UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

TQuarterly Report Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934



For the quarterly period ended June 30,
2011



£Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934



For the transition period from          to



Commission file number: 0000734089

Drayton Richdale Corporation

(Exact name of registrant as specified
in its charter)

|                                                                                                                                        |  |                                                                 
|--------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------------------------------------------------------
|Nevada  (State or other jurisdiction of
    incorporation or organization)                                                              |  | 20-1580552  (I.R.S. Employer Identification
    No.)            
|6130 West Flamingo Road, Suite 370                                                                                                      |  |                                                                 
|Las Vegas, Nevada 89103
        (mailing address)
        or
        4522 West Diablo Blvd, Suite D-114
        Las Vegas, Nevada 89118 |  | Toll Free (888) 303-2806
        or
        Local (702) 726-2152
|(Address of principal executive offices)                                                                                                |  | (Registrant's telephone number,
        including area code)    



Indicate
by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 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. YesoNoý



Indicate
by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive
Date File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such
shorter period that the registrant was required to submit and post such files). YesoNoý











Indicated by check mark whether the registrant is a large accelerated
filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated
filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.



|Large accelerated filero |  | Accelerated filero        
|------------------------ |  | --------------------------
|Non-accelerated filero   |  | Smaller reporting companyý



Indicated
by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) YesýNoo



Number of shares of common stock, without par value, outstanding
as of June 30, 2011: 34,300,000













Drayton Richdale Corporation

Index



|Part I – FINANCIAL INFORMATION |                                                                                      
|------------------------------ | -------------------------------------------------------------------------------------
|                               |                                                                                      
|Item 1.                        | Financial Statements (Unaudited)                                                     
|                               | Consolidated Balance Sheets                                                          
|                               | Consolidated Statements of Earnings                                                  
|                               | Consolidated Statements of Cash Flows                                                
|                               | Notes to Consolidated Financial Statements                                           
|                               |                                                                                      
|Item 2.                        | Management’s Discussion and Analysis of Financial Condition and Results of Operations
|                               |                                                                                      
|Item 3.                        | Quantitative and Qualitative Disclosures about Market Risk                           
|                               |                                                                                      
|Item 4.                        | Controls and Procedures                                                              
|                               |                                                                                      
|Part II – OTHER INFORMATION    |                                                                                      
|                               |                                                                                      
|Item 1.                        | Legal Proceedings                                                                    
|                               |                                                                                      
|Item 1A.                       | Risk Factors                                                                         
|                               |                                                                                      
|Item 2.                        | Unregistered Sales of Equity Securities and Use of Proceeds                          
|                               |                                                                                      
|Item 3.                        | Defaults upon Senior Securities                                                      
|                               |                                                                                      
|Item 4.                        | (Removed and Reserved)                                                               
|                               |                                                                                      
|Item 5.                        | Other Information                                                                    
|                               |                                                                                      
|Item 6.                        | Exhibits                                                                             
|                               |                                                                                      
|SIGNATURES                     | 8                                                                                    









Part I Financial Information



Item 1. Financial Statements



Drayton Richdale Corporation







|                                         |  |  
|---------------------------------------- |  | -
|                                         |  |  
|ASSETS                                   |  |  
|Current Assets                           |  |  
|                                         |  |  
|Cash                                     |  | $
|Investments (see Note : 1)               |  | $
|Accounts Receivables                     |  | $
|Notes Receivable                         |  | $
|Inventory (see Note 2)                   |  | $
|Other                                    |  | $
|                                         |  |  
|Total Current Assets                     |  | $
|                                         |  |  
|Other Assets                             |  |  
|                                         |  |  
|Pledged Coal Reserves (see Note 3)       |  | $
|Office Equipment & Supplies              |  | $
|Organizational Costs                     |  | $
|Intellectual Property (see Note: 4)      |  | $
|                                         |  |  
|Total Other Assets                       |  | $
|                                         |  |  
|Total Assets                             |  | $
|                                         |  |  
|LIABILITIES & SHAREHOLDER'S EQUITY       |  |  
|Current Liabilities                      |  |  
|                                         |  |  
|Short Term Debt                          |  | $
|Accounts Payable                         |  | $
|Income Taxes Payable                     |  | $
|Accrued Liabilities                      |  | $
|                                         |  |  
|Total Liabilities                        |  | $
|                                         |  |  
|Shareholder's Equity                     |  |  
|                                         |  |  
|Common Stock Par Value                   |  | $
|Shares Authorized:                       |  |  
|Shares Outstanding:                      |  |  
|                                         |  |  
|Retained Earnings                        |  | $
|                                         |  |  
|Total Shareholder's Equity               |  | $
|                                         |  |  
|Total Liabilities & Shareholder's Equity |  | $



