1

                UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C.  20549

                                   FORM 10-QSB


             QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                       SECURITIES AND EXCHANGE ACT OF 1934

For  the  quarterly period ended June 30, 2001               Commission File No.
0-6119

                             TRI-VALLEY CORPORATION
             (Exact name of registrant as specified in its charter)

DELAWARE                    84-0617433
(State  or  other  jurisdiction of          (I.R.S. Employer Identification No.)
incorporation  or  organization)

       5555 BUSINESS PARK SOUTH, SUITE 200, BAKERSFIELD, CALIFORNIA 93309
                    (Address of principal executive offices)

                                 (661) 864-0500
              (Registrant's telephone number, including area code)

Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding  12  months  (or  for such shorter period that the Registrant was
required  to  file  such  reports),  and  (2)  has  been  subject to such filing
requirements  for  the  past  90  days.  Yes  [X  ]    No  [  ]


The  number  of shares of Registrant's common stock outstanding at June 30, 2001
was  19,684,748.

<PAGE>

                             TRI-VALLEY CORPORATION

                                      INDEX
<TABLE>
<CAPTION>


                                                                                                               Page
                                                                                                               ----
<S>                                                                                                            <C>
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                                                         8


PART II - OTHER INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    11

    Item 1.  Legal Proceedings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    11

    Item 2.  Changes in Securities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    11

    Item 6.  Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    11

SIGNATURES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    12
</TABLE>




<PAGE>

                                       3

PART  I  -  FINANCIAL  INFORMATION

ITEM  1.  UNAUDITED  CONSOLIDATED  FINANCIAL  STATEMENTS
          ----------------------------------------------

                             TRI-VALLEY CORPORATION
                           CONSOLIDATED BALANCE SHEETS


                                     ASSETS

<TABLE>
<CAPTION>


                                     (Unaudited)    (Audited)
                                     ------------  -----------
<S>                                  <C>           <C>
Current Assets
  Cash. . . . . . . . . . . . . . .  $    792,501  $ 1,373,570
  Accounts receivable, trade. . . .       424,738      813,611
  A/R Related Parties . . . . . . .         1,976        4,750
  Prepaid expenses. . . . . . . . .        12,029       12,029
                                     ------------  -----------

    Total Current Assets. . . . . .     1,231,244    2,203,960
                                     ------------  -----------

Property and Equipment, Net . . . .     1,545,341    1,306,689
                                     ------------  -----------

Other Assets
  Deposits. . . . . . . . . . . . .       100,105      100,105
  Note Receivable . . . . . . . . .       125,000      125,000
  Acquisition Costs . . . . . . . .        51,270       51,270
  Investments in partnerships . . .        29,059       29,059
  Other . . . . . . . . . . . . . .        13,914       13,914
  Well Database (net of accumulated
    amortization of $48,304 at
    June 30, 2001 and $44,788
    at December 31, 2000. . . . . .        60,346       63,862
  Goodwill (net of accumulated
    amortization of $216,016 at
  June 30, 2001 and $210,593
    at December 31, 2000. . . . . .       217,837      223,260
                                     ------------  -----------

      Total Other Assets. . . . . .       597,531      606,470
                                     ------------  -----------

      Total Assets. . . . . . . . .  $  3,374,116  $ 4,117,119
                                     ============  ===========
</TABLE>
          June  30,  2001          Dec.  31,  2000


<PAGE>
     The  accompanying  notes  are  an  integral  part  of  these
     condensed  financial  statements.

