SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C.  20549

                                FORM 10-KSB/A

         [X]   ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                       SECURITIES EXCHANGE ACT OF 1934

       [   ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                       SECURITIES EXCHANGE ACT OF 1934

                For the fiscal year ended: December 31, 2002

                      Commission File Number: 000-30009

                          PETROL OIL AND GAS, INC.
            (Exact name of registrant as specified in our charter)

Nevada                                            88-0453323
(State or other jurisdiction of                   (I.R.S. Employer
incorporation or organization)                    Identification No.)

6265 Stevenson Way
Las Vegas, Nevada                                 89120
(Address of principal executive offices)          (Zip Code)

      Registrant's telephone number including area code: (702) 454-9934

  Euro Technology Outfitters, 1850 E. Flamingo Rd., Ste. 111, Las Vegas, NV
                                    89119
               (Former name and former address of Registrant)

      Securities registered pursuant to Section 12(b) of the Act: None

  Securities registered pursuant to Section 12(g) of the Act: Common Stock,
                              $0.001 par value
                              (Title of Class)

     Indicate by check mark whether the registrant (a) 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 (b) has been  subject  to
such filing requirements for the past 90 days.  Yes    X      No _____

     Indicate  by  check mark if disclosure of delinquent filers pursuant  to
Item  405  of  Regulation  S-B  is not contained  herein,  and  will  not  be
contained,  to  the  best of 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-K.  [     ]

      The issuer's revenue for its most recent fiscal year ended December 31,
2002.  $0

<PAGE>

     The  aggregate  market value of the voting and non-voting common  equity
held by non-affiliates computed by reference to the price at which the common
equity  was last sold on the last business day of our most recently completed
second fiscal quarter was $0 based on a share value of $0.001 as of June  28,
2002.

     The  number of shares of Common Stock, $0.001 par value, outstanding  on
December   31,  2002,  was  13,151,993  shares,  held  by  approximately   37
stockholders.

     Transitional Small Business Disclosure Format (check one): Yes__ No X

<PAGE>

                          PETROL OIL AND GAS, INC.
                        (A DEVELOPMENT STAGE COMPANY)
                          FOR THE FISCAL YEAR ENDED
                              December 31, 2002

                               Index to Report
                               on Form 10-KSB


PART I
Page

Item      1.   Business                                          1-14
Item      2.   Properties                                        15
Item      3.   Legal Proceedings                                 15
Item      4.   Submission of Matters to a Vote of
               Security Holders                                  15

PART II

Item      5.   Market for Registrant's Common Equity
               and Related Stockholder Matters                   15-20
Item      6.   Plan of Operation                                 20-26
Item      7.   Financial Statements and
               Supplementary Data                                26
Item      8.   Changes in and Disagreements With Accountants
               on Accounting and Financial Disclosure            26

PART III

Item      9.   Directors and Executive Officers
               of the Registrant                                 27-30
Item   10.   Executive Compensation                              30-32
Item   11.   Security Ownership of Certain Beneficial Owners
             and Management                                      32
Item   12.  Certain Relationships and Related
               Transactions                                      33

Item   13.  Exhibits, Financial Statement Schedules and
            Reports on Form 8-K                                  34-35

Item   14.  Controls and Procedures                              36

<PAGE>

*THIS AMENDMENT IS BEING FILED TO INCLUDE THE CERTIFICATION PURSUANT TO 18
U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY
ACT OF 2002.  THE CERTIFICATION IS ATTACHED HERETO AS EXHIBIT 32.

This  form  10-KSB contains forward-looking statements within the meaning  of
the federal securities laws. These forward-looking statements are necessarily
based  on  certain  assumptions  and are subject  to  significant  risks  and
uncertainties.  These  forward-looking statements are based  on  management's
expectations  as of the date hereof, and the Company does not  undertake  any
responsibility to update any of these statements in the future. Actual future
performance  and results could differ from that contained in or suggested  by
these  forward-looking statements as a result of factors set  forth  in  this
Form  10-KSB (including those sections hereof incorporated by reference  from
other filings with the Securities and Exchange Commission), in particular  as
set forth in the "Plan of Operation" under Item 6.

    In  this  form 10-KSB references to "PETROL", "the Company", "we,"  "us,"
and "our" refer to PETROL OIL AND GAS, INC.

    Throughout  this  document we may use certain terms or phrases  that  are
specific to the oil and gas industry. We have included a glossary, commencing
on  page 2, containing these terms and phrases. We encourage you to refer  to
the glossary to gain a better understanding of industry terms used throughout
this 10-KSB.


    Note:  This Form 10-KSB/A is being filed to amend our Annual Report
    on Form 10-KSB filed with the Securities and Exchange Commission on
    April  16,  2003.  We are amending our annual report to revise  the
    independent  auditor's report and financial statements  to  conform
    the  financial statements, including footnotes, to those  contained
    in our Form SB-2, as amended.

                                   PART I

ITEM 1. BUSINESS

(a) General Business Development

     Petrol  Oil  and Gas, Inc. was incorporated in the State  of  Nevada  in
March of 2000 as Euro Technology Outfitters.  On August 19, 2002, we executed
an  Asset  Purchase  Agreement with Petrol Energy, Inc.,  whereby  we  issued
10,918,300 shares of our restricted common stock to Petrol Energy in exchange
for  certain  assets  and liabilities.  The assets we  acquired  from  Petrol
Energy included approximately 289 oil and gas mineral leases.

     On  August 20, 2002, we amended our Articles of Incorporation to  change
our name from Euro Technology Outfitters to Petrol Oil and Gas, Inc.

     On  August  21,  2002,  Anthony N. DeMint, our  then  sole  officer  and
Director,  appointed  Paul  Branagan  as  a  director  of  the  Company   and
subsequently resigned, leaving Mr. Branagan as our sole director.   Following
his  appointment,  Mr. Branagan elected himself as the sole  officer  of  the
Company.   Further,  concurrent  with his resignation,  Mr.  DeMint  tendered
5,826,240 shares of our stock for cancellation.

     We  have  an authorized capitalization of 100,000,000 shares  of  common
stock,  $0.001  par value per share, and as of December 31, 2002  there  were
13,151,993 shares outstanding.  We also have an authorized capitalization  of

<PAGE>

10,000,000 shares of preferred stock at a par value of $0.001 per share,  and
as of December 31, 2002 there were no shares outstanding.

     The accompanying consolidated financial statements have been prepared in
conformity with generally accepted accounting principles that contemplate the
continuance  of  the Company as a going concern.  Our cash  position  may  be
inadequate  to  pay  all  of  the  costs  associated  with  exploration   and
development for oil and gas properties.  Management intends to use borrowings
and security sales to mitigate the effects of its cash position, however,  no
assurance  can  be given that debt or equity financing, if and when  required
will  be  available.  The financial statements do not include any adjustments
relating  to  the  recoverability and classification of recorded  assets  and
classification of liabilities that might be necessary should we be unable  to
continue existence.

                                  GLOSSARY

Term                                      Definition

Adsorb           A process by which molecules are taken up on the surface of a
                solid by physical or chemical action. Large amounts of gases
                may be adsorbed on the surface of a porous material such as
                coal.

Barrel           In the energy industry, a barrel is a unit of volume
                measurement used for petroleum and is equivalent to 42 U.S.
                gallons measured at 60 Fahrenheit.

Basin            A depressed area where sediments have accumulated during
                geologic time and considered to be prospective for oil and
                gas deposits.

Blowout          An uncontrolled flow of oil, gas, water or mud from a
                wellbore caused when drilling activity penetrates a rock
                layer with natural pressures greater than the drilling mud in
                the borehole.

Coal rank        The classification of coal relative to other coals, according
                to their degree of metamorphism, or progressive alteration,
                in the natural series from lignite to anthracite. Synonymous
                with coal quality.

Coalification    A progressive process (bacterial decay and heat) that turns
process          decayed plant material (peat) into the various ranks of coal.
                The first stage (peat to lignite) is decay and the remaining
                stages are thermal. The major by-products are methane, carbon
                dioxide, and water.

Completion /     A well made ready to produce oil or natural gas. Completion
Completing       involves cleaning out the well, running and cementing steel
                casing in the hole, adding permanent surface control
                equipment, and perforating the casing so oil or gas can flow
                into the well and be brought to the surface.

Desorb           The release of materials (e.g., gas molecules) from being
                adsorbed onto a surface. The opposite of adsorb.

Development      The phase in which a proven oil or gas field is brought into
                production by drilling production (development) wells.

<PAGE>

Division order   A contract for the sale of oil or gas, by the holder of a
                revenue interest in a well or property, to the purchaser
                (often a pipeline transmission company).

Drilling         The using of a rig and crew for the drilling, suspension,
                production testing, capping, plugging and abandoning,
                deepening, plugging back, sidetracking, redrilling or
                reconditioning of a well. Contrast to "Completion"
                definition.

Drilling logs    Recorded observations made of rock chips cut from the
                formation by the drill bit, and brought to the surface with
                the mud, as well as rate of penetration of the drill bit
                through rock formations. Used by geologists to obtain
                formation data.

Exploration      The phase of operations which covers the search for oil or
                gas by carrying out detailed geological and geophysical
                surveys followed up where appropriate by exploratory
                drilling. Compare to "Development" phase.

Farm out         Assignment or partial assignment of an oil and gas lease from
                one lessee to another lessee

Gathering line   A pipeline that transports oil or gas from a central point of
/ system         production to a transmission line or mainline.

Gross acre       An acre in which a working interest is owned. The number of
                gross acres is the total number of acres in which a working
                interest is owned

Gross well       A well in which a working interest is owned. The number of
                gross wells is the total number of wells in which a working
                interest is owned.

Held-By-         Refers to an oil and gas property under lease, in which the
Production       lease continues to be in force, because of production from
(HBP)            the property.

Land services    Services performed by an oil and gas company or agent, or
                landman, who negotiates oil and gas leases with mineral
                owners, cures title defects, and negotiates with other
                companies on agreements concerning the lease.

Logging          Process of lowering sensors into a wellbore to acquire
(electric        downhole recordings that indicate a well's rock formation
logging)         characteristics and indications of hydrocarbons

Methane          An organic chemical compound of hydrogen and carbon (i.e.,
                hydrocarbon), with the simplest molecular structure (CH4)

Mineral Lease    A legal instrument executed by a mineral owner granting
                exclusive right to another to explore, drill, and produce oil
                and gas from a piece of land

Natural gas      The value of natural gas is calculated by its BTU content. A
quality          cubic foot of natural gas on the average gives off 1000 BTU,
                but the range of values is between 500 and 1500 BTU. Energy
                content of natural gas is variable and depends on its
                accumulations which are influenced by the amount and types of
                energy gases they contain: the more non-combustible gases in
                a natural gas, the lower the Btu value.

Net acre         A net acre is deemed to exist when the sum of fractional
                working interests owned in gross acres equals one. The number
                of net acres is the sum of fractional working interests owned
                in gross acres expressed as whole numbers and fractions
                thereof.

<PAGE>

Net well         A net well is deemed to exist when the sum of fractional
                working interests owned in gross wells equals one. The number
                of net wells is the sum of fractional working interests owned
                in gross wells expressed as whole numbers and fractions
                thereof.


Operator         A person, acting for himself or as an agent for others and
                designated to the state authorities as the one who has the
                primary responsibility for complying with its rules and
                regulations in any and all acts subject to the jurisdiction
                of the state

Pennsylvanian    Geologic age of sediments deposited 320 to 286 million years
age              ago

Permeability     The property of a rock formation which quantifies the flow of
                a fluid through the pore spaces and into the wellbore.

