| o | Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of 1934 |
|---|-----------------------------------------------------------------------------------|

| o | Transition report under Section 13 or 15(d) of the Exchange Act |
|---|-----------------------------------------------------------------|

| Delaware                                                      |   | 22-3328734                          |
|---------------------------------------------------------------|--------|-------------------------------------|
| (State or other jurisdiction ofincorporation or organization) |   | (I.R.S. EmployerIdentification No.) |

| Large Accelerated filer | o | Accelerated Filer         | o      |
|-------------------------|---|---------------------------|--------|
| Non-Accelerated Filer   | o | Smaller Reporting Company | þ |

----

|                                                                                                                                                     |   | Page   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
| Part I. Financial Information                                                                                                                            |   |   |
| Item 1: Financial Statements (Unaudited)                                                                                                                 |   |   |
| Condensed Consolidated Balance Sheets at September 30, 2011 and December 31, 2010                                                                        |   | 3      |
| Condensed Consolidated Statements of Operations for the Three and Nine Months ended September 30, 2011 and 2010 (with cumulative totals since inception) |   | 4      |
| Condensed Consolidated Statement of Changes in Stockholders’ Deficiency for the period December 23, 2008 (Inception) through September 30, 2011    |   | 5      |
| Condensed Consolidated Statements of Cash Flows for the Nine Months ended September 30, 2011 and 2010 (with cumulative totals since inception)           |   | 6      |
| Notes to Condensed Consolidated Financial Statements                                                                                                     |   | 7      |
| Item 2: Management’s Discussion and Analysis                                                                                                       |   | 12     |
| Item 3: Quantitative and Qualitative Disclosures About Market Risk                                                                                       |   | 15     |
| Item 4:  Controls and Procedures                                                                                                               |   | 15     |
| Part II. Other Information                                                                                                                               |   | 16     |
| Item 1: Legal Proceedings                                                                                                                                |   | 16     |
| Item 1A: Risk Factors                                                                                                                                    |   | 16     |
| Item 2: Unregistered Sales of Equity Securities and Use of Proceeds                                                                                      |   | 16     |
| Item 3: Defaults Upon Senior Securities                                                                                                                  |   | 16     |
| Item 4: Removed and Reserved                                                                                                                             |   | 16     |
| Item 5: Other Information                                                                                                                                |   | 16     |
| Item 6: Exhibits                                                                                                                                         |   | 16     |
| Signatures                                                                                                                                               |   | 17     |
| EX-31.1: CERTIFICATION                                                                                                                                   |   |   |
| EX-31.2: CERTIFICATION                                                                                                                                   |   |   |
| EX-32.1: CERTIFICATIONS                                                                                                                                  |   |   |

----

----

|                                                                                                                               |   | September 30, 2011 |        |   | December 31, 2010 |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|-------------|--------|-------------------|--------|
| ASSETS                                                                                                                             |   |               |        |   |              |   |
| Assets                                                                                                                             |   |               |        |   |              |   |
| Current assets:                                                                                                                    |   |               |        |   |              |   |
| Cash and cash equivalents                                                                                                          |   | $                  | 9,626       |   |              | $      | 180,030 |   |
| Restricted cash                                                                                                                    |   |               | 21,752      |   |              |   | 461,259 |   |
| Trading securities - Restricted                                                                                                    |   |               | 716,875     |   |              |   | 276,686 |   |
| Prepaid and other current assets                                                                                                   |   |               | 85,216      |   |              |   | 206 |   |
| Total current assets                                                                                                               |   |               | 833,469     |   |              |   | 918,181 |   |
| Oil and gas properties, unproven                                                                                                   |   |               | 21,100,000  |   |              |   | 21,100,000 |   |
| Total assets                                                                                                                       |   | $                  | 21,933,469  |   |              | $      | 22,018,181 |   |
| LIABILITIES AND STOCKHOLDERS' DEFICIENCY                                                                                           |   |               |        |   |              |   |   |   |
| Current liabilities:                                                                                                               |   |               |        |   |              |   |   |   |
| Senior secured convertible debenture, net of discount                                                                              |   | $                  | 27,070,796  |   |              | $      | 25,895,212 |   |
| Account payable and accrued expenses                                                                                               |   |               | 386,400     |   |              |   | 125,000 |   |
| Line of credit                                                                                                                     |   |               | 17,679      |   |              |   | 8,407 |   |
| Convertible debentures                                                                                                             |   |               | 5,738,026   |   |              |   | 4,586,026 |   |
| Promissory notes                                                                                                                   |   |               | 118,000     |   |              |   | - |   |
| Accrued interest                                                                                                                   |   |               | 4,798,562   |   |              |   | 2,421,861 |   |
| Derivative liability                                                                                                               |   |               | 1,299,000   |   |              |   | 4,611,000 |   |
| Total current liabilities                                                                                                          |   |               | 39,428,463  |   |              |   | 37,647,506 |   |
| Stockholders' deficiency:                                                                                                          |   |               |        |   |              |   |   |   |
| Preferred stock, $0.001 par value; 1,000,000 shares authorized; Series C Voting Convertible, 921,890 shares issued and outstanding |   |               | 921         |   |              |   | 921 |   |
| Common stock, $0.0001 par value; 10,000,000,000 shares authorized; 2,879,307,140 shares issued and outstanding                     |   |               | 287,931     |   |              |   | 287,931 |   |
| Additional paid-in capital                                                                                                         |   |               | (9,872,115  | )      |              |   | (9,872,115 | ) |
| Accumulated deficiency during exploration stage                                                                                    |   |               | (7,911,731  | )      |              |   | (6,046,062 | ) |
| Total stockholders' deficiency                                                                                                     |   |               | (17,494,994 | )      |              |   | (15,629,325 | ) |
| Total liabilities and stockholders' deficiency                                                                                     |   | $                  | 21,933,469  |   |              | $      | 22,018,181 |   |

