| For the Quarterly Period Ended September 30, 2010 | Commission File No. 001-31852 |
|---------------------------------------------------|-------------------------------|

| Delaware(State or other jurisdiction of incorporation or organization)  | 94-1585250(I.R.S. Employer Identification Number)  |
|------------------------------------------------------------------------------|---------------------------------------------------------|

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|     |                                                                                        | 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 | 11     |
|     |                                                                                        |   |
| ITEM 3.  | Quantitative and Qualitative Disclosures About Market Risk                                  | 16     |
|     |                                                                                        |   |
| ITEM 4.  | Controls and Procedures                                                                     | 16     |
|     |                                                                                        |   |
| PART II. | OTHER INFORMATION                                                                           | 17     |
|     |                                                                                        |   |
| ITEM 1.  | Legal Proceedings                                                                           | 17     |
|     |                                                                                        |   |
| ITEM 1A. | Risk Factors                                                                                | 18     |
|     |                                                                                        |   |
| ITEM 2.  | Unregistered Sales of Equity Securities and Use of Proceeds                                 | 18     |
|     |                                                                                        |   |
| ITEM 5.  | Other Information                                                                           | 18     |
|     |                                                                                        |   |
| ITEM 6.  | Exhibits                                                                                    | 18     |
|     |                                                                                        |   |
|     | SIGNATURES                                                                                  | 19     |

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| ASSETS                                                                  |   |                                                                                                                                                                                                                |   |                                                                                                                                                   |
|-------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                    |   | September 30, 2010                                                                                                                                                                                                  |   | December 31, 2009                                                                                                                                      |
|                                                                    |   | (Unaudited)                                                                                                                                                                                                         |   | (Audited)                                                                                                                                              |
|                                                                    |   |                                                                                                                                                                                                                |   |                                                                                                                                                   |
| Current Assets                                                          |   |                                                                                                                                                                                                                |   |                                                                                                                                                   |
|    Cash                                                  |   |  $                    235,551                                                                              |   |  $                   290,926                       |
|    Accounts Receivable - TVOG Production Accrual         |   |                        650,725                                                                   |   |                         33,623 |
|    Accounts Receivable - Trade                           |   |                                    - |   |                         63,151 |
|    Prepaid Expenses                                      |   |                        595,628                                                                   |   |                         16,889 |
|    Accounts Receivable from Joint Venture Partners - Net |   |                     4,842,234                                                                                   |   |                    1,432,785                            |
|   Accounts Receivable - Other                                 |   |                        128,259                                                                   |   |                         25,717 |
|                                                                    |   |                                                                                                                                                                                                                |   |                                                                                                                                                   |
| Total Current Assets                                                    |   |                     6,452,397                                                                                   |   |                    1,863,091                            |
|                                                                    |   |                                                                                                                                                                                                                |   |                                                                                                                                                   |
| Property and Equipment - Net                                            |   |                                                                                                                                                                                                                |   |                                                                                                                                                   |
|    Proved Properties                                     |   |                          25,265                                                        |   |                         25,265 |
|    Unproved Properties                                   |   |                     1,738,370                                                                                   |   |                    1,551,998                            |
|    Rig                                                   |   |                     1,013,157                                                                                   |   |                    1,132,847                            |
|    Other Property and Equipment                          |   |                     4,585,186                                                                                   |   |                    5,470,295                            |
|                                                                    |   |                                                                                                                                                                                                                |   |                                                                                                                                                   |
| Total Property and Equipment - Net                                      |   |                     7,361,978                                                                                   |   |                    8,180,405                            |
|                                                                    |   |                                                                                                                                                                                                                |   |                                                                                                                                                   |
| Other Assets                                                            |   |                                                                                                                                                                                                                |   |                                                                                                                                                   |
|    Deposits                                              |   |                        365,919                                                                   |   |                       172,913            |
|    Investments in Joint Venture Partnerships             |   |                          24,084                                                        |   |                         17,400 |
|    Goodwill                                              |   |                        212,414                                                                   |   |                       212,414            |
|    Other                                                 |   |                                    - |   |                         13,800 |
|                                                                    |   |                                                                                                                                                                                                                |   |                                                                                                                                                   |
| Total Other Assets                                                      |   |                        602,417                                                                   |   |                       416,527            |
|                                                                    |   |                                                                                                                                                                                                                |   |                                                                                                                                                   |
| Total Assets                                                            |   |  $               14,416,792                                                                                                         |   |  $              10,460,023                                                  |
|                                                                    |   |                                                                                                                                                                                                                |   |                                                                                                                                                   |

