U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-KSB

[ X ]   ANNUAL REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES
        EXCHANGE ACT OF 1934

                  For the fiscal year ended December 31, 2007.

[   ]   TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES
        EXCHANGE ACT OF 1934

            For the transition period from ____ to ____.

                        Commission File Number: 000-52419

                           HOLLOMAN ENERGY CORPORATION
                     --------------------------------------
               (Exact Name of Issuer as Specified in Its Charter)

              Nevada                                    77-0643398
---------------------------------          -----------------------------------
  (State or other jurisdiction             (I.R.S. Employer Identification No.)
of incorporation or organization)

      5257 West Interstate 20, Odessa, Texas               79769-9410
      --------------------------------------              ------------
(Address of Issuer's Principal Executive Offices)          (Zip Code)

Issuer's telephone number:     (432) 381-2050

Securities  registered  under section 12(g) of the Exchange Act: Common Stock,
($0.001 Par Value)

Check  whether the issuer is not required to file reports  pursuant to Section
13 or 15(d) of the Exchange Act [ _ ]

Check  whether  the  issuer  (1) filed  all  reports  required  to be filed by
Section 13 or 15(d) of the  Securities  Exchange Act during the past 12 months
(or for such  shorter  period that the  registrant  was  required to file such
reports),  and (2) has been subject to such filing  requirements  for the past
90 days.    Yes [ x ]    No [ _ ]

Check if there is no disclosure  of delinquent  filers in response to Item 405
of  Regulation  S-B  contained  in  this  form,  and  no  disclosure  will  be
contained,  to the best of the registrant's  knowledge, in definitive proxy or
information  statements  incorporated  by  reference  in Part III of this Form
10-KSB or any amendment to this Form 10-KSB.  [ _ ]

Indicate by check mark whether the  registrant  is a shell company (as defined
in Rule 12b-2 of the Exchange).  Yes  [ _ ]    No  [ x ]

Issuer's revenues for its most recent fiscal year were $58,957


                                       1
<PAGE>

The aggregate market value of the voting and non-voting  common equity held by
non-affiliates as of March 31, 2008 was approximately $3,667,000.

As of March 31, 2008 the Company had 81,219,358  outstanding  shares of common
stock.

Transitional Small Business Disclosure Format (check  one):  Yes  [ ]  No   [X]




                                       2
<PAGE>

                                    PART I


ITEM 1.   DESCRIPTION OF BUSINESS.

Cautionary Statement Concerning Forward-Looking Statements

This report contains  "forward-looking  statements"  within the meaning of the
Private  Securities  Litigation  Reform  Act of  1995.  These  statements  are
subject  to  risks  and  uncertainties  and  are  based  on  the  beliefs  and
assumptions of management and information  currently  available to management.
The use of words  such as  "believes,"  "expects,"  "anticipates,"  "intends,"
"plans," "estimates,"  "should," "likely" or similar expressions,  indicates a
forward-looking statement.

Forward-looking  statements  are not guarantees of  performance.  They involve
risks,  uncertainties  and assumptions.  Future results may differ  materially
from those expressed in the  forward-looking  statements.  Many of the factors
that will  determine  these  results  are  beyond  our  ability  to control or
predict.  Stockholders  are  cautioned  not to  place  undue  reliance  on any
forward-looking  statements,  which  speak  only to the date  made.  For those
statements,  we claim the  protection  of the safe harbor for  forward-looking
statements contained in the Private Securities Litigation Reform Act of 1995.

Factors  that  could  cause  actual  results to differ  materially  from those
expressed or implied by such  forward-looking  statements include, but are not
limited to:

    o   our ability to finance our business plan;

    o   our  ability  to deal  effectively  with  competition  and  manage our
        growth;

    o   the success or commercial  viability of our  exploration  and drilling
        plans;

    o   our  ability  to  effectively  judge  acquisition   opportunities  and
        integrate acquired assets;

    o   general  economic and business  conditions and changes in consumer and
        business consumption habits.

We operate in a very competitive and rapidly changing  environment.  New risks
emerge from time to time and it is not possible for our  management to predict
all risks,  nor can we assess the impact of all risks on our  business  or the
extent to which any risk, or  combination  of risks,  may cause actual results
to  differ  from  those  contained  in  any  forward-looking  statements.  All
forward-looking  statements  included in this filing are based on  information
available  to us on the date of the filing.  Except to the extent  required by
applicable  laws or rules,  we undertake no obligation  to publicly  update or
revise any forward-looking statement,  whether as a result of new information,
future events or otherwise.  All subsequent  written and oral  forward-looking
statements  attributable  to us or persons  acting on our behalf are expressly
qualified in their entirety by the cautionary  statements contained throughout
this filing


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<PAGE>

Business

We were incorporated on May 14, 2004 in Nevada.  Between May 2004 and May 2007
we were  relatively  inactive.  During  July 2007,  we  changed  our name from
Dujour Products,  Inc. to Endeavor Energy  Corporation.  On September 25, 2007
we changed our name to Holloman Energy Corporation.

We originally  intended to be a specialized  brand  licensing and  promotional
merchandiser.  However  we were not able to  identify a  sufficient  number of
suitable products which would be available to us.  Accordingly,  we determined
to  focus  on the  exploration,  development  and  acquisition  of oil and gas
properties.  We  currently  focus  all  of  our  exploration  and  development
efforts in Australia.

In May 2007 we acquired a 62.5% working  interest in an  Australian  oil and gas
exploration  permit area known as Victoria  Permit 60 ("Vic P60"). In connection
with the  acquisition of Holloman  Petroleum Pty, Ltd., as described  below,  we
acquired the  remaining  37.5% working  interest in the Vic P60 permit.  We paid
$639,487 to a group of unrelated  parties for the Permit  following the approval
of the transfer of the permit by the Australian government.  For assisting us in
this transaction we also agreed to pay a broker 800,000 shares of our restricted
common stock plus a 9% overriding royalty interest in the acreage covered by the
Permit.  As a  result,  we  have a net  revenue  interest  of a  81.625%  in the
prospect.  The VIC P60 Permit comprises  339,769 acres in the Bass Strait of the
Gippsland Basin of Victoria, Australia. As the holder of the permit we committed
to complete  the work  program  required by the VIC P60 Permit.  We project that
seismic work, interpretation of data and related work will require an investment
of $6 to $9 million prior to October 2008.  The Permit also requires us to drill
at least one well before  November  2009.  We estimate the cost of drilling that
well will  approximate  $57 million.  Our plan is to joint venture this prospect
with third parties which will pay a substantial portion of the costs required to
explore for oil and gas in the area covered by the Permit.

On  August  3,  2007  we  acquired  Endeavor  Canada  Corporation   ("Endeavor
Canada"),  an Alberta corporation  involved in the exploration and development
of oil and  gas,  for  9,000  shares  of our  Series  A  Preferred  stock  and
9,000,000  shares  of  the  Class  A  preferred  stock  of  our  wholly  owned
subsidiary,  First  Endeavor  Holdings.  Each  Series  A  Preferred  share  is
convertible  into one share of our common stock and is entitled to 1,000 votes
on any  matter  submitted  to our  shareholders  for  approval.  The  Class  A
preferred  shares of First Endeavor  Holdings are, at the option of the holder
of  the  shares,  convertible  into  9,000,000  shares  of our  common  stock.
Cameron King, one of our former  officers and  directors,  owned a controlling
interest in Endeavor  Canada at the time of this transction and received 6,500
Series A  Preferred  shares and  6,500,000  First  Endeavor  Holdings  Class A
preferred shares in exchange for his shares in Endeavor Canada.

On November 21, 2007 we acquired  Holloman  Petroleum Pty. Ltd. for 18,600,000
shares of our  common  stock.  Holloman  Petroleum  Pty.'s  assets  consist of
working  interests,  varying  between  37.5%  and  100%,  in seven oil and gas
permits  awarded by the Australian  government,  including the remaining 37.5%
working  interest in the Vic P60 permit.  These permits,  which have remaining
terms  expiring  between  June 2008 and  February  2013,  cover  6,873  square


                                       4
<PAGE>

kilometers  (1,698,355  acres) of land in the  Cooper  basin  and  2,589  square
kilometers (639,755 acres) offshore in the Gippsland basin and Barrow sub-basin.
The holder of the permits is required to drill wells and complete  other work on
the lands covered by the permits. If we elect to drill all the wells and perform
all other work required by the permits,  very early  estimates  suggest that the
cost will be over  $15,000,000  during the twelve  months  ending March 31, 2009
and well over $200,000,000 over the terms of the permits.

On February 15, 2008 we disposed of our interest in Endeavor  Canada.  As part
of this process,  we transferred all outstanding  shares of Endeavor Canada to
Cameron King.  In  consideration  for the transfer of these shares,  the 6,500
shares of our Series A  Preferred  stock and the  6,500,000  Class A Preferred
shares of First Endeavor Holdings  previously issued to Mr. King were returned
to us and cancelled.

As of February 15, 2008  Endeavor  Canada had a 100%  working  interest in one
well, a 50% working  interest in four wells,  a 40% working  interest in seven
wells and working  interests  of 25% or less in two wells.  As of February 15,
2008 six of the wells were  producing  a total of  approximately  2,540 mcf of
gas per month (1,140 mcf of gas net to Endeavor  Canada's  working interest in
these  wells)  and the  remaining  eight  wells  were shut in due to  required
maintenance or the current price of natural gas.

On December 19, 2007 we entered into an agreement with DVM International  Ltd.
with respect to the PEL 109 and PEL 112 oil and gas  concessions in the Cooper
Basin  in  Australia.  The  agreement  gave DVM the  right  to earn a  working
interest  in the  concessions  by  drilling  one or more  wells  on the  lands
covered  by the  concessions.  DVM  never  drilled  any wells and on March 25,
2008 we terminated our agreement with DVM.

On March 7, 2008 we entered  into an agreement  with  Holloman Oil & Gas which
granted  Holloman  Oil & Gas the right to earn a 66.667%  working  interest in
the PEL 112 permit,  which covers  approximately  821,500  acres in the Cooper
basin of Australia.  To earn this working interest,  Holloman Oil & Gas agreed
to:

     1.   Fund the costs  required to drill,  and if warranted,  complete  three
          wells on the PEL 112 by June 10, 2008; and

     2.   Pay us a 1.33% overriding royalty on gross revenues generated from the
          sale of any oil or gas produced from wells drilled on the PEL 112.

We have the right to earn up to a  one-third  working  interest in the PEL 112
concession  by  paying,  prior to the time  any  well has  reached  50% of the
expected total depth, our  proportionate  share of the cost of drilling any of
the  wells  involved  in the  three-well  drilling  program.  We also have the
right to earn up to a one-third  working  interest in any future wells drilled
on the PEL 112 (over and above the  initial  three-well  drilling  program) by
paying our proportionate share of the cost of drilling the wells.

In March 2008  Holloman  Oil & Gas drilled its first  exploratory  well on PEL
112.  The well was  drilled  to  approximately  6,000 feet and was a dry hole.
The terms of the PEL 112 permit and the two related permits  covering lands in


                                       5
<PAGE>

the Cooper basin  require us to drill two  additional  wells prior to June 10,
2008.

We did not  participate  in drilling any wells during the year ended  December
31, 2007.

As of March 31,  2008 we did not have any  proven oil or gas  reserves  and we
did not have any revenue.

During the  remainder of 2008 we plan to enter into joint  venture  agreements
with third  parties to explore for oil and gas in the Cooper,  Gippsland  and
Barrow basins of Australia.

Competition
-----------

The  petroleum  and  natural  gas  industry  is highly  competitive.  Numerous
independent  oil and gas  companies,  oil and gas syndicates and major oil and
gas companies  actively seek out and bid for oil and gas properties as well as
for the services of third party providers,  such as drilling  companies,  upon
which we rely. A substantial  number of our competitors  have longer operating
histories and substantially  greater financial and personnel resources than we
do.  Many of  these  companies  not  only  explore  for,  produce  and  market
petroleum and natural gas, but also carry out refining  operations  and market
the  resultant  products  on a worldwide  basis  which may  provide  them with
additional sources of capital.  Larger and better capitalized  competitors may
be  in  a  position  to  outbid  us  for  particular  prospect  rights.  These
competitors  may  also  be  better  able to  withstand  sustained  periods  of
unsuccessful drilling.  Larger competitors may be able to absorb the burden of
any  changes in laws and  regulations  more  easily  than we can,  which would
adversely  affect  our  competitive  position.   In  addition,   most  of  our
competitors  have been operating for a much longer time and have  demonstrated
the ability to operate through industry cycles.

Petroleum  and natural gas  producers  also  compete  with other  suppliers of
energy  and  fuel  to  industrial,   commercial   and  individual   customers.
Competitive  conditions  may be  substantially  affected  by various  forms of
energy  legislation  and/or  regulation  considered  from  time to time by the
governments  and/or  agencies  thereof  and other  factors  out of our control
including,  international  political conditions,  overall levels of supply and
demand for oil and gas, and the markets for  synthetic  fuels and  alternative
energy sources.

Regulation
----------

The exploration,  production and sale of oil and gas are extensively regulated
by governmental  bodies.  Applicable  legislation is under constant review for
amendment or expansion.  These efforts frequently result in an increase in the
regulatory  burden on companies in our industry and  consequently  an increase
in the  cost  of  doing  business  and  decrease  in  profitability.  Numerous
governmental  departments  and agencies are  authorized  to, and have,  issued
rules and regulations  imposing additional burdens on the oil and gas industry
that  often are  costly to comply  with and carry  substantial  penalties  for
failure to comply.  Production  operations  are  affected by changing  tax and
other  laws  relating  to  the  petroleum  industry,  by  constantly  changing
administrative  regulations  and  possible  interruptions  or  termination  by
government authorities.



                                       6
<PAGE>

Oil and  gas  mineral  rights  may be held  by  individuals,  corporations  or
governments  having  jurisdiction  over the area in which such mineral  rights
are located.  As a general  rule,  parties  holding such mineral  rights grant
licenses  or  leases  to third  parties  to  facilitate  the  exploration  and
development of these mineral rights.  The terms of the leases and licenses are
generally  established  to require  timely  development.  Notwithstanding  the
ownership of mineral  rights,  the  government  of the  jurisdiction  in which
mineral  rights are located  generally  retains  authority  over the manner of
development of those rights.