Notes to the Financial Statement



Note 1: These amounts are investments in intellectual properties
in development with the Savant Scientific Group for future exploitation for revenues.



Note 2: This is the inventory of above the ground coal provided by
Estes Development Corporation as prescribed in the June 15, 2011 joint venture agreement with Petrostrata Corporation for coal oil
extraction at the proposed Illinois plant. The contractural supply agreement is 700,800 tons / annum of coal , with a net value of
$22.00 / ton over 30 years.



Note 3: The pledged coal reserve provided for the June 15, 2011 joint
venture agreement with Estes Development Corporation. This reserve is an allotment from the above the ground coal inventory to be utilized
as hard assets by the corporation for capital formation. The current market value of the entire coal stockpile is $846,224,648 and this
valuation is supported by a third party appraisal by Moss, Johnson and Associates, Ltd.



Note 4: This is the value of the proprietary PetroMicronic Reactor
for the extraction of petroleum from shale ore. The dollar amount was derived thru the discounted cash flow model calculations
utilizing the direct capitalization method equation, which is: E(V)=NCF1/E( R ) -g.



E(V) = Estimated present value for a given investment;

NCF1= Expected normalized cash flow in period 1;

E( R )= Expected rate of return for a given investment;

g= Expected long term growth rate in future net cash flow for a
given investment.



1







Drayton Richdale Corporation



Selected Financial Information



|                               |  | March 31, 2011 |        | June 30, 2011
|------------------------------ |  | -------------- | ------ | -------------
|                               |  |                |        |              
|REVENUE:                       |  |                |        |              
|Income                         |  | $              | 0      |              
|                               |  |                |        |              
|OPERATING EXPENSES:            |  |                |        |              
|Payroll and Related Expenses   |  | $              | 0      |              
|Marketing                      |  | $              | 0      |              
|Office Expenses                |  | $              | 1,749  |              
|Office Rent                    |  | $              | 2,335  |              
|Insurance                      |  | $              | 550    |              
|                               |  |                |        |              
|TOTAL OPERATING EXPENSE        |  | $              | 4,634  |              
|                               |  |                |        |              
|OTHER EXPENSES:                |  |                |        |              
|Interest Cost (Line of Credit) |  | $              | 6,478  |              
|                               |  |                |        |              
|TOTAL EXPENSE                  |  | $              | 11,112 |              
|                               |  |                |        |              
|                               |  |                |        |              
|NET INCOME (LOSS)              |  | ($             | 11,112 | )            