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| LIABILITIES AND STOCKHOLDERS' EQUITY                                                         |   |               |         |   |              |   |         |   |
|----------------------------------------------------------------------------------------------|--------|--------------------|--------------|--------|-------------------|--------|--------------|--------|
|                                                                                         |   |               |         |   |              |   |         |   |
|                                                                                         |   | September 30, 2010 |         |   | December 31, 2009 |   |         |   |
|                                                                                         |   | (Unaudited)        |         |   | (Audited)         |   |         |   |
|                                                                                         |   |               |         |   |              |   |         |   |
| Current Liabilities                                                                          |   |               |         |   |              |   |         |   |
|    Notes Payable                                                              |   | $                  | 229,796      |   |              | $      | 439,482      |   |
|    Trade - Accounts Payable and Accrued Expenses                              |   |               | 5,977,508    |   |              |   | 5,962,774    |   |
|    Non-Trade Accounts Payable                                                 |   |               | -            |   |              |   | 850,000      |   |
|                                                                                         |   |               |         |   |              |   |         |   |
| Total Current Liabilities                                                                    |   |               | 6,207,304    |   |              |   | 7,252,256    |   |
|                                                                                         |   |               |         |   |              |   |         |   |
| Non-Current Liabilities                                                                      |   |               |         |   |              |   |         |   |
|    Asset Retirement Obligation                                                |   |               | 1,002,304    |   |              |   | 351,013      |   |
|    Long-Term Portion of Notes Payable                                         |   |               | 1,283,210    |   |              |   | 1,395,649    |   |
|                                                                                         |   |               |         |   |              |   |         |   |
| Total Non-Current Liabilities                                                                |   |               | 2,285,514    |   |              |   | 1,746,662    |   |
|                                                                                         |   |               |         |   |              |   |         |   |
| Total Liabilities                                                                            |   |               | 8,492,818    |   |              |   | 8,998,918    |   |
|                                                                                         |   |               |         |   |              |   |         |   |
| Stockholders' Equity                                                                         |   |               |         |   |              |   |         |   |
|    Series A Preferred Stock – 10% Cumulative, $0.001 par, $10.00        |   |               |         |   |              |   |         |   |
|     liquidation value; 20,000,000 shares authorized; 355,000 outstanding |   |               | 355          |   |              |   | -            |   |
|    Common Stock, $.001 par value; 100,000,000 shares authorized;              |   |               |         |   |              |   |         |   |
|     38,191,985* and 33,190,462 outstanding at September 30, 2010, and         |   |               |         |   |              |   |         |   |
|     December 31, 2009, respectively.                                          |   |               | 38,191       |   |              |   | 33,190       |   |
|    Less: Common Stock in Treasury, at cost; 120,025 shares                    |   |               | (38,370)     |   |              |   | (13,370)     |   |
|    Capital in Excess of Par Value                                             |   |               | 61,655,513   |   |              |   | 51,469,228   |   |
|    Additional Paid in Capital - Warrants                                      |   |               | 6,110,602    |   |              |   | -       |   |
|    Additional Paid in Capital - Stock Options                                 |   |               | 2,665,673    |   |              |   | 2,429,722    |   |
|    Accumulated Deficit                                                        |   |               | (64,507,990) |   |              |   | (52,457,665) |   |
|                                                                                         |   |               |         |   |              |   |         |   |
| Total Stockholders' Equity                                                                   |   |               | 5,923,974    |   |              |   | 1,461,105    |   |
|                                                                                         |   |               |         |   |              |   |         |   |
| Total Liabilities and Stockholders' Equity                                                   |   | $                  | 14,416,792   |   |              | $      | 10,460,023   |   |