Environmental Considerations
----------------------------

Our operations  are also subject to a variety of constantly  changing laws and
regulations  governing  the  discharge of materials  into the  environment  or
otherwise relating to environmental  protection.  Failure to comply with these
laws and  regulations  can result in the imposition of  substantial  fines and
penalties as well as potential orders  suspending or terminating our rights to
operate.  Some  environmental  laws to which we are subject provide for strict
liability for pollution  damage,  rendering a person liable for  environmental
damage  without  regard to negligence or fault on the part of such person.  In
addition,  we may be subject to claims  alleging  personal  injury or property
damage as a result of alleged  exposure to hazardous  substances,  such as oil
and gas related products or for other reasons.

Some environmental  protection laws and regulations may expose us to liability
arising out of the conduct of operations or  conditions  caused by others,  or
for acts which were in  compliance  with all  applicable  laws at the time the
acts were performed.  Changes in the  environmental  laws and regulations,  or
claims  for  damages  to  persons,   property,   natural   resources   or  the
environment,  could result in substantial  costs and  liabilities to us. These
laws  and  regulations  may  substantially  increase  the  cost of  exploring,
developing,  producing or processing  oil and gas and may prevent or delay the
commencement  or continuation of a given project and thus generally could have
a  material  adverse  effect  upon  our  capital  expenditures,  earnings,  or
competitive  position.  We believe that we are in substantial  compliance with
current applicable environmental laws and regulations.  Nevertheless,  changes
in  existing  environmental  laws and  regulations  or in the  interpretations
thereof could have a significant  impact on us and the oil and gas industry in
general.

Risks
-----

We have  never  earned  a  profit.  We  expect  to  incur  losses  during  the
foreseeable  future and we may never be  profitable.  To enable us to continue
in  business  we will  eventually  need to earn a profit or obtain  additional
financing until we are able to earn a profit.

Our failure of to obtain  capital may  significantly  restrict  our  proposed
operations.  We need  additional  capital to fund our operating  losses and to
explore for oil and gas.  We do not know what the terms of any future  capital
raising may be but any future sale of our equity  securities  would dilute the
ownership of existing  stockholders and could be at prices substantially below
the  market  price  of our  common  stock.  We may not be able to  obtain  the
capital which we need.



                                       7
<PAGE>

Oil and gas  exploration is not an exact science,  and involves a high degree
of risk.  The primary  risk lies in the  drilling of dry holes or drilling and
completing wells which,  though  productive,  do not produce gas and/or oil in
sufficient  amounts  to return  the  amounts  expended  and  produce a profit.
Hazards,  such as unusual or unexpected formation  pressures,  downhole fires,
blowouts,  loss of  circulation  of drilling  fluids and other  conditions are
involved in drilling  and  completing  oil and gas wells and, if such  hazards
are  encountered,  completion  of any well  may be  substantially  delayed  or
prevented.  In  addition,  adverse  weather  conditions  can  hinder  or delay
operations,  as can shortages of equipment and materials or  unavailability of
drilling,  completion,  and/or work-over rigs. Even though a well is completed
and  is  found  to  be  productive,  water  and/or  other  substances  may  be
encountered in the well,  which may impair or prevent  production or marketing
of oil or gas from the well.

      Exploratory drilling involves  substantially greater economic risks than
development  drilling  because the percentage of wells  completed as producing
wells is  usually  less than in  development  drilling.  Exploratory  drilling
itself can be of varying  degrees of risk and can  generally  be divided  into
higher risk attempts to discover a reservoir in a completely  unproven area or
relatively  lower  risk  efforts  in  areas  not  too  distant  from  existing
reservoirs.  While exploration  adjacent to or near existing reservoirs may be
more  likely  to  result in the  discovery  of oil and gas than in  completely
unproven areas, exploratory efforts are nevertheless high risk activities.

      Although the  completion  of oil and gas wells is, to a certain  extent,
less risky than  drilling for oil and gas, the process of completing an oil or
gas well is  nevertheless  associated  with  considerable  risk.  In addition,
even if a well is completed  as a producer,  the well for a variety of reasons
may not produce  sufficient oil or gas in order to repay our investment in the
well.

The  acquisition,  exploration  and development of oil and gas properties and
the  production and sale of oil and gas are subject to many factors which are
outside our control.  These factors  include,  among others,  general economic
conditions,  proximity to pipelines,  oil import quotas,  supply,  demand, and
price  of  other   fuels  and  the   regulation   of   production,   refining,
transportation,  pricing,  marketing and taxation by Federal, state, and local
governmental authorities.

The drilling of oil and gas wells involves hazards such as blowouts,  unusual
or unexpected formations, pressures or other conditions which could result in
substantial  losses or liabilities  to third parties.  Although we believe the
coverage and types of insurance we maintain  are  currently  adequate,  we may
not be insured  against all losses  because  insurance  may not be  available,
premium costs may be deemed unduly high,  or for other  reasons.  Accordingly,
uninsured  liabilities could result in significant  losses and have a material
adverse effect on our operations.

General
-------

We currently have one full-time employee.  We use independent  consultants who
provide  us,  among  other  things,  with  technical  support  and  accounting
services.


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<PAGE>

Our office is located at 5257 West Interstate 20, Odessa,  Texas.  Our offices
are  provided  free  of  charge,  on a  month  by  month  basis,  by  Holloman
Corporation which owns Holloman Oil & Gas, our principal shareholder.

ITEM 2.   DESCRIPTION OF PROPERTY.

See Item 1 of this report.

ITEM 3.   LEGAL PROCEEDINGS.

None

ITEM 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

None

                                   PART II

ITEM 5.   MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS.

On February 16, 2007 our common stock began trading on the OTC Bulletin  Board
under the symbol  "DJRP." On April 25, 2007 our trading  symbol was changed to
"ENEC" and on October  10,  2007 our  trading  symbol  changed to "HENC."  The
following  chart  show  the  high  and low bid  prices  as  quoted  by the OTC
Bulletin  Board Market for each quarter for the fiscal year ended December 31,
2007.  Such  prices  represent  quotations  between  dealers,  without  dealer
markup, markdown or commissions, and may not represent actual transactions.

 ------------------------------------------------------------------------------
 Quarter                         High                    Low
 ------------------------------------------------------------------------------

 1st Quarter 2007                $1.80                   $1.25
 ------------------------------------------------------------------------------
 2nd Quarter 2007                $1.96                   $1.60
 ------------------------------------------------------------------------------
 3rd Quarter 2007                $2.00                   $0.31
 ------------------------------------------------------------------------------
 4th Quarter 2007                $1.20                   $0.31
 ------------------------------------------------------------------------------

There is  currently  only a limited  market  for our common  stock.  A limited
market  is  characterized  by a  relatively  limited  number  of shares in the
public float,  relatively low trading volume and the small number of brokerage
firms  acting as market  makers.  The  market  for low  priced  securities  is
generally  less liquid and more  volatile than  securities  traded on national
stock markets.  Fluctuations  in market prices are not uncommon.  No assurance
can be given that the market for our common  stock will  continue  or that the
stock price will be maintained.

The  Securities  and  Exchange   Commission  has  adopted   regulations  which
generally  define a "penny stock" to be any equity  security that has a market
price (as  defined) of less than $5.00 per share or an exercise  price of less


                                       9
<PAGE>

than $5.00 per share,  subject to certain exceptions.  As a result, our shares
of common  stock are subject to rules that impose  additional  sales  practice
requirements on broker-dealers  who sell such securities to persons other than
established clients and "accredited  investors".  For transactions  covered by
these rules, the broker-dealer must make a special  suitability  determination
for the purchase of such securities and have received the purchaser's  written
consent  to the  transaction  prior  to the  purchase.  Additionally,  for any
transaction  involving a penny stock,  unless  exempt,  the rules  require the
delivery, prior to the transaction,  of a risk disclosure document mandated by
the SEC  relating  to the penny  stock  market.  The  broker-dealer  must also
disclose the commission  payable to both the  broker-dealer and the registered
representative,   current   quotations   for  the   securities   and,  if  the
broker-dealer is the sole market maker, the  broker-dealer  must disclose this
fact  and the  broker-dealer's  presumed  control  over the  market.  Finally,
monthly  statements must be sent disclosing  recent price  information for the
penny  stock held in the  account and  information  on the  limited  market in
penny stocks.  Consequently,  the "penny stock" rules may restrict the ability
of  broker-dealers  to sell our  shares of common  stock  and may  affect  the
ability of  investors  to sell such  shares of common  stock in the  secondary
market and the price at which investors can sell any of such shares.

As of March 31,  2008 we had 31  shareholders  of record for our common  stock
and two shareholders of record for our Series A preferred stock.

We  have  not  declared  any  dividends  and we do not  plan  to  declare  any
dividends  in the  foreseeable  future.  We plan to  retain  any  earnings  to
finance the expansion of our operations.

On November 1, 2007 we sold 60,000  shares of our common  stock to an investor
at a price of $1.00  per  share.  We relied  upon the  exemption  provided  by
Section  4(2) of the  Securities  Act of 1933 in  connection  with the sale of
these shares.  We believe that the investor had  knowledge  and  experience in
financial  and business  matters  which allowed him to evaluate the merits and
risks of an  investment  in our  securities.  We did not pay any  underwriting
discounts or sales commissions in connection with the sale of these shares.

As of March 31, 2007 we had 81,219,358  outstanding shares of common stock and
2,500  outstanding   shares  of  Series  A  preferred  stock.  Each  Series  A
preferred  share  is  convertible  into  one  share of our  common  stock.  In
addition,  our wholly owned  subsidiary,  First  Endeavor  Holdings  Inc., has
issued  2,500,000  Class  A  preferred  shares  which,  at the  option  of the
holders, are convertible into 2,500,000 shares of our common stock.

ITEM 6.   MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

General

We were  incorporated  on May 14, 2004.  Between May 2004 and May 2007 we were
relatively inactive.



                                       10
<PAGE>

On  August  3,  2007  we  acquired  Endeavor  Canada  Corporation   ("Endeavor
Canada"),  an Alberta corporation  involved in the exploration and development
of oil and  gas,  for  9,000  shares  of our  Series  A  Preferred  stock  and
9,000,000 shares of the preferred stock of our wholly owned subsidiary,  First
Endeavor Holdings.

For accounting  purposes,  our  acquisition of Endeavor  Canada  constituted a
recapitalization  and the  acquisition  was accounted for as a reverse  merger
whereby  Endeavor  Canada was  deemed to have  acquired  us. As a result,  our
financial statements reflect the historical  operations of Endeavor Canada and
our operations subsequent to August 3, 2007, the date of the reverse merger.

Endeavor Canada was  incorporated  in May 2006.  Between May 2006 and December
2006 Endeavor  Canada  acquired its oil and gas properties in Alberta,  Canada
but was  otherwise  relatively  inactive.  As a result,  a  comparison  of our
operations  for the twelve months ended  December 30, 2007 with our operations
for the twelve months ended December 31, 2006 is not meaningful.

Following the acquisition of Endeavor Canada,  we paid $1,640,000 in principal
and accrued  interest to Endeavor  Canada's note holders with 1,093,155 shares
of our restricted common stock.

As of December 31, 2007 our only  revenues  were from the sale of gas from wells
in  Alberta,  Canada  owned by  Endeavor  Canada.  As of that date we had a 100%
working  interest  in one well,  a 50% working  interest  in four  wells,  a 40%
working interest seven wells and working  interests of 25% or less in two wells.
As of December 31, 2007 six of the wells were producing a total of approximately
2,540 mcf of gas per month  (1,140 mcf of gas net to Endeavor  Canada's  working
interest  in these  wells)  and the  remaining  eight  wells were shut in due to
required maintenance or the current price of natural gas.

During the year ended December 31, 2007,  Endeavor Canada  generated  $58,957 in
net revenues and sustained an operating  loss of $634,610.  Of the $2,566,246 we
reported as current  liabilities at December 31, 2007,  $1,504,147 relate to the
operations  of  Endeavor  Canada.   Of  the  remaining   $1,062,099  in  current
liabilities,  $760,026 are advances from related parties.  We anticipate that we
will reorganize a gain on our divesture of Endeavor Canada.

On February 15, 2008 we sold our  interest in Endeavor  Canada to Cameron King
in  return  for the  6,500  shares  of our  Series A  Preferred  stock and the
6,500,000  Class A  Preferred  shares of First  Endeavor  Holdings  previously
issued  to Mr.  King.  The  assets  of  Endeavor  Canada  included  all of our
Canadian oil and gas properties.

Liquidity and Capital Resources

In May 2007 we acquired a 62.5% working  interest in an Australian oil and gas
exploration   permit  area  known  as  Victoria  Permit  60  ("Vic  P60")  for
$639,487.  In  connection  with the  acquisition  of Holloman  Petroleum  Pty,
Ltd., as described  below, we acquired the remaining 37.5% working interest in
the Vic P60 permit.  As the holder of the permit we  committed to complete the
work program  required by the VIC P60 Permit.  We project  that seismic  work,
interpretation  of data and related work will require an  investment  of $6 to
$9 million prior to October  2008.  Further,  the Permit  requires us to drill
at least one well before  November 2009. We estimate the cost of drilling that


                                       11
<PAGE>

well will  approximate  $57  million.  We will  attempt to joint  venture this
prospect with third  parties  which will pay all, or a significant  portion of
the costs  required  to  explore  for oil and gas in the area  covered  by the
Permit.

On November 21, 2007 we acquired  Holloman  Petroleum  Pty. Ltd for 18,600,000
shares of our common stock.  Holloman  Petroleum's  assets  consist of working
interests  varying  between  37.5%  and  100% in  seven  oil and gas  permits,
including the remaining  37.5% working  interest in the Vic P60 permit.  These
permits,  which have remaining  terms expiring  between June 2008 and February
2013.  As the  holder  of the  permits,  we are  required  to drill  wells and
complete other work on the lands covered by the permits.  If we elect to drill
all the wells and perform all other work  required by the permits,  very early
estimates  suggest  that the cost will be over  $15,000,000  during the twelve
months ending March 31, 2009 and well over  $200,000,000 over the terms of the
permits.