Pooled, Pooled   A term frequently used interchangeably with "Unitization" but
Unit             more properly used to denominate the bringing together of
                small tracts sufficient for the granting of a well permit
                under applicable spacing rules.

Proved Reserves  Estimated quantities of crude oil, natural gas, condensate,
                or other hydrocarbons that geological and engineering data
                demonstrate with reasonable certainty to be commercially
                recoverable in the future from known reservoirs under
                existing conditions using established operating procedures
                and under current governmental regulations.

Re-completion    Completion of an existing well for production from one
                formation or reservoir to another formation or reservoir that
                exists behind casing of the same well.

Reserves         Generally the amount of oil or gas in a particular reservoir
                that is available for production.

Reservoir        The underground rock formation where oil and gas has
                accumulated. It consists of a porous rock to hold the oil or
                gas, and a cap rock that prevents its escape

Reservoir        The pressure at the face of the producing formation when the
Pressure         well is shut-in. It equals the shut in pressure at the
                wellhead plus the weight of the column of oil in the hole.

Shut-in well     A well which is capable of producing but is not presently
                producing. Reasons for a well being shut in may be lack of
                equipment, market or other.

Stratigraphic    A variety of sealed geologic containers capable of retaining
Trap             hydrocarbons, formed by changes in rock type or pinch-outs,
                unconformities, or sedimentary features.

Structural Trap  A variety of sealed geologic structures capable of retaining
                hydrocarbons, such as a faults or a folds.

<PAGE>

Tight gas        Low permeability (having lower capacity to flow fluids
sandstones       through pore spaces) sedimentary rocks with natural gas
                occuring in the pore spaces. Contrast to high permeability
                sandstone definition.

Undeveloped      Leased acreage which has yet to be drilled on to test the
acreage          potential for hydrocarbons.

Unitize,         Joint operations to maximize produced hydrocarbon recovery
Unitization      among separate operators within a common reservoir

Western          Ancient inland sea and area of sediment deposition which
Interior Basin   divided North America into two separate landmasses in the
                Late Cretaceous Period, approximately 75 to 80 million years
                ago.

Working          The right granted to the lessee of a property to explore for
Interest         and to produce and own oil, gas, or other minerals. The
                working interest owners bear the exploration, development,
                and operating costs on either a cash, penalty, or carried
                basis.

(b) Description of Business

     We  are  structured to become an oil and gas exploration and development
company.  Our primary business objective is to produce economic quantities of
natural  gas from buried coal seams, denoted as coal-bed methane (CBM).   The
first  step in our business plan was achieved through the acquisition of  the
mineral  leases  from Petrol Energy.  Next we will have to drill  exploratory
wells  to  discover and determine if there is sufficient amount of commercial
viable  natural  gas to subsequently commence production.  Once  we  commence
production, if ever, we will need to create a ready market in which  to  sell
the produced gas.

     When  and  if  we  determine that we can produce sufficient  amounts  of
commercially  viable natural gas from a well, we intend to fund  portions  of
our field operations, when and if established, through revenues obtained from
sales  of  our  CBM  gas  production, if any. To accelerate  the  development
program,  when and if established, we plan to take on WI partners  that  will
contribute to the costs of drilling and completion and then share in revenues
derived  from production. This economic strategy may allow us to utilize  our
own financial assets toward the growth of our leased acreage holdings, pursue
the  acquisition of strategic oil and gas producing companies  and  generally
expand   our  existing  operations,  which  are  currently  limited  to   the
exploration phase.

                         Current State of Operations

     Petrol  has  no  WI partners at present.  Although we have  had  several
discussions  with producers in adjacent and nearby counties  regarding  a  WI
partnership, we expect to expand our initial well drilling operations with WI
partner(s)  after we have begun our own drilling and production program  from
proceeds raised from equity financing, debt financing, or other sources.

     We  plan  to  employ  a  simple conventional WI  model  whereby  our  WI
partner(s)  would  provide  either two-thirds or  all  of  the  drilling  and
completion costs for a given set of wells on a specific set of our leases for
which  the WI partner(s) would receive one-half or three-quarters of the  net

<PAGE>

production revenue.  As an example, if the WI pays two-thirds of the drilling
and  completion  costs  of  a well they would receive  one-half  of  the  net
production  revenue, which in this case would be one-half  of  87.5%  of  the
gross production revenue following the reduction of 12.5% paid to the royalty
interest owners.

     This  practice  is  intended  to  allow Petrol  to  drill  and  complete
additional  wells with reduced capital outlays, as in the case  above  paying
one-third  of the drilling and completion while sharing one-half of  the  net
production with WI partner(s).

     Petrol  presently  has  a three well pilot program  located  within  its
leased  acreage in the southwest portion of Coffey County Kansas.   Following
drilling, logging and setting steel casing all three wells were perforated in
coals  that  appear to contain gas and were subsequently fracture  stimulated
using  conventional hydraulic techniques.  They are now producing water using
wellhead pump jacks.  In addition, small quantities of natural gas,  that  is
less than a few Mcf per day, are being vented or flared.

                  The Market: Natural Gas Supply and Demand

     The  National Petroleum council estimates the US demand for natural  gas
to increase from 22 Trillion cubic feet (TCF) in 1998 to over 31 TCF by 2015.
This  nearly  50% increase in demand for natural gas coupled with constrained
supplies from conventional sources and storage facilities suggests an  urgent
need  for  new gas sources.  Although conventional gas sources such  as  high
permeability sandstones currently supply about 60% of the US demand  (13  TCF
in  1998), projections indicate a flat to declining supply through year 2015.
The  shortfall  in  conventional gas supply is expected to  be  taken  up  by
production  from un-conventional sources such as tight gas sandstones/shales,
associated gas, and CBM.

     CBM  shows great promise as a future source of natural gas, with the  US
Geological Society estimating some 700 TCF contained in 6 major CBM basins in
the  continental US. This constitutes an enormous reserve, almost the  entire
US  demand for the next 25 years.  At this point in time we cannot accurately
estimate,  nor  have  we  been  able  to  locate  an  estimate  for  specific
information for the Western Interior Basin, where the majority of our  leases
are located.

     Given  the  current  volatility of the natural gas market,  hedging  may
become  a part of our operating strategy.  We believe the current supply  and
demand fundamentals will lead to a strengthening in prices.  Consequently, we
intend  to  continually evaluate our hedge position, if any, and  enter  into
contracts accordingly.

                               CBM Production

     CBM  production  is  similar to conventional natural gas  production  in
terms  of  the  physical  production facilities  and  the  product  produced.
However,  surface mechanics and some production characteristics of CBM  wells
are   quite   different  from  traditional  natural  gas  production   wells.
Conventional  natural  gas  wells require a porous and  permeable  reservoir,
hydrocarbon migration and a natural structural or stratigraphic trap. CBM  is
trapped in the molecular structure of the coal itself until it is released by
pressure changes, resulting from water removal from the coal-bed. Methane  is
created  as  part of the coalification process. Coals vary in  their  methane
content which is dented as cubic feet of gas per ton of coal.

<PAGE>

     Water completely permeates coal-beds and the natural fracture system  or
cleats  as  they  are normally referred and are pervasive in  coal-beds.  The
natural gas, principally methane, is adsorbed onto the grain surfaces of  the
coal.   To  produce  CBM,  the water must be drawn off  first,  lowering  the
pressure so that the methane will desorb from the coal thus allowing gas flow
from  the coal into the de-watered cleats that act as high permeable conduits
to  the  well bore, where gas can be produced at the well head.  These cleats
are  formed during coalification and the permeability required for production
may  not  have  fully  developed,  thereby rendering  the  well  useless  for
production.

     The  qualities of productive CBM wells include coal quality, the content
of  natural  gas  per  ton  of coal, thickness of  the  coal-beds,  reservoir
pressure,  existence  of natural fractures, and overall permeability  of  the
coal-bed.

     CBM  production  also  differs  from conventional  gas  production  that
normally  starts at its highest production rate and then declines with  time.
Because coal-beds have water residing within the cleats the water needs to be
withdrawn  in order to promote production of the gases that are  adsorbed  on
the surfaces of the coal. Thus, for the case of CBM, initial water production
is  high and diminishes with time. CBM gas production, however, starts  at  a
relatively  low  rate  reaching a peak in 3-12  months  and  then  begins  to
decline.

     CBM  production is attractive due to several geological  factors.   Coal
stores six or seven times as much gas as a conventional natural gas reservoir
of  equal  rock  volume  due  to the large internal  surface  area  of  coal.
Significant  amounts  of coal are accessible at shallow depths,  making  well
drilling  and  completion  inexpensive.  Finding costs  are  also  low  since
methane  occurs  in  coal deposits, and the location  of  the  Nation's  coal
resources is well known.

                        Corporate Business Objectives

     Our  primary  business  objective is to produce economic  quantities  of
natural  gas  from  CBM.   In the 6 major US CBM basins  the  coal-beds  vary
greatly in thickness, quality and gas content. They also range in depths from
very near surface (< 500 ft) to very deep (>25,000 ft). The difficulty, risks
and costs associated with extracting CBM from deep formations increases quite
rapidly and nonlinearly with depth.

     We  intend to achieve our objectives by (a) concentrating our properties
in  core  areas  to achieve economies of scale, (b) acquiring and  developing
high profit margin properties, (c) continually disposing of marginal and non-
strategic properties, (d) balancing reserves, when developed, between oil and
gas,  (e)  maintaining  a  high  degree of  financial  flexibility,  and  (f)
enhancing  the  value  of  our  production through  marketing  and  midstream
activities.

                            Developmental Program

     One  of the reasons for acquiring the leases from Petrol Energy was  the
fact  that of the major CBM basins within the continental US, the leased area
had the following attributes:

      *    relatively shallow CBM (<2,500 ft)
      *    good coal rank, gas content and distribution,

<PAGE>

      *    low cost mineral leases,
      *    access to an interstate pipeline system and
      *    nearby oil and gas services.

     The  Western  Interior  Basin located in the  mid-continent,  where  the
leases  are  located,  shows great promise because it embodies  an  extensive
aerial  distribution  of near shallow buried coal-beds,  appears  to  contain
large  quantities  of  high  quality natural  gas  and  has  several  readily
available  interstate pipelines for sales and distribution. It  appears  that
the  area  best  suited for our CBM project may be in Coffey County,  Kansas,
where  gas  bearing coals are contained within the Forrest City and  Cherokee
basins,  sub-basins of the larger Western Interior basin. The entire  eastern
edge of the State of Kansas overlays the western portion of this basin.

     Since  portions of the acquired mineral leases have existing oil or  gas
wells,  some  of  them are being considered for re-completion  in  sandstones
and/or  coal-beds that appear economically productive. These will add to  our
knowledge base while providing financial support for anticipated expansion.

                              Operational Area

     As  an  oil  and  gas exploration and development company,  our  primary
objective  is  the development of CBM gas production projects. We  identified
CBM  early  on  as  an  area  in the oil and gas industry  that  was  gaining
recognition  as  a  viable source of natural gas and was  experiencing  above
average  growth.   We  expect  to  focus our investment  efforts  in  working
interests  in natural gas well development projects located within  known  or
highly-likely  gas-bearing  CBM formations in  southeastern  Kansas  starting
within our roughly 88,812 acres of CBM leases acquired from Petrol Energy.