2







Drayton Richdale Corporation

STATEMENTS OF CASH FLOW









|                                        |  |    | March 31, 2011 |   |  |    | June 30, 2011 |  
|--------------------------------------- |  | -- | -------------- | - |  | -- | ------------- | -
|                                        |  |    |                |   |  |    |               |  
|NET INCOME                              |  | ($ | 11,112         | ) |  | ($ | 7,352         | )
|                                        |  |    |                |   |  |    |               |  
|Amounts Included In Income That Have No |  |    |                |   |  |    |               |  
|Effect On Cash:                         |  |    |                |   |  |    |               |  
|DEPRECIATION AND AMORTIZATION           |  | $  | 0              |   |  | $  | 0             |  
|                                        |  |    |                |   |  |    |               |  
|CASH PROVIDED BY OPERATIONS             |  | ($ | 11,112         | ) |  | ($ | 15,128        | )
|                                        |  |    |                |   |  |    |               |  
|OTHER SOURCES OF CASH:                  |  |    |                |   |  |    |               |  
|PROCEEDS FROM LINE OF CREDIT            |  | $  | 26,615         |   |  | $  | 0             |  
|See Note:1                              |  |    |                |   |  |    |               |  
|                                        |  |    |                |   |  |    |               |  
|TOTAL CASH AVAILABLE                    |  | $  | 15,503         |   |  | $  | 7,776         |  
|                                        |  |    |                |   |  |    |               |  
|USES OF CASH:                           |  |    |                |   |  |    |               |  
|Preliminary Research & Development      |  | $  | 0              |   |  | $  | 0             |  
|Organization Costs                      |  | $  | 375            |   |  | $  | 375           |  
|Other Costs 1                           |  | $  | 0              |   |  | $  | 0             |  
|Other Costs 2                           |  | $  | 0              |   |  | $  | 0             |  
|Other Costs 3                           |  | $  | 0              |   |  | $  | 0             |  
|                                        |  |    |                |   |  |    |               |  
|TOTAL CASH USED                         |  | $  | 7,367          |   |  | $  | 375           |  
|                                        |  |    |                |   |  |    |               |  
|NET INCREASE IN CASH                    |  | $  | 15,128         |   |  | $  | 7,401         |  
|                                        |  |    |                |   |  |    |               |  
|BEGINNING CASH                          |  | $  | 0              |   |  | $  | 0             |  
|                                        |  |    |                |   |  |    |               |  
|NET CASH AVAILABLE FOR DISTRIBUTION     |  | $  | 15,128         |   |  | $  | 7,401         |  





Notes to the Financial Statement



Note 1: Operating Line of Credit provided by The Financial
Partner & Gemelli Capital Trust to the amount of $200,000 at an interest rate 8.75% / annum on the outstanding balance. This
note is convertible to Drayton Richdale Corporation common shares at a $2.00 / share strike point.





3







Note 1. Description of Business and Basis of Presentation



Drayton Richdale Corporation (“Drayton
Richdale” “Company” or “Registrant”) is a holding company owning subsidiaries engaged in a number
of diverse business activities. The primary focus is to acquire and exploit for profit intellectual properties. Drayton Richdale
also participates in a number of other developing businesses engaged in a variety of activities, as identified herein. Drayton
Richdale is domiciled in the state of Nevada, and its corporate headquarters are located in Las Vegas, Nevada. Drayton Richdale’s
operating businesses are managed on an unusually decentralized basis. There are essentially no centralized or integrated business
functions (such as sales, marketing, purchasing, legal, or human resources) and there is minimal involvement by Drayton Richdale’s
corporate headquarters in the day-to-day business activities of the operating businesses. Drayton Richdale’s corporate office
management participates in and is ultimately responsible for significant capital allocation decisions, investment activities and
the selection of the Chief Executive to head each of the operating businesses.

Service Business

PetroStrata Corporation (a Drayton Richdale wholly owned
subsidiary), headquartered in Las Vegas, Nevada, acquires and utilizes patented technologicvally advanced methods for oil and gas
development projects. PetroStrata is currently engaged in applying its proprietary PetroMicronic Technology and Process for the
extraction of crude oil from shale ore. The PetroMicronic Process is cost effective, efficient and environmentally friendly.

Manufacturing Business

The manufacturing business of PetroStrata Corporation (a
Drayton Richdale wholly owned subsidiary) is limited to the manufacturing and production of the proprietary PetroMicronic Reactor
and the design, build and operation of the PetroStrata Shale Oil Extraction Plant for crude oil production.

Note 2. Consolidated Financial Statements



The accompanying unaudited Consolidated Financial Statements include
the accounts of Drayton Richdale Corporation as of the financial statement date. Reference is made to Drayton Richdale’s
most recently issued Annual Report on Form 10-Q1 (“Quaterly Report”) that included information necessary or useful to
understanding Drayton Richdale’s business and financial statement presentations. Financial information in this Report reflects
any adjustments (consisting only of normal recurring adjustments) that are, in the opinion of management, necessary to a fair statement
of results for the interim period in accordance with accounting principles generally accepted in the United States (“GAAP”).