At December 31, 2007, we had advances payable to:

     o    King Capital Corporation in the amount of $533,090;

     o    Grant  Petersen,  our current Chief Executive  Officer,  and an entity
          controlled by Mr. Petersen, in the amount of $183,861; and

     o    Holloman Corporation in the amount of $363,876.

These  advances were used to support our  operations  in  Australia,  maintain
fund  raising  efforts,  and pay  general  and  administrative  expenses.  All
advances are  unsecured,  non-interest  bearing,  and are due on demand.  King
Capital  Corporation,  Open Bay  Holdings  and  Holloman  Corporation  are all
affiliates.  See Item 12 of this report for more information.

Our material future contractual  obligations as of December 31, 2007 are shown
below.  The  obligations  exclude any  liabilities of Endeavor Canada since we
disposed of our interest in Endeavor Canada in February 2008.

                                        Amounts due during twelve months ending
                                                  December 31,
  Description             Total           2008            2009          2010
  -----------             -----           ----            ----          ----

  Loan payments to
   related parties       $815,142       $815,142           --             --

Our operations have been financed from the sale of our common stock,  the sale
of convertible  notes,  loans from  unrelated  third parties and advances from
our current and former officers, directors and their affiliates.

We are  attempting  to raise the capital  required to  implement  our business
plan.  We  believe  our  plan  of  operations  we will  require  approximately
$25,000,000 in financing over the twelve-month period ending March 31, 2009.



                                       12
<PAGE>

If we are unable to raise the  financing we need,  our business plan will fail
and our stockholders  will loose their  investment.  There can be no assurance
that we will be successful  in raising the capital we require,  or that if the
capital  is  offered,  it will be  subject  to terms we  consider  acceptable.
Investors  should  be aware  that  even in the  event we are able to raise the
funds we  require,  there  can be no  assurance  that we will  succeed  in our
drilling or production plans and we may never be profitable.

As of March 31, 2008 we did not have any off balance sheet arrangements.

As of March 31, 2008 we did not have any proven oil or gas reserves and we
did not have any revenues.

Critical Accounting Policies and Estimates

Measurement Uncertainty
-----------------------

The process of preparing financial  statements requires that we make estimates
and assumptions  that affect the reported  amounts of assets and  liabilities,
disclosure of contingent  assets and  liabilities at the date of the financial
statements,  and the  reported  amounts of revenues  and  expenses  during the
reporting period.  Such estimates  primarily relate to unsettled  transactions
and events as of the date of the  financial  statements;  accordingly,  actual
results may differ from estimated  amounts.  Significant items subject to such
estimates  and  assumptions  include  estimates  of proved  reserves,  related
present value  estimates of future net revenue,  the carrying value of oil and
gas properties,  asset  retirement  obligations,  income taxes,  and legal and
environmental risks and exposure.

Accounts  receivable  are stated after  evaluation as to their  collectibility
and  an  appropriate   allowance  for  doubtful  accounts  is  provided  where
considered  necessary.  Amounts  recorded  for  depreciation,   depletion  and
amortization  and  amounts  used  for  impairment  calculations  are  based on
estimates  of oil and gas  reserves  and  commodity  prices and capital  costs
required to develop those reserves.  Amortization of property and equipment is
based  on the  estimated  useful  lives of those  assets.  The  value of asset
retirement  obligations  involves  estimates of ultimate  settlement  amounts,
inflation   factors,   credit  adjusted  discount  rates  and  the  timing  pf
settlement.

These estimates and assumptions are reviewed  periodically and, as adjustments
become  necessary  they are  reported in earnings in the periods in which they
become known.

Petroleum and Natural Gas Properties
------------------------------------

We follow the full cost method of  accounting  for our  petroleum  and natural
gas  properties;   accordingly,  all  costs  incidental  to  the  acquisition,
exploration  and  development of oil and gas  properties,  including  costs of
undeveloped  leasehold,  dry holes and leasehold  equipment,  are capitalized.
Internal  costs  incurred  that  are  directly  identified  with  acquisition,
exploration  and  development  activities not related to  production,  general
corporate  overhead  or similar  activities,  are also  capitalized.  Interest
costs  incurred  and  attributable  to unproved oil and gas  properties  under
current  evaluation and major  development  projects of oil and gas properties


                                       13
<PAGE>

are also capitalized.  All costs related to production  activities,  including
work over costs incurred  solely to maintain or increase  levels of production
from an existing completion interval, are charged to expense as incurred.

Under the full cost method of accounting,  the net book value of petroleum and
natural gas properties,  less related  deferred income taxes, may not exceed a
calculated  "ceiling."  The  ceiling  limitation  is the  estimated  after-tax
future net revenues,  discounted at 10% per annum, from proved oil and natural
gas  reserves  plus  the  cost of  properties  not  subject  to  amortization.
Estimated  future net revenues  exclude future cash outflows  associated  with
settling asset  retirement  obligations  included in the net book value of oil
and gas properties.  Such limitations are imposed and are tested quarterly. In
calculating  future  net  revenues,  prices and costs used are those as of the
end of the appropriate  quarterly period.  These prices are not changed except
where different  prices are fixed and determinable  from applicable  contracts
for the remaining  term of those  contracts,  including  designated  cash flow
hedges in place. We had no material hedges outstanding at December 31, 2007.

Any  excess of the net book  value,  less  related  deferred  taxes,  over the
ceiling is written  off as an expense.  An expense  recorded in one period may
not be reversed in a subsequent  period even though  higher oil and gas prices
may have increased the ceiling applicable to the subsequent period.

Capitalized  costs are depleted by an  equivalent  unit-of-production  method,
converting  gas to oil at the ratio of six thousand  cubic feet of natural gas
to one barrel of oil.  Depletion is calculated  using the  capitalized  costs,
including   estimated  asset  retirement  costs,  plus  the  estimated  future
expenditures  (based on current  costs) to be  incurred in  developing  proved
reserves, net of estimated salvage values.

Unproved properties are excluded from amortized  capitalized costs until it is
determined  whether or not proved reserves can be assigned to such properties.
The  Company  assesses  its  unproved  properties  for  impairment  quarterly.
Significant   unproved   properties  are  assessed   individually.   Costs  of
insignificant  unproved  properties are transferred to amortizable  costs over
average  holding  periods  ranging from three years for onshore  properties to
seven years for offshore properties.

No gain or loss is recognized  upon disposal of oil and gas properties  unless
such disposal  significantly alters the relationship between capitalized costs
and proved reserves.

Asset Retirement Obligations
----------------------------

We recognize a liability  for asset  retirement  obligations  in the period in
which they are incurred  and in which a reasonable  estimate of such costs can
be made. Asset retirement  obligations  include those legal  obligations where
that will be required to retire tangible  long-lived  assets such as producing
well  sites.  The asset  retirement  obligation  is measured at fair value and
recorded as a  liability  and  capitalized  as part of the cost of the related
long-lived   asset  as  an  asset   retirement   cost.  The  asset  retirement
obligation  accretes  until  the  time  the  asset  retirement  obligation  is


                                       14
<PAGE>

expected to settle while the asset  retirement  costs  included in oil and gas
properties are amortized using the unit-of-production method.

Amortization of asset  retirement  costs and accretion of the asset retirement
obligation  are included in depletion,  depreciation,  and  accretion.  Actual
asset  retirement  costs are recorded  against the  obligation  when incurred.
Any  difference  between the recorded  asset  retirement  obligations  and the
actual retirement costs incurred is recorded in depletion,  depreciation,  and
accretion.

Environmental
-------------

Environmental  expenditures  are  expensed or  capitalized  depending on their
future economic  benefit.  Expenditures  that relate to an existing  condition
caused  by past  operations  and that  have no future  economic  benefits  are
expensed.  Liabilities for  expenditures of a non-capital  nature are recorded
when an  environmental  assessment  and/or  remediation  is probable,  and the
costs  can be  reasonably  estimated.

Joint Venture Activities
------------------------

Substantially  all of our petroleum and natural gas exploration and production
activities are conducted jointly with others, and, accordingly,  our financial
statements reflect only our proportionate interest in such activities.

Revenue Recognition
-------------------

We  recognize  revenue  from oil sales when the oil is  delivered to the buyer
and from gas sales when the gas passes  through the  pipeline at the  delivery
point.  Revenue  from the sale of oil and gas is  recognized  based on volumes
delivered to customers at contractual delivery points and rates.

Foreign Currency Translation
----------------------------

Transaction  amounts  denominated in foreign  currencies  are translated  into
their  functional  currency  equivalents at exchange  rates  prevailing at the
transaction  dates.   Carrying  values  of  monetary  assets  and  liabilities
reflect  the  exchange  rates at the balance  sheet date.  Gains and losses on
translation or settlement are included in the  determination of net income for
the current period.

Deferred Income Taxes
---------------------

We follow the asset and  liability  method of  accounting  for  future  income
taxes.  Under this  method,  future  income tax  assets  and  liabilities  are
recorded  based on  temporary  differences  between  the  carrying  amount  of
balance  sheet  items and their  corresponding  tax bases.  In  addition,  the
future  benefits  of income  tax  assets,  including  unused tax  losses,  are
recognized,  subject to a valuation  allowance,  to the extent that it is more
likely than not that such future benefits will ultimately be realized.  Future


                                       15
<PAGE>

income tax assets and  liabilities  are measured  using  enacted tax rates and
laws  expected  to apply when the tax  liabilities  or assets are to be either
settled or realized.

Loss per share
--------------

We compute  basic loss per share by dividing net loss by the weighted  average
number of shares  outstanding  during the period.  The weighted average number
of shares  is  calculated  by taking  the  number  of shares  outstanding  and
weighting them by the amount of time that they were outstanding.  Diluted loss
per share is computed  after giving  effect to all dilutive  potential  common
shares that were  outstanding  during the period.  Dilutive  potential  common
shares  consist of  incremental  shares  issuable  upon the  exercise of stock
options and warrants,  contingent  stock, and conversion of preferred  shares.
The dilutive  effect of potential  common shares is not  considered in our EPS
calculation as the impact would be anti-dilutive.

See Note 2 to the financial  statements  included as part of this report for a
discussion of recent accounting pronouncements.

ITEM 7.     FINANCIAL STATEMENTS.

Attached.


ITEM 8.  CHANGES IN AND  DISAGREEMENTS  WITH  ACCOUNTANTS  ON  ACCOUNTING  AND
            FINANCIAL DISCLOSURES.

Not applicable.


ITEM 8A(T).  CONTROLS AND PROCEDURES.

Following his  appointment  as our Chief  Executive  and Financial  Officer on
January  4,  2008  Grant  Petersen,  our  Principal  Executive  and  Financial
Officer,   evaluated  the   effectiveness  of  our  disclosure   controls  and
procedures  as of the end of the  period  covered by this  report;  and in his
opinion our disclosure  controls and  procedures  were not effective to ensure
that  material   information   relating  to  us,  including  our  consolidated
subsidiaries,   is  made  known  to  him  by  others  within  those  entities,
particularly  during the period in which this report is being prepared,  so as
to  allow  timely  decisions  regarding  required  disclosure.  There  were no
changes in our  internal  controls  over  financial  reporting  that  occurred
during  the  quarter  ended  December  31,  2007  that have  affected,  or are
reasonably  likely to materially  affect,  our internal control over financial
reporting.

Management's Report on Internal Control Over Financial Reporting
----------------------------------------------------------------

Our  management is  responsible  for  establishing  and  maintaining  adequate
internal control over financial reporting as required by Sarbanes-Oxley  (SOX)
Section  404.A.  Our internal  control over  financial  reporting is a process


                                       16
<PAGE>

designed under the  supervision of our Chief  Executive and Financial  Officer
to  provide  reasonable  assurance  regarding  the  reliability  of  financial
reporting  and  the  preparation  of our  financial  statements  for  external
purposes in accordance with Generally Accepted Accounting Principles.

As of the end of the period  covered by this report,  management  assessed the
effectiveness  of our internal  control over financial  reporting based on the
criteria for effective internal control over financial  reporting  established
in  Internal  Control  -  Integrated  Framework  issued  by the  Committee  of
Sponsoring  Organizations of the Treadway Commission ("COSO") and SEC guidance
on  conducting  such  assessments.   Based  on  that  evaluation,   management
concluded that during the period covered by this report our internal  controls
and procedures were not effective to detect the incorrect  application of GAAP
as more fully described  below.  This was due to deficiencies  that existed in
the design or operation of our internal control over financial  reporting that
may be considered to be material weaknesses.

The matters  involving  internal  controls and procedures  that our management
considered  to be  material  weaknesses  were:  (1) the lack of a  functioning
audit  committee  and lack of a majority of outside  directors,  resulting  in
ineffective   oversight  in  the  establishment  and  monitoring  of  required
internal  controls  and  procedures;  (2)  inadequate  segregation  of  duties
consistent with control  objectives;  (3)  insufficient  written  policies and
procedures  for  accounting  and financial  reporting with respect to GAAP and
SEC  disclosure  requirements;  and (4)  ineffective  controls over period end
financial disclosure and reporting  processes.  These material weaknesses were
identified  by our Principal  Executive  and  Financial  Officer in connection
with the audit of our financial statements as of December 31, 2007.

Management believes that the material weaknesses  described above did not have
an affect on our financial results.

We are committed to improving our  organization.  As part of this  commitment,
we  created  an  audit   committee  in  March  2008  which  will  oversee  the
establishment  and monitoring of required  internal  controls and  procedures.
Our Audit Committee is comprised of our two outside directors.  We also intend
to: (i) increase our accounting  personnel and technical  accounting expertise
when funds are  available  which will also permit the  segregation  of duties,
(ii)  appoint  one or more  additional  outside  directors  who  will  also be
appointed to our audit committee;  and (iii) prepare and implement  sufficient
written  policies  and  procedures  pertaining  to  accounting  and  financial
reporting in accordance with GAAP and SEC disclosure requirements.