                                        5







                      LIABILITIES AND SHAREHOLDERS' EQUITY
<TABLE>
<CAPTION>


                                         June 30, 2001    Dec. 31, 2000
                                        ---------------  ---------------
<S>                                     <C>              <C>
CURRENT LIABILITIES
  Notes and contracts payable. . . . .  $       10,554   $       10,672
  Trade accounts payable . . . . . . .         121,301          581,017
  Amounts payable to joint venture
    participants . . . . . . . . . . .         273,175          540,142
  Advances from joint venture
    participants . . . . . . . . . . .       2,134,824        2,517,737
                                        ---------------  ---------------

    Total Current Liabilities. . . . .       2,539,854        3,649,568
                                        ---------------  ---------------

Long-term Portion of Notes and
  Contracts Payable. . . . . . . . . .           7,790           12,038
                                        ---------------  ---------------


Commitments

Shareholders' Equity
  Common stock, $.001 par value:
    100,000,000 shares authorized;
    19,684,748  and  19,554,748 issued
    and outstanding at June 30, 2001
    and Dec. 31, 2000, respectively. .          19,684           19,555
  Less:  Common stock in treasury,
   at cost, 163,925 shares . . . . . .         (21,913)         (21,913)
  Capital in excess of par value . . .       8,721,059        8,666,688
  Accumulated deficit. . . . . . . . .      (7,892,358)      (8,208,817)
                                        ---------------  ---------------

    Total Shareholders' Equity . . . .         826,472          455,513
                                        ---------------  ---------------

    Total Liabilities and
      Shareholders' Equity . . . . . .  $    3,374,116   $    4,117,119
                                        ===============  ===============
</TABLE>



<PAGE>
                             TRI-VALLEY CORPORATION
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)
<TABLE>
<CAPTION>

                For  the  Three  Months                               For  the  Six  Months


                                                2001         2000         2001         2000
                                             -----------  -----------  -----------  -----------
<S>                                          <C>          <C>          <C>          <C>
Revenues
  Sale of oil and gas . . . . . . . . . . .  $   544,648  $   204,904  $ 1,273,762  $   339,084
  Other income. . . . . . . . . . . . . . .       64,256    1,071,732       73,692    1,428,277
  Interest income . . . . . . . . . . . . .        5,242       27,531       16,502       42,862
                                             -----------  -----------  -----------  -----------
    Total Revenues. . . . . . . . . . . . .      614,146    1,304,167    1,363,956    1,810,223
                                             -----------  -----------  -----------  -----------

Cost and Expenses
  Oil and  gas lease expense. . . . . . . .      146,918       38,909      242,544       62,710
  Mining Exploration Expenses . . . . . . .       21,586       14,479       55,382       49,903
  Project geology, geophysics,
    Land & administration . . . . . . . . .      103,983      195,680      201,954      321,323
  Cost of Sale of Asset . . . . . . . . . .          -0-      394,240          -0-      394,240
  Depletion, depreciation and amortization.       13,631       19,861       29,732       39,722
  Interest. . . . . . . . . . . . . . . . .          435        5,129        2,756        7,798
  General administrative. . . . . . . . . .      263,387      346,990      515,128      628,239
                                             -----------  -----------  -----------  -----------
    Total Cost and Expenses . . . . . . . .      549,940    1,015,288    1,047,496    1,503,935
                                             -----------  -----------  -----------  -----------

Net Income. . . . . . . . . . . . . . . . .  $    64,206  $   288,879  $   316,460  $   306,288
                                             ===========  ===========  ===========  ===========

Diluted Earnings per Share. . . . . . . . .  $       .00  $       .01  $       .02  $       .02
                                             ===========  ===========  ===========  ===========
Basic Earnings per Share. . . . . . . . . .  $       .00  $       .01  $       .02  $       .02
                                             ===========  ===========  ===========  ===========

Weighted Average Number of Shares . . . . .   19,661,081   19,335,915   19,661,081   19,335,915
                                             ===========  ===========  ===========  ===========
</TABLE>

<PAGE>

                                                       7

TRI-VALLEY CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)


<TABLE>
<CAPTION>

          For  the  Six  Months
          ---------------------
          Ended  June  30,
          ----------------