     The  Western  Interior Coal Region includes three basins in the  central
United  States  that contain gas bearing coal deposits of  similar  area  and
rank.   They are the Arkoma, Forest City and Cherokee Basins.  Together these
three  basins  stretch from western Arkansas and Central  Oklahoma  northward
through  eastern Kansas and western Missouri into central Iowa.  Our  primary
interests  lie  within areas overlaying the Cherokee and  Forest  City  Basin
which  are defined geographically as the area bounded to the north by Bourbon
Arch,  to the east and southeast by Ozark Dome, and to the west by the Nemaha
uplift, encompassing northern Oklahoma, southeastern Kansas, and southwestern
Missouri.

     The  Cherokee Basin formation contains Pennsylvanian age coal-beds which
are  believed to be relatively contiguous throughout the entire basin.   Coal
found  throughout  the  basin is generally of  the  same  age  and  type  and
therefore theoretically should contain similar quantities and quality of gas.
Historically, the majority of CBM gas production in Kansas has been south  of
our  targeted  area,  including production in  Labette,  Wilson,  Neosho  and
Cherokee  Counties, Kansas, where coal seams and black shale  averaging  four
feet  in  thickness have been reported and initial water production generally
has  been  less  than  50 barrels per day, eventually dropping  to  below  10
barrels per day.  Although currently there are no CBM wells producing in  our
targeted  area,  drilling logs from oil exploration in  and  surrounding  our
targeted  area typically confirm the uniformity of the coal-beds,  indicating
coal  seams  similar  to  those  found in the south  of  the  targeted  area.
Additionally,  a  small  number of CBM gas wells  are  producing  in  Woodson

<PAGE>

County,  Kansas (the southern adjacent county to Coffey County,) and Anderson
County,  Kansas  (the  eastern adjacent county to Coffey  in  which  we  have
acquired leases).

                             Leasing Activities

     In  addition to the mineral leases acquired from Petrol Energy, we  also
accepted  responsibility for an office lease held by Eastman Energy.  Located
in Waverly, Kansas, a small rural community on the northeast corner of Coffey
County, this office provides us a base for our field operations as well as  a
local mineral leasing office. The current office lease expired on January 23,
2003,  however, we renewed the lease for another year , expiring  on  January
23, 2004.  The monthly lease obligation for this facility is $300.

     As  of  December  31,  2002, we have about 289 signed  lease  agreements
totaling  approximately 88,812 acres. These leases are  scattered  throughout
Coffey County, Kansas and the adjacent counties of Anderson, Osage and  Lyon.
The  majority of these mineral leases cover a large section of Coffey  County
while the remaining leases cover smaller portions of Anderson, Osage and Lyon
counties.   In the event that we are successful in the development  phase  of
our  plan  and  find commercially producible gas or oil, we intend  to  lease
additional available mineral rights to the extent that we believe  such  land
will further our exploration and development activities.

      All  of  the  mineral  leases that Petrol has  executed  grant  us  the
exclusive  right  to explore for and develop oil, gas and other  hydrocarbons
and  minerals that may be produced from wells drilled on the leased property.
Each lease also grants us rights of way to easements for laying pipelines and
servicing or drilling other wells in the vicinity of the leased property.

     Our  lease agreements vary both in term and price per acre. Some of  our
leases  are  for 2 year periods at $2/acre with extensions for  3  additional
years,  others  are  for  3 year periods at $3/acre  with  extensions  for  3
additional  years, others are for 5 years at $1/acre with  extensions  for  3
additional  years, while others are for 5 years at $10/acre  with  extensions
for 3 additional years.

     In  general,  leases are payable on the one year signing anniversary  of
the  lease agreement.  Regardless of whether or not we are producing oil  and
gas  from  a  leased  property  or acres pooled therewith,  on  the  one-year
anniversary  of  each lease we will be required to pay the lessor  their  net
agreed upon mineral acreage fee.  If we fail to make such payment, the  lease
will  terminate  30  days thereafter.  We have agreed to pay  each  lessor  a
royalty equal to 12.5% of any oil, gas or other minerals that may be produced
from  wells  drilled on the leased property.  In the event of a shut-in  well
capable  of producing oil or gas, we have agreed to pay the lessor a  royalty
per  net  mineral acre. All the lease agreements allow us to hold  the  lease
with production.

     Pursuant to the lease payment terms described above we will be obligated
to  make  the  following one-year anniversary payments beginning  in  January
2003.

Due Date         # of Gross Mineral Acres     Payment Due
Jan 2003         2,314                        $    4,429.00 (Paid)
Feb 2003         13,837                       $138,370.00 (Paid)
March 2003       17,093                       $170,930.00 (Paid)
April 2003       4,083                        $  34,148.00
>Jan 2004        157                          $    1,570.00
TOTAL:           37,484                       $  35,718.00

<PAGE>

     Under  our  leases  we have the right to pool the leased  property  with
other land owned or leased by us in the immediate vicinity for the production
of  oil  or  gas.   With  respect to shallow gas and associated  hydrocarbons
produced  in conjunction therewith, we have the right to pool or unitize  the
leased properties into a development pool of a maximum of 3,000 acres  if  it
has  drilled  at least 2 wells within the pooled unit no later  than  1  year
after the expiration of the primary term of the lease.

     We  have agreed to indemnify each lessor against any and all liabilities
arising out of our operations on the leased property, including environmental
liabilities.  We have also agreed to pay each lessor liquidated  damages  for
any  leased  property that is damaged as a result of our operations  on  such
leased  property.  Additionally, we have agreed to pay each  lessor  for  any
damages  caused by us to any crops growing on the leased property.  Following
the  completion of our operations on a leased property, we are  obligated  to
restore  the  well site to its original condition and land  contour,  to  the
extent possible.

     All  of  the  oil  and  gas  property that we have  leased  to  date  is
considered "undeveloped acreage" which the Securities and Exchange Commission
defines  as "lease acreage on which wells have not been drilled or  completed
to  a point that would permit the production of commercial quantities of  oil
and gas regardless of whether such acreage contains proved reserves."

     We  have  rights  to  a working interest in approximately  88,812  gross
undeveloped acres (100% of each leased acre) and 77,710 net undeveloped acres
(87.5% of 88,812 leased acres) in southeast Kansas.  A "working interest"  is
the  operating interest that gives us, as the operator, the right  to  drill,
produce  and  conduct operating activities on the property  and  a  share  of
production.  A "net acre" (or net well) is deemed to exist when  the  sum  of
the  fractional working interest owned in gross acres or gross  wells  equals
one.   The  number  of net acres or net wells is then expressed  as  a  whole
number  and fractions thereof.  A "gross acre" (or gross well) is  the  total
acres or wells, as the case may be, in which a working interest is owned.

     Before  we  commit substantial resources, including obtaining  necessary
permits  and  preparing for drilling on any particular  leased  property,  we
complete  our  due  diligence  process  on  our  leased  property,  including
obtaining a title or title insurance to confirm our rights to any oil, gas or
other  minerals produced pursuant to our lease.  It is difficult to determine
what our final interest in any oil, gas or other mineral that we produce will
be  until  we  have negotiated with the third parties that  we  may  hire  to
perform drilling, completion and operating activities on our wells.

     Substantially all of our capital expenditures have been associated  with
the  acquisition of oil and gas mineral leases.  Our strategy is to  continue
to  expand  our  lease  base principally through acquisitions  of  additional
mineral  leases.   As a result, it is likely that capital  expenditures  will
exceed  cash  provided  by  operating activities in years  where  significant
growth  occurs  in  our oil and gas reserve base.  In such cases,  additional
external financing will be required.

<PAGE>

     We  also intend to grow through the acquisition of producing oil and gas
properties,  although at this time we are unable to predict  the  number  and
size  of such acquisitions, if any, which will be completed.  Our ability  to
finance  oil and gas acquisitions is determined by cash flow from  operations
and available sources of debt and equity financing.

     We  continue to research the prospects for gas well development in other
geological  formations. It is possible that we will invest in  prospects  not
described  here,  or  that little investment will be made  in  the  prospects
described here.

Regulation

     Regulation  of Oil and Natural Gas Production.  Our oil and natural  gas
exploration, production and related operations, when developed,  are  subject
to  extensive rules and regulations promulgated by federal, state, tribal and
local  authorities and agencies. For example, some states  in  which  we  may
operate  require permits for drilling operations, drilling bonds and  reports
concerning  operations  and  impose  other  requirements  relating   to   the
exploration and production of oil and natural gas. Such states may also  have
statutes or regulations addressing conservation matters, including provisions
for  the  unitization  or  pooling of oil and  natural  gas  properties,  the
establishment  of maximum rates of production from wells, and the  regulation
of  spacing,  plugging and abandonment of such wells. Failure to comply  with
any  such  rules  and  regulations can result in substantial  penalties.  The
regulatory  burden on the oil and gas industry will most likely increase  our
cost  of doing business and may affect our profitability. Although we believe
we  are  currently  in  substantial compliance with all applicable  laws  and
regulations,  because  such rules and regulations are frequently  amended  or
reinterpreted,  we  are  unable  to predict the  future  cost  or  impact  of
complying with such laws. Significant expenditures may be required to  comply
with governmental laws and regulations and may have a material adverse effect
on our financial condition and results of operations.

     Federal  Regulation  of  Natural  Gas.  The  Federal  Energy  Regulatory
Commission ("FERC") regulates interstate natural gas transportation rates and
service conditions, which may affect the marketing of natural gas produced by
us,  as  well  as the revenues that may be received by us for sales  of  such
production.  Since  the  mid-1980's, FERC has  issued  a  series  of  orders,
culminating  in  Order  Nos. 636, 636-A and 636-B ("Order  636"),  that  have
significantly altered the marketing and transportation of natural gas.  Order
636  mandated  a fundamental restructuring of interstate pipeline  sales  and
transportation service, including the unbundling by interstate  pipelines  of
the sale, transportation, storage and other components of the city-gate sales
services  such  pipelines previously performed. One  of  FERC's  purposes  in
issuing  the  order  was to increase competition within  all  phases  of  the
natural gas industry. The United States Court of Appeals for the District  of
Columbia  Circuit largely upheld Order 636 and the Supreme Court has declined
to hear the appeal from that decision. Generally, Order 636 has eliminated or
substantially   reduced  the  interstate  pipelines'  traditional   role   as
wholesalers   of  natural  gas  in  favor  of  providing  only  storage   and
transportation  service,  and  has substantially  increased  competition  and
volatility in natural gas markets.

     The  price  we may receive from the sale of oil and natural gas  liquids
will  be  affected by the cost of transporting products to markets. Effective
January 1, 1995, FERC implemented regulations establishing an indexing system
for  transportation  rates for oil pipelines, which, generally,  would  index
such  rates  to inflation, subject to certain conditions and limitations.  We

<PAGE>

are  not  able  to  predict  with certainty the  effect,  if  any,  of  these
regulations on our intended operations. However, the regulations may increase
transportation  costs  or reduce well head prices for  oil  and  natural  gas
liquids.

     Environmental Matters. Our operations and properties, when  established,
will  be subject to extensive and changing federal, state and local laws  and
regulations  relating to environmental protection, including the  generation,
storage,  handling, emission, transportation and discharge of materials  into
the  environment,  and relating to safety and health.  The  recent  trend  in
environmental  legislation  and  regulation  generally  is  toward   stricter
standards,  and  this trend will likely continue. These laws and  regulations
may:

     *    require  the  acquisition of a permit or other authorization
          before  construction or drilling commences and  for  certain
          other activities;

     *    limit   or   prohibit  construction,  drilling   and   other
          activities  on  certain  lands lying within  wilderness  and
          other protected areas; and

     *    impose substantial liabilities for pollution resulting  from
          our intended operations.

