Document:

EXHIBIT 10.2

                             PARTICIPATION AGREEMENT

     This Participation Agreement (the "Agreement") is entered into and made
effective this 8th day of February, 2006, by and between Ridgewood Energy
Corporation ("Ridgewood") and Newfield Exploration Company ("Newfield"),
hereinafer each may be sometimes referred to as "Party" or collectively as
"Parties".

                                   WITNESSETH:

     WHEREAS, El Paso Production GOM, Inc. ("El Paso") and Newfield entered into
a Participation Agreement ("PA") dated January 17, 2003, a copy of which is
attached hereto as Exhibit "B," and provides for, among other things, Newfield's
purchase from El Paso of an undivided fifty percent (50%) Record Title interest
in OCS-G 19799, covering Eugene Island Block 364, LESS AND EXCEPT the E/2 of the
E/2 from the TB-8 Sand through 500' below the TB-11 Sand as defined therein,
(the "Lease"), resulting in each Party owning an undivided fifty percent (50%)
Record Title interest in the Lease; and

     WHEREAS, El Paso and Newfield drilled and sidetracked the OCS-G 19799 No. 1
Well (now renamed the A-1 Well), logged the well and later completed the well in
the CS-1 Sand. Newfield anticipates recompleting the A-1 Well into the CM-5 Sand
at some later date; and

     WHEREAS, the sands listed below are referenced herein based on their
correlations in the OCS-G 19799 No. 1 ST 1 BP Sperry Sun MWD (EWR, DGR, SLD,
CTN) Log ("Log") as follows:

     CS-3 Sand - 13,212' MD (12,598' TVD) to 13,328' MD (12,710' TVD)
     CS-1 Sand - 12,219' MD (11,653' TVD) to 12,274' MD (11,706' TVD)
     CM-5 Sand - 11,473' MD (10,944' TVD) to 11,698' MD (11,157' TVD); and

     WHEREAS, In support of the A-1 Well and El Paso's 100% owned wells that
produce from the El Paso retained TB Sands, El Paso and Newfield installed the
six slot EI 364 "A" Platform and process oil, gas and water from the A-1 Well at
the El Paso owned and operated EI 372 "A" Platform under a Production Handling
Agreement dated September 29, 2004 ("PHA");

     WHEREAS, El Paso, as Operator, has submitted to Newfield, as non-operator,
El Paso's AFE No. 110655 ("AFE"), attached hereto as Exhibit "A", to drill the
"A-4 Well" as a directional well from the EI 364 "A" Platform to test the CS-3
Sand objective (primary) as seen in the Log and the CM-3 sand objective
(secondary);

                                   Page 1 of 6
<PAGE>

     WHEREAS, Newfield desires to not share in the cost, risk and expense of the
proposed A-4 Well and Ridgewood desires to participate in and bear Newfield's
50% working interest share of the A-4 Well;

     WHEREAS, if the A-4 Well is successful, Newfield will work with El Paso and
Ridgewood to provide processing for the A-4 Well through an amendment to the PHA
or through a similar PHA solely for the benefit of the A-4 Well, or its
Substitute Well, and

     NOW THEREFORE, in consideration of the foregoing and other good and
valuable consideration, the Parties agree as follows:

I. PROPOSED WELL

1.   A-4 Well. Newfield will elect to participate under the AFE, and in turn,
     Ridgewood will assume Newfield's 50% working interest and Newfield cost,
     risk and expense along with all liabilities, benefits and obligations and
     will participate in the drilling of the A-4 Well pursuant to the Offshore
     Operating Agreement attached hereto as Exhibit "C" ("JOA") and the AFE.

2.   Substitute Well. If, during the drilling of the A-4 Well, El Paso, as
     operator, encounters mechanical difficulties, heaving shale, rock salt,
     excessive saltwater flow, practicably impenetrable formations or other
     conditions in the hole that would cause a reasonably prudent operator under
     the same or similar circumstances to discontinue drilling and to either
     mechanically bypass or plug and abandon such well, Ridgewood will have the
     right, but not the obligation, to participate in actual drilling operations
     on another well, or a bypass operation of the current well (hereinafer
     referred to as a "Substitute Well"), to a bottom hole location and
     objective coincident and pursuant to the JOA if such operation is commenced
     during the same rig mobilization and is timely and properly commenced in
     accordance with the JOA.

II. RETAINED OVERRIDING ROYALTY

1.   ORRI. Newfield will retain a proportionately reduced 5% overriding royalty
     interest (being 2.5%) before payout which will automatically escalate to a
     proportionately reduced 15% overriding royalty interest after payout (being
     7.5%). The overriding royalty retained herein will be paid in like manner
     and time as the lessors royalty.

