | 698,963 |   |
| Long-term                portion of notes payable                                                                                               |   |                    | 2,071,125   |                        |   | 2,047,885 |   |
|                                                                                                                                            |   |                    |        |                        |   |   |   |
| Total                non-current liabilities                                                                                                    |   |                    | 2,971,718   |                        |   | 2,963,562 |   |
|                                                                                                                                            |   |                    |        |                        |   |   |   |
| Total                liabilities                                                                                                                |   |                    | 14,098,043  |                        |   | 12,010,507 |   |
|                                                                                                                                            |   |                    |        |                        |   |   |   |
| Stockholders'                equity                                                                                                             |   |                    |        |                        |   |   |   |
| Common                stock, $.001 par value; 100,000,000 shares                                                                                |   |                    |        |                        |   |   |   |
| authorized;                24,642,786 and 23,546,655 issued and                                                                                 |   |                    |        |                        |   |   |   |
| outstanding                at June 30, 2007, and December 31,                                                                                   |   |                    |        |                        |   |   |   |
| 2006,                respectively                                                                                                               |   |                    | 24,502      |                        |   | 23,407 |   |
| Less:                common stock in treasury, at cost,                                                                                         |   |                    |        |                        |   |   |   |
| 100,025                shares                                                                                                                   |   |                    | (13,370     | )                           |   | (13,370 | ) |
| Capital                in excess of par value                                                                                                   |   |                    | 34,808,802  |                        |   | 28,692,780 |   |
| Additional                paid in capital - warrants                                                                                            |   |                    | 905,713     |                        |   | 247,313 |   |
| Additional                paid in capital - stock options                                                                                       |   |                    | 1,758,951   |                        |   | 1,262,404 |   |
| Additional                paid in capital - Great Valley Drilling Company, LLC and Great Valley                Production Services Company, LLC |   |                    | 3,543,534   |                        |   | 5,438,087 |   |
| Accumulated                deficit                                                                                                              |   |                    | (24,056,492 | )                           |   | (19,007,003 | ) |
|                                                                                                                                            |   |                    |        |                        |   |   |   |
| Total                stockholders' equity                                                                                                       |   |                    | 16,971,640  |                        |   | 16,643,618 |   |
|                                                                                                                                            |   |                    |        |                        |   |   |   |
| **Total                liabilities and stockholder's equity**                                                                                   |   | $                       | 31,069,683  |                        | $      | 28,654,125 |   |

