As of December 31, 2006, the Partnership Properties had estimated proved reserves of 21.2 MMBoe, of which 86.2% were oil and 81.1% were classified as proved developed, and had a reserve-to-production ratio of 15.1 years. As of September 30, 2007, the Partnership Properties consisted primarily of working interests in 325 gross producing wells, with a 38.5% average working interest.

The Company’s properties are principally oil fields located in coastal California and onshore Texas.

The Company’s offshore California properties are located in the Santa Barbara channel in southern California and consist of the South Ellwood field and the Dos Cuadras field.

The Company’s onshore California fields include the West Montalvo field, the Beverly Hills West field, and the Santa Clara Avenue field. In addition to these fields, the Company owns working interests in the Union Island natural gas field in the Sacramento Basin in northern California.

The Company’s remaining estimated proved reserves are located in the Hastings Complex in Brazoria County south of Houston, Texas. The Company also owns several pipelines that transport oil or natural gas for Venoco and third parties.

Pipeline revenue remained relatively flat at $5.7 million in the first nine months of 2007, compared to $5.8 million in the first nine months of 2006.

Lease operating expenses increased $5.2 million (30%) to $22.6 million in the first nine months of 2007 from $17.4 million in the first nine months of 2006.

Transportation expense remained flat at $0.7 million for the first nine months of 2006 and 2007.

Pipeline operating expense decreased $0.3 million (15%) to $1.5 million in the first nine months of 2007 from $1.8 million in the 2006 period.

Net income for the first nine months of 2007 was $17.1 million compared to net income of $16.2 million for the same period in 2006.