2.   "Payout" as defined herein will be that moment in time when Ridgewood has
     recovered from the proceeds from the sale of oil and/or gas from the A-4
     Well, or its Substitute Well, 100% of the costs incurred in drilling,
     testing, completing, equipping and operating the A-4 Well. The cost of any

                                   Page 2 of 6
<PAGE>

     platform or facility modifications, all equipment, fixtures and personality
     associated therewith and any flow line or pipeline connected thereto shall
     also be included in determining Payout.

III. EARNING.  Upon reaching the CS-3 Sand Objective Depth as described in the
AFE and JOA and upon Ridgewood's election to complete the A-4 Well, or its
Substitute Well, Ridgewood will earn and receive from Newfield an assignment and
bill of sale of Newfield's 50% interest in the A-4 Well and a 25% record title
interest in the Lease.

IV. RETAINED ZONES & INTEREST

1    Newfield believes that the A-4 Well will encounter the CS-1 Sand and CM-5
     Sand found in the A-1 Well with potential take points in such sands located
     less than 1000' from the A-1 Well; therefore, Newfield will retain the
     stratigraphic equivalent of both the CS-1 Sand and the CM-5 Sand in the
     area described immediately hereinbelow. Newfield reserves the CS-1 Sand and
     the CM-5 Sand in the Lease limited to the area within a circle around the
     A-1 Well with the circle radius of 2,000 feet, being measured from the
     midpoint of the respective sand in the A-1 Well to the midpoint of the
     equivalent sand in the proposed well.

2.   Should El Paso or Ridgewood propose to recomplete the A-4 Well, or its
     Substitute Well, or any future well to the CS-1 Sand or CM-5 Sand and such
     Sand falls within the reserved area as described in the paragraph above,
     then Newfield will be afforded the right to participate for Ridgewood's 50%
     or 25% working interest or cost bearing share of the well by paying the
     cost to recomplete the well to the retained sand. Ridgewood would then be
     afforded the election under the JOA to participate for its respective
     interest for the subsequent recompletion to the non-retained sand and / or
     plugging and abandonment of the well.

3.   Newfield retains a 25% record title interest in the Lease.

4.   Newfield retains its current working interest in the El 364 Platform "A"
     Platform subject to Section V. below.

V. LIABILITIES.  Ridgewood will assume the plugging and abandonment liability
for the A-4 Well. Ridgewood will not earn an interest in, nor be responsible or
liable for, any existing wells, platforms, facilities, pipelines and other
personal property located on or associated with the Lease by virtue of its
participation in the A-4 Well, but will assume a proportionate share of such
liability in the platform, facility, pipelines and other personal property
located on the Lease, with the exception of existing wellbores, should it
participate in subsequent wells. This liability will be based on Ridgewood's
working interest share of any future wells (specifically excluding the A-4 Well)
divided by the number of slots on the El 364 "A" Platform (i.e. 1 well @ 25% WI

                                   Page 3 of 6
<PAGE>

divided by 6 slots yields a 4.167% P&A liability). Ridgewood will not be
responsible for the payment of a slot fee to Newfield for the A-4 Well.

VI. ACCOUNTING and LEASE OPERATING EXPENSE

1.   Once Newfield elects to participate in the A-4 Well under the AFE and JOA,
     Newfield will forward the joint interest billings and "cash calls", if any,
     to Ridgewood for its prompt payment to Newfield. Newfield will then pay El
     Paso in accordance with the JOA. Once Ridgewood earns or the A-4 Well is
     plugged and abandoned as a dry hole this accounting method will cease. In
     the case of Ridgewood earning an interest herein, the Parties will work
     with El Paso to have Ridgewood become a party to the JOA with its earned
     interest such that it will be recognized as a non-operated working interest
     owner thereunder.

2.   Ridgewood will be responsible for its share of the allocated lease
     operating expense relative to the A-4 Well for the well and platform and
     facility operations necessary to support such well until it is plugged and
     abandoned.

VII. WELL INFORMATION.  Newfield will be afforded all well information,
inclusive of logs, cores, production reports, and any other data that may be
prepared or taken in conjunction with the A-4 Well, or its Substitute Well.
Newfield's well requirement sheet is attached hereto as Exhibit "E".

VIII. TIMING.  El Paso plans to spud the A-4 Well using the Gorilla IV rig upon
receipt of said rig, which is estimated to be in second quarter of 2006. Should
El Paso not commence operations. pursuant to the AFE and as a result the AFE
expires, then this Participation Agreement will be null and void.