----

|                                                                    |   | Three Months Ended September 30, |          |   | Nine Months EndedSeptember 30, |   |          | Cumulative Period from December 23, 2008 (inception) to September 30, |   |
|-------------------------------------------------------------------------|--------|---------------------------------------|---------------|--------|--------------------------------|--------|---------------|-----------------------------------------------------------------------|--------|
|                                                                    |   | 2011                                  |          |   | 2010                           |   |          | 2011                                                                  |   |   | 2010 |   |   | 2011 |   |
| Net sales                                                               |   | $                                     | -             |   |                           | $      | -             |                                                                  |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Cost of sales                                                           |   |                                  | -             |   |                           |   | -             |                                                                  |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                    |   |                                  | -             |   |                           |   | -             |                                                                  |   |   | - |   |   |   | - |   |   |   | - |   |
| Operating expenses                                                      |   |                                  |          |   |                           |   |          |                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Impairment loss                                                         |   |                                  | -             |   |                           |   | -             |                                                                  |   |   | - |   |   |   | 1,331,215 |   |   |   | 3,041,518 |   |
| General and administrative expenses                                     |   |                                  | 214,476       |   |                           |   | 162,669       |                                                                  |   |   | 584,118 |   |   |   | 488,006 |   |   |   | 1,595,242 |   |
| Total operating expenses                                                |   |                                  | 214,476       |   |                           |   | 162,669       |                                                                  |   |   | 584,118 |   |   |   | 1,819,221 |   |   |   | 4,636,760 |   |
| Loss from operations                                                    |   |                                  | (214,476      | )      |                           |   | (162,669      | )                                                                     |   |   | (584,118 | ) |   |   | (1,819,221 | ) |   |   | (4,636,760 | ) |
| Interest income (expense)                                               |   |                                  | (1,562,919    | )      |                           |   | (354,047      | )                                                                     |   |   | (4,627,796 | ) |   |   | (1,062,140 | ) |   |   | (7,694,641 | ) |
| Change in fair value of derivative liability                            |   |                                  | 734,000       |   |                           |   | -             |                                                                  |   |   | 3,357,000 |   |   |   | - |   |   |   | 4,431,000 |   |
| Gains (Losses)  from trading securities                       |   |                                  | (5,607        | )      |                           |   | 94            |                                                                  |   |   | (10,755 | ) |   |   | 381 |   |   |   | (11,330 | ) |
| Loss before income tax provision                                        |   |                                  | (1,049,002    | )      |                           |   | (516,622      | )                                                                     |   |   | (1,865,669 | ) |   |   | (2,880,980 | ) |   |   | (7,911,731 | ) |
| Income tax provision                                                    |   |                                  | -             |   |                           |   | -             |                                                                  |   |   | - |   |   |   | - |   |   |   | - |   |
| Net loss                                                                |   | $                                     | (1,049,002    | )      |                           | $      | (516,622      | )                                                                     |   | $ | (1,865,669 | ) |   | $ | (2,880,980 | ) |   | $ | (7,911,731 | ) |
| Basic and diluted loss per common share                                 |   | $                                     | -             |   |                           | $      | -             |                                                                  |   | $ | - |   |   | $ | - |   |   |   |   |   |
| Weighted average number of common shares outstanding, basic and diluted |   |                                  | 2,879,307,000 |   |                           |   | 2,879,307,000 |                                                                  |   |   | 2,879,307,000 |   |   |   | 2,110,579,000 |   |   |   |   |   |