     The  permits  required for our intended operations  may  be  subject  to
revocation,  modification  and renewal by issuing  authorities.  Governmental
authorities  have the power to enforce their regulations, and violations  are
subject  to  fines or injunctions, or both. In the opinion of management,  we
are  in substantial compliance with current applicable environmental laws and
regulations,  and  have no material commitments for capital  expenditures  to
comply  with  existing environmental requirements. Nevertheless,  changes  in
existing  environmental  laws and regulations or in  interpretations  thereof
could  have  a significant impact on us, as well as the oil and  natural  gas
industry in general.

     The  Comprehensive Environmental, Response, Compensation, and  Liability
Act ("CERCLA") and comparable state statutes impose strict, joint and several
liability on owners and operators of sites and on persons who disposed of  or
arranged  for the disposal of "hazardous substances" found at such sites.  It
is  not  uncommon for the neighboring land owners and other third parties  to
file  claims for personal injury and property damage allegedly caused by  the
hazardous  substances  released into the environment.  The  Federal  Resource
Conservation  and Recovery Act ("RCRA") and comparable state statutes  govern
the  disposal  of  "solid  waste" and "hazardous  waste"  and  authorize  the
imposition  of  substantial fines and penalties for  noncompliance.  Although
CERCLA  currently  excludes  petroleum  from  its  definition  of  "hazardous
substance," state laws affecting our intended operations may impose  clean-up
liability  relating to petroleum and petroleum related products. In addition,
although  RCRA  classifies certain oil field wastes as "non-hazardous,"  such
exploration  and production wastes could be reclassified as hazardous  wastes
thereby  making such wastes subject to more stringent handling  and  disposal
requirements.

     ESA.  The Endangered Species Act ("ESA") seeks to ensure that activities
do  not  jeopardize endangered or threatened animal, fish and plant  species,
nor  destroy  or  modify  the critical habitat of such  species.  Under  ESA,
exploration  and  production  operations,  as  well  as  actions  by  federal
agencies,  may  not  significantly impair or jeopardize the  species  or  its
habitat.  ESA provides for criminal penalties for willful violations  of  the

<PAGE>

Act.  Other statutes that provide protection to animal and plant species  and
that may apply to our operations include, but are not necessarily limited to,
the  Fish  and  Wildlife  Coordination  Act,  the  Fishery  Conservation  and
Management  Act,  the  Migratory Bird Treaty Act and  the  National  Historic
Preservation Act. Although we believe that our intended operations will be in
substantial  compliance with such statutes, any change in these  statutes  or
any  reclassification  of  a  species  as  endangered  could  subject  us  to
significant  expenses  to  modify  our  operations  or  could  force  us   to
discontinue certain operations, when implemented, altogether.

                                 Competition

      We compare with numerous other oil and gas exploration companies.  Many
of these competitors have substantially greater resources than we do.  Should
a  larger and better financed company decide to directly compete with us, and
be  successful  in its competitive efforts, our business could  be  adversely
affected.

                                  Personnel

     We  currently  have  two  full time employees.  As  drilling  production
activities commence, we intend to hire additional technical, operational  and
administrative personnel as appropriate. None of our employees are subject to
any  collective bargaining agreements, however, our sole officer has  entered
into  an employment agreement with us.  We do not expect a significant change
in  the  number of full time employees over the next 12 months. We intend  to
use  the  services  of  independent consultants and  contractors  to  perform
various  professional services, particularly in the area  of  land  services,
drilling,  water  hauling,  pipeline  construction,  well  design,  well-site
monitoring  and  surveillance,  permitting and environmental  assessment.  We
believe  that  this  use  of third-party service providers  may  enhance  our
ability to contain general and administrative expenses.

      Our  proposed  personnel structure could be divided  into  three  broad
categories:   management  and  professional,  administrative,   and   project
personnel.  As  in  most small companies, the divisions between  these  three
categories  are  somewhat indistinct, as employees  are  engaged  in  various
functions as projects and work loads demand.

                                 Consultants

     Goran Blagojevic. On August 20, 2002, we entered into a Translation  and
Business Consulting agreement with Goran Blagojevic.  Under the terms of  the
agreement Mr. Blagojevic will perform written and verbal translation services
and  certain  other  business consulting services for us.  The  agreement  is
terminable by either party without notice or cause. All compensation  payable
to  Mr.  Blagojevic would be agreed upon in advance by us, as Mr.  Blagojevic
will only be utilized on an as needed basis. On December 20, 2002, we amended
the  agreement whereby Mr. Blagojevic would assist us in finding,  assessing,
qualifying and negotiating with potential European working interest  partners
that  would support our field development program. As consideration  for  the
additional  responsibilities, we issued Mr. Blagojevic a warrant to  purchase
500,000 shares of our common stock at $0.75 per share. The warrant expires on
July 1, 2003.

     B&B  Cooperative Venture and Birk Petroleum. On November  15,  2002,  we
entered  into  a  Service and Water Disposal Agreement with  B&B  Cooperative

<PAGE>

Venture  ("B&B")  and Birk Petroleum ("Birk"), whereby B&B provides  us  with
pumping services on our existing wells to monitor operations, and assess  and
report on the disposition of the production process.  Birk will transport the
produced  water  from its lease tanks to the disposal well  where  Birk  will
inject produced water into the disposal well.  We will pay B&B $10.00 per day
for each well that it provides pumping services and will pay Birk at the rate
of $60.00 per hour for water hauling and $250.00 per month for the use of the
disposal well. The term of the agreement is for 1 year commencing on the date
of execution.

     William  Stoeckinger. On December 19, 2002, we entered into a  one  year
geologist/technical  advisor consulting agreement with  William  Stoeckinger.
Under  the terms of the agreement Mr. Stoeckinger will assist us in the areas
of  geology,  geophysical and formation evaluation, drilling and  completion,
regulatory and lease evaluation matters and other technical concerns  related
to  the  exploration and production of hydrocarbons. Mr. Stoeckinger will  be
paid  a daily rate ranging from $400 to $500 per day for his services. As  an
inducement  for  Mr. Stoeckinger to begin consulting for us,  we  issued  him
160,000  shares  of  our common stock. In addition, Mr. Stoeckinger  will  be
issued 20,000 shares of our common stock for each month that he fulfills  his
duties  as  described in the agreement. As further consideration, we  granted
Mr.  Stoeckinger an option to purchase 50,000 shares of our common  stock  at
$0.50  per share and 50,000 shares at $1.00 per share. The option expires  on
December 19, 2004.

     Russell Frierson. On December 27, 2002, we entered into a one year  land
services consulting agreement with Russell Frierson. Under the terms  of  his
agreement, Mr. Frierson will provide to us land professional services in  the
nature  of  preparation  and drafting of written agreements  concerning  well
location,  waivers of surface use and other lease provisions, damage  release
and  compensation  agreements related to drilling  operations,  easement  and
right  of  way  agreements, pooling and farm out agreements, and  such  other
consents,  declarations, designations, memoranda, notices, ratifications  and
stipulations by and between us and any and all surface owners in or  adjacent
to  our  mineral lease hold interests. As an inducement for Mr.  Frierson  to
begin consulting for us, we issued him 50,000 shares of our common stock.  In
addition, we granted Mr. Frierson an option to purchase 50,000 shares of  our
common  stock  at $0.50 per share for a period of 3 years. This agreement  is
terminable by us for cause.

     Lawrence  Kehoe. On December 27, 2002, we entered into a one  year  land
services  consulting agreement with Lawrence Kehoe. Under the  terms  of  his
agreement,  Mr.  Kehoe will provide to us land professional services  in  the
nature of negotiation and execution of easements and surface agreements,  and
negotiation  and execution of requisite consents, declarations, designations,
memoranda, notices, ratifications and stipulations by and between us and  any
and all surface owners in or adjacent to our mineral lease hold interests. As
an inducement for Mr. Kehoe to begin consulting for us, we issued him 325,000
shares  of  our common stock. In addition, we granted Mr. Kehoe an option  to
purchase  325,000 shares of our common stock at $0.50 per share for a  period
of 3 years. This agreement is terminable by us for cause.

    Cody  Felton.  On  December 27, 2002, we entered into  a  one  year  land
services  consulting  agreements with Cody Felton. Under  the  terms  of  his
agreement,  Mr. Felton will provide to us land professional services  in  the
nature  of acquisition and recording of mineral interests and the performance
of  any  and  all  due diligence and title work on leased properties.  As  an
inducement  for Mr. Felton to begin consulting for us, we issued him  325,000
shares  of our common stock. In addition, we granted Mr. Felton an option  to

<PAGE>

purchase  325,000 shares of our common stock at $0.50 per share for a  period
of 3 years. This agreement is terminable by us for cause.

ITEM 2.   PROPERTIES

     We maintain our executive office at 6265 S. Stevenson Way, Las Vegas, NV
89120 from Branagan & Associates. The office is provided free of charge on  a
month-to-month  basis. Paul Branagan, President of Petrol, is also  president
of Branagan & Associates.

     We  also  lease  approximately 2,500 square feet of  space  in  Waverly,
Kansas,  where our field and leasing offices are located. As of December  31,
2002,  the  lease  had a remaining term of approximately  1  month,  expiring
January  23,  2003,  at which time we had the option to renew  the  lease  or
acquire the property.

Subsequent Event

     On  January  21, 2003, we renewed our lease agreement for another  year,
expiring  on January 23, 2004.  The monthly lease obligation on this facility
is $300.00.

ITEM 3.   LEGAL PROCEEDINGS

     We  are  not  presently a party to any material litigation, nor  to  the
knowledge  of  management is any litigation threatened against us  which  may
materially affect us.

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

     On August 1, 2002, we received a unanimous consent from our then sole
stockholder for the approval of the asset purchase agreement with Petrol
Energy.

                                   PART II

ITEM 5.   MARKET  FOR  REGISTRANT'S  COMMON EQUITY  AND  RELATED  STOCKHOLDER
          MATTERS

(a) Market Information

      There  is currently no public market for our securities.  We intend  to
file  for  inclusion  of  our  common stock on the  National  Association  of
Securities Dealers, Inc. Over-the-Counter Bulletin Board; however, there  can
be no assurance that NASD will approve the inclusion of the common stock.

(b) Holders of Common Stock

     As  of December 31, 2002, we had approximately 37 stockholders of record
of the 13,151,993 shares outstanding.

<PAGE>

(c) Dividends

     We have never declared or paid dividends on our Common Stock.  We intend
to  follow  a policy of retaining earnings, if any, to finance the growth  of
the  business  and  do  not  anticipate paying  any  cash  dividends  in  the
foreseeable future.  The declaration and payment of future dividends  on  the
Common  Stock will be the sole discretion of the Board of Directors and  will
depend  on  our  profitability and financial condition, capital requirements,
statutory  and  contractual restrictions, future prospects and other  factors
deemed relevant.

Recent Sales of Unregistered Securities

Issuances to Officers and Directors

      On  March  3, 2000, we issued 5,000,000 shares of our $0.001 par  value
common  stock to our sole officer and director for services valued at $5,000.
The  shares were deemed to have been issued pursuant to an exemption provided
by Section 4 (2) of the Act, which exempts from registration "transactions by
an issuer not involving any public offering."