Item 2. Management’s Discussion and Analysis of Financial
Condition and Results of Operations



On June 15, 2011, PetroStrata Corporation, a wholly owned subsidiary of
Drayton Richdale Corporation, executed a Joint Venture Agreement with Estes Development Corporation, a coal producer from the State of
West Virginia. Under the terms and conditions in the Agreement, PetroStrata will build and operate a 20,000 sq.ft. Shale Oil Extraction
on 40 acres near Rock Springs, Wyoming and another 20,000 sq.ft. Coal Oil Extraction Facility on 50 acres near Cuba, Illinois. PetroStrata
will utilize its cost effective, propreitary and environmentally friendly PetroMicronic Reactor at both location to extract crude oil and
coal oil respectively. The development cost for the Rock Springs site estimated to be $36 Million and the Illinois site is projected to be
$24 Million. The completed plant in Rock Springs is expected to produce 4,800/bbls/day of crude oil. In projecting a market value of $82.00/bbl,
Rock Springs will generate $81 Million annual net revenue before taxes (see attached Exhibit 1 Rock Springs Financial Projections and Utilization
of Funds). The Illinois facility is projected to produce 5,700/bbls/day of coal oil and the net annual revenue over $107 Million (see attached
Exhibit 2 Illinois Financial Projections and Utilization of Funds).



The facilities will be operating 24 hrs./day, 328 days/year and will employ
75 to 100 individuals at each location. The extractions plants are scheduled to be operating at full capacity within 24-30 months from ground
breaking. Through a contractual supply of coal/ore inventory, along with hard assets, the joint venture has increased Drayton Richdale Corporations
net worth to exceed $500 Million.



The Balance Sheet values with regard to inventory and pledged assets for capital formation
were derived from a February 5, 2009 appraisal of above ground coal inventory prepared by Moss, Johnson and Associates, Ltd. It was determined that Estes
Development Corporation's  18,369,188 tons coal asset base in the Illinois location, at $46.00/ton, is $846,224,648 at market value. With this foundation,
the current Company Book Value/Share, post the June 15, 2011 joint venture agreement is $16.54/share.



Taking into account the attached projections for the shale oil extraction plant for Rock Springs,
Wyoming and the coal oil extraction plant in Illinois, the Company's Projected Earnings/Share is $6.51/share. The Price to Book Value of 0.0078 indicate a high
growth potential for the Company. Accordingly, the Price to Earning Ratio of 0.019 projects the company to be a "Value Stock" in the long term.



The Company will need to raise capital for the construction and operation of both petroleum extraction
facilities. Due to the substantial revenues that will be generated by the project as articulated in the hereby attached projections, the Company will structure a short
term, five (5) year Convertible Debenture with an eight (8) percent interest rate.



The foregoing discussion should be read in conjunction with our
consolidated financial statements, notes to those statements, Management’s Discussion and Analysis of Financial Condition
and Results of Operations from the 2010 Form 10-K and the other financial information appearing elsewhere in this report. The risks
and uncertainties described in this Form 10-Q and our 2010 Form 10-K are not the only risks facing our Company. Additional risks
and uncertainties that we are not presently aware of, or that we currently consider immaterial, may also affect our business operation.
Our business, financial condition or results of operations could suffer if the concerns set for are realized.





4







Financial Condition



There has been considerable and substantial changes changes in the Company’s
financial condition since the March 31, 2011 10-Q Filing. PetroStrata Corporation, a wholly owned subsidiary, executed a joint veture agreement with
Estes Development Corporation for the construction and operation of a shale oil extraction plant in Rock Springs, Wyoming and a coal oil extraction
plant in Illinois utilizing PetroStrata's PetroMicronic Technology and Process. Through a contractual supply of coal/ore inventory, along with pledged
hard assets, the joint venture has increased Drayton Richdale Corporations net worth to exceed $500 Million.



Contractual Obligations



On June 15, 2011, PetroStrata Corporation, a wholly owned subsidiary of
Drayton Richdale Corporation, executed a Joint Venture Agreement with Estes Development Corporation, a coal producer from the State of
West Virginia. Under the terms and conditions in the Agreement, PetroStrata will build and operate a 20,000 sq.ft. Shale Oil Extraction
on 40 acres near Rock Springs, Wyoming and another 20,000 sq.ft. Coal Oil Extraction Facility on 50 acres near Cuba, Illinois. PetroStrata
will utilize its cost effective, propreitary and environmentally friendly PetroMicronic Reactor at both location to extract crude oil and
coal oil respectively. The development cost for the Rock Springs site estimated to be $36 Million and the Illinois site is projected to be
$24 Million.