----

**TRI-VALLEY      CORPORATION**

**CONSOLIDATED      STATEMENTS OF OPERATIONS**

|                                                                                                           |   | For                the Three Months |       | For                the Six Months |   |
|----------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|------------|-----------------------------------|--------|
|                                                                                                           |   | Ended                June 30        |       | Ended                June 30      |   |
|                                                                                                           |   | 2007                                |       | 2006                              |   | 2007 |   | 2006 |   |
| Revenues                                                                                                       |   |                                |       |                              |   |   |   |   |   |
| Sale                of oil and gas                                                                             |   | $                                   | 168,015    |                              | $      | 291,255 |   | $ | 332,201 |   | $ | 609,977 |   |
| Rig                income                                                                                      |   |                                | 560,366    |                              |   | - |   |   | 1,810,869 |   |   | - |   |
| Drilling                & Development                                                                      |   |                                | -          |                              |   | 559,556 |   |   | - |   |   | 559,556 |   |
| Other                income                                                                                    |   |                                | 571,329    |                              |   | 70,325 |   |   | 672,940 |   |   | 104,773 |   |
| Interest                income                                                                                 |   |                                | 106,240    |                              |   | 6,080 |   |   | 200,307 |   |   | 11,937 |   |
| Total                Revenues                                                                                  |   |                                | 1,405,950  |                              |   | 927,216 |   |   | 3,016,317 |   |   | 1,286,243 |   |
|                                                                                                           |   |                                |       |                              |   |   |   |   |   |   |   |   |   |
| Costs                and expenses                                                                              |   |                                |       |                              |   |   |   |   |   |   |   |   |   |
| Oil                and gas lease expense                                                                       |   |                                | 116,098    |                              |   | 45,348 |   |   | 204,493 |   |   | 102,762 |   |
| Mining                exploration expenses                                                                     |   |                                | 45,662     |                              |   | 77,306 |   |   | 113,152 |   |   | 277,893 |   |
| Drilling                and development                                                                        |   |                                | 625,593    |                              |   | 426,847 |   |   | 858,089 |   |   | 469,409 |   |
| Rig                operations                                                                                  |   |                                | 335,450    |                              |   | - |   |   | 780,008 |   |   | - |   |
| Depletion,                depreciation and amortization                                                        |   |                                | 233,194    |                              |   | 111,076 |   |   | 486,317 |   |   | 222,744 |   |
| Interest                                                                                                       |   |                                | 71,770     |                              |   | 97,327 |   |   | 148,666 |   |   | 180,368 |   |
| Impairment                loss                                                                                 |   |                                | -          |                              |   | - |   |   | 246,862 |   |   | 458,564 |   |
| General                and administrative                                                                      |   |                                | 2,767,609  |                              |   | 1,721,366 |   |   | 5,228,219 |   |   | 2,627,279 |   |