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|                                                        |   |                                    |        |   |                                   |   |
|-------------------------------------------------------------|--------|-----------------------------------------|-------------|--------|----------------------------------------|--------|
|                                                        |   | For the Three Months EndedSeptember 30, |        |   | For the Nine Months EndedSeptember 30, |   |
|                                                        |   | 2010                                    |        |   | 2009                                   |   |   | 2010 |   |   | 2009 |   |
| Revenues                                                    |   |                                    |        |   |                                   |   |   |   |   |   |   |   |
|    Sale of Oil and Gas                       |   | $                                       | 447,473     |   |                                   | $      | 373,887 |   |   | $ | 1,368,462 |   |   | $ | 991,580 |   |
|    Gain (Loss) on Sale of Asset              |   |                                    | (85,760)    |   |                                   |   | - |   |   |   | 1,587,732 |   |   |   | - |   |
|    Partnership Income                        |   |                                    | 4,371       |   |                                   |   | - |   |   |   | 12,181 |   |   |   | 30,033 |   |
|    Other Income                              |   |                                    | 1,453       |   |                                   |   | 76,404 |   |   |   | 9,608 |   |   |   | 282,212 |   |
|    Interest Income                           |   |                                    | 3,390       |   |                                   |   | - |   |   |   | 5,409 |   |   |   | 15,950 |   |
|                                                        |   |                                    |        |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Total Revenues                                              |   | $                                       | 370,927     |   |                                   | $      | 450,291 |   |   | $ | 2,983,392 |   |   | $ | 1,319,775 |   |
|                                                        |   |                                    |        |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Costs and Expenses                                          |   |                                    |        |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
|    Production Costs                          |   | $                                       | 381,674     |   |                                   | $      | 529,423 |   |   | $ | 914,228 |   |   | $ | 1,588,269 |   |
|    Mining Exploration Expenses               |   |                                    | 118,259     |   |                                   |   | 197,952 |   |   |   | 342,648 |   |   |   | 315,104 |   |
|    Depletion, Depreciation, and Amortization |   |                                    | 180,171     |   |                                   |   | 445,369 |   |   |   | 514,463 |   |   |   | 1,340,931 |   |
|    Bad Debt Expense                          |   |                                    | 44,391      |   |                                   |   | - |   |   |   | 44,391 |   |   |   | 53,980 |   |
|    Interest Expense                          |   |                                    | 85,995      |   |                                   |   | 40,294 |   |   |   | 141,855 |   |   |   | 138,040 |   |
|    General and Administrative                |   |                                    | 1,783,521   |   |                                   |   | 1,973,444 |   |   |   | 5,586,829 |   |   |   | 5,916,172 |   |
|    Warrant Expense                           |   |                                    | 3,221,154   |   |                                   |   | - |   |   |   | 7,238,857 |   |   |   | - |   |
|    Stock Option Expense                      |   |                                    | 198,756     |   |                                   |   | - |   |   |   | 250,446 |   |   |   | - |   |
|                                                        |   |                                    |        |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Total Costs and Expenses                                    |   | $                                       | 6,013,921   |   |                                   | $      | 3,186,482 |   |   | $ | 15,033,717 |   |   | $ | 9,352,496 |   |
|                                                        |   |                                    |        |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Loss Before Minority Interest                               |   | $                                       | (5,642,994) |   |                                   | $      | (2,736,191) |   |   | $ | (12,050,325) |   |   | $ | (8,032,721) |   |
|                                                        |   |                                    |        |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Minority Interest                                           |   |                                    | -           |   |                                   |   | (10,128) |   |   |   | - |   |   |   | (63,530) |   |
|                                                        |   |                                    |        |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Net Loss                                                    |   | $                                       | (5,642,994) |   |                                   | $      | (2,726,063) |   |   | $ | (12,050,325) |   |   | $ | (7,969,191) |   |
|                                                        |   |                                    |        |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
|                                                        |   |                                    |        |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Basic Net Loss Per Share:                                   |   |                                    |        |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
|    Loss from Operations                      |   | $                                       | (0.15)      |   |                                   | $      | (0.09) |   |   | $ | (0.33) |   |   | $ | (0.28) |   |
|    Basic Loss Per Common Share               |   | $                                       | (0.15)      |   |                                   | $      | (0.09) |   |   | $ | (0.33) |   |   | $ | (0.28) |   |
|                                                        |   |                                    |        |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted Average Number of Shares Outstanding               |   |                                    | 38,088,543  |   |                                   |   | 28,884,999 |   |   |   | 36,082,981 |   |   |   | 28,249,933 |   |
|                                                        |   |                                    |        |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted Potentially Dilutive Shares Outstanding            |   |                                    | 43,787,127  |   |                                   |   | 31,572,026 |   |   |   | 39,736,810 |   |   |   | 30,836,180 |   |
|                                                        |   |                                    |        |   |                                   |   |   |   |   |   |   |   |   |   |   |   |