      From  January 1, 2001 through April 1, 2002 we issued additional shares
of  our  common  stock  to Mr. DeMint at par value,  $0.001  per  share,  for
conversion of debt to equity for monies advanced by Mr. DeMint.  The dates of
the issuance and number of shares issued is as follows:
Date of issuance             Number of Shares

January 1, 2001                  1,405,000
April 1, 2001                     22,060
July 1, 2001                      13,240
October 1, 2001                   14,060
April 1, 2002                     21,880

     We  believe that the issuances of the shares described above were exempt
from  the registration and prospectus delivery requirements of the Securities
Act  of  1933 by virtue of Section 4(2). Mr. DeMint, because of his  position
with  our company, was deemed to be an accredited investor, as such  term  is
defined  in rule 501(a) of Regulation D promulgated under the Securities  Act
of  1933. The shares were issued directly by us and did not involve a  public
offering  or  general  solicitation. There were no commissions  paid  on  the
issuance of the shares.

     On  December  19,  2002,  we granted Paul Branagan,  our  president  and
chairman,  an  option  to purchase 1,250,000 shares of our  common  stock  at
prices  ranging from $0.50 to $2.50 per share. We believe that the  grant  of
the   option  was  exempt  from  the  registration  and  prospectus  delivery
requirements  of  the Securities Act of 1933 by virtue of Section  4(2).  Mr.
Branagan,  because  of his position with our company, was  deemed  to  be  an
accredited  investor, as such term is defined in rule 501(a) of Regulation  D
promulgated under the Securities Act of 1933.

Asset Purchase Agreement

     On  August 19, 2002, we executed an Asset Purchase Agreement with Petrol
Energy,  Inc.,  whereby we issued 10,918,300 shares of our restricted  common
stock  in  exchange for certain assets and liabilities of Petrol Energy.   We
believe that the issuance of the shares was exempt from the registration  and
prospectus delivery requirements of the Securities Act of 1933 by  virtue  of

<PAGE>

Section  4(2).  The shares were issued directly by us and did not  involve  a
public offering or general solicitation. The recipient of the shares occupied
a  privileged  position with our company, due to its preexisting relationship
with  Mr.  DeMint, that afforded them an opportunity for effective access  to
files  and  records  of  our company that contained the relevant  information
needed  to make their investment decision, including our financial statements
and  34  Act  reports. We reasonably believed that the recipient, immediately
prior  to  issuing  the  shares, had such knowledge  and  experience  in  our
financial  and  business  matters that they were capable  of  evaluating  the
merits  and  risks of their investment.  The recipient's management  had  the
opportunity  to  speak with Mr. DeMint on several occasions  prior  to  their
investment  decision. There were no commissions paid on the issuance  of  the
shares.

Share Cancellation

     On  August  21,  2002, Mr. DeMint cancelled 5,826,240 shares  concurrent
with the asset purchase with Petrol Energy, Inc. for no consideration.

NIO Fund Sales

     From  November 5, 2002 through December 2, 2002, we issued  and  sold  a
total of 660,303 shares to NIO FUND Investment Management Limited for a total
purchase price of $330,151.25, all of which was paid in cash.  In addition to
the  above  sales to NIO, we issued NIO warrants to purchase up to $3,500,000
of  our  common stock at a 12.5% discount to market, however, not to be  less
than  $0.875  per  share. The amount and expiration of  each  warrant  is  as
follows:

                Amount                Expiration
               $500,000             March 31, 2003
               $500,000             April 30, 2003
               $500,000              May 31, 2003
               $500,000             June 31, 2003
               $500,000            August 31, 2003
               $500,000           November 30, 2003
               $500,000            January 31, 2004

     We  believe that the issuance and sale of the shares and issuance of the
warrants  were exempt from registration and prospectus delivery  requirements
of  the Securities Act of 1933 by virtue of Section 4(2), Regulation D and/or
Regulation S. The shares and warrants were issued directly by us and did  not
involve  a  public  offering or general solicitation. NIO  is  an  accredited
investor  as  such term is defined in rule 501(a) of Regulation D promulgated
under  the  Securities Act of 1933. The recipient of the shares and  warrants
was  afforded an opportunity for effective access to files and records of our
company that contained the relevant information needed to make its investment
decision,  including  our  financial  statements  and  34  Act  reports.   We
reasonably  believed  that the recipient, immediately prior  to  issuing  the
shares  and warrants, had such knowledge and experience in our financial  and
business  matters that it was capable of evaluating the merits and  risks  of
its  investment.   The  recipient  had the  opportunity  to  speak  with  our
management  on  several occasions prior to their investment  decision.  There
were no commissions paid on the issuance and sale of the shares.

<PAGE>

Issuances to Consultants

     On  December  19,  2002, we agreed to issue William Stoeckinger  160,000
shares  of our common stock and granted him an option to purchase (i)  50,000
shares  of  common stock at $0.50 per share and (ii) 50,000 shares of  common
stock  at  $1.00 per share.  The options are exercisable until  December  19,
2004.  In addition, as part of Mr. Stoeckinger's consulting agreement we have
agreed to issue Mr. Stoeckinger an additional 20,000 shares per month for the
term  of  his  agreement (240,000 shares total).  The shares  have  not  been
issued  as of December 31, 2002.  We believe that the issuance of the  shares
and  grant  of  the option were exempt from the registration  and  prospectus
delivery  requirements of the Securities Act of 1933  by  virtue  of  Section
4(2).

     On  December 27, 2002, we issued 3 of our consultants a total of 700,000
shares  of common stock and granted options to purchase up to 700,000  shares
of  common stock at $0.50 per share as consideration for consulting services.
The  options are exercisable for a period of 36 months. We believe  that  the
issuance  of  the  shares  and  grant of the options  were  exempt  from  the
registration  and prospectus delivery requirements of the Securities  Act  of
1933 by virtue of Section 4(2).

     On  December  30,  2002,  we issued a warrant  to  Goran  Blagojevic  to
purchase  up to 500,000 shares of common stock at $0.75 per share as  partial
consideration for consulting services. The warrant is exercisable until  July
1,  2003.  We  believe that the issuance of the warrant was exempt  from  the
registration  and prospectus delivery requirements of the Securities  Act  of
1933 by virtue of Section 4(2).

Other Issuances and Sales

     On  December  27, 2002, we issued and sold a total of 88,390  shares  of
common stock to 2 individual accredited investors for a total purchase  price
of  $44,195, all of which was paid in cash.  We believe that the issuance and
sale  of  the shares was exempt from the registration and prospectus delivery
requirements  of  the  Securities Act of 1933  by  virtue  of  Section  4(2),
Regulation D and/or Regulation S. The shares were issued directly by  us  and
did not involve a public offering or general solicitation. The recipients  of
the  shares  were afforded an opportunity for effective access to  files  and
records of our company that contained the relevant information needed to make
their  investment  decision, including our financial statements  and  34  Act
reports.  We  reasonably believed that the recipients, immediately  prior  to
issuing  the  shares, had such knowledge and experience in our financial  and
business matters that they were capable of evaluating the merits and risks of
their  investment.   The recipients had the opportunity  to  speak  with  our
management  on  several occasions prior to their investment  decision.  There
were no commissions paid on the issuance and sale of the shares.

      On  December 30, 2002, we issued and sold a total of 135,000 shares  of
common stock to an individual accredited investor for a total purchase  price
of $101,250, all of which was paid in cash.  We believe that the issuance and
sale  of  the shares was exempt from the registration and prospectus delivery
requirements  of  the  Securities Act of 1933  by  virtue  of  Section  4(2),
Regulation D and/or Regulation S. The shares were issued directly by  us  and
did  not involve a public offering or general solicitation. The recipient  of
the  shares  was afforded an opportunity for effective access  to  files  and
records of our company that contained the relevant information needed to make

<PAGE>

its  investment  decision,  including our financial  statements  and  34  Act
reports.  We  reasonably believed that the recipient,  immediately  prior  to
issuing  the  shares, had such knowledge and experience in our financial  and
business  matters that it was capable of evaluating the merits and  risks  of
its  investment.   The  recipient  had the  opportunity  to  speak  with  our
management on several occasions prior to its investment decision. There  were
no commissions paid on the issuance and sale of the shares.

Subsequent Issuances

      On  January  26,  2003, we issued 55,000 shares of common  stock  to  a
consultant in exchange for services rendered to us amounting to $27,500.   We
believe that the issuance of the shares was exempt from the registration  and
prospectus delivery requirements of the Securities Act of 1933 by  virtue  of
Section  4(2),  Regulation D and/or Regulation S.   The  shares  were  issued
directly by us and did not involve a public offering or general solicitation.
The  recipient of the shares was afforded an opportunity for effective access
to  files  and records of our company that contained the relevant information
needed  to make their investment decision, including our financial statements
and  34 Act reports.  We reasonably believed that the recipients, immediately
prior  to  issuing  that  shares, had such knowledge and  experience  in  our
financial  and  business  matters that they were capable  of  evaluating  the
merits and risks of their investment.  The recipients had the opportunity  to
speak  with  our  management on several occasions prior to  their  investment
decisions.   There were no commissions paid on the issuance and sale  of  the
shares.

      On February 6, 2003, we issued 1,000,000 shares of our $0.001 par value
common  stock to Cornerstone Bank to hold as collateral for a line of  credit
in  the  amount of $250,000.  We believe that the issuance of the shares  was
exempt  from  registration  and  prospectus  delivery  requirements  of   the
Securities Act of 1933 by virtue of Section 4(2), 4(6) and Regulation D.  The
shares  were  issued directly by us and did not involve a public offering  or
general   solicitation.   The  recipient  of  the  shares  was  afforded   an
opportunity  for  effective access to files and records of our  company  that
contained  the relevant information needed to make their investment decision,
including  our  financial  statements and  34  Act  reports.   We  reasonably
believed  that the recipients, immediately prior to issuing that shares,  had
such knowledge and experience in our financial and business matters that they
were  capable  of  evaluating the merits and risks of their investment.   The
recipients  had  the  opportunity to speak with  our  management  on  several
occasions  prior  to their investment decisions.  There were  no  commissions
paid on the issuance and sale of the shares.

      On  March  13,  2003, we issued and sold a total of 350,000  shares  of
common stock to 4 individual accredited investors for a total purchase  price
of $262,500, all of which was paid in cash.  We believe that the issuance and
sale  of  the shares was exempt from the registration and prospectus delivery
requirements  of  the  Securities Act of 1933  by  virtue  of  Section  4(2),
Regulation D and/or Regulation S. The shares were issued directly by  us  and
did not involve a public offering or general solicitation. The recipients  of
the  shares  were afforded an opportunity for effective access to  files  and
records of our company that contained the relevant information needed to make
their  investment  decision, including our financial statements  and  34  Act
reports.  We  reasonably believed that the recipients, immediately  prior  to
issuing  the  shares, had such knowledge and experience in our financial  and
business matters that they were capable of evaluating the merits and risks of
their  investment.   The recipients had the opportunity  to  speak  with  our

<PAGE>

management  on  several occasions prior to their investment  decision.  There
were no commissions paid on the issuance and sale of the shares.

      All of the above-described issuances were exempt from registration  (i)
pursuant  to Section 4(2) of the Securities Act as transactions not involving
a  public offering, (ii) Regulation S or (iii) Regulation D promulgated under
the  Securities  Act.   With  respect to each transaction  listed  above,  no
general solicitation was made by us or any person acting on our behalf.   All
such  securities issued pursuant to such exemptions are restricted securities
as   defined  in  Rule  144(a)(3)  promulgated  under  the  Securities   Act,
appropriate  legends  have  been  placed  on  the  documents  evidencing  the
securities, and may not be offered or sold absent registration or pursuant to
an exemption therefrom.

ITEM 6.   PLAN OF OPERATION

     This  report  contains forward-looking statements.  Actual  results  and
events  could  differ  materially  from  those  projected,  anticipated,   or
implicit,  in the forward-looking statements as a result of the risk  factors
set forth below and elsewhere in this report.