----

|                                              |   | Series C VotingConvertible preferredstock issued |    |   | Common Stock Issued |   |   | AdditionalPaid-in |   |   | Deficit Accumulated During Exploration |   |   | Total Stockholders' |    |
|---------------------------------------------------|--------|--------------------------------------------------|---------|--------|---------------------|--------|--------|-------------------|--------|--------|----------------------------------------|--------|--------|---------------------|---------|
|                                              |   | Shares                                           |    |   | Amount              |   |   | Shares            |   |   | Amount                                 |   |   | Capital             |    |   | Stage |   |   | Deficiency |   |
| December 23, 2008 contribution of assets          |   |                                             | -       |   |                | $      | -      |              |   |   | -                                      |   |   | $                   | -       |   |   | $ | 24,141,518 |   |   | $ | - |   |   | $ | 24,141,518 |   |
| Reverse merger recapitalization                   |   |                                             | 805,767 |   |                |   | 806    |              |   |   | 127,279,406                            |   |   |                | 12,728  |   |   |   | (13,534 | ) |   |   | - |   |   |   | - |   |
| Balance, December 31, 2008                        |   |                                             | 805,767 |   |                |   | 806    |              |   |   | 127,279,406                            |   |   |                | 12,728  |   |   |   | 24,127,984 |   |   |   | - |   |   |   | 24,141,518 |   |
| Shares issued prior to reverse merger by acquiree |   |                                             | 166,275 |   |                |   | -      |              |   |   | 355,562,697                            |   |   |                | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Capital contribution                              |   |                                             | -       |   |                |   | -      |              |   |   | -                                      |   |   |                | -       |   |   |   | 732,497 |   |   |   | - |   |   |   | 732,497 |   |
| Reverse merger recapitalization                   |   |                                             | -       |   |                |   | 166    |              |   |   | -                                      |   |   |                | 35,556  |   |   |   | (35,722 | ) |   |   | - |   |   |   | - |   |
| Net loss                                          |   |                                             | -       |   |                |   | -      |              |   |   | -                                      |   |   |                | -       |   |   |   | - |   |   |   | (213,110 | ) |   |   | (213,110 | ) |
| Balance, December 31, 2009                        |   |                                             | 972,042 |   |                |   | 972    |              |   |   | 482,842,103                            |   |   |                | 48,284  |   |   |   | 24,824,759 |   |   |   | (213,110 | ) |   |   | 24,660,905 |   |
| Shares issued prior to reverse merger by acquiree |   |                                             | (50,152 | )      |                |   | -      |              |   |   | 2,396,465,037                          |   |   |                | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Capital contribution                              |   |                                             | -       |   |                |   | -      |              |   |   | -                                      |   |   |                | -       |   |   |   | 420,653 |   |   |   | - |   |   |   | 420,653 |   |
| Reverse merger recapitalization                   |   |                                             | -       |   |                |   | (51    | )                 |   |   | -                                      |   |   |                | 239,647 |   |   |   | (35,117,527 | ) |   |   | - |   |   |   | (34,877,931 | ) |
| Net loss                                          |   |                                             | -       |   |                |   | -      |              |   |   | -                                      |   |   |                | -       |   |   |   | - |   |   |   | (5,832,952 | ) |   |   | (5,832,952 | ) |
| Balance, December 31, 2010                        |   |                                             | 921,890 |   |                |   | 921    |              |   |   | 2,879,307,140                          |   |   |                | 287,931 |   |   |   | (9,872,115 | ) |   |   | (6,046,062 | ) |   |   | (15,629,325 | ) |
| Net loss                                          |   |                                             | -       |   |                |   | -      |              |   |   | -                                      |   |   |                | -       |   |   |   | - |   |   |   | (1,865,669 | ) |   |   | (1,865,669 | ) |
| Balance, September 30, 2011                       |   |                                             | 921,890 |   |                | $      | 921    |              |   |   | 2,879,307,140                          |   |   | $                   | 287,931 |   |   | $ | (9,872,115 | ) |   | $ | (7,911,731 | ) |   | $ | (17,494,994 | ) |