Management  believes that the creation of an audit  committee and the addition
of a third  outside  director  will  remedy the lack of a majority  of outside
directors.  In addition,  management  believes that preparing and implementing
improved  written  policies and checklists will remedy the following  material
weaknesses (i)  insufficient  written  policies and  procedures  pertaining to
accounting and financial  reporting in accordance with GAAP and SEC disclosure
requirements;  and (ii)  ineffective  controls over period end financial close
and reporting.  Further,  management believes that the hiring of personnel who
have accounting  expertise and knowledge will result in the proper segregation
of duties and provide more checks and balances.



                                       17
<PAGE>

We will  continue to monitor and  evaluate the  effectiveness  of our internal
controls and procedures  over financial  reporting on an ongoing basis and are
committed to taking further action and  implementing  additional  improvements
as necessary and as funds allow.

ITEM 8B.   OTHER INFORMATION

None
                                   PART III

ITEM 9.    DIRECTORS,  EXECUTIVE  OFFICERS,  PROMOTERS,  CONTROL  PERSONS  AND
           CORPORATE  GOVERNANCE;  COMPLIANCE WITH SECTION 16A OF THE EXCHANGE
           ACT

     Name                  Age      Position
     ----                  ---      --------

     Grant Petersen         52      President,  Chief  Executive  Officer  and
                                    Principal Financial Officer
     Mark Stevenson         53      Chairman  of the  Board of  Directors  and
                                     Secretary
     J. Douglas Brown       55      Director
     David Lewis            62      Director
     Eric Prim              49      Director

Our  Directors  are elected for a one-year term and hold office until the next
annual meeting of our shareholders or until their  resignation or removal by a
vote of our  shareholders.  Officers  are  appointed by the Board of Directors
and serve at the  discretion  of the  board.  There is no family  relationship
between or among any of our Directors or Officers.

Grant Petersen, President, Principal Executive Officer and Treasurer

Grant  Petersen was elected as our  President and Chief  Executive  Officer on
January 4, 2008.  During  2007,  Mr.  Petersen  was an  independent  financial
consultant.   Mr.   Petersen  served  as  a  Director  of  House  of  Brussels
Chocolates.  Inc.  from October 2002 to January  2007.  Mr.  Petersen was also
employed by House of Brussels  Chocolates as Chief Executive Officer (May 2003
to January  2007),  President  (January  2004 to January  2007 ), and  General
Sales  Manager  (June  2001 to  October  2002).  Mr.  Petersen  was the  Chief
Executive Officer of SUMmedia.com from August 1999 to December 2001.

Mark Stevenson, Chairman of the Board of Directors and Secretary

Mark Stevenson has been a Director  since  September  2007. Mr.  Stevenson has
served as President and Chief Executive Officer of Holloman  Corporation since
July 1998. Prior to his appointment as President of Holloman Corporation,  Mr.
Stevenson was employed by Holloman  Corporation  as Executive  Vice  President
(1997 to 1998),  Vice  President  - Pipeline  Division  (1979 to 1997),  chief
estimator (1977 to 1979) and field construction engineer (1976 to 1977).



                                       18
<PAGE>

J. Douglas Brown, Director

J. Douglas  Brown  joined our Board of Directors on March 19, 2007.  Mr. Brown
holds a law degree  from  Edinburgh  University  and  possesses  over 35 years
investment  banking  experience.  Mr.  Brown  began his  banking  career as  a
financial  analyst with J  P Morgan in London and New York.  During the period
from 1982 to 1997,  Mr.  Brown  served  with  Citigroup  and  Banque  Indosuez
focusing  on  transactions  related to the Middle  East.  Since  1997,  he has
actively   participated   in  the  creation  and   management  of  hedge  fund
opportunities.  Mr. Brown  currently  sits on the boards of directors of: Lund
Gold Ltd;  Genesis  Minerals Corp; LIM Asia Arbitrage  Fund;  Eastern  Capital
Fund;  and the Advisory Board of Pacific Asia China Energy Inc. Mr. Brown is a
principal  of Grasmere  Limited,  a privately  held  advisory  company,  which
specializes in distribution of hedge funds and corporate finance.

David Lewis, Director

David Lewis joined our Board of Directors on September  21, 2007 and currently
chairs our Audit  Committee.  During the past five years, Mr. Lewis has served
in the following  capacities:  Chief Financial  Officer of Aurelian  Resources
Inc.  (May  2004  to  August  2007),  Chief  Financial  Officer  of  Starfield
Resources  Inc.  (May 2006 to July  2007),  Chief  Financial  Officer  of Khan
Resources Inc. (June 2005 to December 2006), Director of Khan Resources,  Inc.
(June  2005 to  January  2006)  and Chief  Financial  Officer  of Fiber  Optic
Systems  Technology Inc. (August 2004 to April 2006).  Between  September 2002
and  October  2003 Mr.  Lewis  was the Vice  President  of  Kingsdale  Capital
Markets  Ltd.  In August  2004,  he was also  elected as an IPO  director  and
chairman of the Audit Committee of Revett Minerals Inc.

Eric Prim, Director

Eric Prim joined or Board of Directors in  September  2007.  Mr. Prim has been
the Vice President of Engineering  and  Construction  of Holloman  Corporation
since 1997. Prior to his association with Holloman,  Mr. Prim held engineering
positions with Huntsman Corporation and Rexene Corporation.  Mr. Prim received
his Bachelor of Science degree in chemical  engineering from the University of
Texas  in 1982 and a Master  of  Business  Administration  degree  from  Amber
University in 1987.

On November 21, 2007 we acquired  Holloman  Petroleum Pty. Ltd. for 18,600,000
shares  of  our  common  stock.  As a  condition  of  this  acquisition,  Mark
Stevenson,  President  and CEO of Holloman  Corporation,  and Eric Prim,  Vice
President of Holloman Corporation, were appointed to our Board of Directors.

J. Douglas Brown and David Lewis are  independent  directors,  as that term is
defined in Section  121(A) of the  listing  standards  of the  American  Stock
Exchange.

Changes in Management
---------------------

The  following  table shows the changes in our  officers and  directors  since
January 1, 2007.


                                       19
<PAGE>

                                  Appointed
                                  to (A) or
                                 Resigned (R)    Positions Appointed to
Date          Name              from Positions   Positions Resigned From
----          ----              --------------   -----------------------

1/22/07       Douglas Blackman        A           Director

2/22/07       Douglas Blackman        R           Director

5/25/07       Adrian Crimeni          R           President, Principal Financial
                                                  Officer, Secretary and
                                                  Director

5/25/07       James Giachetti         R           Vice President

3/9/07        J. Douglas Brown        A           Director

5/25/07       Kelly Fielder           A           Principal Executive and
                                                  Financial Officer,
                                                  President, Secretary and
                                                  Treasurer

8/3/07        Kelly Fielder           R           Principal Executive and
                                                  Financial Officer,
                                                  President, Secretary and
                                                  Treasurer

8/3/07        Cameron King            A           Principal Executive and
                                                  Financial Officer, Director

9/20/07       Mark Stevenson          A           Director

9/20/07       Eric Prim               A           Director

9/21/07       David Lewis             A           Director

12/10/07      Cameron King            R           Principal Executive and
                                                  Financial Officer, Director

1/4/08        Grant Petersen          A           President and Chief
                                                  Executive Officer

Prior to March  2008 our  Directors  acted as our  Audit  Committee.  In March
2008 we formed an Audit  Committee  and  adopted an Audit  Committee  Charter.
Our Audit  Committee is  comprised  J.  Douglas  Brown and David Lewis who are
independent  directors  (as that term is defined by the standards set forth by
the  American  Stock  Exchange).  Mr. Lewis is our Audit  Committee  Financial
Expert  as  that  term  is  defined  in  Item  407  of  Regulation  S-B of the
Securities and Exchange Commission.



                                       20
<PAGE>

On March 26,  2007,  our  Board of  Directors  adopted  a code of ethics  that
applies to our principal executive and financial officers.  A copy of our Code
of Ethics was  included as Exhibit  14.1 to our Form 10-KSB for our year ended
December 31, 2006.

COMPLIANCE WITH SECTION 16A OF THE EXCHANGE ACT

Section 16(a) of the  Securities  Exchange Act of 1934,  as amended,  requires
that our  directors and executive  officers and persons who  beneficially  own
more than 10% of our  common  stock  (referred  to  herein  as the  "reporting
persons") file with the Securities and Exchange  Commission various reports as
to their  ownership  of and  activities  relating  to our common  stock.  Such
reporting  persons  are  required  by the SEC  regulations  to furnish us with
copies of all Section 16(a)  reports they file.  Based solely upon a review of
copies of  Section  16(a)  reports  and  representations  received  by us from
reporting  persons,  and without  conducting any independent  investigation of
our  own,  we  believe  all  Forms  3,  4 and 5 were  timely  filed  with  the
Securities  and  Exchange  Commission  by such  reporting  persons,  with  the
exception of; Kelly  Fielder,  a former officer who failed to file one Form 3,
Cameron King, a former  officer and  director,  who failed to file one Form 3,
Douglas  Brown  our  current  director,  who  failed  to file one Form 3, Mark
Stevenson,  our current  director who filed one Form 3 and three  transactions
on Form 4 after their due date,  our current  director Eric Prim who filed one
Form 3 and  two  transactions  on Form 4  after  their  due  date,  and  Grant
Petersen current officer who failed to file one Form 3.

ITEM 10.   EXECUTIVE COMPENSATION.

The  following  table  shows  the  compensation  paid to our  Chief  Executive
Officer and those  executive  officers  that earned more than $100,000 in 2007
and 2006:

                          Summary Compensation Table

                                                               All
                                                              Other
Name and                                  Stock    Option     Compen-
Principal                 Salary  Bonus   Awards   Awards     sation    Total
Position           Year     ($)     ($)     ($)       ($)       ($)      ($)

Adrian Crimeni,    2007       --     --       --       --         --        --
Prior CEO, CFO,    2006       --     --       --       --         --        --
President,
Secretary and
Treasurer

Kelly Fielder,     2007       --     --       --       --         --        --
CEO, CFO,          2006       --     --       --       --         --        --
President,
Secretary,
Treasurer


                                       21
<PAGE>

Cameron King,      2007  $86,667      --      --        --        --   $86,667
CEO, CFO,          2006       --      --      --        --        --        --
President,
Secretary and
Treasurer

Mr.  Crimeni,  Mr. Fielder and Mr. King all resigned  their  positions with us
prior to December 31, 2007.

During  2006  and  2007  we  paid  management  fees  of  $70,547  and  $65,623
respectively  to King Capital  Corporation,  a company  owned by Cameron King,
our former Chief Executive Officer and President.

Director Compensation

Our  Directors  are  reimbursed  for  reasonable   out-of-pocket  expenses  in
connection  with  attendance  at Board of  Director  and  committee  meetings.
Directors have not been compensated for their service as directors.

Stock-Based compensation and Stock Option Grants

We  have  not  granted  stock-based  compensation  or  stock  options  to  our
executive  officers.  We have never had any  annuity,  pension  or  retirement
benefits for our officers, directors or employees.

ITEM 11.   SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.

The following  table shows as of March 31, 2008, the  beneficial  ownership of
shares of common  stock by (i) each person  known to us who owns  beneficially
more  than 5% of the  outstanding  shares of  common  stock,  (ii) each of our
Officers and Directors  and (iv) all of our  Executive  Officers and Directors
as a group. Unless otherwise  indicated,  each stockholder has sole voting and
investment power with respect to the shares shown.

      Name and address of           Number of Shares           Percentage of
         beneficial owner           of Common Stock           Common Stock (1)
      -------------------           ----------------          ----------------

      Grant Petersen                     4,000,000                 4.92%
      Chief Executive Officer,
         President and Treasurer
      482-1027 Davie Street
      Vancouver, BC, Canada


                                       22
<PAGE>

      Mark Stevenson                    32,520,310 (1)            40.04%
      Chairman - Board of Directors
      8225 San Diego Street
      Odessa, Texas  79765

      J. Douglas Brown                   2,660,000 (2)             3.27%
      Director
      16E Les Roseyres, Gron1882
      Vaud, Switzerland

      David Lewis                        1,010,000                 1.24%
      Director
      332 Morrison Road
      Oakville, ON  L6J 4J9
      Canada

      Eric Prim                            377,076                 0.46%
      Director
      4901 Polo Parkway
      Midland, Texas  79705

      All Officers and Directors
        as a group (five persons)       40,567,386                49.89%

      Holloman Oil & Gas Limited        32,237,500                39.69%
      Unit 8-9
      88 Forrest Street
      Cottesloe, WA, 6001
      Australia

(1)   Comprised  of 50,000  shares held  directly and  32,470,310  shares held
      indirectly  by entities,  including  Holloman  Oil & Gas  Limited,  over
      which Mr. Stevenson has or shares voting or investment power.
(2)   Comprised  of  2,560,000  shares of common  stock and 100,000  shares of
      common stock issuable upon the exercise of a stock  purchase  warrant at
      a price of $1.75 per share expiring March 2, 2009.

ITEM 12.   CERTAIN RELATIONSHIPS, RELATED TRANSACTIONS, AND DIRECTOR
           INDEPENDENCE.

As disclosed in Items 1 and 6 of this report,  we had a series of transactions
with King Capital Corporation and Holloman Oil & Gas, Ltd.

During  2006  and  2007 we paid  $70,547  and  $65,623  respectively,  to King
Capital  Corporation,  a company  owned by  Cameron  King,  our  former  Chief
Executive Officer and President, for management services.


                                       23
<PAGE>

In November  2007 we acquired  Holloman  Petroleum  Pty.  Ltd. for  18,600,000
shares of our common stock. Prior to the acquisition,  Holloman Petroleum Pty.
Ltd. was a majority owned subsidiary of Holloman Oil & Gas, Ltd.  Holloman Oil
& Gas received  17,237,500  shares of our common stock in connection  with the
acquisition.  As a condition of the  acquisition of Holloman  Petroleum  Pty.,
Ltd., Mark Stevenson and Eric Prim were appointed to our Board of Directors.