      With  the exception of historical matters, the matters discussed herein
are forward-looking statements that involve risks and uncertainties. Forward-
looking  statements  include, but are not limited to,  statements  concerning
anticipated  trends in revenues and net income, the date of  introduction  or
completion  of our products, projections concerning operations and  available
cash  flow.  Our  actual  results could differ materially  from  the  results
discussed in such forward-looking statements. The following discussion of our
financial  condition and results of operations should be read in  conjunction
with  our  financial  statements  and the  related  notes  thereto  appearing
elsewhere herein.

Overview

     Petrol Oil and Gas, Inc., formerly named Euro Technology Outfitters, was
incorporated in Nevada on March 3, 2000.  We are structured to become an  oil
and  gas  exploration and development company. Our primary business objective
is  to  produce  economic quantities of natural gas from buried  coal  seams,
denoted as CBM.

      We  have  yet  to  generate revenues from any source  and  there  is  a
substantial  going  concern issue as to whether  we  will  ever  be  able  to
commercialize our oil and natural gas production and generate sufficient,  if
any,  revenues to satisfy our working capital requirements.  Since inception,
we  have  been dependent on the sale of our equity securities and loans  from
affiliates to satisfy our working capital requirements.  We continue to  have
a  working  capital deficiency that raises substantial concern regarding  our
ability to continue as a going concern.

Plan of Operation

     During the next twelve months we plan to focus our efforts on increasing
our  production  and reserves of natural gas through the development  of  our
existing  properties, raising additional equity capital  and  furthering  our
business plan.

<PAGE>

     We  intend  to  fund portions of our field operations  through  revenues
obtained  from  sales of our CBM gas production, if any.  To  accelerate  the
development  program we plan to take on WI partners that will  contribute  to
the  costs of drilling and completion and then share in revenues derived from
production.  This economic strategy may allow us to utilize our own financial
assets  toward  the  growth  of  our  leased  acreage  holdings,  pursue  the
acquisition of strategic oil and gas producing companies and generally expand
our existing operations.

     Because  of  our  limited  operating history we  have  yet  to  generate
revenues from the sale of oil or natural gas.  Our current operation is based
upon  a  recent acquisition of mineral leases from Petrol Energy,  Inc.   Our
activities  have  been  limited  to  the  negotiation  of  an  agreement  and
preliminary analysis.  Consequently, we have incurred the expenses of  start-
up.

     Our  future financial results will depend primarily on: (i) the  ability
to  continue  to source and screen potential projects;  (ii) the  ability  to
discover  commercial  quantities of natural gas and oil;   (iii)  the  market
price  for  oil  and  gas;  and  (iv) the  ability  to  fully  implement  our
exploration  and development program, which is dependent on the  availability
of  capital  resources.  There can be no assurance that we will be successful
in  any  of these respects, that the prices of oil and gas prevailing at  the
time of production will be at a level allowing for profitable production,  or
that  we  will be able to obtain additional funding to increase our currently
limited capital resources.

     We  will face considerable risk in each of our business plan steps, such
as difficulty of hiring competent personnel within our budget and a shortfall
of  funding  due  to our inability to raise capital in the equity  securities
market.  If no funding is received during the next twelve months, we will  be
forced to rely on existing cash in the bank.

     We have no operating history, no significant current operations, minimum
cash  on  hand,  and no profit.  Because of these factors, our auditors  have
issued  an  audit  opinion for us which includes a statement  describing  our
going  concern  status.   This  means there is substantial  doubt  about  our
ability  to continue as a going concern.  While we believe we have made  good
faith estimates of our ability to secure additional capital in the future  to
reach  our  goals,  there  is no guarantee that we  will  receive  sufficient
funding to implement any future business plan steps.

     Our  future operating results will depend on many factors, including our
ability  to  raise  adequate working capital, demand  for  our  oil  and  gas
production,  the  level of competition and our ability  to  deliver  products
while maintaining quality and controlling costs.

Field Development

     Our  current  plan  of  operation  for  field  development  starts  with
identifying the most promising and cost-effective drill sites on our  current
leased  acres,  drilling and testing wells to prove reserves, completing  the
more  promising  test wells, extracting the oil, gas and  other  hydrocarbons
that  we  find, and delivering them to market.  Although we believe  that  we
have  leased enough land to move forward with our field development, we  will
have  to obtain additional financing before we can fully implement this  next
phase of our operations.

     Field development operations began in August 2002, with the drilling and
logging of three test wells.  Each test well is located on a separate mineral
lease  in  the  southwest portion of Coffey County.  These drill  sites  were

<PAGE>

selected  based on a variety of factors, including information gathered  from
historic records and drill logs (depth, and thickness of coal seams  and  the
results  of  electric  gamma ray readings), proximity to existing  interstate
distribution pipelines, ease of access for drilling equipment the presence of
oil  and  natural gas in the immediate vicinity, and consultations  with  our
operator  and driller. Since these are considered to be exploratory  or  test
wells  they  have  only  been partially completed in order  to  allow  us  to
investigate the production capacity of selected coal intervals, and to obtain
important  technical information related to stimulation activities  that  are
almost always required to make CBM wells commercially productive. Thus we  do
not presently have any estimates of oil and gas reserves on these properties.
Consequently  we  have not reported our reserve estimates to  any  state,  or
federal authority.

      During this phase of our plan of operation we expect to drill, test and
complete  about  40 CBM producing wells.  These drilling and testing  efforts
will also allow us to determine whether there are other forms of commercially
producible  hydrocarbons present, such as oil or other types of natural  gas.
Each   well  will  be  drilled  and  tested  individually.   If  commercially
producible amounts of gas are present, the well will be fully completed and a
local  distribution pipeline installed.  Completed wells that  are  producing
and  connected  to distribution pipelines will begin generating  revenues  as
soon  as  they  begin pumping although these revenues may be  realized  on  a
quarterly basis.

      Once  we  have  identified a proposed drilling site, we as  a  licensed
operator in the State of Kansas, will be engaged in all aspects of well  site
operations. As the operator we will be responsible for permitting  the  well,
which  will  include  obtaining  permission  from  the  Kansas  Oil  and  Gas
commission relative to spacing requirements and any other stated and  federal
environmental  clearances required at the time that  the  permitting  process
commences.   Additionally,  we will formulate and  deliver  to  all  interest
owners  an  operating  agreement establishing each participant's  rights  and
obligations in that particular well based on the location of the well and the
ownership.  In addition to the permitting process, we as the operator will be
responsible  for  hiring the driller, geologist and land men  to  make  final
decisions relative to the zones to be targeted, confirming that we have  good
title to each leased parcel covered by the spacing permit and to actual drill
the  well  to the target zones.  Should the well be successful,  we  will  be
responsible for completing the well and connecting it to the most appropriate
transmission facility for the hydrocarbons produced.

     As the operator we will be the caretaker of the well once production has
commenced.  We have no formal experience in well operations and will to  hire
or  retain professions to assist us in our efforts.  As the operator, we will
be responsible for paying bills related to the well, billing working interest
owners for their proportionate expenses in drilling and completing the  well,
and  selling  the production from the well.  Again, we have no experience  in
operating  an oil or gas production company, therefore, we will be forced  to
hire  experienced operation staff, when needed.  Once the production has been
sold,  we  anticipate that purchaser thereof will carry out its own  research
with  respect  to ownership of that production and will send out  a  division
order  to  confirm  the  nature and amount of each  interest  owned  by  each
interest owner.  Once a division order has been established and confirmed  by
the  interest owners, the production purchaser will issue the checks to  each
interest owner in accordance with its appropriate interest.  From that  point
forward, we as operator will be responsible for maintaining the well and  the
wellhead site during the entire term of the production or until such time  as
the  operator  has been replaced or appropriately abandoned.   We  anticipate

<PAGE>

hiring  professionals to assist us in our operations until such time  as  our
management has sufficient knowledge and operations ability.

      We  have a working relationship and have used Well Refined Drilling  of
Thayer,   Kansas,   to  drill  our  first  three  exploratory   test   wells.
Owner/Operator  Jeffery  Kephart has been  a  driller  since  1978,  and  has
drilling  in excess of 10,000 wells in Kansas, Oklahoma, Texas, Wyoming,  and
Missouri. More than 200 of those wells have been CBM wells. The driller  will
be   responsible  for  performing  or  contracting  with  third  parties  and
supervising  their efforts, on all aspects of the drilling  operation  except
for geological services.

     We have a one year consulting agreement with Mr. William Stoeckinger,  a
Certified  Petroleum  Geologist,  from  Bartlesville,  Oklahoma  to   provide
geological  services both in the assessment process and  in  the  development
program.

     Based on our first three test wells we anticipate that each well in  our
targeted  area will cost approximately $35,000 to locate, drill and test,  an
additional $30,000 to complete, plus an additional $350 per month per well to
pay  for  electricity, pulling and repairs, pumping and  other  miscellaneous
charges.   In  support  of these operations we have working  agreements  with
local  third  parties to monitor and maintain our wells and perform  drilling
and work-over activities.

     If  any of our wells proves to hold commercially producible gas, we will
need  to install a distribution infrastructure to transport our gas from  the
wellhead  to  one  of the major distribution pipelines.  We  have  identified
several major interstate distribution pipelines that operate within and  pass
through the counties in which we have lease holdings. These include pipelines
owned  and  operated by Williams Energy, CMS Energy, and Enbridge.   We  have
initiated  contact  with  two of these companies to  ascertain  the  specific
locations  of  their pipelines, their requirements to purchase  gas  from  us
(including  volume of gas and quality of gas), and the costs  to  connect  to
their  pipelines.  Traditionally, the major distribution of gas in the United
States   have  purchased  production  from  anyone  who  can  get  sufficient
quantities  of quality gas to their distribution pipeline.  Because  some  of
these  companies have purchased coal-bed methane from producing wells in  the
southern  part  of  Kansas, we believe that if the gas  produced  from  wells
drilled  in  our  targeted area meets their criteria  in  both  quantity  and
quality,  they will purchase our gas from the Company at market  prices.   To
date,  we  have not entered into any purchase agreements nor have we received
assurances from anyone that they will enter into such agreements with  us  in
the future.

     Presently,  we  cannot accurately predict the costs of transporting  our
gas products to these existing interstate pipelines. The cost of installing a
distribution  infrastructure or local gathering system  will  vary  depending
upon  the  distance the gas must travel from its wellhead to  the  compressor
station  and high pressure pipeline tap, and whether the gas must be  treated
to  meet  the purchasing company's quality standards. However, based  on  the
close  proximity  of  several  major distribution  pipelines  to  our  leased
properties,  plus  our  intent  to  drill as  close  to  these  pipelines  as
practicable,  we anticipate that the total cost of installing a  distribution
infrastructure  for  ten  producing wells will be approximately  $150,000  or
$15,000 each plus a one-time expense of $50,000 to tap into the high pressure
interstate pipeline.

      The  prices obtained for oil and gas are dependent on numerous  factors
beyond  our control, including domestic and foreign production rates  of  oil

<PAGE>

and  gas,  market  demand  and  the effect of  governmental  regulations  and
incentives.  We do not have any delivery commitments with respect to any  oil
or  gas  produced from any properties that we acquire.  However, due  to  the
U.S.  government's recent push toward increased domestic production of energy
sources,  the  high  demand  for  natural  gas,  we  do  not  anticipate  any
difficulties in selling any oil and gas that it produces, once  it  has  been
delivered to a distribution facility.