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|                                                                                                       |   |                                    |         |   |
|------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|--------------|--------|
|                                                                                                       |   | For the Nine Months Ended September 30, |         |   |
|                                                                                                       |   | 2010                                    |         |   | 2009 |   |   |
|                                                                                                       |   |                                    |         |   |   |   |   |
| Cash Flows from Operating Activities                                                                       |   |                                    |         |   |   |   |   |
|    Net Loss                                                                                 |   | $                                       | (12,050,325) |   |   | $ | (7,969,191) |   |   |
|                                                                                                       |   |                                    |         |   |   |   |   |   |   |
| Adjustments to Reconcile Net Loss to Net Cash                                                              |   |                                    |         |   |   |   |   |   |   |
| Used by Operating Activities                                                                               |   |                                    |         |   |   |   |   |   |   |
|    Depreciation, Depletion, and Amortization                                                |   |                                    | 514,463      |   |   |   | 1,340,931 |   |   |
|    Minority Interest                                                                        |   |                                    | -            |   |   |   | (63,530) |   |   |
|    Warrant Expense                                                                          |   |                                    | 7,238,857    |   |   |   | - |   |   |
|    Stock Options                                                                            |   |                                    | 250,446      |   |   |   | 423,484 |   |   |
|    (Gain) or Loss on Sale of Property                                                       |   |                                    | (1,587,732)  |   |   |   | - |   |   |
|    Bad Debt Expense                                                                         |   |                                    | 44,391       |   |   |   | 53,980 |   |   |
|    Director Compensation                                                                    |   |                                    | 95,400       |   |   |   | - |   |   |
| Changes in Operating Capital                                                                               |   |                                    |         |   |   |   |   |   |   |
|    (Increase) or Decrease in Total Accounts Receivable                                      |   |                                    | (700,885)    |   |   |   | 131,329 |   |   |
|    (Increase) or Decrease in Total Other Assets                                             |   |                                    | (764,629)    |   |   |   | (423,514) |   |   |
|    Increase or (Decrease) in Accounts Payable, Deferred Revenue,                            |   |                                    |         |   |   |   |   |   |   |
|       and Accrued Expenses                                                   |   |                                    | (835,266)    |   |   |   | 2,925,398 |   |   |
|    Increase or (Decrease) in Accounts Payable to Joint Venture Partners                     |   |                                    |         |   |   |   |   |   |   |
|     and Related Parties                                                                |   |                                    | -            |   |   |   | (912,173) |   |   |
|    (Increase) or Decrease in Accounts Receivable from Joint Venture Partners                |   |                                    | 641,991      |   |   |   | 2,878,600 |   |   |
|                                                                                                       |   |                                    |         |   |   |   |   |   |   |
| Net Cash Used by Operating Activities                                                                      |   | $                                       | (7,153,289)  |   |   | $ | (1,614,686) |   |   |
|                                                                                                       |   |                                    |         |   |   |   |   |   |   |
| Cash Flows from Investing Activities                                                                       |   |                                    |         |   |   |   |   |   |   |
|    Proceeds from the Sale of Property                                                       |   |                                    | 3,059,341    |   |   |   | - |   |   |
|    Capital Expenditures                                                                     |   |                                    | (1,032,381)  |   |   |   | (480,720) |   |   |
|                                                                                                       |   |                                    |         |   |   |   |   |   |   |
| Net Cash Provided by Investing Activities                                                                  |   | $                                       | 2,026,960    |   |   | $ | (480,720) |   |   |
|                                                                                                       |   |                                    |         |   |   |   |   |   |   |
| Cash Flows from Financing Activities                                                                       |   |                                    |         |   |   |   |   |   |   |
|    Principal Payments on Long-Term Debt                                                     |   |                                    | (322,125)    |   |   |   | (188,967) |   |   |
|    Net Proceeds from the Issuance of Stock Options                                          |   |                                    | 2,200        |   |   |   | - |   |   |
|    Net Proceeds from the Issuance of Common Stock                                           |   |                                    | 5,415,879    |   |   |   | 2,241,148 |   |   |
|    Sale or (Purchase) of Treasury Stock                                                     |   |                                    | (25,000)     |   |   |   | -  |   |   |
|                                                                                                       |   |                                    |         |   |   |   |   |   |   |
| Net Cash Provided by Financing Activities                                                                  |   | $                                       | 5,070,954    |   |   | $ | 2,052,181 |   |   |
|                                                                                                       |   |                                    |         |   |   |   |   |   |   |
| Net Decrease in Cash and Cash Equivalents                                                                  |   |                                    | (55,375)     |   |   |   | (43,225) |   |   |
| Cash and Cash Equivalents at Beginning of Period                                                           |   |                                    | 290,926      |   |   |   | 2,000,787 |   |   |
|                                                                                                       |   |                                    |         |   |   |   |   |   |   |
| Cash and Cash Equivalents at End of Period                                                                 |   | $                                       | 235,551      |   |   | $ | 1,957,562 |   |   |
|                                                                                                       |   |                                    |         |   |   |   |   |   |
| Supplemental Schedule of Noncash Transactions                                                              |   |                                    |         |   |   |   |   |   |
|     Issuance of Preferred Stock Upon Conversion of Note Payable                        |   | $                                       | 850,000      |   |   $  |   | - |   |
|     Issuance of Preferred Stock Upon Conversion of Interest in Great Valley Production |   |                                    |         |   |   |   |   |   |
|       Services, LLC                                                          |   | $                                       | 2,700,000    |   |   $ |   | - |   |
|                                                                                                       |   |                                    |         |   |   |   |   |   |