|                                                                                                           |   |                                |       |                              |   |   |   |   |   |   |   |   |   |
| Total                costs and expenses                                                                        |   |                                | 4,195,376  |                              |   | 2,479,270 |   |   | 8,065,806 |   |   | 4,339,019 |   |
|                                                                                                           |   |                                |       |                              |   |   |   |   |   |   |   |   |   |
| Loss                from continuing operations, before income taxes and discontinued                operations |   |                                | (2,789,426 | )                                 |   | (1,552,054 | ) |   | (5,049,489 | ) |   | (3,052,776 | ) |
| Tax                provision                                                                                   |   |                                | -          |                              |   | - |   |   | - |   |   | - |   |
|                                                                                                           |   |                                |       |                              |   |   |   |   |   |   |   |   |   |
| Loss                from continuing operations, before discontinued                                            |   |                                |       |                              |   |   |   |   |   |   |   |   |   |
| operations                                                                                                     |   |                                | (2,789,426 | )                                 |   | (1,552,054 | ) |   | (5,049,489 | ) |   | (3,052,776 | ) |
|                                                                                                           |   |                                |       |                              |   |   |   |   |   |   |   |   |   |
| Loss                from discontinued operations                                                               |   |                                | -          |                              |   | (1,668,125 | ) |   | - |   |   | (3,251,510 | ) |
|                                                                                                           |   |                                |       |                              |   |   |   |   |   |   |   |   |   |
| Net                Income (Loss)                                                                               |   | $                                   | (2,789,426 | )                                 | $      | (3,240,179 | ) | $ | (5,049,489 | ) | $ | (6,304,286 | ) |
|                                                                                                           |   |                                |       |                              |   |   |   |   |   |   |   |   |   |
| Basic                net loss per share:                                                                       |   |                                |       |                              |   |   |   |   |   |   |   |   |   |
| Loss                from continuing operations                                                                 |   | $                                   | (.11       | )                                 | $      | (.07 | ) | $ | (.20 | ) | $ | (.14 | ) |
| Income                (loss) from discontinued operations, net                                                 |   | $                                   | -          |                              | $      | (.07 | ) | $ | - |   | $ | (.13 | ) |
| Basic                loss per common share                                                                     |   | $                                   | (.11       | )                                 | $      | (.14 | ) | $ | (.20 | ) | $ | (.27 | ) |
|                                                                                                           |   |                                |       |                              |   |   |   |   |   |   |   |   |   |
| Weighted                average number of shares                                                               |   |                                | 24,627,121 |                              |   | 23,067,509 |   |   | 24,278,448 |   |   | 23,196,116 |   |
|                                                                                                           |   |                                |       |                              |   |   |   |   |   |   |   |   |   |
| Potentially                dilutive shares outstanding                                                         |   |                                | 28,032,887 |                              |   | 25,824,234 |   |   | 27,555,100 |   |   | 26,059,022 |   |