                                                           2001          2000
                                                        -----------  ------------
<S>                                                     <C>          <C>
Cash Flows from Operating Activities
  Net loss/profit. . . . . . . . . . . . . . . . . . .  $  316,460   $   306,288
  Adjustments to reconcile net income
    to net cash used from operating activities:
      Depreciation, depletion and amortization . . . .      29,732        39,722
      Changes in operating capital:
      Amounts receivable . . . . . . . . . . . . . . .     391,647       (60,210)
      Deposits . . . . . . . . . . . . . . . . . . . .         -0-          (105)
      Trade accounts payable . . . . . . . . . . . . .    (459,834)      960,830
      Amounts payable to joint venture
        participants and related parties . . . . . . .    (266,967)       53,848
      Advances from joint venture
        participants . . . . . . . . . . . . . . . . .    (382,913)   (6,529,061)
                                                        -----------  ------------


Net Cash Used by Operating Activities. . . . . . . . .    (371,875)   (5,228,583)
                                                        -----------  ------------

Cash Flows from Investing Activities
  Capital expenditures . . . . . . . . . . . . . . . .    (259,446)     (135,640)
                                                        -----------  ------------

Cash Flows from Financing Activities
    Principal payments on long-term debt . . . . . . .      (4,248)       (4,361)
  Proceeds from issuance of common stock . . . . . . .      54,500       250,600
                                                        -----------  ------------
      Net Cash Provided (used) by Financing Activities      50,252       246,239
                                                        -----------  ------------

Net Decrease in Cash and Cash Equivalents. . . . . . .    (581,069)   (5,117,984)
Cash and Cash Equivalents at Beginning
  Of Period. . . . . . . . . . . . . . . . . . . . . .   1,373,570     8,050,469
                                                        -----------  ------------

Cash and Cash Equivalents at
  End of Period. . . . . . . . . . . . . . . . . . . .  $  792,501   $ 2,932,485
                                                        ===========  ============

Supplemental Information:

  Cash paid for interest . . . . . . . . . . . . . . .  $    2,756   $     7,798

  Cash paid for taxes. . . . . . . . . . . . . . . . .  $    7,779   $     6,678





</TABLE>



                             TRI-VALLEY CORPORATION
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                            FOR THE SIX MONTHS ENDED
                             JUNE 30, 2001 AND 2000
                                   (Unaudited)

NOTE  1  -  BASIS  OF  PRESENTATION
            -----------------------

The  financial  information  included  herein  is  unaudited;  however,  such
information  reflects  all  adjustments  (consisting  solely of normal recurring
adjustments),  which  are,  in  the  opinion of management, necessary for a fair
statement  of results for the interim periods. The results of operations for the
six-month  period  ended  June  30,  2001, are not necessarily indicative of the
results  to  be  expected  for  the  full  year.

The  accompanying consolidated financial statements do not include footnotes and
certain  financial  presentations  normally  required  under  generally accepted
accounting  principles;  and,  therefore, should be read in conjunction with the
Company's  Annual  Report  on  Form  10-K  for the year ended December 31, 2000.




NOTE  2  -  PER  SHARE  COMPUTATIONS
            ------------------------

Per  share  computations  are  based  upon the weighted average number of common
shares  outstanding  during each year. Common stock equivalents are not included
in  the  computations  since  their  effect  would  be  anti-dilutive.



<PAGE>

                                       12

ITEM  2.  MANAGEMENT  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
          ----------------------------------------------------------------------
           OF  OPERATIONS
           --------------

BUSINESS  REVIEW

Notice  Regarding  Forward-Looking  Statements
----------------------------------------------

This  report  contains  forward-looking  statements.  The  words,  "anticipate,"
"believe,"  "expect,"  "plan,"  "intend," "estimate," "project," "could," "may,"
"foresee,"  and  similar  expressions  are  intended to identify forward-looking
statements.  These statements include information regarding expected development
of  the Company's business, lending activities, relationship with customers, and
development  in  the oil and gas industry.  Should one or more of these risks or
uncertainties  occur,  or  should underlying assumptions prove incorrect, actual
results  may  vary  materially  and  adversely from those anticipated, believed,
estimated  or  otherwise  indicated.