----

|                                                                                                                                        |   | Nine Months EndedSeptember 30, |       |   |  Cumulative Period from December 23, 2008 (inception) to September 30, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|------------|--------|-----------------------------------------------------------------------------|--------|
| Operating activities:                                                                                                                       |   | 2011                           |       |   | 2010                                                                        |   |   |  2011 |   |
| Net Loss                                                                                                                                    |   | $                              | (1,865,669 | )      |                                                                        | $      | (2,880,980 | ) |   | $ | (7,911,731 | ) |
| Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities:                                                                 |   |                           |       |   |                                                                        |   |   |   |   |   |   |   |
| Impairment of long-lived assets                                                                                                             |   |                           | -          |   |                                                                        |   | 1,331,215 |   |   |   | 3,041,518 |   |
| Change in fair value of derivative liability                                                                                                |   |                           | (3,357,000 | )      |                                                                        |   | - |   |   |   | (4,431,000 | ) |
| Unrealized losses (gains) on marketable securities                                                                                          |   |                           | 5,609      |   |                                                                        |   | (94 | ) |   |   | 6,379 |   |
| Amortization of debt discount                                                                                                               |   |                           | 2,252,584  |   |                                                                        |   | - |   |   |   | 4,045,084 |   |
| Changes in Assets and Liabilities                                                                                                           |   |                           |       |   |                                                                        |   |   |   |   |   |   |   |
| Increase in prepaid and other current assets                                                                                                |   |                           | (85,010    | )      |                                                                        |   | (805 | ) |   |   | (85,216 | ) |
| Increase in accounts payable and accrued expenses                                                                                           |   |                           | 261,400    |   |                                                                        |   | 63,949 |   |   |   | 386,400 |   |
| Increase in accrued interest                                                                                                                |   |                           | 2,385,973  |   |                                                                        |   | 1,054,199 |   |   |   | 3,653,641 |   |
| Net cash used in operating activities                                                                                                       |   |                           | (402,113   | )      |                                                                        |   | (432,516 | ) |   |   | (1,294,925 | ) |
|                                                                                                                                        |   |                           |       |   |                                                                        |   |   |   |   |   |   |   |
| Investing activities:                                                                                                                       |   |                           |       |   |                                                                        |   |   |   |   |   |   |   |
|                  Receipt of  restricted cash |   |                           | 439,507    |   |                                                                        |   | 109,007 |   |   |   | (21,752 | ) |
| Proceeds from sale of trading securities                                                                                                    |   |                           | 302,053    |   |                                                                        |   | 355,000 |   |   |   | 1,116,449 |   |
| Purchases of trading securities                                                                                                             |   |                           | (747,851   | )      |                                                                        |   | (736,960 | ) |   |   | (1,839,703 | ) |
| Net cash used in investing activities                                                                                                       |   |                           | (6,291     | )      |                                                                        |   | (272,953 | ) |   |   | (745,006 | ) |
|                                                                                                                                        |   |                           |       |   |                                                                        |   |   |   |   |   |   |   |
| Financing activities                                                                                                                        |   |                           |       |   |                                                                        |   |   |   |   |   |   |   |
| Proceeds from line of credit                                                                                                                |   |                           | -          |   |                                                                        |   | 6,994 |   |   |   | 8,407 |   |
| Proceeds from advances                                                                                                                      |   |                           | -          |   |                                                                        |   | - |   |   |   | 732,497 |   |
| Proceeds from issuance of senior secured convertible debenture                                                                              |   |                           | 120,000    |   |                                                                        |   | 650,000 |   |   |   | 770,000 |   |
| Proceeds from issuance of promissory notes                                                                                                  |   |                           | 118,000    |   |                                                                        |   | - |   |   |   | 118,000 |   |
| Capital contribution                                                                                                                        |   |                           | -          |   |                                                                        |   | 420,653 |   |   |   | 420,653 |   |
| Net cash provided by financing activities                                                                                                   |   |                           | 238,000    |   |                                                                        |   | 1,077,647 |   |   |   | 2,049,557 |   |
|                                                                                                                                        |   |                           |       |   |                                                                        |   |   |   |   |   |   |   |
| (Decrease) Increase in cash                                                                                                                 |   |                           | (170,404   | )      |                                                                        |   | 372,178 |   |   |   | 9,626 |   |
|                                                                                                                                        |   |                           |       |   |                                                                        |   |   |   |   |   |   |   |
| Cash and cash equivalents, beginning of period                                                                                              |   |                           | 180,030    |   |                                                                        |   | 56,743 |   |   |   | - |   |
| Cash and cash equivalents, end of period                                                                                                    |   | $                              | 9,626      |   |                                                                        | $      | 428,921 |   |   | $ | 9,626 |   |
| NONCASH INVESTING AND FINANCING ACTIVITIES                                                                                                  |   |                           |       |   |                                                                        |   |   |   |   |   |   |   |
| Oil and gas properties, unproven                                                                                                            |   | $                              | -          |   |                                                                        | $      | - |   |   | $ | 24,141,518 |   |
| Debt discount derived from derivative liability - Convertible debentures                                                                    |   |                           | -          |   |                                                                        |   | 44,000 |   |   |   | 406,000 |   |
| Debt discount derived from derivative liability - Senior Secured convertible debentures                                                     |   |                           | 45,000     |   |                                                                        |   | 9,431,000 |   |   |   | 5,324,000 |   |
|                                                                                                                                        |   |                           |       |   |                                                                        |   |   |   |   |   |   |   |
| Reverse merger liabilities and equity adjustments                                                                                           |   |                           |       |   |                                                                        |   |   |   |   |   | - |   |
| Accrued interest                                                                                                                            |   |                           | -          |   |                                                                        |   | 1,154,193 |   |   |   | 1,154,193 |   |
| Senior secured convertible debenture                                                                                                        |   |                           | -          |   |                                                                        |   | 18,209,712 |   |   |   | 27,640,712 |   |
| Convertible debentures                                                                                                                      |   |                           | -          |   |                                                                        |   | 6,039,026 |   |   |   | 6,083,026 |   |
|                                                                                                                                        |   |                           |       |   |                                                                        |   |   |   |   |   |   |   |
| Total                                                                                                                                       |   | $                              | 45,000     |   |                                                                        | $      | 34,877,931 |   |   | $ | 64,749,449 |   |

