April 7, 2010 (FinancialWire) — Tri-Valley Corp. (AMEX: TIV) said it has executed a Securities Purchase Agreement with a group of institutional investors to purchase $5 million of its common stock and warrants in a registered direct offering of securities.

The company said it will sue the net proceeds from this offering to drill a horizontal injector well to evaluate Steam Assisted Gravity Drainage at its Pleasant Valley heavy oil project at Oxnard, California, for future use in the development and production of heavy oil reserves.

Tri-Valley said it will use the remaining proceeds for start-up operations of existing wells and production facilities on its Claflin property near Bakersfield, California, and for working capital purposes.

Under the terms of the definitive agreements, the investors purchased 3,846,154 shares of Tri-Valley's common stock at $1.30 per share, for a total of $5.0 million in gross proceeds, and received warrants to purchase up to 2,307,692 shares in the aggregate.

The warrants include series A warrants to purchase up to 1,153,846 shares of common stock at $1.50 per share for five years and series B warrants to purchase up to 1,153,846 shares of common stock at $1.95 per share for seven years. California-based Tri-Valley explores for and produces oil and natural gas in California, and has two exploration-stage gold properties and a high grade calcium carbonate quarry in Alaska.

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