Petroleum  Activities
---------------------

We  are  continuing  our research and additional in-depth testing program at the
Ekho No. 1.  We are consulting with a team of worldwide industry experts and are
pleased  with  the  initial  results.  Efforts are continuing in this project to
complete  the  well  as  a  producer

Discussions  continue with various parties - oil & gas industry companies, power
companies,  accredited  investor/groups  -  to  join  in  developing our Sunrise
Natural  Gas  Project  near  Delano,  California.

Additionally,  we  are  awaiting  our  drill permit for our Sonata gas prospect,
which  is  west  of  the  Sunrise  project  Area.

Natural  gas  prices  began  the  year  at historic highs but have more recently
fallen.  We  sold  gas for as much as $14.64 per Mmbtu early in the year, but in
the second quarter we also sold for a low as $9.44.  We believe that natural gas
prices will continue to be volatile (especially in California) for the remainder
of 2001 and possible for years.  We cannot be sure we will be able to obtain the
same  price  for  our production in the second half of 2001 as we did during the
first  half.

Precious  Metals
----------------

Normally  our  activity, by Russian scientists from TsNIGRI, the Russian Mineral
Institute  in  Moscow,  on  our  Alaska gold mining claims begins in late May or
early  June,  depending  on the weather.  It is very difficult if not impossible
for  us  to  perform our work when the ground is frozen.  However, this year was
different, the Russian scientists were contracted by Tri-Valley Corporation to a
third  party  for most of the months of June and July to evaluate large areas of
Alaska  for  platinum  and  palladium.  They  began  this  year's  activity  for
Tri-Valley  the  latter part of July.  Our efforts continue to obtain sufficient
data to enable a joint venture with a major mining company similar to the Placer
Dome  arrangement, which had been operating for the previous two years and ended
at  the  end  of  2000.
ITEM  2.  MANAGEMENT  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
          ----------------------------------------------------------------------
           OF  OPERATIONS,  CONTINUED
           --------------------------

Three  Months  Ended  June 30, 2001 as compared with Three Months ended June 30,
--------------------------------------------------------------------------------
2000
----

In  the  quarter  ended June 30, 2001 revenue decreased $690,021 compared to the
same  quarter  in  the  year  2000.  However,  sale  of oil and gas increased by
$339,744  in  the  second  quarter  of  2001  due to the increased gas prices we
received in the second quarter.  In the quarter ended June 30, 2001 we had other
income  of  $64,256  compared to revenue of $1,071,732 in the quarter ended June
30,  2000.  The  difference  is due to revenue being recognized from the sale of
the Sunrise Prospect in the second quarter of 2000.  Interest income was $22,289
less for this period in 2001 versus the same period in 2000 due to less funds on
deposit  awaiting  the  drilling  of  the  Sunrise  Project.

Costs  and  expenses decreased $465,348, to $549,940 for the quarter ending June
30,  2001  from  $1,015,288  for the same period in 2000.  In the quarter ending
June  30,  2000  we  wrote  off  expenses  relating  to  the sale of the Sunrise
Prospect.  In  2001,  the  Russian scientists did not begin work for the Company
until  July.  However, in June 2001, we prepaid their expenses, which caused the
increase  in  mining expenses to $21,586 in the second quarter of 2001, compared
to  $14,479  in  the  second  quarter  of  2000.

We  had  a  profit  of  $64,206  for  the period ended June 30, 2001 compared to
$288,879  for  the  same  period  in  2000.

Six  Months  Ended  June  30, 2001 as compared to Six Months Ended June 30, 2000
--------------------------------------------------------------------------------

We  had  total  revenue  of  $1,363,956  for  the six months ended June 30, 2001
compared to revenue of $1,810,223 for the same period in 2000.  This decrease is
due  to our sale of the Sunrise prospect in 2000.  For the six months ended June
30,  2001  we  had a 376% increase in oil and gas sales due to increased natural
gas  prices  for  the  first  half  of  the  year  2001.  Other  income was down
$1,354,585.  The  decrease  represents the sale of our Sunrise Prospect in 2000.
Generally  we  recognize  revenue  from  the  sale  of  a prospect when the well
drilling  begins.