IX. NOTICES.  All notices, statements and communications required or permitted
to be given or made hereunder shall be sent to the parties listed below by
United States Mail, postage prepaid, or facsimile as follows:

                        Ridgewood Energy Corporation
                        11700 Old Katy Road, Suite 280
                        Houston, TX 77079
                        Representative: Mr. W. Greg Tabor
                        Phone: (281) 293-8449
                        Fax: (281) 293-7705

                        Newfield Exploration Company
                        363 North Sam Houston Pkwy., East, Suite 2020
                        Houston, TX 77060

                                   Page 4 of 6
<PAGE>

                        Representative: Vice President, Land
                        Phone: (281) 847-6037
                        Fax: (281) 847-6094

X. EXHIBITS.  All Exhibits referred to herein as being attached hereto are
hereby incorporated by reference and made a part hereof as if fully set out
herein. In the event any of the provisions of any Exhibit conflicts with this
Agreement, then the provisions of this Agreement itself shall control. However,
the inclusion herein of provisions relating to any particular subject matter
shall not be deemed an attempt to deal with such subject matter to the exclusion
of provisions in the JOA or other Exhibits relating to such matter unless the
context clearly otherwise requires.

               Exhibit "A" El Paso's AFE No. 110655

               Exhibit "B" PA

               Exhibit "C" JOA

               Exhibit "D" PHA

               Exhibit "E" Newfield Well Requirement Sheet

XI. CONSENT TO TRANSFER INTEREST

1.   Ridgewood may not assign its interest under this Participation Agreement
     without the express written consent of Newfield, which may be withheld for
     any reason. Once Ridgewood earns hereunder and becomes a recognized party
     to the JOA, then the terms, covenants, conditions and provisions of this
     Agreement will be binding upon and inure to the benefit of the respective
     successors and assigns of the Ridgewood, and said terms, covenants,
     conditions and provisions will be deemed to be covenants burdening and
     running with the Lease.

2.   With the execution of this Agreement, Newfield will seek the approval from
     El Paso to the terms and conditions contained herein, including the
     potential assignment from Newfield to Ridgewood of a 50% interest in the
     A-4 Well and a 25% record title interest in the Lease.

XII. MISCELLANEOUS.

1.   The parties agree that, with respect to the subject matter hereof, this
     Agreement together with all Exhibits shall constitute the full and complete

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<PAGE>

     understanding and agreement of the Parties, and there are no other
     understandings, obligations, relationships or agreements, written or oral.

2.   THE PARTIES AGREE THAT THIS AGREEMENT SHALL BE GOVERNED AND CONSTRUED IN
     ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS EXCLUDING ANY CHOICE OF LAW
     RULES THAT WOULD CAUSE THE LAW OF ANOTHER JURISDICTION TO APPLY. ANY LEGAL
     PROCEEDING ARISING OUT OF OR IN RELATION TO THIS AGREEMENT SHALL BE BROUGHT
     EXCLUSIVELY IN THE APPROPRIATE COURT (STATE OR FEDERAL) IN HARRIS COUNTY,
     TEXAS. THE PARTIES IRREVOCABLY SUBMIT TO THE JURISDICTION OF SAID COURT.

3.   Each of the Parties shall, from time to time, and at all times, do all such
     other and further acts and deliver and execute such other and further
     instruments and documents as may be reasonably required in order to fully
     perform and carry out the terms and provisions of this Agreement.

XIII. COUNTERPART EXECUTION.  This Agreement may be executed in any number of
counterparts, no one of which needs to be executed by all Parties. If this
Agreement is executed in counterparts, all counterparts taken together shall
have the same effect as if all parties had signed the same instrument.

IN WITNESS WHEREOF, the Parties have executed this Agreement to be effective for
all purposes as of the day and year first above written.

Newfield Exploration Company              Ridgewood Energy Corporation

By: /s/ John Jasek                        By: /s/ Randy Bennett
   ------------------                         ---------------------
        John Jasek

Title: General Manager - GOM              Title: Land Manager
                                                 ------------------
Date: February 9, 2006                    Date:  February 10, 2006

                                   Page 6 of 6Form of Guaranty of Deer Valley Corporation

    EXHIBIT
      10.30

    
      Secretary
CERTIFIED
      COPY OF BOARD
      OF
      DIRECTORS RESOLUTIONS

    (Guarantor)

    