----

----

| Balance of derivative liability as of December 31, 2010 |   | $      | 4,611,000  |   |
|---------------------------------------------------------|--------|--------|------------|--------|
| Additional liability incurred                           |   |   | 45,000     |   |
| Change in fair value during period                      |   |   | (3,357,000 | )      |
| Balance at September 30, 2011                           |   | $      | 1,299,000  |   |

|                                       |   | Three Months Ended |          |   | Nine Months Ended |   |
|--------------------------------------------|--------|--------------------|---------------|--------|-------------------|--------|
|                                       |   | September 30,2011  |          |   | September 30,2010 |   |   | September 30,2011 |   |   | September 30,2010 |   |
| Loss attributable to common stockholders   |   | $                  | (1,049,000    | )      |              | $      | (517,000 | ) |   | $ | (1,866,000 | ) |   | $ | (2,881,000 | ) |
| Weighted-average common shares outstanding |   |               | 2,879,307,000 |   |              |   | 2,879,307,000 |   |   |   | 2,879,307,000 |   |   |   | 2,110,579,000 |   |
|                                       |   |               |          |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted loss per share           |   | $                  | -             |   |              | $      | - |   |   | $ | - |   |   | $ | - |   |

|                                  |   | September 30, 2011 |            |   | September 30, 2010 |   |
|---------------------------------------|--------|--------------------|-----------------|--------|--------------------|--------|
| Warrants                              |   |               | 2,250,000       |   |               |   | - |   |
| Senior secured convertible debentures |   |               | 100,691,000,000 | *      |               |   | - |   |
| Convertible debentures                |   |               | 65,908,000,000  | *      |               |   | - |   |