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|   | • | Tri-Valley Oil & Gas Co. (“TVOG”) — conducts our hydrocarbon (crude oil and natural gas) business.  TVOG derives its revenue from oil and natural gas production. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Select Resources Corporation, Inc. (“Select”) — holds and maintains our precious metals and industrial minerals business.  Select holds and develops three major mineral assets in the State of Alaska. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Great Valley Production Services, LLC (“GVPS”) — conducts our oil production services, well workover services, and the business of refurbishment of oilfield equipment. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Great Valley Drilling Company, LLC (“GVDC”) — formed to own and operate a geothermal and oil drilling rig in the State of Nevada. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | - | Oil and Gas Operations — This segment represents our oil and gas business.  During the first nine months of 2010, this segment generated virtually all of the Company’s revenues from operations. |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | Rig Operations — This segment consists of drilling rig operations. |
|--------|---|--------------------------------------------------------------------------|

|   | - | Minerals — This segment represents our precious metal and industrial mineral prospects.  In the past, it has generated revenues from pilot-scale mining projects and subcontracting exploration and business development projects.  This segment holds title to land or leases in the State of Alaska.   |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | Drilling and Development — This segment includes revenue received from crude oil and natural gas drilling and development operations performed for joint venture partners. |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | • | An expanded definition of oil and gas producing activities to include nontraditional resources such as bitumen extracted from oil sands.                                                                                                                                  |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | • | The use of an average of the first-day-of-the-month price for the 12-month period, rather than a year-end price for determining whether reserves can be produced economically.                                                                                            |
|   | • | Amended definitions of key terms such as “reliable technology” and “reasonable certainty” which are used in estimating proved oil and gas reserve quantities.                                                                                     |
|   | • | A requirement for disclosing separate information about reserve quantities and financial statement amounts for geographical areas representing 15 percent or more of proved reserves.                                                                                     |
|   | • | Clarification that an entity’s equity investments must be considered in determining whether it has significant oil and gas activities and a requirement to disclose equity method investments in the same level of detail as required for consolidated investments. |