    The
      undersigned hereby certifies that the undersigned is the duly elected and acting
      Secretary or Assistant Secretary of Deer Valley Corporation, a Florida
      corporation (the "Corporation" and that the following resolutions were passed
      at
      a meeting of the Board of Directors of said corporation held on
      February 12th 2007 duly
      called,
      a
      quorum being present, and that said resolutions have not since been revoked
      or
      amended:

    

    "WHEREAS,
      Deer Valley Homebuilders, lnc. ("Principal") desires to, from time to time,
      exercise its rights under the Manufacturer
      Agreement dated Mav
      25, 2006,
      between
      215`
      Mortgage
      Corporation (21st) and Principal, in the furtherance of its business;
      and

    

    WHEREAS,
      21st
      is,
      under certain terms and conditions, agreeable to fulfilling obligations owed
      to
      Principal under the Manufacturer Agreement, one of said conditions being that
      this Corporation unconditionally and absolutely jointly and severally, guarantee
      the full, faithful and prompt performance, payment, and discharge by Principal
      of all of its obligations from time to time outstanding to 21st
      in
      connection with or arising out of the Manufacturer Agreement and other financial
      accommodations from 21st
      and the
      directors of this Corporation have examined and approved the form of Guaranty
      ("Guaranty") 21st
      wants
      this Corporation to sign.

    

    NOW
      THEREFORE, BE TT RESOLVED, that in the judgment of this Board of Directors,
      this
      Corporation has an interest in the business and financial affairs of Principal
      and it will be in the best interest of, in furtherance of, and necessary to
      the
      business and corporate purposes of and to the pecuniary advantage of this
      Corporation that Principal be able to exercise rights under the Manufacturer
      Agreement.

    

    RESOLVED,
      that the President, Treasurer, Secretary or any Vice President, Assistant Vice
      President, Assistant Treasurer or Assistant Secretary of this Corporation,
      or
      their duly elected or appointed successor in office, by and each hereby is
      authorized
      and empowered
      (either alone or in conjunction with any one or more of such officers of this
      Corporation) in the name and on behalf of this Corporation to unconditionally
      and absolutely jointly and severally guarantee to 21st
      the
      full, faithful and prompt performance, payment and discharge by Principal of
      all
      of its present and future obligations to 21stin
      connection with or arising out of the Manufacturer Agreement by executing and
      delivering to 21st
      the
      Guaranty with such changes therein as 21st
      may
      require and as such officer executing the Guaranty may deem advisable, and
      to
      make, execute and deliver all instruments and agreements deemed necessary or
      proper by 21st`
      and
      to
      affix the seal of this Corporation to any instruments or agreements if so
      required or requested by 21st

    

    RESOLVED,
      that the Guaranty and any other instruments, agreements or documents executed
      pursuant to these resolutions by any officer of this Corporation may be in
      such
      form and contain such terms, provisions, representations and warranties as
      they
      shall in their sole discretion determine.

    

    RESOLVED,
      that all acts and deeds heretofore done by any of such officers of this
      Corporation for and on behalf of this Corporation in entering into, executing,
      acknowledging or attesting the Guaranty, or any other instruments, agreements
      or
      documents, or in carrying out the terms and intentions of these resolutions
      are
      hereby ratified, approved and confirmed.

    

    RESOLVED,
      that the secretary or any other officer of this Corporation shall file with
      21"
      a certified copy of these resolutions and a list of the names of the officers
      of
      this Corporation, and of any changes in such officers, and 21st
      shall be
      entitled to conclusively assume that these resolutions remain in full force
      and
      effect and that all persons so named as officers of this Corporation are and
      continue to be such officers, except and until, 21"
      shall be
      otherwise notified in writing by the Secretary or any other officer of this
      Corporation."

    

    I
      do
      further certify that the following are officers of this
      Corporation:

    

    President:
      Charles
      G. Masters Secretary:
      Charles G. Masters

    Vice
      President ________________________  
      Treasurer___________________________

    

    I
      do
      further certify that this Corporation is in good standing in all jurisdictions
      in which it is required to be qualified to do business and that the execution
      of
      the Guaranty is not in violation of the charter, by-laws or agreements of this
      Corporation.

    

    WITNESS
      my hand and the
      seal of this corporation on
      this
13th  day of February, 2007.