     The success of this phase of our plan of operation is dependent upon our
ability to obtain additional capital to drill exploratory and test wells  and
also  upon our successfully finding commercially producible amounts of  coal-
bed  methane gas or other hydrocarbons in the wells that we drill.  We cannot
assure  you  that we will obtain the necessary capital or that we  will  find
commercially producible amounts of gas if our drilling operations commence.

     The  timing  of  most  of  our  capital expenditures  is  discretionary.
Currently  there  are no material long-term commitments associated  with  our
capital  expenditure  plans. Consequently, we have a  significant  degree  of
flexibility  to  adjust  the  level  of such  expenditures  as  circumstances
warrant.   The level of our capital expenditures will vary in future  periods
depending on energy market conditions and other related economic factors.

Liquidity and Capital Resources

     A  critical  component  of  our operating plan impacting  our  continued
existence  is  the  ability to obtain additional capital  through  additional
equity  and/or debt financing.  We do not anticipate enough positive internal
operating  cash flow until such time as we can generate substantial revenues,
which  may take the next few years to fully realize.  In the event we  cannot
obtain  the  necessary capital to pursue our strategic plan, we may  have  to
cease  or significantly curtail our operations.  This would materially impact
our ability to continue operations.

     Our near term cash requirements are anticipated to be offset through the
receipt  of funds from private placement offerings and loans obtained through
private  sources.   Since inception, we have financed cash flow  requirements
through  debt financing and issuance of commons stock for cash and  services.
As  we  expand  operational  activities, we may continue  to  experience  net
negative  cash  flows  from  operations,  pending  receipt  of  servicing  or
licensing fees, and will be required to obtain additional financing  to  fund
operations  through common stock offerings and bank borrowings to the  extent
necessary to provide working capital.

     Over  the  next  twelve  months we believe  that  existing  capital  and
anticipated  funds  from  operations  will  not  be  sufficient  to   sustain
operations and planned expansion.  Consequently, we will be required to  seek
additional  capital  in  the  future to fund  growth  and  expansion  through
additional  equity or debt financing or credit facilities.  No assurance  can
be  made that such financing would be available, and if available it may take
either the form of debt or equity.  In either case, the financing could  have
a negative impact on our financial condition and our Stockholders.

     We  anticipate  incurring operating losses over the next twelve  months.
Our  lack of operating history makes predictions of future operating  results
difficult  to  ascertain.  Our prospects must be considered in light  of  the
risks, expenses and difficulties frequently encountered by companies in their
early  stage  of  development,  particularly companies  in  new  and  rapidly
evolving  markets such as technology related companies.  Such risks  include,
but  are not limited to, an evolving and unpredictable business model and the

<PAGE>

management  of  growth.  To address these risks we must, among other  things,
implement  and  successfully  execute our business  and  marketing  strategy,
continue  to  develop  and  upgrade  technology  and  products,  respond   to
competitive   developments,  and  attract,  retain  and  motivate   qualified
personnel.   There  can  be  no  assurance that  we  will  be  successful  in
addressing  such risks, and the failure to do so can have a material  adverse
effect  on  our  business  prospects,  financial  condition  and  results  of
operations.

      As  of  December 31, 2002, we had assets of $444,792, and  $134,969  in
liabilities.  Resulting in a stockholders equity of $309,823.

Subsequent Event

     On  February  6, 2003, we entered into a loan agreement with Cornerstone
Bank,  whereby Cornerstone Bank has provided us with a line of credit in  the
amount  of $250,000, which expires on May 6, 2003.  The interest rate on  the
loan is 2.000% above the Corporate Base Rate.  We have pledged to Cornerstone
Bank all of our assets, including, but not limited to 1,000,000 shares of our
$0.001  par  value common stock to be held by Cornerstone Bank as  collateral
until  the loan has been paid in full under the terms and conditions  of  the
agreement,  or  in  the  event of default the sale  of  the  collateral.   We
received  an  irrevocable proxy from Cornerstone which  gives  our  Board  of
Directors  full  voting  rights over the pledged  shares.   Pursuant  to  the
agreement,  upon the occurrence and during the continuance  of  an  event  of
default, Cornerstone may at its option declare all of the obligations  to  be
immediately due in full, and shall thereupon have all the rights and remedies
provided to it as a secured party under the Uniform Commercial Code in effect
in  the State of Kansas or in such other jurisdiction in which any collateral
is  located.  As of the date of this filing, we have not used any portion  of
the line of credit.

Material Risks

We  are  a  development stage company, recently reorganized and have  minimal
operating  history, which makes an evaluation of us extremely difficult.   At
this  stage  of  our business operations, even with our good  faith  efforts,
potential investors have a high probability of losing their investment.

      We  have yet to generate revenues from operations and have been focused
on  organizational,  start-up, market analysis and  fund  raising  activities
since  we  incorporated.  Although we intend to increase our  production  and
reserves  of natural gas, there is nothing at this time on which to  base  an
assumption that these new business operations will prove to be successful  or
that  we  will  ever  be  able to operate profitably.  Our  future  operating
results  will depend on many factors, including our ability to raise adequate
working capital, demand and acceptance of our business plan, the level of our
competition  and  our  ability  to attract and maintain  key  management  and
employees.

      While we believe our estimates of projected occurrences and events  are
within  the  timetable of our business plan, there can be  no  guarantees  or
assurances that the results anticipated will occur.

<PAGE>

Our auditor's report reflects the fact that without realization of additional
capital, it would be unlikely for us to continue as a going concern.   If  we
are  unable to continue as a going concern, it is likely that we will not  be
able to continue in business.

      As a result of our deficiency in working capital and other factors, our
auditors  have  included  a paragraph in their report  regarding  substantial
doubt  about our ability to continue as a going concern.  Our plans  in  this
regard   are  to  seek  additional  funding  through  future  equity  private
placements or debt facilities.

MATERIAL CHANGES IN RESULTS OF OPERATIONS

Asset Purchase Agreement

     On  August 19, 2002, we executed an Asset Purchase Agreement with Petrol
Energy,  Inc.,  whereby we issued 10,918,300 shares of our restricted  common
stock  in exchange for certain assets and liabilities of Petrol Energy.   The
assets we acquired included approximately 289 oil and gas mineral leases.

Personnel

     We  currently  have  two  full time employees.  As  drilling  production
activities commence, we intend to hire additional technical, operational  and
administrative  personnel  as appropriate.  We do not  expect  a  significant
change  in  the  number of full time employees over the next  12  months.  We
intend  to  use  the services of independent consultants and  contractors  to
perform  various  professional services, particularly in  the  area  of  land
services, drilling, water hauling, pipeline construction, well design,  well-
site monitoring and surveillance, permitting and environmental assessment. We
believe  that  this  use  of third-party service providers  may  enhance  our
ability to contain general and administrative expenses.

Going Concern

     The  consolidated financial statements included in this filing have been
prepared  in  conformity with generally accepted accounting  principles  that
contemplate the continuance of the Company as a going concern.  The Company's
cash  position  may  be  inadequate to pay all of the costs  associated  with
testing,  production and marketing of products.  Management  intends  to  use
borrowings  and security sales to mitigate the effects of its cash  position,
however no assurance can be given that debt or equity financing, if and  when
required  will  be available.  The financial statements do  not  include  any
adjustments  relating  to the recoverability and classification  of  recorded
assets  and classification of liabilities that might be necessary should  the
Company be unable to continue existence.

ITEM 7.   FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

     See  Index  to  Financial Statements and Financial  Statement  Schedules
appearing on page F-1 through F-13 of this Form 10-KSB.

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

<PAGE>

      On  August  20,  2002,  G.  Brad Beckstead CPA  was  dismissed  as  our
independent accountant.

      We  have appointed Weaver & Martin, LLC, as our independent accountants
for  the  fiscal  year  ending  December 31,  2002.   This  is  a  change  in
accountants recommended by our Executive Management and approved by our Board
of Directors.  Weaver & Martin, LLC was engaged by us on August 20, 2002.

      The  change in accountants did not result from any dissatisfaction with
the  quality of professional services rendered by G. Brad Beckstead  CPA,  as
our independent accountants.

                                  PART III

ITEM 9.   DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT; COMPLIANCE WITH
          SECTION 16(a) OF THE EXCHANGE ACT.

     On  August  21,  2002,  Anthony N. DeMint, our  then  sole  officer  and
Director,  appointed  Paul  Branagan  as  a  director  of  the  Company   and
subsequently resigned, leaving Mr. Branagan as our sole director.   Following
his  appointment,  Mr. Branagan elected himself as the sole  officer  of  the
Company.

     On December 12, 2002, the Board of Directors elected Loren Moll to serve
as a director of the Company until the next annual meeting of stockholders.

      The following table sets forth the names and positions of our executive
officers  and directors.  Directors will be elected at our annual meeting  of
stockholders and serve for one year or until their successors are elected and
qualify.  Officers are elected by the Board and their terms  of  office  are,
except  to  the extent governed by employment contract, at the discretion  of
the Board.

         NAME        AGE                      POSITION
         Paul T.      59   President, CEO, Chairman, Secretary/Treasurer
         Branagan
         Loren        46   Director
         Moll

Duties, Responsibilities and Experience

Paul Branagan, president, CEO and chairman of Petrol.  Mr. Branagan graduated
from the University of Las Vegas Nevada with a B.S. in physics.  From 1993 to
the  present  Mr.  Branagan has been the President and  Senior  Scientist  of
Branagan  &  Associates, Inc.  From 1975 to 1993 he was the Project  Manager,
Assistant  Oil  and  Gas  Division  Manager  and  Senior  Scientist  of   CER
Corporation  of  Las  Vegas, Nevada. Since 1999, Mr. Branagan  has  been  the
President  and  a  member  of the board of directors of  Millennium  Plastics
Corporation, a 34 Act Reporting Nevada Corporation.

Loren  W.  Moll, a director of Petrol, has been a member of the law  firm  of
Caldwell  &  Moll,  L.C. in Overland Park, Kansas since its establishment  in
November  1996.   Mr. Moll concentrates his practice in  all  areas  of  real

<PAGE>

estate  law,  including  commercial  real  estate  transactions,  breach   of
contract,  escrow  and  title disputes, commercial leasehold  disputes,  real
estate broker liability, and oil and gas.  Mr. Moll holds a B.A. degree  from
the  University of Kansas (1983) and his Juris Doctor degree,  Order  of  the
Coif,  from  the  University of Kansas School of  Law  (1986)  where  he  was
Research  Editor  for  the University of Kansas Law  Review.   Mr.  Moll  was
formerly  a  partner of the real estate law firm Lewis, Rice & Fingersh  from
1986  to  1994 and was associated with the international law firm Bryan  Cave
LLP from 1994 to 1996.

                    Limitation of Liability of Directors

     Pursuant  to  the  Nevada  General  Corporation  Law,  our  Articles  of
Incorporation  exclude  personal liability for  our  Directors  for  monetary
damages  based  upon  any violation of their fiduciary duties  as  Directors,
except  as  to  liability  for any breach of the duty  of  loyalty,  acts  or
omissions  not  in good faith or which involve intentional  misconduct  or  a
knowing  violation of law, or any transaction from which a Director  receives
an  improper personal benefit. This exclusion of liability does not limit any
right  which  a Director may have to be indemnified and does not  affect  any
Director's  liability under federal or applicable state securities  laws.  We
have  agreed  to  indemnify  our directors against expenses,  judgments,  and
amounts paid in settlement in connection with any claim against a Director if
he  acted  in  good  faith and in a manner he believed  to  be  in  our  best
interests.

               Board of Directors Committees and Compensation

Compensation Committee Interlocks and Insider Participation

     The  Board  of  Directors does not have a Compensation Committee.   Paul
Branagan, President, oversaw the compensation of our executive officers.