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|                                           |   | For Three Months Ended |   |   | For Three Months Ended |   |   | For Nine Months Ended |   |   | For Nine Months Ended |   |
|------------------------------------------------|--------|------------------------|--------|--------|------------------------|--------|--------|-----------------------|--------|--------|-----------------------|--------|
|                                           |   | September 30, 2010     |   |   | September 30, 2009     |   |   | September 30, 2010    |   |   | September 30, 2009    |   |
|  Revenues                                 |   |                   |   |   |                   |   |   |                  |   |   |                  |   |
|     Oil and Gas Operations |   | $                      | 0.40   |   |                   | $      | 0.40   |                  |   | $      | 1.40                  |   |   | $ | 1.00 |   |
|     Rig Operations         |   |                   | -      |   |                   |   | -      |                  |   |   | -                     |   |   |   | - |   |
|     Minerals               |   |                   | -      |   |                   |   | -      |                  |   |   | -                     |   |   |   | - |   |
|     Non-Segmented Items    |   |                   | -      |   |                   |   | -      |                  |   |   | 1.60                  |   |   |   | 0.30 |   |
|  Consolidated Revenues                    |   | $                      | 0.40   |   |                   | $      | 0.40   |                  |   | $      | 3.00                  |   |   | $ | 1.30 |   |

----

----

|                                           |   | For Three Months Ended |   |   | For Three Months Ended |   |   | For Nine Months Ended |   |   | For Nine Months Ended |
|------------------------------------------------|--------|------------------------|--------|--------|------------------------|--------|--------|-----------------------|--------|--------|-----------------------|
|                                           |   | September 30, 2010     |   |   | September 30, 2009     |   |   | September 30, 2010    |   |   | September 30, 2009    |
|  Operating Income (Loss)                  |   |                   |   |   |                   |   |   |                  |   |   |                  |
|     Oil and Gas Operations |   | $                      | -      |   |                   | $      | (1.90) |                  |   | $      | 0.40                  |   |   | $ | (2.90) |
|     Rig Operations         |   |                   | -      |   |                   |   | (0.10) |                  |   |   | (0.30)                |   |   |   | (0.60) |
|     Minerals               |   |                   | (0.20) |   |                   |   | (0.30) |                  |   |   | (0.50)                |   |   |   | (0.60) |
|     Non-Segmented Items    |   |                   | (5.40) |   |                   |   | (0.40) |                  |   |   | (11.60)               |   |   |   | (3.80) |
|  Total Loss                               |   | $                      | (5.60) |   |                   | $      | (2.70) |                  |   | $      | (12.00)               |   |   | $ | (7.90) |

|                            |   | September 30, |   |   | December 31, |
|---------------------------------|--------|---------------|--------|--------|--------------|
|  Total Assets              |   | 2010          |   |   | 2009         |
|  Oil and Gas Operations    |   | $             | 11.50  |   |         | $ | 7.20 |
|  Rig Operations            |   |          | 1.40   |   |         |   | 1.70 |
|  Minerals                  |   |          | 1.40   |   |         |   | 1.40 |
|  Drilling and Development  |   |          | 0.10   |   |         |   | 0.20 |
|  Consolidated Total Assets |   | $             | 14.40  |   |         | $ | 10.50 |

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|   | · | Expanded 30-day steam cycles on two of the three remaining oil wells at our Pleasant Valley project           |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------|
|   | · | Completed the initial steam cycle on the fourth oil well at our Claflin property                              |
|   | · | Recompleted the Tilgreut Lease Number 1-18 at our Moffat Ranch property; unfortunately, the zone was non-commercial          |
|   | · | Hired a senior operations engineer with Steam Assisted Gravity Drainage (SAGD) experience for our Pleasant Valley operations |
|   |   |                                                                                                                         |

|   |      ●         |  Closing the balance of our planned $10.0 million financing for fiscal year 2010                                                                                     |
|--------|-----------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |      ●              |  Completing the 30-day steam cycles on the last remaining oil well at our Pleasant Valley project                                                                                                  |
|   |      ●         |  Converting an existing vertical well to salt water disposal well at our Pleasant Valley project                                                                                                                  |
|   |      ●         |  Recommending a development and financing plan for the Pleasant Valley project with the Advisory Committee of partners who own  or control a majority interest of the TVC OPUS 1 Drilling Program, L.P. |
|   |      ●         |  Designing and constructing an additional steam generator for our Claflin cyclic steaming operation                                                                                                               |
|   |      ●         |  Initiating the drilling of up to five new wells at our Claflin property                                                                                                                                          |
|   |      ●    |  Initiating the natural gas pipeline connection at our Claflin property                                                                                                                                           |
|   |                                          |                                                                                                                                                                                                                   |
|   |                                          |                                                                                                                                                                                                                   |
|   |                                          |                                                                                                                                                                                                                   |
|   |                                          |                                                                                                                                                                                                                   |
|   |                                          |                                                                                                                                                                                                                   |
|   |                                          |                                                                                                                                                                                                                   |