Mark  Stevenson  is the  President  and  Chief  Executive  Officer  of  Holloman
Corporation.  Eric Prim is the Vice President of Holloman Corporation.  Holloman
Corporation  owns all of the  outstanding  shares  of  Holloman  Oil & Gas.  Mr.
Stevenson is the president of Holloman Oil & Gas.

ITEM 13.   EXHIBITS.

Exhibit Number  Description of Exhibit

     3.1        Articles of Incorporation(1)
     3.2        Corporate Bylaws(1)
    10.1        Share Exchange Agreement between Endeavor Energy  Corporation,
                First   Endeavor    Holdings   Inc   .and   Endeavor    Canada
                Corporation(2)
    10.2        Agreement  between  Endeavor  Energy  Corporation and Holloman
                Petroleum  Pty.  Ltd.  for the purchase of assets and exchange
                of shares(3)
    10.3        Option  Agreement  dated  February  1, 2008  between  Holloman
                Energy  Corporation and Cameron King for an exchange of shares
                of Endeavor Canada Corporation
    10.4        Notice of Option  Exercise dated February 15, 2008 relating to
                the Option Agreement  between Holloman Energy  Corporation and
                Cameron  King for an  exchange  of shares of  Endeavor  Canada
                Corporation
    10.5        Farm Out Commitment Agreement with Holloman Oil & Gas, Ltd.
    14.1        Code of Ethics for Principal  Executive  and Senior  Financial
                Officers(4)
    21.1        As of March 25, 2008 our subsidiaries were:
                      First Endeavor Holdings Inc. (100% Owned)
                      Holloman Petroleum Pty. Ltd. (100% Owned)
    31.1        Rule 13a-14(a) Certifications
    32.1        Section 1350 Certifications

(1)  Previously filed with our Form SB-2 on January 23, 2006 and incorporated by
     reference.
(2)  Previously  filed with our Form 8-K on August 9, 2007 and  incorporated  by
     reference.
(3)  Previously filed with our Form 8-K on November 29, 2007 and incorporated by
     reference.
(4)  Previously  filed with our Form 10-KSB/A on April 26, 2007 and incorporated
     by reference.


                                       24
<PAGE>

ITEM 14.   PRINCIPAL ACCOUNTANT FEES AND SERVICES.

The  following  table  sets  forth  the  aggregate  fees paid or  accrued  for
professional  services  rendered  by Dale  Matheson  Carr-Hilton  LaBonte  LLP
Chartered  Accountants  for the audit of our annual  financial  statements for
2007 and 2006,  and the  aggregate  fees  paid or  accrued  for  audit-related
services and all other services rendered by Dale Matheson  Carr-Hilton LaBonte
LLP for those years.

                                            2007                 2006
                                            ----                 ----

            Audit related fees             $80,000              $6,000
            Tax fees                       $ 5,000                  --
                                           -------              ------
            Total                          $85,000              $6,000


The  category  of "Audit  related  fees"  includes  fees for our  annual  audit,
quarterly  reviews and services  rendered in connection with regulatory  filings
with the SEC.

For the year ended December 31, 2006 audit  services,  audit-related  services
and tax services were  pre-approved  by our Board of  Directors.  For the year
ended  December  31,  2007,  those  services  were  pre-approved  by our Audit
Committee.  During both years, we concluded that the service  provided by Dale
Matheson  Carr-Hilton  LaBonte LLP was compatible with the maintenance of that
firm's independence in the conduct of its auditing functions.




                                       25
<PAGE>


             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


To the  Stockholders  and Board of  Directors  of Holloman  Energy  Corporation.
(formerly Endeavor Energy Corporation) (an exploration stage company):

We have audited the accompanying  consolidated  balance sheet of Holloman Energy
Corporation  (an  exploration  stage  company) as at  December  31, 2007 and the
related consolidated statement of operations,  stockholders' equity (deficiency)
and cash flows for the year ended  December  31, 2007 and the period from May 5,
2006 (inception)  through December 31, 2007. These financial  statements are the
responsibility of the Company's management.  Our responsibility is to express an
opinion on these financial statements based on our audit.

The  balance  sheet at  December  31,  2006  and the  statement  of  operations,
stockholders' equity (deficiency) and cash flows for the period from May 5, 2006
(inception)  to December  31, 2006 was audited by another  auditor  whose report
dated July 11, 2007 included an  explanatory  paragraph  regarding the Company's
ability to continue as a going concern.  The financial statements for the period
from  May 5,  2006  (inception)  to  December  31,  2006  reflect  a net loss of
$1,462,407 of the related cumulative totals. The other auditors' report has been
furnished to us, and our opinion,  insofar as it relates to amounts included for
such periods, is based solely on the report of such auditors.

We conducted  our audit in accordance  with the standards of the Public  Company
Accounting Oversight Board (United States). Those standards require that we plan
and  perform  an audit to obtain  reasonable  assurance  whether  the  financial
statements  are free of material  misstatement.  The Company is not  required to
have,  nor were we engaged to perform,  an audit of its  internal  control  over
financial reporting.  Our audit included  consideration of internal control over
financial  reporting  as  a  basis  for  designing  audit  procedures  that  are
appropriate  in the  circumstances,  but not for the  purpose of  expressing  an
opinion on the  effectiveness  of the Company's  internal control over financial
reporting.  Accordingly,  we express  no such  opinion.  An audit also  includes
examining,  on a test basis,  evidence supporting the amounts and disclosures in
the  financial  statements.  An audit also  includes  assessing  the  accounting
principles  used  and  significant  estimates  made  by  management,  as well as
evaluating the overall  financial  statement  presentation.  We believe that our
audit provides a reasonable basis for our opinion.

In our  opinion,  based on our audit and the  report of another  auditor,  these
consolidated  financial statements present fairly, in all material respects, the
financial position of Holloman Energy  Corporation.  as at December 31, 2007 and
the results of its operations and its cash flows for the year ended December 31,
2007 and the  period  from May 5,  2006  (inception)  to  December  31,  2007 in
conformity with accounting principles generally accepted in the United States of
America.

The accompanying  consolidated  financial statements have been prepared assuming
that the Company will continue as a going concern. As discussed in Note 1 to the
financial statements, the Company has incurred losses in developing its business
and further losses are  anticipated.  The Company  requires  additional funds to
meet its  obligations  and the  costs of its  operations.  These  factors  raise
substantial  doubt about the Company's  ability to continue as a going  concern.
Management's  plans  in this  regard  are  described  in Note 1.  The  financial
statements do not include any adjustments  that might result from the outcome of
this uncertainty.



"DMCL"

                                          DALE MATHESON CARR-HILTON LABONTE LLP
                                                          CHARTERED ACCOUNTANTS
Vancouver, Canada
March 21, 2008


<PAGE>

Report of Independent Registered
Public Accounting Firm

To the Board of Directors and the Stockholders of
Endeavour Energy Corporation

We have audited the accompanying balance sheet of Endeavour Energy Corporation
(The "Company") as of December 31, 2006 and the statements of operations,
shareholder's deficit and cash flows for the 8 month period then ended. These
financial statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements based on
our audit.

We conducted our audit in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform an audit to obtain reasonable assurance whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluation of the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of the Company as of December 31,
2006 and the results of its operations and its cash flows for the 8 month period
then ended in accordance with accounting principles generally accepted in the
United States of America.

As discussed in Note 2 to the consolidated financial statements, the Company's
ability to continue as a going concern is dependent on obtaining sufficient
working capital to fund future operations. Management's plan in regard to these
matters is also described in Note 2. These financial statements do not include
any adjustments that might result from the outcome of this uncertainty.



/s/ Meyers Norris Penny LLP

Chartered Accountants
Calgary, Canada
July 19, 2007




<PAGE>

                           HOLLOMAN ENERGY CORPORATION
                     (formerly Endeavor Energy Corporation)
                         (An Exploration Stage Company)
                           CONSOLIDATED BALANCE SHEETS


                                    ASSETS
                                            December 31, 2007  December 31, 2006
                                            -----------------  -----------------
CURRENT ASSETS
  Cash                                           $         -       $    198,761
  Accounts receivable                                 14,339            233,913
  Other receivable                                    63,386                  -
  Prepaid expenses and deposits                      115,147              4,291
  Due from shareholder                                     -             23,593
                                            -----------------  -----------------
                                                     192,872            460,558

Equipment, net                                        14,019              1,955
Oil and gas properties, full cost method,
 net of depletion                                 22,945,468            486,528
Deposit on acquisition                               639,487                  -
Refundable deposit                                     5,044             51,074
                                            -----------------  -----------------
     Total Assets                               $ 23,796,890       $  1,000,115
                                            =================  =================

                LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

CURRENT LIABILITIES
  Accounts payable and accrued liabilities      $    821,903       $    343,527
  Loans payable                                      585,928            492,907
  Convertible debentures                                   -          1,556,925
  Due to related parties                           1,158,415                  -
                                            -----------------  -----------------
                                                   2,566,246          2,393,359

  Deferred tax liability                           6,177,000                  -
  Asset retirement obligations                        60,692             55,175
                                            -----------------  -----------------
     Total Liabilities                             8,803,938          2,448,534
                                            -----------------  -----------------

STOCKHOLDERS' EQUITY (DEFICIT)
  Authorized (Holloman):
   10,000,000 preferred shares, par value
     $0.001 per share 150,000,000 common
     shares, par value $0.001 per share
  Issued and outstanding (Holloman):
       9,000 (2006 - nil) preferred shares                 9                  -
       81,219,358 and 100 common shares               81,219                  -
  Authorized (FEH):
   10,000,000 preferred shares, par value
     $0.001 150,000,000 common shares, par
     value $0.001
  Issued and outstanding (FEH):
       9,000,000 (2006 - nil) preferred shares         9,000                  -
Additional paid in capital                        17,903,746                  -
Other comprehensive income (loss)                    (30,870)            13,987
Deficit accumulated during the exploration stage  (2,970,152)        (1,462,407)
                                            -----------------  -----------------
      Total Stockholders' Equity (Deficit)        14,992,952         (1,448,419)
                                            -----------------  -----------------
      Total Liabilities and Stockholders'
       Equity (Deficit)                        $  23,796,890       $  1,000,115
                                            =================  =================



                                     1

<PAGE>

                         HOLLOMAN ENERGY CORPORATION
                    (formerly Endeavor Energy Corporation)
                        (An Exploration Stage Company)
                    CONSOLIDATED STATEMENTS OF OPERATIONS

<TABLE>
<S>                                                <C>                  <C>                    <C>

                                           Cumulative results
                                           from May 5, 2006 to      Year ended       May 5, 2006 (inception)
                                            December 31, 2007    December 31, 2007     to December 31, 2006
                                           -------------------   -----------------   -----------------------
REVENUE
  Oil and gas sales, net of royalties         $     83,075        $     58,957         $     24,118

GENERAL AND ADMINISTRATIVE EXPENSES
  Consulting                                       299,152             185,727              113,425
  Depletion, depreciation, and accretion            74,769              47,422               27,347
  Interest and financing costs                     194,423             132,375               62,048
  Management fees                                  136,170              65,623               70,547
  Office and general                               558,573             425,655              132,918
  Production costs and taxes                       170,583             122,156               48,427
  Professional fees                                314,651             289,319               25,332
  Salaries, wages, and benefits                    275,067             245,336               29,731
                                           -------------------   -----------------   -----------------
                                                 2,023,388           1,513,613              509,775

LOSS BEFORE THE FOLLOWING                       (1,940,313)         (1,454,656)            (485,657)

OTHER ITEMS
  Foreign exchange gain/(loss)                      30,174              92,635              (62,461)
  Interest income                                    3,280               3,280                    -
  Provision for impairment of oil and
   gas properties                               (1,063,293)           (149,004)            (914,289)
                                           -------------------   -----------------   -----------------
                                                (1,029,839)            (53,089)            (976,750)

NET LOSS                                      $ (2,970,152)       $ (1,507,745)       $  (1,462,407)
                                           ===================   =================   =================

BASIC AND DILUTED NET LOSS PER COMMON SHARE                       $     (0.024)       $     (14,624)
                                                                 =================   =================
WEIGHTED AVERAGE NUMBER OF BASIC AND
  DILUTED COMMON SHARES OUTSTANDING                                 63,743,997                  100
                                                                 =================   =================

</TABLE>


                                       2

<PAGE>


                           HOLLOMAN ENERGY CORPORATION
                     (formerly Endeavor Energy Corporation)
                         (An Exploration Stage Company)
           Consolidated Statement of Stockholders' Equity (Deficiency)
                From May 5, 2006 (Inception) to December 31, 2007

<TABLE>
<S>                                     <C>        <C>        <C>       <C>        <C>         <C>           <C>           <C>
                                                                                                            Deficit
                                                                                                          Accumulated
                                           Common Shares     Preferred Shares   Additional Accumulated      During        Total
                                       Number               Number               Paid In   Comprehensive  Exploration Stockholders'
                                     of Shares    Amount   of Shares   Amount    Capital   Income/(Loss)     Stage       Equity
Issuance of common shares to
   to founder, May 2006                  100    $     1          -    $     -   $        -    $        -     $       -  $         1
Foreign currency translation                                                                       13,987            -       13,987
Net loss for the 8 month period ended
  December 31, 2006                        -          -          -          -            -                  (1,462,407)  (1,462,407)
                                  ----------   --------  ---------    -------  -----------    ----------  ------------  -----------
Balance, December 31, 2006               100          1          -          -            -        13,987    (1,462,407)  (1,448,419)