----

**TRI-VALLEY      CORPORATION**

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

|                                                                                                                       |   | For                the Six Months |       |
|----------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|------------|
|                                                                                                                       |   | Ended                June 30,     |       |
|                                                                                                                       |   | 2007                              |       | 2006 |   |
| Cash                Flows from Operating Activities                                                                        |   |                              |       |   |   |   |   |
| Net                loss                                                                                                    |   | $                                 | (5,049,489 | ) | $ | (6,304,286 | ) |
| Loss                from discontinued operations                                                                           |   |                              | -          |   |   | (3,251,510 | ) |
| Loss                from continuing operations                                                                             |   | $                                 | (5,049,489 | ) |   | (3,052,776 | ) |
|                                                                                                                       |   |                              |       |   |   |   |   |
| Adjustments                to reconcile net income to net cash used from operating                activities:              |   |                              |       |   |   |   |   |
| Depreciation,                depletion and amortization                                                                    |   |                              | 486,317    |   |   | 222,744 |   |
| Impairment,                dry hole and other disposals of property                                                        |   |                              | 258,862    |   |   | 458,564 |   |
| Stock                options                                                                                               |   |                              | 653,210    |   |   | 577,420 |   |
| Warrants                                                                                                                   |   |                              | 316,852    |   |   | - |   |
| Changes                in operating capital:                                                                               |   |                              |       |   |   |   |   |
| Prepaids-(increase)                decrease                                                                                |   |                              | (368,881   | ) |   | - |   |
| Deposits-(increase)                decrease                                                                                |   |                              | 150,000    |   |   | (105,037 | ) |
| Accounts                receivable-(increase) decrease                                                                     |   |                              | (69,261    | ) |   | (3,607 | ) |
| Trade                accounts payable-increase (decrease)                                                                  |   |                              | (939,490   | ) |   | 1,166,566 |   |
| Advances                from Great Valley Drilling, LLC-increase (decrease)                                                |   |                              | -          |   |   |   |   |
| Accounts                payable to joint venture                                                                           |   |                              |       |   |   |   |   |
| participants                and related parties-increase (decrease)                                                        |   |                              | (142,206   | ) |   | 95,669 |   |
| Advances                from joint venture participants - increase (decrease)                                              |   |                              | 3,161,076  |   |   | (363,726 | ) |
|                                                                                                                       |   |                              |       |   |   |   |   |
| Net                cash provided (used in) continuing operations                                                           |   |                              | (1,543,010 | ) |   | (1,004,183 | ) |
| Net                cash provided by (used in) discontinued operations                                                      |   |                              | -          |   |   | (1,928,877 | ) |
| **Net                cash provided (used) by operating activities**                                                        |   |                              | (1,543,010 | ) |   | (2,933,060 | ) |
|                                                                                                                       |   |                              |       |   |   |   |   |
| Cash                Flows from Investing Activities:                                                                       |   |                              |       |   |   |   |   |
| Capital                expenditures                                                                                        |   |                              | (2,515,667 | ) |   | (2,880,640 | ) |
| Investment                in marketable securities                                                                         |   |                              | (380,000   | ) |   | - |   |
| Repurchase                of minority interest in GVDC/GVPS                                                                |   |                              | (1,494,000 | ) |   | - |   |
|                                                                                                                       |   |                              |       |   |   |   |   |
| Net                cash provided by (used in) continuing operations                                                        |   |                              | (4,389,667 | ) |   | (860,375 | ) |
| Net                cash provided by (used in) discontinued operations                                                      |   |                              | -          |   |   | (2,020,265 | ) |
|                                                                                                                       |   |                              |       |   |   |   |   |
| **Net                Cash Provided (Used) by Investing Activities**                                                        |   |                              | (4,389,667 | ) |   | (2,880,640 | ) |
|                                                                                                                       |   |                              |       |   |   |   |   |
| Cash                Flows from Financing Activities                                                                        |   |                              |       |   |   |   |   |
| Proceeds                from long-term debt                                                                                |   |                              | -          |   |   | 1,298,628 |   |
| Principal                payments on long-term debt                                                                        |   |                              | (3,847     | ) |   | (477,468 | ) |
| Net                proceeds from additional paid in capital - stock options                                                |   |                              | 496,547    |   |   | - |   |
| Net                proceeds from additional paid in capital - warrants                                                     |   |                              | 658,400    |   |   | - |   |
| Net                proceeds from additional paid in capital - Great Valley Drilling/Great                Valley Production |   |                              | (400,551   | ) |   | 3,813,840 |   |
| Stock                issuance costs                                                                                        |   |                              | (787,900   | ) |   | - |   |
| Proceeds                from issuance of common stock                                                                      |   |                              | 5,934,956  |   |   | 1,152,511 |   |
|                                                                                                                       |   |                              |       |   |   |   |   |
| Net                cash provided by (used in) continuing operations                                                        |   |                              | 5,897,605  |   |   | 5,787,511 |   |
| Net                cash provided by (used in) discontinued operations                                                      |   |                              | -          |   |   | - |   |
|                                                                                                                       |   |                              |       |   |   |   |   |
| **Net                Cash Provided (Used) by Financing Activities**                                                        |   |                              | 5,897,605  |   |   | 5,787,511 |   |