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|                                   |   |   |   |                                 |   |   |   |       |   |
|----------------------------------------|--------|--------|--------|--------------------------------------|--------|--------|--------|------------|--------|
|                                   |   |   |   | For Three Months Ended September 30, |   |   |   |
|                                   |   |   |   |                                 |   |   |   | Increase   |   |   |   |   |
|                                   |   | 2010   |   |                                 | 2009   |   |   | (Decrease) |   |   | Change % |   |
|  Oil and Gas Operations           |   | $      | 0.40   |                                 |   | $      | 0.40   |       |   | $ | - |   |   |   | 0 | % |
|  Rig Operations                   |   |   | -      |                                 |   |   | -      |       |   |   | - |   |   |   | 0 | % |
|  Minerals                         |   |   | -      |                                 |   |   | -      |       |   |   | - |   |   |   | 0 | % |
|  Non-Segmented Items              |   |   | -      |                                 |   |   | -      |       |   |   | - |   |   |   | 0 | % |
|     Total Revenues |   | $      | 0.40   |                                 |   | $      | 0.40   |       |   | $ | - |   |   |   | 0 | % |

|                               |   |   |   |                                 |   |   |   |       |   |
|------------------------------------|--------|--------|--------|--------------------------------------|--------|--------|--------|------------|--------|
|                               |   |   |   | For Three Months Ended September 30, |   |   |   |
|                               |   |   |   |                                 |   |   |   | Increase   |   |   |   |   |
|                               |   | 2010   |   |                                 | 2009   |   |   | (Decrease) |   |   | Change % |   |
|  Oil and Gas Operations       |   | $      | -      |                                 |   | $      | (1.90) |       |   | $ | 1.90 |   |   |   | 100 | % |
|  Rig Operations               |   |   | -      |                                 |   |   | (0.10) |       |   |   | 0.10 |   |   |   | 100 | % |
|  Minerals                     |   |   | (0.20) |                                 |   |   | (0.30) |       |   |   | 0.10 |   |   |   | 33 | % |
|  Non-Segmented Items          |   |   | (5.40) |                                 |   |   | (0.40) |       |   |   | 5.00 |   |   |   | -1,250 | % |
|     Total Loss |   | $      | (5.60) |                                 |   | $      | (2.70) |       |   | $ | (2.90) |   |   |   | -107 | % |

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|   | Ÿ | Cash Management – During the first quarter of 2010, a new Treasury Management Account Structure was implemented with improved controls over authorizing and recording cash disbursements.  New procedures for reconciling all bank accounts monthly were implemented and followed. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Ÿ | Authorizing and Recording Equity Transactions – During the first quarter of 2010, new procedures were implemented and followed, ensuring that all equity transactions were reviewed and authorized by the Chief Financial Officer prior to recording.                                             |
|   | Ÿ | Property, Plant, and Equipment – During the first quarter of 2010, depreciation procedures were fully reviewed, and new procedures for properly recording expenses for depreciable assets were implemented and followed.                                                                          |

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|   4.1 | Certificate of Designation of Series A Preferred Stock, incorporated by reference to Exhibit 4.1 of the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on October 6, 2010 |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.1            | Rule 13a-14(a)/15d-14(a) Certification                                                                                                                                                                                  |
| 31.2            | Rule 13a-14(a)/15d-14(a) Certification                                                                                                                                                                                  |
| 32.1            | 18 U.S.C. Section 1350 Certification                                                                                                                                                                                    |
| 32.2            | 18 U.S.C. Section 1350 Certification                                                                                                                                                                                    |

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|   November 3, 2010 | TRI-VALLEY CORPORATION /s/ Maston N. Cunningham    Maston N. Cunningham    President and Chief Executive Officer  |
|------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                         |                                                                                                                                                                |
| November 3, 2010             | /s/ John E. Durbin    John E. Durbin    Chief Financial Officer                                                        |