Issued by the Company on acquisition
 of ECC in August 2007                     -          -      9,000          9            -             -             -            9
Issued by FEH on acquisition of ECC
   August, 2007                            -          -  9,000,000      9,000       (9,000)            -             -            -
Adjustment to give effect to
 acquisition  of EEC in
 August 2007                      61,466,203    61,466          -          -      329,766             -             -      391,232
Shares of ECC acquired by legal
 parent                                 (100)        (1)         -          -            -             -             -           (1)
Shares issued at $1.50 per share in
 August 2007 on conversion of ECC
 debentures                        1,093,155      1,093          -          -    1,638,640             -             -    1,639,733
Issued for cash at $1.00 per share    60,000         60          -          -       59,940             -             -       60,000
Issued for property at $0.86
  per share                       18,600,000     18,600          -          -   15,884,400             -             -   15,903,000
Foreign currency translation                                                                     (44,857)                   (44,857)
Net loss for the year ended
  December 31, 2007                        -          -          -          -            -             -    (1,507,745)  (1,507,745)
                                  ----------   --------  ---------    -------  -----------    ----------  ------------  -----------
Balance, December 31, 2007        81,219,358   $ 81,219  9,009,000    $ 9,009  $17,903,746    $  (30,870) $ (2,970,152) $14,992,952
                                  ==========   ========  =========    =======  ===========    ==========  ============  ===========
</TABLE>


                                       3
<PAGE>


                         HOLLOMAN ENERGY CORPORATION
                    (formerly Endeavor Energy Corporation)
                         (An Exploration Stage Company)
               CONSOLIDATED STATEMENTS OF CASH FLOWS STATEMENT

                                 Cumulative results
                                 from May 5, 2006 to    Year ended December 31,
                                                       2007               2006
OPERATING ACTIVITIES
 Net loss                          $  (2,970,152)   $(1,507,745)    $(1,462,407)
 Adjustments to reconcile net
 loss to net cash used in
 operating activities:
   Depletion, depreciation,
     and accretion                        74,769         47,422          27,347
   Foreign exchange gain/(loss)         (123,505)      (137,492)         13,987
     Interest accrued and
       financing costs                   179,392        122,467          56,925
     Provision for impairment
     of oil and gas properties         1,063,293        149,004         914,289
  Changes in non-cash working
    capital items
      Accounts receivable                (77,725)       156,188        (233,913)
     Prepaid expenses and deposits       (68,364)       (64,073)         (4,291)
     Accounts payable and accrued
        liabilities                      959,930        616,403         343,527
                                      ----------      ---------       ---------
  Cash used by operating activities     (962,362)      (617,826)       (344,536)
                                      ----------      ---------       ---------
FINANCING ACTIVITIES
  Common stock issued for cash            60,001         60,000               1
  Convertible debentures issued        1,500,000              -       1,500,000
  Loans payable                          585,928         93,021         492,907
  Due to related parties               1,158,415      1,158,415               -
                                      ----------      ---------       ---------
  Cash provided by financing
    activities                         3,304,344      1,311,436       1,992,908
                                      ----------      ---------       ---------
INVESTING ACTIVITIES
  Equipment acquired                     (23,490)       (20,968)         (2,522)
  Petroleum and natural gas
     expenditures                     (1,639,874)      (267,452)     (1,372,422)
  Cash acquired on acquisition            12,696         12,696               -
  Deposit on acquisition                (639,487)      (639,487)              -
  Advances to shareholder                      -        155,328        (155,328)
  Repayment of advances to shareholder         -       (131,735)        131,735
  Refundable deposit                     (51,827)          (753)        (51,074)
                                      ----------      ---------       ---------
  Cash used by investing activities   (2,341,982)      (892,371)     (1,449,611)
                                      ----------      ---------       ---------
CHANGE IN CASH                                 -       (198,761)        198,761

CASH, BEGINNING                                -        198,761               -
                                      ----------      ---------       ---------
CASH, ENDING                         $         -    $         -     $   198,761
                                      ==========      =========     ===========
SUPPLEMENTAL DISCLOSURE:
  Interest paid                      $     9,908    $     9,908     $         -
  Income taxes paid                  $         -    $         -     $         -

NON-CASH ACTIVITIES:
  Shares issued on conversion
     of debt                         $ 1,639,733    $ 1,639,733     $         -
  Shares issued for property
     acquired                        $15,903,000    $15,903,000     $         -


                                       4
<PAGE>


                           HOLLOMAN ENERGY CORPORATION
                     (Formerly Endeavor Energy Corporation)
                         (An Exploration Stage Company)

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                              DECEMBER 31, 2007


1.    NATURE AND CONTINUANCE OF OPERATIONS

Holloman Energy  Corporation  (the "Company" or "Holloman"),  formerly  Endeavor
Energy Corporation, was incorporated in the State of Nevada on May 14, 2004.

On August 3, 2007 the Company acquired Endeavor Canada Corporation ("Endeavor"),
a company  incorporated  in Alberta,  Canada and involved in the exploration and
development  of oil and gas  properties  (see  Note  4).  The  Company  acquired
Endeavour  for  9,000  shares  of the  Company's  Series A  Preferred  stock and
9,000,000   shares  of  the  preferred  stock  of  the  Company's  wholly  owned
subsidiary,  First Endeavor Holdings  ("FEH").  Each Series A Preferred share is
convertible  into one share of the  Company's  common  stock and is  entitled to
1,000 votes on any matter submitted to the Company's  shareholders for approval.
The  9,000,000  preferred  shares of FEH are, at the option of the holder of the
shares, convertible into 9,000,000 of the Company's common shares.

For  accounting   purposes,   the   acquisition  of  Endeavor   constitutes  a
re-capitalization  whereby Endeavor is deemed to have acquired Holloman.  As a
result,  the  financial  statements  reflect  the  historical   operations  of
Endeavor  and the  operations  of  Holloman  subsequent  to  August  3,  2007.
Endeavor was  incorporated  under the laws of Alberta,  Canada on May 5, 2006.
On February 15,  2008,  the Company  divested  its interest in Endeavour  (see
Note 14).

On November 21, 2007 the Company acquired Holloman Petroleum Pty. Ltd. (Holloman
Petroleum") for 18,600,000 shares of our common stock. Holloman Petroleum Pty.'s
assets consist of working  interests,  varying  between 37.5% and 100%, in seven
oil and gas permits awarded by the Australian  government.  These permits, which
have remaining terms expiring  between June 2008 and February 2013,  cover 6,873
square kilometers (1,698,355 acres) of land in the Cooper basin and 2,589 square
kilometers (639,755 acres) offshore in the Gippsland basin and Barrow sub-basin.

The  Company's  consolidated  financial  statements  are  prepared  on a going
concern basis in accordance with generally accepted  accounting  principles in
the United States which  contemplates  the realization of assets and discharge
of liabilities and  commitments in the normal course of business.  The Company
has  experienced   negative  cash  flows  from  operations  to  date  and  has
accumulated  losses of $2,970,152 since inception of the exploration stage. To
date the Company has funded  operations  through the issuance of capital stock
and debt.  Management's  plan is to continue raising  additional funds through
future  equity or debt  financings  as  needed  until it  achieves  profitable
operations  from its oil and gas  activities.  The  ability of the  Company to

                                       5
<PAGE>

continue its  operations  as a going  concern is dependent  on  continuing  to
raise   sufficient  new  capital  to  fund  its  exploration  and  development
commitments and to fund ongoing losses if, as and when needed,  and ultimately
on generating profitable operations.

2.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

These  consolidated  financial  statements  and related notes are presented in
accordance  with  accounting  principles  generally  accepted  in  the  United
States,  and are  expressed  in United  States  dollars.  The  Company has not
produced   significant   revenues  from  its  principal  business  and  is  an
exploration  stage  company as defined by Statement  of  Financial  Accounting
Standard  ("SFAS")  No. 7  "Accounting  and  Reporting  by  Development  Stage
Enterprises."  These financial  statements include the accounts of the Company
and its wholly owned subsidiaries,  Endeavor, FEH and Holloman Petroleum.  All
intercompany  transactions  and balances have been  eliminated.  The Company's
fiscal year-end is December 31.

Use of estimates

The  preparation  of financial  statements  in  conformity  with U.S.  generally
accepted  accounting  principles  requires  management  to  make  estimates  and
assumptions  that  affect the  reported  amounts of assets and  liabilities  and
disclosure of  contingent  assets and  liabilities  at the date of the financial
statements  and the  reported  amounts  of  revenues  and  expenses  during  the
reporting period. The Company regularly evaluates estimates and assumptions. The
Company  bases its  estimates  and  assumptions  on  current  facts,  historical
experience and various other factors that it believes to be reasonable under the
circumstances,  the results of which form the basis for making  judgments  about
the  carrying  values of assets  and  liabilities  and the  accrual of costs and
expenses that are not readily  apparent from other  sources.  The actual results
experienced  by the  Company  may  differ  materially  and  adversely  from  the
Company's  estimates.  To the extent there are material  differences between the
estimates and the actual results, future results of operations will be affected.
The most significant  estimates with regard to these financial statements relate
to carrying  values of oil and gas  properties,  determintion  of fair values of
stock based  transactions,  useful lives and  impairment  of carrying  values of
assets,  and deferred  income tax rates and timing of the reversal of income tax
differences.

Foreign Currency Translation

The Company and its Australian  subsidiaries'  functional and reporting currency
is the United States dollar.  The functional  currency of the Company's Canadian
subsidiary is the Canadian  dollar.  The financial  statements of the subsidiary
are translated to United States dollars in accordance  with SFAS No. 52 "Foreign
Currency  Translation"  using  period-end  rates  of  exchange  for  assets  and
liabilities,  and average  rates of  exchange  for the period for  revenues  and
expenses.   Translation   gains  (losses)  are  recorded  in  accumulated  other
comprehensive  income as a component of stockholders'  equity.  Foreign currency
transaction gains and losses are


                                       6
<PAGE>

included in current  operations.  Gains and losses  arising on  translation or
settlement  of foreign  currency  denominated  transactions  or  balances  are
included in the  determination of income.  Foreign  currency  transactions are
primarily  undertaken in Canadian dollars. The Company has not, to the date of
these  financials  statements,  entered into derivative  instruments to offset
the impact of foreign currency fluctuations.

Oil and gas properties

The Company  utilizes  the full cost method to account for its  investment  in
oil and gas properties.  Accordingly,  all costs associated with  acquisition,
exploration and  development of oil and gas reserves,  including such costs as
leasehold  acquisition costs,  capitalized interest costs relating to unproved
properties,  geological  expenditures,  tangible  and  intangible  development
costs  including  direct internal costs are capitalized to the full cost pool.
When the Company  commences  production  from  established  proven oil and gas
reserves,  capitalized costs,  including estimated future costs to develop the
reserves and estimated  abandonment costs, net of salvage, will be depleted on
the   units-of-production   method  using   estimates   of  proved   reserves.
Investments in unproved  properties and major development  projects  including
capitalized   interest,  if  any,  are  not  depleted  until  proved  reserves
associated with the projects can be determined.  If the future  exploration of
unproved properties are determined  uneconomical the amount of such properties
are added to the capitalized cost to be depleted.

The  capitalized  costs included in the full cost pool are subject to a "ceiling
test",  which limits such costs to the aggregate of the estimated present value,
using a ten  percent  discount  rate,  of the future net  revenues  from  proved
reserves,  based on current economic and operating  conditions plus the lower of
cost and estimated net realizable value of unproven properties.  At December 31,
2007, the Company's interests in Australia are all classified as unproven.

Sales of proved and unproved  properties  are accounted for as  adjustments of
capitalized  costs with no gain or loss  recognized,  unless such  adjustments
would  significantly  alter the  relationship  between  capitalized  costs and
proved  reserves of oil and gas, in which case the gain or loss is  recognized
in the statement of operations.

Equipment

Equipment is recorded at  historical  cost.  The  declining-balance  method is
used for the assets at the following annual rates:

                        Computer equipment                  45%
                        Furniture and Equipment             20%

Expenditures  for  replacements,  renewals,  and  betterments  are  capitalized.
Maintenance and repairs are charged to operations as incurred.

                                       7
<PAGE>


Asset retirement obligations

The Company  accounts for asset  retirement  obligations in accordance  with the
provisions  of  Statement  of  Financial  Accounting  Standard  (SFAS)  No.  143
"Accounting for Asset Retirement Obligations". SFAS No. 143 requires the Company
to record the fair value of an asset retirement obligation as a liability in the
period  in which it incurs  an  obligation  associated  with the  retirement  of
tangible  long-lived  assets  that result  from the  acquisition,  construction,
development  and/or normal use of the assets.  The  estimated  fair value of the
asset  retirement  obligation  is  based on the  current  cost  escalated  at an
inflation  rate  and  discounted  at a  credit  adjusted  risk-free  rate.  This
liability is  capitalized as part of the cost of the related asset and amortized
over its useful  life.  The  liability  accretes  until the Company  settles the
obligation.

Environmental

Oil  and  gas  activities  are  subject  to  extensive  federal  and  provincial
environmental laws and regulations.  These laws, which are constantly  changing,
regulate the  discharge of materials  into the  environment  and may require the
Company to remove or  mitigate  the  environmental  effects of the  disposal  or
release of petroleum or chemical substances at various sites.

Environmental expenditures are expensed or capitalized depending on their future
economic benefit.  Expenditures  that relate to an existing  condition caused by
past  operations  and  that  have no  future  economic  benefits  are  expensed.
Liabilities  for  expenditures  of a  non-capital  nature are  recorded  when an
environmental  assessment and/or  remediation is probable,  and the costs can be
reasonably estimated.

Revenue recognition

Oil and natural gas revenues are recorded  using the sales method  whereby the
Company  recognizes oil and natural gas revenue based on the amount of oil and
gas sold to  purchasers  when title  passes,  the amount is  determinable  and
collection is reasonably assured.  Actual sales of gas are based on sales, net
of the associated  volume charges for processing fees and for costs associated
with delivery,  transportation,  marketing,  and royalties in accordance  with
industry  standards.  Operating  costs and taxes  are  recognized  in the same
period of which revenue is earned.

Income taxes

Income  taxes are  determined  using the  liability  method in  accordance  with
Statement of Financial  Accounting  Standards  ("SFAS") No. 109,  Accounting for
Income Taxes.  Deferred tax assets and liabilities are recognized for the future
tax  consequences  attributable to differences  between the financial  statement
carrying  amounts of existing assets and  liabilities  and their  respective tax
basis.  Deferred tax assets and  liabilities  are measured using the enacted tax
rates expected to apply to taxable income in the years in which those  temporary
differences are expected to be recovered or settled.  The effect on deferred tax
assets and  liabilities  of a change in tax rates is recognized in income in the


                                       8
<PAGE>
period that includes that date of enactment.  In addition, a valuation allowance
is established to reduce any deferred tax asset for which it is determined  that
it is more likely than not that some  portion of the deferred tax asset will not
be realized.