----

**TRI-VALLEY      CORPORATION**

**CONSOLIDATED      STATEMENTS OF CASH FLOWS (Continued)**

|                                                                  |   |   |       |   |   |      |   |
|-----------------------------------------------------------------------|--------|--------|------------|--------|--------|-----------|--------|
| **Net                Increase in Cash and Cash Equivalents**          |   |   | (35,072    | )      |   | (26,189   | )      |
| Cash                and Cash Equivalents at Beginning of Period  |   |   | 15,598,215 |   |   | 4,876,921 |   |
|                                                                  |   |   |       |   |   |      |   |
| Cash                and Cash Equivalents at End of Period             |   | $      | 15,563,143 |   | $      | 4,850,732 |   |
|                                                                  |   |   |       |   |   |      |   |
| Supplemental                Information:                              |   |   |       |   |   |      |   |
| Cash                paid for interest                                 |   | $      | 148,667    |   | $      | 336,860   |   |
| Cash                paid for taxes                                    |   | $      | -          |   | $      | -         |   |

----

**TRI-VALLEY      CORPORATION**

**NOTES      TO CONDENSED FINANCIAL STATEMENTS**

**FOR      THE SIX MONTHS ENDED**

**June      30, 2007 and 2006**

**NOTE      1 - DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION**

| ·   | Tri-Valley                Oil & Gas Company (“TVOG”) operates the oil & gas activities. TVOG                derives the majority of its revenue from oil and gas drilling and                turnkey                development. TVOG primarily generates its own exploration prospects                from                its internal database, and also screens prospects from other geologists                and companies. TVOG generates these geological “plays” within a certain                geographic area of mutual interest. The prospect is then presented                to                potential co-ventures. The company deals with both accredited individual                investors and energy industry companies. TVOG serves as the operator                of                these co-ventures. TVOG operates both the oil and gas production                segment                and the drilling and development segment of our business                lines. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Select                Resources Corporation (“Select”) was created in late 2004 to manage, grow                and operate Tri-Valley’s mineral interests. Select operates the minerals                segment of our business lines. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Great                Valley Production Services, LLC, (“GVPS”) was formed in 2006 to operate                oil production services, well work over and drilling rigs, primarily                for                TVOG. However, from time to time TVOG may contract various units                to third                parties when not immediately needed for TVOG projects. Tri-Valley                has                retained 54% of the ownership interest and the remainder is owned                by                private parties. Operations began in the third quarter of 2006. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Great                Valley Drilling Company, LLC (“GVDC”) was formed in 2006 to operate oil                drilling rigs, primarily in Nevada where Tri-Valley has 17,000 acres                of                prospective oil leases. However, because rig availability is scarce                in                Nevada, GVDC has an opportunity to do contract drilling for third                parties                in both petroleum and geothermal projects. For the time being GVDC,                whose                operation began in the first quarter of 2007, expects its primary                activity                will be contract drilling for third parties. TVC exercised its option                to                buy back the minority interest in GVDC in May 2007 and the buy back                was                finalized by the end of June 2007. The cost to buy back the minority                interest was $1,319,040. GVDC is now 100% owned by TVC. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Tri-Valley                Power Corporation is inactive at the present                time. |
|--------------------|---------------------------------------------------------------------------------------------|

----

**NOTE      2 - PER SHARE COMPUTATIONS**

**NOTE      3 - SUMMARY OF RECENTLY ISSUED ACCOUNTING PRONOUCEMENTS**

*“Accounting      for Uncertainty in Income Taxes*

*“Fair      Value Measurements.”*

*Considering      the Effects of Prior Year Misstatements when Quantifying Misstatements in      Current Year Financial Statements*

----

**NOTE      3 - RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS (Continued)**

*The      Fair Value Option for Financial Assets and Financial      Liabilities*

**NOTE      4 - INVESTMENT**

*Accounting      for Certain Investments in Debt and Equity Securities*

|                                | June                30, 2007 |
|-------------------------------------|------------------------------|
|                                |                         |
| Net                cost of equities | $                380,000     |
| Unrealized                Gains     | --                           |
| Unrealized                Losses    | --                           |
|                                |                         |
| Fair                Market Value    | $                380,000     |
|                                |                         |

*“Foreign      Currency Translation*

----

**NOTE      5 - CHANGES IN SECURITIES**

*Accounting      for Convertible Debt and Debt issued with Stock Purchase Warrants (APB14)*
*Accounting      for Convertible Securities with Beneficial Conversion Features or Contingently      Adjustable Conversion Ratios, (EITF 98-5) *
*Application      of Issue No 98-5 to Certain Convertible Instruments and (EITF 00-27.*
      convertible instruments using the Black-Scholes valuation method, using the      same      assumptions used for valuing employee options for purposes of SFAS No. 123R,      except that the expected life of the warrant is used. * *Under      these guidelines, the Company allocates the value of the proceeds received.      The      price allocated for the warrants is calculated by subtracting the current market      price of the stock from the total proceeds of the sale of the restricted stock      with the warrant attached. The allocated fair value is recorded as capital      paid      in - warrants. This allocated fair value of the proceeds from the sale of      warrants is subtracted from the value of the warrants using the Black-Scholes      valuation method to calculate the stock issuance expense. 