Critical Accounting Policies



The Company’s accounting policies have remained the same since
the December 31, 2010 10-K Filing



Forward-Looking Statements



Investors are cautioned that certain statements contained in this
document as well as some statements in periodic press releases and some oral statements of Drayton Richdale officials during presentations
about Drayton or its subsidiaries are “forward-looking” statements within the meaning of the Private Securities Litigation
Reform Act of 1995 (the “Act”). Forward-looking statements include statements which are predictive in nature, which
depend upon or refer to future events or conditions, which include words such as “expects,” “anticipates,”
“intends,” “plans,” “believes,” “estimates” or similar expressions. In addition,
any statements concerning future financial performance (including future revenues, earnings or growth rates)’ ongoing business
strategies or prospects and possible future Drayton Richdale actions, which may be provided by management, are also forward-looking
statements as defined by the Act. Forward-looking statements are based on current expectations and projections about future events
and are subject to risks, uncertainties and assumptions about Drayton Richdale, economic and market factors and other things. These
statements are not guaranties of future performance and we have no specific intention to update these statements.



Actual events and results may differ materially from those expressed
or forecasted in forward-looking statements due to a number of factors. The principal important risk factors that could cause our
actual performance and future events and actions to differ materially from such forward-looking statements include, but are not
limited to, changes in market prices of our investments in fixed maturity and equity securities, losses realized from derivative
contracts, the occurrence of one or more catastrophic events, such as an earthquake, hurricane or act of terrorism that causes
losses insured by our insurance subsidiaries, changes in laws or regulations affecting our insurance, railroad, utilities, energy
and finance subsidiaries, changes in federal income tax laws, and changes in general economic and market factors that affect the
prices of securities or the industries in which we do business.



5







Item 3. Quantitative and Qualitative Disclosures About Market
Risk



Reference is made to Drayton Richdale’s Annual 10-K Report
and in particular the “Market Risk Disclosures” included in “Management’s Discussion and Analysis of Financial
Condition and Results of Operations.” As of June 30, 2011, there are no material changes in the market risks described in
Drayton Richdale’s Annual Report on Form 10-K for the year ended December 31, 2010.



Item 4. Controls and Procedures



Evaluation of Disclosure Controls and Procedures



We have established disclosure controls and procedures to ensure
that material information relating to our company is made known to the officers who certify our financial reports and to the members
of senior management and the board of directors.



Based on management’s evaluation as of June 30, 2011, our
Chief Executive Officer believe our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e)
under the Exchange Act, as amended) are effective to ensure that the information required to be disclosed by our company in the
reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified
in SEC rules and forms.



Changes in Internal Control over Financial Reporting



There was no change to our internal control over financial reporting
during the quarter ended June 30, 2011 that has materially affected, or is reasonably likely to materially affect, our internal
control over financial reporting.



Part II. Other Information



Item 1. Legal Proceedings



Our company and our officers are not currently subject to any material
legal proceedings.



Item 1A. Risk Factors



There have been no material changes from the risk factors disclosed
in the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2010 filed with the
SEC on March 14, 2011.



Item 2. Unregistered Sales of Equity Securities and Use of Proceeds



None.



6







Item 3. Defaults Upon Senior Securities



None



Item 4. [Removed and Reserved.]



Item 5. Other Information



None.



Item 6. Exhibits





The following exhibits are included as part of this report:

Exhibit 1	 Financial Projections and Utilization of Funds for the
Rock Springs, Wyoming shale oil extraction plant.

Exhibit 2	 Financial Projections and Utilization of Funds for the
Illinois coal oil extraction plant.

Exhibit 31	Certification Pursuant to Securities
Exchange Act Rule 13(a)-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Antonio Arnel Maquera, President
and Chief Executive Officer)

Exhibit 32	Certification Pursuant to 18 U.S.C.
Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Antonio Arnel Maquera, Chief Executive Officer)



SIGNATURES



Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.



|Drayton Richdale Corporation
|----------------------------
|                            
|Dated:                      
|By:                         
|