In June 2006, the FASB issued Interpretation No. 48, "Accounting for Uncertainty
in Income Taxes, an interpretation of FASB Statement No. 109" ("FIN 48"). FIN 48
clarifies  the  accounting  for  uncertainty  in income taxes by  prescribing  a
two-step method of first evaluating whether a tax position has met a more likely
than not  recognition  threshold  and,  second,  measuring  that tax position to
determine the amount of benefit to be  recognized  in the financial  statements.
FIN 48  provides  guidance  on the  presentation  of  such  positions  within  a
classified balance sheet as well as on  de-recognition,  interest and penalties,
accounting in interim periods,  disclosure and transition. FIN 48 was adopted by
the Company on January 1, 2007.  The adoption of this  statement  did not have a
material effect on the Company's financial statements.

Stock based compensation

The Company  records  compensation  expense in the  financial  statements  for
share based  payments  using the fair value method  pursuant to the  Financial
Accounting  Standards  Board  Statement  ("FASB") No. 123R.  The fair value of
share-based   compensation   to  employees   will  be  determined   using  the
Black-Scholes  option  valuation  model at the time of grant.  Fair  value for
common  shares  issued for goods or  services  rendered by  non-employees  are
measured  based  on  the  fair  value  of the  goods  and  services  received.
Share-based  compensation is expensed with a  corresponding  increase to share
capital.  Upon the exercise of the stock options,  the  consideration  paid is
recorded as an increase in share capital.

There were no options  granted  during the year ended  December 31,  2007,  or
since inception.

Long-Lived Assets

In accordance  with SFAS No. 144,  "Accounting  for the Impairment or Disposal
of  Long-Lived  Assets",  the carrying  value of  intangible  assets and other
long-lived  assets is reviewed on a regular  basis for the  existence of facts
or  circumstances  that  may  suggest   impairment.   The  Company  recognizes
impairment  when the sum of the  expected  undiscounted  future  cash flows is
less than the carrying  amount of the asset.  Impairment  losses,  if any, are
measured as the excess of the carrying  amount of the asset over its estimated
fair value.

Financial instruments

All  significant   financial  assets,   financial   liabilities,   and  equity
instruments  of the  Company  are  either  recognized  or  disclosed  in these
financial  statements  together with other  information  relevant for making a
reasonable  assessment of future cash flows,  interest  rate risk,  and credit
risk.


                                       9
<PAGE>

Other Comprehensive Income (Loss)

SFAS No. 130, "Reporting Comprehensive Income",  establishes standards for the
reporting  and  display  of  comprehensive  loss  and  its  components  in the
financial statements.  For the years ended December 31, 2007 and 2006, the only
components   of   comprehensive   loss  were  foreign   currency   translation
adjustments.

Loss per share

The  Company  computes  net loss per share in  accordance  with  SFAS No.  128
"Earnings  per Share" which  requires  presentation  of both basic and diluted
earnings  per share (EPS) on the face of the  statement of  operations.  Basic
EPS is computed by dividing net loss available to common  shareholders  by the
weighted average number of shares outstanding  during the period.  Diluted EPS
gives effect to all dilutive  potential common shares  outstanding  during the
period  including  convertible  debt, stock options,  and warrants,  using the
treasury stock method.  Diluted EPS excludes all dilutive  potential shares if
their effect is anti dilutive.  Shares  underlying  these  securities  totaled
approximately  332,867 as of December 31, 2007. Diluted loss per share figures
are equal to those of basic loss per share for each  period  since the effects
of  convertible  debt,  stock  options and warrants have been excluded as they
are anti-dilutive.

Comparative figures

Certain  comparative  figures have been reclassified to conform with the current
years presentation.

Recent accounting pronouncements

In December  2007, the FASB issued SFAS No. 160,  "Non-controlling  Interests in
Consolidated  Financial  Statements".  This Statement amends ARB 51 to establish
accounting and reporting standards for the  non-controlling  (minority) interest
in a subsidiary and for the deconsolidation of a subsidiary. It clarifies that a
non-controlling  interest  in a  subsidiary  is an  ownership  interest  in  the
consolidated  entity  that  should be  reported  as  equity in the  consolidated
financial  statements.  SFAS No. 160 is effective for the Company's  fiscal year
beginning  January  1,  2010.  Management  has  determined  that the  accounting
standard will have no effect on the Company.

In December 2007, the FASB issued SFAS 141R, Business Combinations,  SFAS 141R
replaces SFAS 141.  The  statement  retains the purchase  method of accounting
for acquisitions,  but requires a number of changes,  including changes in the
way assets and liabilities are recognized.

Management has determined that the accounting  standard will have no effect on
the Company.

In March  2008,  the FASB  issued SFAS No.  161,  Disclosures  about  Derivative
Instruments and Hedging Activities ("SFAS 161"). SFAS 161 is intended to improve
financial  reporting  about  derivative  instruments  and hedging  activities by
requiring  enhanced  disclosures to enable investors to better  understand their
effects on an  entity's  financial  position,  financial  performance,  and cash
flows. SFAS 161 achieves these improvements by requiring  disclosure of the fair
values of derivative instruments and their gains and losses in a tabular format.
It also  provides  more  information  about an entity's  liquidity  by requiring
disclosure of  derivative  features that are credit  risk-related.  Finally,  it
requires  cross-referencing within footnotes to enable financial statement users

                                       10
<PAGE>

to locate important information about derivative  instruments.  SFAS 161 will be
effective for financial  statements  issued for fiscal years and interim periods
beginning  on January 1, 2009,  will be adopted by the Company  beginning in the
first quarter of 2009.  The Company does not expect there to be any  significant
impact of adopting SFAS 161 on its financial position, cash flows and results of
operations.

On December 21,  2007,  the  Securities  and  Exchange  Commission  issued Staff
Accounting Bulletin No. 110, ("SAB 110). SAB 110 provides guidance to issuers on
the method allowed in developing  estimates of expected term of "plain  vanilla"
share options in accordance  with SFAS No. 123(R),  "Share-Based  Payment".  The
staff  will  continue  to  accept,  under  certain  circumstances,  the use of a
simplified  method beyond  December 31, 2007 which amends  question 6 of Section
D.2 as included in SAB 107, "Valuation of Share-Based  Payment  Arrangements for
Public  Companies",  which stated that the  simplified  method could not be used
beyond  December 31, 2007. SAB 110 is effective  January 1, 2008. The Company is
currently  evaluating the potential impact, if any, that the adoption of SAB 110
will have on its financial statements.

3.    PREPAID EXPENSES AND UTILITY DEPOSITS

Substantially  all of the  Company's  prepaid  expenses and utility  deposits at
December 31, 2007 and 2006 relate to amounts paid in refundable  deposits to the
Alberta Energy and Utilities  Board in connection  with an upgrade of production
facilities.

4.    ACQUISITION OF ENDEAVOR

Effective  August 3, 2007, the Company  entered into a share exchange  agreement
(the  "Agreement")  to  acquire  100% of the issued  and  outstanding  shares of
Endeavor.

The Company's  acquisition of Endeavor was accounted for as a re-capitalization,
which is similar to reverse acquisition accounting,  using accounting principles
applicable to reverse acquisitions  whereby the financial statements  subsequent
to the date of the  transaction  are  presented as a  continuation  of Endeavor.
Under  re-capitalization  accounting  Endeavor  was  treated  as  the  Company's
accounting  parent  (legal  subsidiary)  and  the  Company  was  treated  as the
accounting  subsidiary  (legal parent).  This means the consolidated  results of
operations  of the Company going forward will include those of Endeavor from its
inception  on May 5, 2006 and those of the Company  from the closing date of the
re-capitalization on August 3, 2007. Endeavor,  the acquired entity, is regarded
as the predecessor  and continuing  entity as of August 3, 2007. The fiscal year
end of Endeavor and the Company is December 31, 2007.

A summary of the reverse take over recapitalization adjustments is as follows

         Cash                                          $   12,658
         Deposit                                          639,548
         Account payable and accrued liabilities          (41,873)
         Loans payable                                   (219,101)
                                                        ----------
         Recapitalization adjustment                   $  391,232
                                                        ==========

5.    OIL AND  GAS PROPERTIES

      The costs  incurred in petroleum  and natural gas  property  acquisition
      and exploration activities are summarized as follows:

                                       11
<PAGE>

North American Properties

          Balance, May 5, 2006                               $         -
            Acquisition costs                                  1,343,942
            Exploration costs                                     28,480
            Asset retirement obligation                           52,607
            Impairment of oil and gas properties                (914,289)
            Depletion                                            (26,780)

          Balance, December 31, 2006                             486,528
            Exploration costs                                    267,451
            Asset retirement obligation                            2,568
            Impairment of oil and gas properties                (149,004
            Depletion                                            (33,000)
                                                             -----------
          Balance, December 31, 2007                         $   574,543

Australian Exploration Properties

          Balance, December 31, 2006                         $         -
            Acquisition costs                                 15,903,000
            Impact of deferred tax liability                   6,177,000
            Exploration costs                                    290,925
                                                             -----------
          Balance, December 31, 2007                          22,370,925
                                                             -----------
          Balance, December 31, 2007 - Total North
            American and Australian                          $22,945,468
                                                             ===========

On  November  21,  2007  the  Company  purchased  seven  Australian  oil and gas
interests.  This  purchase  was  facilitated  by  the  acquisition  of  Holloman
Petroleum,  a privately held Australian-based  company, for 18,600,000 shares of
the  Company's  common  shares  with a fair  market  value of  $15,903,000.  The
interests are located in 1.698 million onshore acres in the Cooper basin, in the
State of South Australia,  339,769 offshore acres in the Gippsland basin, in the
State of Victoria,  and 299,862 offshore acres in the Barrow  sub-basin,  in the
State of Western Australia.

On March 7, 2008 (see Note 15),  the Company  entered  into a Farmin  Commitment
Agreement  with  Holloman Oil & Gas Limited  ("Holloman  O&G").  That  agreement
granted Holloman O&G a working interest in Petroleum  Exploration License 112 in
exchange for  undertaking  exploratory  drilling at no expense to the Company on
three of the leases.  The Company also retained certain rights to participate in
the  wells  they  drill.  Two  of  the  Company's  Directors  are  officers  and
shareholders  in Holloman  Corporation,  which holds a 100% interest in Holloman
O&G.

                                       12
<PAGE>

6.   ASSET RETIREMENT OBLIGATIONS

The total  future  asset  retirement  obligation  was  estimated  based on the
Company's net ownership interest in all oil and gas properties,  the estimated
cost to abandon and reclaim the  properties,  and the estimated  timing of the
cost to be incurred in future periods.  The total  undiscounted  amount of the
estimated  future cash flows required to settle the  retirement  obligation is
approximately  $107,520  which will be incurred over the next 7 years with the
majority of costs incurred between 2009 and 2012. A credit adjusted  risk-free
rate of ten  percent  was  used to  calculate  the  fair  value  of the  asset
retirement obligation.

Following  is a  reconciliation  of the asset  retirement  obligation  for the
years ended December 31, 2007 and 2006:

       Balance, May 5, 2006                                  $        -
         Liability incurred                                      52,607
         Accretion expense on discounted obligation               2,568
                                                             ----------


       Balance, December 31,2006                                 55,175
         Accretion expense on discounted obligation               5,517
                                                             ----------
       Balance, December 31, 2007                            $   60,692
                                                             ==========
7.    DEPOSIT ON ACQUISITION

The Company  has entered  into an Asset  Purchase  Agreement  to acquire a 62.5%
working  interest,  associated  assets and  contract  rights in an offshore  oil
concession in the Bass Straits in the State of Victoria, Australia, specifically
the oil and gas exploration  permit covering 339,769 acres,  more or less, known
as VIC/P60.  The purchase price for the interest is $639,487 which has been paid
and 800,000 shares of restricted  common stock,  which have not yet been issued,
and the Company has also agreed to pay a 19.5% overriding royalty interest.  The
closing of this  transaction  is subject to the  receipt of the  approval by the
Commonwealth  of Australia to transfer title of the permit.  In connection  with
the Company's acquisition of Holloman Petroleum,  it also acquired the remaining
37.5% working interest in VIC/P60 (see Note 5).

8.    LOANS PAYABLE

      Loans payable consist of the following:
                                                  December 31,   December 31,
                                                      2007           2006
                                                  ------------   ------------
      Loan for $450,000 from an unrelated party,
          non-secured, bears interest at 10% per
          annum and is due on April 1, 2008       $  450,000     $  450,000
      Loan from unrelated party, non-interest
          bearing and payable upon demand             79,283              -

      Loan for CDN$50,000 is from an unrelated
          party, is non-secured, non-interest bearing

                                       13
<PAGE>

          and is due on demand                        50,440         42,907

      Loan from unrelated party, non-interest
          bearing and payable upon demand              6,205              -
                                                  ----------     ----------
                                                  $  585,928     $  492,907
                                                  ==========     ==========
9.    RELATED PARTY TRANSACTIONS

     Management fees totaling $65,623 (2006 - $70,547) were accrued or paid to a
     company  owned by the  former  President  of the  Company.  The  fees  were
     incurred in the normal  course of  operations  and measured at the exchange
     amount,  which is the amount of consideration  established and agreed to by
     the related  parties.  Management  is of the  opinion  that these fees were
     undertaken  with  the  same  terms  and  conditions  as  transactions  with
     unrelated parties.

      Non-interest   bearing   advances,   payable   upon   demand  to  (from)
      shareholders and other related parties consist of the following:
                                                  December 31,   December 31,
                                                      2007           2006
                                                 -------------------------------
      Due from former president, and chief
          executive officer                  $              -    $  (23,593)
      Advances from current president and chief
          executive officer                       $   183,861$             -
      Advances from shareholder                       363,876             -
      Advances from former president and chief
          executive officer                           610,678              -
                                                   $1,158,415$            -

10.    PREFERRED SHARES

      The Company and its wholly-owned  subsidiary,  FEH are each authorized to
      issue 10,000,000  preferred shares with a par value of $0.001 per share.
      At December 31, 2007, the Company had 9,000 (2006 - nil) and FEH had
      9,000,000  (2006 - nil 2006) preferred shares outstanding.