**NOTE      6 - STOCK BASED COMPENSATION EXPENSE**

----

**NOTE      7 - FINANCIAL INFORMATION RELATING TO INDUSTRY SEGMENTS**

*“Disclosure      about Segments of an Enterprise and Related Information”.*

|                                                     |   |  Six                Months Ended June 30, 2007 |       | Six                Months Ended June 30, 2006 |   |
|----------------------------------------------------------|--------|-----------------------------------------------------|------------|-----------------------------------------------|--------|
|                                                     |   |                                           |       |                                          |   |
| **Sales                and Other Operating Revenues**    |   |                                                |       |                                          |   |   |   |
| Oil                & Gas                             |   | $                                                   | 332,201    |                                          | $      | 609,977 |   |
| Rigs                                                     |   |                                                | 1,810,869  |                                          |   | - |   |
| Minerals                                                 |   |                                                | 473,050    |                                          |   | 61,861 |   |
| Drilling                and Development                  |   |                                                | -          |                                          |   | 559,556 |   |
| Other                Income                              |   |                                                | 199,890    |                                          |   | 42,912 |   |
| Interest                Income                           |   |                                                | 200,307    |                                          |   | 11,937 |   |
|                                                     |   |                                                |       |                                          |   |   |   |
| Consolidated                Sales and Operating Revenues |   |                                                | 3,016,317  |                                          |   | 1,286,243 |   |
|                                                     |   |                                                |       |                                          |   |   |   |
|                                                     |   |                                                |       |                                          |   |   |   |
| **Net                Income (Loss)**                     |   |                                                |       |                                          |   |   |   |
| Oil                & Gas                             |   | $                                                   | (4,688,902 | )                                             | $      | (2,222,674 | ) |
| Rigs                                                     |   |                                                | (209,431   | )                                             |   | (317,635 | ) |
| Minerals                                                 |   |                                                | (151,156   | )                                             |   | (3,854,124 | ) |
| Drilling                and Development                  |   |                                                | -          |                                          |   | 90,147 |   |
|                                                     |   |                                                |       |                                          |   |   |   |
| Consolidated                Net Income (Loss)            |   | $                                                   | (5,049,489 | )                                             | $      | (6,304,286 | ) |
|                                                     |   |                                                |       |                                          |   |   |   |
|                                                     |   |                                                |       |                                          |   |   |   |
|                                                     |   |                                                |       |                                          |   |   |   |
|  June                30, 2007                       |   |                                                |       |                                          |   | December                31, 2006 |   |
|                                                     |   |                                                |       |                                          |   |   |   |
| **Total                Assets**                          |   |                                                |       |                                          |   |   |   |
| Oil                & Gas                             |   | $                                                   | 21,005,182 |                                          | $      | 18,517,488 |   |
| Rigs                                                     |   |                                                | 7,524,315  |                                          |   | 7,853,046 |   |
| Minerals                                                 |   |                                                | 2,540,186  |                                          |   | 2,283,591 |   |
| Drilling                and Development                  |   |                                                | -          |                                          |   | - |   |
|                                                     |   |                                                |       |                                          |   |   |   |
| Consolidated                Total Assets                 |   | $                                                   | 31,069,683 |                                          | $      | 28,654,125 |   |
|                                                     |   |                                                |       |                                          |   |   |   |

----

**NOTE      8 -**
**      INCOME TAXES**

|                                             |   | December                31, |       | June                30, |   |
|--------------------------------------------------|--------|-----------------------------|------------|-------------------------|--------|
|                                             |   | 2006                        |       | 2007                    |   |
|                                             |   |                        |       |                    |   |
| Deferred                tax assets:              |   |                        |       |                    |   |   |   |
| Net                operating loss carryforwards  |   | $                           | 5,398,000  |                    | $      | 5,520,000 |   |
| Statutory                depletion carryforwards |   |                        | 496,000    |                    |   | 496,000 |   |
|                                             |   |                        |       |                    |   |   |   |
| Total                deferred tax assets         |   |                        | 5,894,000  |                    |   | 6,016,000 |   |
| Valuation                allowance               |   |                        | (5,894,000 | )                       |   | (6,016,000 | ) |
|                                             |   |                        |       |                    |   |   |   |
| **Net                deferred tax assets**       |   | **$**                       | **-**      |                    | **$**  | **-** |   |

|                                                                     |   | December                31, |     | June                30, |   |
|--------------------------------------------------------------------------|--------|-----------------------------|----------|-------------------------|--------|
|                                                                     |   | 2006                        |     | 2007                    |   |
| Income                (loss) before tax                                  |   | $                           | (940,512 | )                       | $      | (5,049,489 | ) |
|                                                                     |   |                        |     |                    |   |   |   |
| Computed                "expected" tax (benefit)                         |   | $                           | (376,000 | )                       | $      | (2,020,000 | ) |
| State                tax liability                                       |   |                        | -        |                    |   | - |   |
|                                                                     |   |                        |     |                    |   |   |   |
| Utilization                (non-utilization) of operating loss carryover |   |                        | 376,000  |                    |   | 2,020,000 |   |
| **Total                income tax provision**                            |   | **$**                       | **-**    |                    | **$**  | **-** |   |