     

     

                                                /s/
      C. G.
      Masters                    

                                                Secretary

                    

     

    (Corporate
      Seal)

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

         

        
        

      

    

     

    
       
GUARANTY

    
 

    TO:
      2lsT
      MORTGAGE
      CORPORATION

     
      600 MARKET STREET, SUITE 100 

         
KNOXVILLE,
      TN 37902

     

    In
      consideration of the rights owed to Deer
      Valley Homebuilders, Inc., its
      successors and assigns (hereinafter called "principal debtor"), under the
      Manufacturer Agreement dated May
      25, 2006, between
      21st
      Mortgage Corporation and Deer Valley Homebuilders, Irtc., whether
      now outstanding or made in the future, for the financing of goods, wares,
      merchandise and services, the undersigned guarantor hereby unconditionally
      guarantees payment of whatever sums said principal debtor shall at any time
      owe
      you or any company affiliated with you, whether heretofore or hereafter
      incurred, including interest, finance charges or service charges thereon, and
      including reasonable attorneys' fees and all court costs incurred in collecting
      each sums; and you shall be under no obligation of due diligence to enforce
      any
      claims against the principal debtor or of otherwise exhausting any of your
      remedies against the principal debtor, any other obligor or any other guarantor,
      or of enforcing any rights against any collateral for said indebtedness prior
      to
      enforcing payment hereunder by the undersigned guarantor.

     

    This
      guaranty is to take effect without notice of its acceptance, which notice is
      hereby waived, and is to be continuing guaranty in full force and effect until
      the effective date of a written notice of revocation delivered to you either
      personally or by Registered or Certified mail. It is understood and agreed
      that
      the effective date of any revocation shall be 90 days after your receipt of
      such
      notice, and that such revocation shall not discharge the obligation of the
      undersigned guarantor with respect to indebtedness incurred by the principal
      debtor prior to said effective date of revocation.

    

    You
      are
      hereby authorized to change the time and manner of payment of any indebtedness
      of said principal debtor; to take and make changes in notes, security or other
      obligations therefore to add or release additional guarantors; to obtain or
      release additional guaranties; to take such action as you deem advisable for
      the
      enforcement, collection, or compromising of any such indebtedness or any part
      thereof, or enforcing any security interest therefore; and to grant renewals
      or
      extensions of the time of payment of any such indebtedness, all without
      notifying or obtaining the consent of the undersigned guarantor or in any way
      affecting the consent of the undersigned guarantor under this
      guaranty.

    

    Protest
      and demand upon the principal debtor, notice to the undersigned guarantor of
      defaults of the principal debtor, notice to the undersigned guarantor of your
      extension of credit from time to time to the principal debtor, and notice of
      the
      sale of any collateral are all hereby waived.

    

    The
      undersigned guarantor hereby consent and agree that your books and records
      showing the account, obligations, and indebtedness of the principal debtor
      shall
      be admissible in evidence and shall be binding upon the undersigned guarantor
      for the purpose of establishing the items therein set for the, and shall
      constitute prima facie proof thereof. The undersigned guarantor hereby also
      agree to provide full and complete personal financial information at such times
      as the Company may request.

     

    The
      undersigned guarantor hereby subordinates any sums now or hereafter due to
      any
      or all of them from the principal debtor to the payment of any sums now or
      hereafter due you from the principal debtor. The undersigned guarantor further
      assigns to you all sums due or to become due to any or all of them from the
      principal debtor to the extent of the aggregate obligations of the undersigned
      guarantor to you, and agrees to execute any further instruments necessary to
      evidence such assignment.

     

    This
      guaranty shall inure to the benefit of your successors and assigns and shall
      be
      binding upon the personal representatives, administrators, trustees, executors,
      heirs, legatees, successors and assigns of the undersigned
      guarantor.

    

    The
      foregoing constitutes the complete guaranty agreement, there being no other
      representations or warranties made, and such guaranty cannot be altered, changed
      or amended in any way except by an instrument in writing signed by your duly
      authorized officer.

    

    The
      undersigned agrees that if a dispute between you and the principal debtor is
      being arbitrated, the responsibility of Guarantor will be included in the same
      arbitration, subject to the same rules and procedures governing the arbitration
      between you and the principal debtor.

    

    BY
      AFFIXING SIGNATURE HERETO, THIS CERTIFIES THAT THE UNDERSIGNED HAS READ THIS
      GUARANTY AGREEMENT IN ITS ENTIRETY AND EXECUTES IT FOR THE CONSIDERATION THEREIN
      EXPRESSED.

    Dated
      at
offices
      of Bush Ross, P. A. Tampa Florida

     

    this
      13th
      day
      of February
      2007

     

    Witness:                                                     Guarantor

                                                        

                                                        /s/
      C. G.
      Masters                    

                                                        Signature

    
                                                         
Company
      Name
 Deer
      VaIley Corporation

     

    Address                                                  
Title
      __________________________

     

    Witness:

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