Costs  and  expenses were $1,047,496 in the period ending June 30, 2001 compared
to $1,503,935 for the same period in 2000.  Oil and gas expenses were up for the
first  six  months  due  to  our re-workings of several existing wells.  Project
geology, geophysics, land and administration were $110,369 less this year due to
reduced activity in this area.  In the second quarter of 2000 we wrote off costs
relating  to  the  Sunrise  Prospect.  General  and  Administrative  costs  were
$113,111  less  due  to  reduced  litigation expenses from a lawsuit that ended.

Net  income,  for  the  six months ended June 30, 2001, are $316,460 compared to
$306,288  for  the  same  period  in  2000.





ITEM  2.  MANAGEMENT  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
          ----------------------------------------------------------------------
           OF  OPERATIONS,  CONTINUED
           --------------------------

Capital  Resources  and  Liquidity
----------------------------------

We  had current assets at June 30, 2001 of $1,231,244 compared to $2,203,960 for
the  period ending December 31,2000.  This decrease was due to reduction of cash
and  reduction  in accounts receivable.  Current liabilities were $2,539,854 for
the  period  ended  June  30,  2001  compared  to $3,649,568 for the year ending
December  31,  2000.  This  reduction was due to a reduction in accounts payable
and  reduction  in  advances  from  joint  venture  participants.

Operating  Activities.  Cash provided by operations were deficit of $371,875 for
the  six  months ended June 30, 2001 compared to a deficit of $5,228,583 for the
same  period  in  2000.  This  was  due  to reduced expenditures of the drilling
operations.  The $6,146,148 decrease in advances from joint venture participants
at  June  30,  2001  is  due  to  the expenditure of funds used for the drilling
activity  on  the  Sunrise  Project.

Financing  Activities.  Net  cash  provided  by  financing  activities decreased
$195,987  for the period ended June 30, 2001 over the same period in 2000 due to
the  reduced  amount  of  sales  of  the  Company's  common  stock  in  private
transactions.



























PART  II  -  OTHER  INFORMATION

ITEM  1.     LEGAL  PROCEEDINGS
             ------------------

None

ITEM  2.     CHANGES  IN  SECURITIES
             -----------------------

During  the  quarter  ended June 30, 2001, we issued 20,000 shares of our common
stock  to  2  individuals  in  private  transactions  pursuant  to the exemption
contained  in  Section  4(2)  of  the  Securities  Act  of  1933,  for aggregate
consideration of $5,000.  10,000 shares were from options exercised at $.50 each
and  10,000  shares  were  awarded  to  an  employee. The shares sold/issued are
restricted  securities,  which  bear a legend restricting transfer of the shares
unless  registered  or  sold  under  an exemption from registration requirements
under  the  Securities  Act.

ITEM  6.     EXHIBITS  AND  REPORTS  ON  FORM  8-K
             -------------------------------------

(a)     Exhibits
(27)  Financial  Data  Schedule

(b)  Reports  on  Form  8-K:
           None

<PAGE>
                                   SIGNATURES




     Pursuant  to  the  requirement  of the Securities Exchange Act of 1934, the
Registrant  has  duly  caused  this  report  to  be  signed on its behalf by the
undersigned  thereunto  duly  authorized.


                        TRI-VALLEY  CORPORATION
                                    (Registrant)



      August  14,  2001      /s/  F.  Lynn  Blystone
                            ------------------------
                                                          F.  Lynn  Blystone
               President  and  Chief  Executive  Officer


      August  14,  2001     /s/  Thomas  J.  Cunningham
                            ---------------------------
               Thomas  J.  Cunningham
               Secretary,  Treasurer,  Chief  Financial  Officer