----

**Item      2. **
**Management's      Discussion and Analysis of Financial Condition and Results of      Operations**

**Business      Review**

**Oil      and Gas Operations**

**Rig      Operations**

**Mining      Activities**

**Results      of Operations**

----

**Item      3. Quantitative and Qualitative Disclosures about Market      Risk**

**Item      4. Controls and Procedures**

**PART      II - OTHER INFORMATION**

**Item      1A. **
**Risk      Factors**

**Item      2. Unregistered Sales of Equity Securities**

**Item      6. Exhibits**

----

**Signatures**

**TRI-VALLEY      CORPORATION**

*/s/F.      Lynn Blystone*

*/s/      Arthur M. Evans*

**Exhibit      31.1**

| 1. | I                have reviewed this quarterly report on Form 10-Q of Tri-Valley                Corporation; |
|----|-------------------------------------------------------------------------------------------------------------|

| 2. | Based                on my knowledge, this report does not contain any untrue statement                of a                material fact or omit to state a material fact necessary to make                the                statements made, in light of the circumstances under which such statements                were made, not misleading with respect to the period covered by this                report; |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Based                on my knowledge, the financial statements, and other financial information                included in this report, fairly present in all material respects                the                financial condition, results of operations and cash flows of the                registrant as of, and for, the periods presented in this report; |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | The                registrant's other certifying officer(s) and I are responsible for                establishing and maintaining disclosure controls and procedures (as                defined in Exchange Act Rules 13a-15(e) and 15d-15) and internal                control                over financial reporting (as defined in Exchange Act Rules 13a-15(f)                and                15d-15(f) for the registrant and                have: |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a) | designed                such disclosure controls and procedures, or caused such disclosure                controls and procedures to be designed under our supervision, to                ensure                that material information relating to the registrant, including its                consolidated subsidiaries, is made known to us by others within those                entities, particularly during the period in which this report is                being                prepared; |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | designed                such internal control over financial reporting, or caused such internal                control over financial reporting to be designed under our supervision,                to                provide reasonable assurance regarding the reliability of financial                reporting and the preparation of financial statements for external                purposes in accordance with generally accepted accounting                principles; |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | evaluated                the effectiveness of the registrant’s disclosure controls and procedures                and presented in this report our conclusions about the effectiveness                of                the disclosure controls and procedures, as of the end of the period                covered by this report based on such evaluation;                and |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d) | disclosed                in this report any change in the registrant’s internal control over                financial reporting that occurred during the registrant’s most recent                fiscal quarter (the registrant’s fourth fiscal in the case of an annual                report) that has materially affected, or is reasonably likely to                materially affect, the registrant’s internal control over financial                reporting; and |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | The                registrant's other certifying officers and I have disclosed, based                on our                most recent evaluation of internal control over financial reporting,                to                the registrant's auditors and the audit committee of registrant's                board of                directors (or persons performing the equivalent                functions): |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a) | all                significant deficiencies and material weaknesses in the design or                operation of internal control over financial reporting which are                reasonably likely to adversely affect the registrant's ability to                record,                process, summarize and report financial information;                and |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | any                fraud, whether or not material, that involves management or other                employees who have a significant role in the registrant's internal                control                over financial reporting. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Date:                August 9, 2007 | /s/F.                Lynn Blystone                                          |
|-------------------------------------|-----------------------------------------------------------------------------|
|                                | F.                Lynn Blystone, Chairman, President and                CEO |

