Greka Energy Corporation

GREKA Energy is a vertically integrated self-sufficient energy company with primary areas of activities in California, and long-term growth potential in China. The Company is principally focused on exploiting the high cash margin created from the relatively stable natural hedge between its crude production and the asphalt market in Central California.

At the end of June 2002, the Company completed its significant restructuring

to focus GREKA's business on its wholly owned vertically-integrated asphalt

refinery operations in Santa Maria, California. The restructuring included

a new $30 million secured credit facility, an $18 million acquisition

of oil and gas assets that increased the Company's average refinery throughput

36% to 3,400 BBL per day, a non core asset sale for $20 million, and the

Following the restructuring, GREKA's business plan capitalizes on a natural hedge potentially producing consistent profitability that is not vulnerable to oil price swings. This stability is a function of the Company's self sufficient operation and thus a known fixed cost in producing its own (equity) heavy-gravity oil from its wholly owned operated fields that is ideal feedstock for producing asphalt. As a result, Greka uses all of its equity oil production in its wholly-owned refinery which produces and sells refined products (65% asphalt, 30% distillates and 5% naphtha) to a niche regional market in central California.