      On August 3, 2007 the Company acquired  Endeavor for 9,000 shares of the
      Company's  Series A Preferred  stock and 9,000,000  preferred  shares of
      FEH. Each Series A Preferred share is convertible  into one share of the
      Company's  common  stock and is  entitled  to 1,000  votes on any matter
      submitted to the  Company's  shareholders  for  approval.  The 9,000,000
      preferred  shares of FEH are, at the option of the holder of the shares,
      convertible into 9,000,000 shares of the Company's common stock.

      Endeavor was owned by the Company's  former  president and chief executive
      officer, and two other  shareholders.  On February 15, 2008,  the Company
      divested its interest in Endeavour (see Note 15).

                                       14
<PAGE>

11.   COMMON SHARES

      The Company is authorized to issue 150,000,000  common shares with a par
      value of $0.001.

     On November 1, 2007, the Company issued 60,000 common shares to an investor
     at a price of $1.00 per share for proceeds of $60,000.

     On August 3, 2007,  61,466,203  shares were deemed issued to give affect to
     the acquisition of Endeavor.

      In addition,  on August 30, 2007, the Company agreed to issue  1,093,155
      of its  common  shares  at  $1.50  per  share  upon  the  conversion  of
      $1,500,000 in convertible  debentures  plus accrued  interest  issued by
      Endeavor.

      The number of common  shares  outstanding  at December 31, 2007 includes
      220,000  common  shares that are allotted and will be issued  subsequent
      to the year end.

     Prior to re-capitalization, the Company granted 322, 867 stock purchase
     warrants.  No stock  warrants  have been  exercised.  The weighted  average
     remaining life and weighted  average  exercise  price of outstanding  stock
     warrants at December 31, 2007 were 17 months and $2.53,  respectively.  The
     fair  value  of  stock  warrants  is  determined  using  the  Black-Scholes
     valuation model at the time the stock warrant is granted.

12.   INCOME TAXES

      The Company is subject to United  States  federal and state income taxes
      at an approximate rate of 35%. The  reconciliation  of the provision for
      income taxes at the United  States  federal  statutory  rate compared to
      the Company's income tax expense as reported is as follows:

                                       15
<PAGE>

                                                   Year Ended     Year Ended
                                                  December 31,   December 31,
                                                      2007           2006
                                                  -----------    ------------

      Statutory tax rates                              35%             35%
      Expected recovery of income taxes
        at statutory rates                      $ (543,000)     $ (507,000)

      Increase (reduction) in income taxes
      resulting from:

        Non-deductible expenditures & other         21,000          70,000
        Foreign exchange rate and tax rate
          differences                              (35,000)         38,000
      Valuation allowance change                   557,000         399,000
                                                ----------       ---------
      Provision for income taxes                $        -       $       -
                                                ==========       =========

      The   significant   components   of  deferred   income  tax  assets  and
      liabilities at December 31, 2007 and 2006 are as follows:

                                             Year Ended          Year Ended
                                          December 31, 2007   December 31, 2006
                                          -----------------  -----------------
  Deferred income tax assets:

   Canadian non-capital loss carryforwards     $  379,000       $  125,000
   US net operating loss carryforwards            196,000           17,000

   Australian operating loss carryforwards         18,000                -
   Property and equipment, Canada                   3,000                -
   Petroleum and natural gas properties, Canada   378,000          257,000
                                                ---------        ---------
   Total deferred income tax assets               974,000          399,000
       Less: valuation allowance                 (956,000)        (399,000)
                                                ---------        ---------
   Deferred income tax assets, net             $   18,000        $       -
                                                ---------        ---------

   Petroleum and natural gas properties,
    Australia                                 $(6,195,000)       $       -
                                                ---------        ---------
    Deferred income tax liabilities, net      $(6,177,000)       $       -
                                              ===========        =========


                                       16
<PAGE>

      At December 31, 2007,  the Company had Canadian  income tax losses for
      federal  income tax  purposes  totaling  $1,300,000  that  expire from
      2026 through 2027.  As well,  the Company has  $1,900,000  ($1,600,000
      in  2006) of  resource  property  expenditure,  all  of  which,  under
      certain  circumstances,  may be utilized to reduce  taxable  income in
      future  years.  A valuation  allowance  of $757,000  has been  applied
      against the deferred  tax  asset  representing  these  losses  and tax
      credits.

      In the United  States,  the Company had regular tax net operating  losses
      of  $560,000   that  expire  from  2026  through   2027.  A  valuation
      allowance of $196,000 has been applied against the deferred tax asset
      representing these losses.

      In  Australia,  the Company had  regular tax net  operating  losses of
      $70,000 that may be used in future years to reduce taxable income.  A
      valuation allowance of $18,000 has been applied against the deferred tax
      asset representing these losses.

13.   SUPPLEMENTAL OIL AND GAS DISCLOSURES (unaudited)

      Canadian-Based holdings:

      (i)   Proved oil and gas reserve quantities

            Proved  reserves  are  the  estimated  quantities  of  crude  oil,
            natural  gas,  and  natural  gas  liquids  which   geological  and
            engineering  data  demonstrate  with  reasonable  certainty  to be
            recoverable in future years from known  reservoirs  under existing
            economic  and   operating   conditions   and  current   regulatory
            practices.   Reserves  are  considered   proved  when   commercial
            production  has been  established  by  actual  production  or well
            tests. The portion of the reservoir  considered proved is the area
            delineated by drilling and reasonable  interpretation of available
            data after considering fluid contacts, if any.

            Proved   reserves  may  be  developed   or   undeveloped.   Proved
            undeveloped  oil and gas reserves  are reserves  that are expected
            to be  recovered  from new  wells or  undrilled  acreage,  or from
            existing  wells where a relatively  major  expenditure is required
            for  completion.  Reserves  on  undrilled  acreage  are limited to
            those  drilling  units   offsetting   productive  units  that  are
            reasonably  certain of production  when drilled.  Proved  reserves
            for  other  undrilled  units  are  claimed  only  where  it can be
            demonstrated   with   certainty   that  there  is   continuity  of
            production from the existing productive formation.

            At  December  31,  2007,   the  estimated  oil  and  gas  reserves
            presented  were  derived  from a report  dated  December  31, 2006
            prepared by Chapman  Petroleum  Engineering  Ltd., an  independent
            engineering   firm   located  in  Calgary,   Alberta.   Management
            believes  the findings of that report  remain valid and  accurate.
            The  Company  cautions,  however,  that  there  are many  inherent
            uncertainties  in  estimating  proved  reserve  quantities  and in
            projecting  future  production rates and the timing of development
            expenditures;  accordingly,  these  estimates are likely to change

                                       17
<PAGE>

            as future information  becomes available,  and these changes could
            be material.

            Estimated  quantities  of  proved  reserves  attributable  to  the
            Company's   interest  (all  of  which  are  classified  as  proved
            developed) are as follows:

                                                       Crude Oil
                                                        (Gross     Natural Gas
                                                        BOEs)     (Gross BOEs)

            Working interest in reserves                35,125         58,987
            Production                                       -         (1,663)
            -------------------------------------------------------------------

            Proved  developed  reserves,
               December 31, 2007                        35,125         57,324
            ===================================================================

      (ii)  Standardized  measure of discounted future net cash flows relating
            to proved oil and gas reserve quantities

            The table below sets out a  standardized  measure of the estimated
            discounted  future net cash flows  attributable  to the  Company's
            interest  in  proved  developed  oil and gas  reserves.  Estimated
            future cash inflows  were  computed by using  constant  prices and
            costs to the  estimated  future  production of proved gas reserves
            at December  31, 2007  discounted  by 10%.  The future  production
            and development costs represent the estimated future  expenditures
            to be incurred in developing  and  producing the proved  reserves,
            assuming continuation of existing economic conditions.

            Future cash inflows                                   $ 3,560,000
            Future cash outflows:
               Development costs                                      250,000
               Production costs                                     2,000,000
                                                                  -----------
            Future net cash flows                                   1,310,000
            Adjustment  to discount  future annual
                cash flows at 10%                                    (980,000)
                                                                  -----------
            Standardized   measure  of  discounted
              future  cash  flows, after tax                      $   330,000
                                                                  ===========

      (iii) Results of operations for oil and gas producing activities

            The revenues  and expenses  associated  directly  with  Endeavor's
            petroleum and natural gas producing activities,  including general
            and  administrative  expenses  directly  related to such producing
            activities  for the periods  ended  December 31, 2007 and December
            31, 2006 are summarized as follows:


                                       18
<PAGE>

                                                         December    December
                                                         31, 2007    31, 2006

         Petroleum and natural gas sales                $  62,898   $   29,219
         Production and operating expenses               (122,157)     (22,004)
         Royalties                                         (3,940)      (5,100)
         Accretion of asset retirement obligation          (5,517)      (2,131)
         Depletion                                        (33,000)     (17,403)
         General and administrative expenses             (529,324)     (52,910)
         Provision  for  impairment  of oil and gas
             properties                                  (149,004)    (914,289)
         Results of operations for petroleum and        ---------    ---------
             natural gas producing activities           $(780,044)   $(984,618)
                                                        =========    =========

14.   SEGMENTED INFORMATION

      The  Company's  operations  are  conducted  in  two  business  segments,
      Australian  Exploration and North America  Exploration and  Development.
      Revenues,  operating  profits  and net  identifiable  assets by business
      segment are as follows:


      For the year ended December 31, 2007

                                       North American
                         Australian   Exploration and
                         Exploration    Development         Total
      -----------------------------------------------------------------

      Revenue            $        -       $    58,957        $    58,957
      Segment Loss          (60,451)       (1,447,294)        (1,507,745)

      As at December 31, 2007

      Total Assets      $22,343,925        $1,425,965        $23,796,890

      For the year ended December 31, 2006

                                       19
<PAGE>

                                          North
                                        American
                                       Exploration
                         Australian        and
                         Exploration   Development
                                                           Total
                        -------------------------------------------

      Revenue             $      -      $    24,118    $    24,118
      Segment Loss               -       (1,462,407)    (1,462,407)

      As at December 31, 2006

      Total Assets        $      -      $ 1,000,115     $1,000,115

15.   SUBSEQUENT EVENTS

On February 1, 2008 the Company  entered into an agreement with its former Chief
Executive  Officer,  Cameron King, which provided the Company with the option of
exchanging all of the Company's  interest in Endeavor for the Company's Series A
Preferred  shares and the Class A Preferred  shares of FEH previously  issued to
Mr. King in connection with the Company's original acquisition of Endeavor.

On February 15, 2008 the option was exercised.  As a result, the 6,500 shares of
the  Company's  Series A  Preferred  stock and the  6,500,000  Class A Preferred
shares of FEH issued to Mr. King were  returned to the Company and cancelled and
all outstanding shares of Endeavor were transferred to Mr. King. During the year
ended December 31, 2007,  Endeavor Canada generated  $58,957 in net revenues and
sustained an operating loss of $634,610.  Of the $2,566,246 current  liabilities
of the Company at December  31, 2007,  $1,504,147  relate to the  operations  of
Endeavor.  Of the  remaining  $1,062,099  in current  liabilities,  $760,026 are
advances from related parties.  The Company anticipates that it will recognize a
gain on its divestiture of Endeavor.

The assets of Endeavor  included all of the Company's  Canadian-based  oil and
gas holdings.

On March 7, 2008 the Company entered into an agreement with Holloman O & G which
granted  Holloman O & G the right to earn a 66.667% working  interest in the PEL
112 permit,  which  covers  approximately  821,500  acres in the Cooper basin of
Australia. To earn this working interest, Holloman O & G agreed to:

     1.   Fund the costs  required to drill,  and if warranted,  complete  three
          wells on the PEL 112 by June 10, 2008; and

     2.   Pay the Company a 1.33% overriding royalty on gross revenues generated
          from the sale of any oil or gas produced from wells drilled on the PEL
          112.

The Company has the right to earn up to a  one-third  working  interest in the
PEL 112  concession  by paying,  prior to the time any well has reached 50% of
the expected total depth, its' proportionate  share of the cost of drilling any
of the wells involved in the  three-well  drilling  program.  The Company also
has the right to earn up to a one-third  working  interest in any future wells

                                       20
<PAGE>

drilled  on the PEL 112  (over  and  above  the  initial  three-well  drilling
program) by paying its' proportionate share of the cost of drilling the wells.

The Company's  Chairman of the Board of Directors is the President of Holloman
Corporation  and is also  the  president  of  Holloman  O & G.  One of the
Company  Directors  is the Vice  President of Holloman  Corporation.  Holloman
Corporation owns all of the outstanding shares of Holloman O & G.

                                       21

<PAGE>

                                  SIGNATURES


In  accordance  with Section 13 or 15(d) of the Exchange  Act, the  registrant
caused  this report to be signed on its behalf by the  undersigned,  thereunto
duly authorized.

                                    HOLLOMAN ENERGY CORPORATION
Date:   April 11, 2008

                                    By: /s/ Grant Petersen
                                        -----------------------------------
                                        Grant Petersen, President and Chief
                                         Executive Officer


                                    By: /s/ Grant Petersen
                                        -----------------------------------
                                        Principal Financial and Accounting
                                           Officer


In accordance  with the  Securities  Exchange Act, this report has been signed
below  by  the  following  persons  on  behalf  of the  registrant  and in the
capacities and on the dates indicated.

Signature                                           Date


/s/ Grant Petersen
----------------------------                    April 11, 2008
Grant Petersen,
Chief Executive Officer, President


/s/ Mark Stevenson
----------------------------                    April 11, 2008
Mark Stevenson, Director


----------------------------
J. Douglas Brown, Director


/s/ David Lewis
----------------------------                    April 12, 2008
David Lewis, Director


/s/ Eric Prim
----------------------------                    April 12, 2008
Eric Prim, Director



<PAGE>