----

**Exhibit      31.1**

| 1. | I                have reviewed this quarterly report on Form 10-Q of Tri-Valley                Corporation; |
|----|-------------------------------------------------------------------------------------------------------------|

| 2. | Based                on my knowledge, this report does not contain any untrue statement                of a                material fact or omit to state a material fact necessary to make                the                statements made, in light of the circumstances under which such statements                were made, not misleading with respect to the period covered by this                report; |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Based                on my knowledge, the financial statements, and other financial information                included in this report, fairly present in all material respects                the                financial condition, results of operations and cash flows of the                registrant as of, and for, the periods presented in this report; |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | The                registrant's other certifying officer(s) and I are responsible for                establishing and maintaining disclosure controls and procedures (as                defined in Exchange Act Rules 13a-15(e) and 15d-15) and internal                control                over financial reporting (as defined in Exchange Act Rules 13a-15(f)                and                15d-15(f) for the registrant and                have: |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a) | designed                such disclosure controls and procedures, or caused such disclosure                controls and procedures to be designed under our supervision, to                ensure                that material information relating to the registrant, including its                consolidated subsidiaries, is made known to us by others within those                entities, particularly during the period in which this report is                being                prepared; |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | designed                such internal control over financial reporting, or caused such internal                control over financial reporting to be designed under our supervision,                to                provide reasonable assurance regarding the reliability of financial                reporting and the preparation of financial statements for external                purposes in accordance with generally accepted accounting                principles; |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | evaluated                the effectiveness of the registrant’s disclosure controls and procedures                and presented in this report our conclusions about the effectiveness                of                the disclosure controls and procedures, as of the end of the period                covered by this report based on such evaluation;                and |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d) | disclosed                in this report any change in the registrant’s internal control over                financial reporting that occurred during the registrant’s most recent                fiscal quarter (the registrant’s fourth fiscal in the case of an annual                report) that has materially affected, or is reasonably likely to                materially affect, the registrant’s internal control over financial                reporting; and |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | The                registrant's other certifying officers and I have disclosed, based                on our                most recent evaluation of internal control over financial reporting,                to                the registrant's auditors and the audit committee of registrant's                board of                directors (or persons performing the equivalent                functions): |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a) | all                significant deficiencies and material weaknesses in the design or                operation of internal control over financial reporting which are                reasonably likely to adversely affect the registrant's ability to                record,                process, summarize and report financial information;                and |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | any                fraud, whether or not material, that involves management or other                employees who have a significant role in the registrant's internal                control                over financial reporting. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Date:                August 9, 2007 | /s/Arthur                M. Evans                       |
|-------------------------------------|---------------------------------------------------------|
|                                | Arthur                M. Evans, Chief Financial Officer |

----

**Exhibit      32.1**

**Certification      Pursuant to 18 U.S.C. § 1350**

| (1) | the                Company's Quarterly Report on Form 10-Q for the quarter ended June                30,                2007 (the "Report") fully complies with the requirements of Section                13(a)                of the Securities Exchange Act of 1934;                and |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | the                information contained in the Report fairly presents, in all material                respects, the financial condition and results of operations of the                Company. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Date:                August 9, 2007 | /s/F.                Lynn Blystone                                          |
|-------------------------------------|-----------------------------------------------------------------------------|
|                                | F.                Lynn Blystone, Chairman, President and                CEO |

----

**Exhibit      32.2**

**Certification      Pursuant to 18 U.S.C. § 1350**

| (1) | the                Company's Quarterly Report on Form 10-Q for the quarter ended June                30,                2007 (the "Report") fully complies with the requirements of Section                13(a)                of the Securities Exchange Act of 1934;                and |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | the                information contained in the Report fairly presents, in all material                respects, the financial condition and results of operations of the                Company. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Date:                August 9, 2007 | /s/Arthur                M. Evans                       |
|-------------------------------------|---------------------------------------------------------|
|                                | Arthur                M. Evans, Chief Financial Officer |