----

| * | The convertible debentures exceeded the number of authorized common shares and as a result weighted average shares outstanding, fully diluted, is the maximum authorized number of common shares, 10,000,000,000. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                 |   | Acquisition Costs |       |   | Impairment |   |       | Total  |   |
|--------------------------------------|--------|-------------------|------------|--------|------------|--------|------------|--------|--------|
| Coos Bay Basin Property              |   |              |       |   |       |   |       |   |   |
| Year ended 2008                      |   | $                 | 24,141,000 |   |       | $      | -          |   |   | $ | 24,141,000 |   |
| Year ended 2009                      |   |              | -          |   |       |   | -          |   |   |   | - |   |
| Year ended 2010                      |   |              | -          |   |       |   | (3,041,000 | )      |   |   | (3,041,000 | ) |
| 9 months ended September 30, 2011    |   |              | -          |   |       |   | -          |   |   |   | - |   |
| Inception through September 30, 2011 |   | $                 | 24,141,000 |   |       | $      | (3,041,000 | )      |   | $ | 21,100,000 |   |

----

| Current portion of convertible debentures:                               |   |   |      |
|--------------------------------------------------------------------------|--------|--------|-----------|
| Convertible debenture payable to YA Global due December 2010 – 5%  |   | $      | 592,000   |   |
| Convertible debenture payable to YA Global due December 2010 – 12% |   |   | 570,000   |   |
| Convertible debenture payable to YA Global due December 2010 – 5%  |   |   | 921,000   |   |
| Convertible debenture payable to YA Global due December 2011– 12%  |   |   | 4,000,000 |   |
| Debt discount (original debt discount of $2,685,000)                     |   |   | (345,000  | ) |
| Total current convertible debentures                                     |   | $      | 5,738,000 |   |

| Current portion of senior secured convertible debentures:                                       |   |   |       |
|-------------------------------------------------------------------------------------------------|--------|--------|------------|
| Senior secured convertible debenture payable to YA Global due August  2012 – 9% |   | $      | 27,641,000 |   |
| Senior secured convertible debenture payable to YA Global due August 2012 – 9%            |   |   | 650,000    |   |
| Senior secured convertible debenture payable to YA Global due August 2012 – 9%            |   |   | 120,000    |   |
| Debt discount (original debt discount of $3,045,000)                                            |   |   | (1,340,000 | ) |
| Total current senior secured convertible debentures                                             |   | $      | 27,071,000 |   |

|                          |   | September 30,2011 |   |   | December 31,2010 |   |
|-------------------------------|--------|-------------------|--------|--------|------------------|--------|
| Risk Free Interest Rate       |   |              | 1      | %      |             |   | 2.5 | % |
| Volatility                    |   |              | 57     | %      |             |   | 100 | % |
| Term                          |   | .5 years     |   |   | 1.00 years       |   |
| Dividend Rate                 |   |              | 0      | %      |             |   | 0 | % |
| Closing Price of Common Stock |   | $                 | 0.0001 |   |             | $      | 0.0001 |   |

----

----

----

----

----

|   | • | lack of documented policies and procedures; and |
|--------|---------|-------------------------------------------------|

|   | • | there is no effective separation of duties, which includes monitoring controls, between the members of management. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------|

|   | • | lack of resources to account for complex and unusual transactions |
|--------|---------|-------------------------------------------------------------------|

----

| 31.1   |   | Section 302 Certification of Chief Executive Officer.                             |
|--------|--------|-----------------------------------------------------------------------------------|
|   |   |                                                                              |
| 31.2   |   | Section 302 Certification of Chief Financial Officer.                             |
|   |   |                                                                              |
| 32.1   |   | Section 906 Certification of Chief Executive Officer and Chief Financial Officer. |

----

|                    | CARBONICS CAPITAL CORPORATION |                                      |
|-------------------------|-------------------------------|-------------------------------------------|
|                    |                          |                                      |   |
| Date: November 14, 2011 | By:                      | /s/ Stephen J. Schoepfer                  |   |
|                    |                          | Name:  Stephen J. Schoepfer     |   |
|                    |                          | Title:  Chief Executive Officer |   |
|                    |                          |                                      |   |

| Date: November 14, 2011 | By:  | /s/ Stephen J. Schoepfer                  |   |
|-------------------------|-----------|-------------------------------------------|--------|
|                    |      | Name:  Stephen J. Schoepfer     |   |
|                    |      | Title:  Chief Financial Officer |   |
|                    |      |                                      |   |

----

| 31.1   |   | Section 302 Certification of Chief Executive Officer                             |
|--------|--------|----------------------------------------------------------------------------------|
|   |   |                                                                             |
| 31.2   |   | Section 302 Certification of Chief Financial Officer                             |
|   |   |                                                                             |
| 32.1   |   | Section 906 Certification of Chief Executive Officer and Chief Financial Officer |

----