Board of Director's Report on Executive Compensation

     General.   As  noted  above,  our Board of Directors  does  not  have  a
Compensation  Committee and, accordingly, during the year ended December  31,
2002,  the  Board of Directors, through the President, reviewed and  approved
the compensation of our executive officers.

     Overall Policy; Significant Factors.  The compensation decisions made by
the  Board  of Directors in respect of our executive officers were influenced
by  two major factors.  First, our start-up nature brings with it all of  the
normal  capital  requirements  to  sustain growth,  therefore  certain  stock
compensation  was granted in lieu of salaries, commissions and  for  services
rendered.   This  practice may be extended into the future on a  case-by-case
basis  and  accordingly  filed with the Securities and  Exchange  Commission.
Finally,  as we continue to mature, certain additions to the executive  staff
will  be  required.  As we are required to seek talent in outside market,  we
will be required to provide a competitive compensation package.

     As  overall  policy, however, the Board continues to believe that  long-
term compensation tied to the creation of stockholder value should constitute
a  significant  component of the compensation to be earned by  our  executive
officers.   In  this  respect, it will be the Board's policy  to  attempt  to
restrain  base  cash compensation (subject to competitive  pressures),  while
providing  the  incentive  for Management to increase  stockholder  value  by
providing  such officers with significant numbers of market-price stock  that
will  not confer value upon the officers unless and until the Company's share
price  rises.   The  Board  of  Directors expects  that  stock  options  will

<PAGE>

constitute  a significant component of the compensation package  provided  to
executive officers.

     The  Board  believes that cash bonuses are, at times, appropriate  based
upon  the  performance  of the Company's business compared  to  our  internal
expectations and general business conditions.

Stock Option and Non-Employee Directors' Plan

     The  following  description applies to the stock option  plan  which  we
adopted  in December of 2002; 2,050,000 options have been granted as  of  the
date of this filing.

     We have reserved for issuance an aggregate of 3,000,000 shares of common
stock under our 2002/2003 Stock Option Plan and Non-Employee Directors' Plan.
These  plans  are  intended to encourage directors, officers,  employees  and
consultants  to  acquire  ownership  of common  stock.   The  opportunity  so
provided  is  intended to foster in participants a strong  incentive  to  put
forth  maximum  effort  for  its continued success  and  growth,  to  aid  in
retaining individuals who put forth such efforts, and to assist in attracting
the best available individuals to the Company in the future.

Stock Option Plan

     Officers (including officers who are members of the board of directors),
directors (other than members of the stock option committee to be established
to  administer  the  stock  option plan and the directors'  plan)  and  other
employees  and  consultants and its subsidiaries  (if  established)  will  be
eligible  to  receive  options  under the planned  stock  option  plan.   The
committee  will  administer the stock option plan and  will  determine  those
persons to whom options will be granted, the number of options to be granted,
the provisions applicable to each grant and the time periods during which the
options  may  be  exercised.  No options may be granted more than  ten  years
after the date of the adoption of the stock option plan.

     Non-qualified  stock options will be granted by the  committee  with  an
option price equal to the fair market value of the shares of common stock  to
which  the  non-qualified stock option relates on the  date  of  grant.   The
committee may, in its discretion, determine to price the non-qualified option
at  a  different price.  In no event may the option price with respect to  an
incentive stock option granted under the stock option plan be less  than  the
fair  market  value of such common stock to which the incentive stock  option
relates on the date the incentive stock option is granted.

     Each option granted under the stock option plan will be exercisable  for
a  term  of  not more than ten years after the date of grant.  Certain  other
restrictions will apply in connection with this plan when some awards may  be
exercised.   In  the event of a change of control (as defined  in  the  stock
option  plan),  the  date on which all options outstanding  under  the  stock
option  plan  may  first  be exercised will be accelerated.   Generally,  all
options terminate 90 days after a change of control.

<PAGE>

Option Grants

     The board of directors adopted a 2002/2003 stock option plan pursuant to
which incentive stock options or nonstatutory stock options to purchase up to
3,000,000  shares of common stock may be granted to employees, directors  and
consultants. Pursuant to the plan, stock options were granted as follows:

    Date Granted           Exercise Price Per Share       Number of Shares

December 19, 2001
              Granted           $0.50 to $2.50                     1,350,000
            Exercised                 -                                  -0-
            Cancelled                 -                                  -0-

December 27, 2001
              Granted               $0.50                            700,000
            Exercised                 -                                  -0-
            Cancelled                 -                                  -0-

Total outstanding               $0.50 to $2.50                     2,050,000

Section 16(a) Beneficial Ownership Reporting Compliance

     Section  16(a) of the Securities Exchange Act of 1934, as  amended  (the
"Exchange  Act"), requires our executive officers and directors, and  persons
who  beneficially  own  more than ten percent of our common  stock,  to  file
initial  reports  of ownership and reports of changes in ownership  with  the
SEC.  Executive  officers, directors and greater than ten percent  beneficial
owners  are  required by SEC regulations to furnish us  with  copies  of  all
Section  16(a)  forms they file. Based upon a review of the  copies  of  such
forms furnished to us and written representations from our executive officers
and  directors, we believe that during the year ended 2002 all forms 3, 4 and
5  were  filed  on  a  timely basis or as of this filing  for  our  executive
officers and directors.

ITEM 10.  EXECUTIVE COMPENSATION

     The following table sets forth the cash compensation of our officers and
directors,  Paul  Branagan since his appointment on August 21,  2002  through
December 31, 2002, Loren Moll since his appointment December 12, 2002 through
December  31,  2002  and our previous sole officer and  director  Anthony  N.
DeMint from January 1, 2002 through August 21, 2002.

Summary Compensation Table


                        Annual Compensation             Long Term Compensation
 Name and
Principal                               Other Annual    Restricted
 Position    Year    Salary    Bonus    Compensation      Stock        Options
Paul
Branagan,
President,   2002    $35,000    N/A         N/A            N/A        1,250,000
Secretary/                                                               (1)
Treasurer,
Director

<PAGE>

Loren
Moll,        2002       $-0-    N/A         N/A            N/A           N/A
Director

Anthony N.
DeMint
Prior        2002       $-0-    N/A         N/A            N/A           N/A
Officer &
Director
  (1)  The options are exercisable at prices ranging from $.50 to $2.50 per
     share, pursuant to Mr. Branagan's Employment Agreement.

        EXECUTIVE OFFICER/DIRECTOR OPTION GRANTS IN LAST FISCAL YEAR

                             Percent of
                               total
              Number of       options
              securities     granted to
              underlying     employees      Exercise or
               options       in fiscal      base price
  Name         granted          year         ($/Share)       Expiration Date

Paul          1,250,000         100%           $0.50        December 19, 2005
Branagan                                        to
                                               $2.50


             AGGREGATED OPTION EXERCISES IN LAST FISCAL YEAR AND
                        FISCAL YEAR-END OPTION VALUES

                                          Number of
              Shares                     Securities
             acquired                    underlying             Value of
                on         Value         unexercised           unexercised
             exercise    Realized     options at fiscal     options at fiscal
   Name        (#)          ($)           year-end              year-end

Paul           -0-          -0-           1,250,000                -0-
Branagan

Employment Agreement

     On  December 19, 2002, we entered into an employment agreement with Paul
Branagan.  The term of employment is three (3) years.  Mr. Branagan serves as
our  sole officer and director.  Mr. Branagan shall receive a base salary  of
$135,000  per annum for the first year of employment, increasing to  $160,000
per annum for the second and third year of his employment. In addition to the
cash  compensation earned by Mr. Branagan, we granted Mr. Branagan an  option
to purchase shares of our common stock according to the following:

          Number of Shares Purchasable         Price Per Share
                     250,000                        $0.50
                     250,000                        $1.00
                     250,000                        $1.50
                     250,000                        $2.00
                     250,000                        $2.50

     The  options  are  exercisable  at any time  and  expire  on  the  third
anniversary  of  issuance  or the termination of  Mr.  Branagan's  employment
agreement.

<PAGE>

Compensation Committee

     We  currently  do  not have a compensation committee  of  the  board  of
directors.   However,  the  board  of  directors  intends  to   establish   a
compensation  committee,  which  is  expected  to  consist  of  three  inside
directors  and  two  independent  members.   Until  a  formal  committee   is
established  our  entire  board  of  directors  will  review  all  forms   of
compensation  provided to our executive officers, directors, consultants  and
employees including stock compensation and loans.

Director Compensation and Other Arrangements

     Directors of Petrol who are not employees receive compensation of $1,000
for  each meeting of the board, as well as travel expenses if required.  From
time  to time, certain directors who are not employees may receive grants  of
options to purchase shares of our common stock.

ITEM 11.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

      The  following table sets forth certain information as of December  31,
2002  with  respect to the beneficial ownership of common stock by  (i)  each
person  who  to the knowledge of the Company, beneficially owned or  had  the
right  to  acquire  more than 5% of the Outstanding common stock,  (ii)  each
director of the Company and (iii) all executive officers and directors of the
Company as a group.


                                             Number          Percent
          Name of Beneficial Owner (1)      of Shares       Of Class
          Paul Branagan (2)                     500,000       3.8%
          Loren Moll                          3,100,000       23.6%
          Michael Morse                         900,000       6.8%
          Mariano Baciga                        700,000       5.3%
          Francesco & Giannino Smania           678,572       5.2%
          Paolo Simoni (3)                      660,303        5%
                                             ----------     -----------
          All Directors & Officers  as        6,538,875       49.7%
          a Group
                                             ==========     ===========
(1)  As used in this table, "beneficial ownership" means the sole or shared
 power to vote, or to direct the voting of, a security, or the sole or shared
 investment power with respect to a security (i.e., the power to dispose of,
 or to direct the disposition of, a security).  In addition, for purposes of
 this table, a person is deemed, as of any date, to have "beneficial
 ownership" of any security that such person has the right to acquire within
 60 days after such date.
(2)  Does not include 1,250,000 options to purchase shares of the Company at
 prices ranging from $.50 to $2.50 per share.
(3)  Does not include 4,000,000 warrants to purchase shares of the Company
 for $.875 per share.  Mr. Simoni is the President of NIO Fund Investments
 Management Limited.

Equity Compensation Plan Information

      We  currently  maintain a stock option plan to  which  incentive  stock
options  to  purchase  shares of common stock may be  granted  to  employees,
directors  and consultants.  This 2002/2003 stock option plan was adopted  by
our  board of directors on December 16, 2002 and has not been approved by our
shareholders.    The   following  table  sets  forth  information   regarding

<PAGE>

outstanding  options granted under the plan, warrants issued  to  consultants
and options reserved for future grant under the plan.



                                                           Number of shares
                          Number                              remaining
                       of shares to       Weighted-         available for
                      be issued upon       average         future issuance
                        exercise of     exercise price       under equity
                        outstanding     of outstanding    compensation plans
                         options,          options,       (excluding shares
                       warrants and      warrants and        reflected in
                          rights            rights           column (a))
Plan Category               (a)              (b)                 (c)

Equity compensation
plans approved by
shareholders                      --    $          --                  --

Equity compensation    2,550,000 (1)    $         1.05         950,000 (2)

Total                      2,550,000    $         1.05             950,000

  (1)  Includes 500,000 warrants granted to a consultant.
  (2)  Options available for issuance under our 2002/2003 stock option plan,
     which we have issued 2,050,000 options as of the date of this filing.

      In  our  2002/2003 Stock Option Plan we have reserved for  issuance  an
aggregate  of  3,000,000 shares of common stock.  This plan  is  intended  to
encourage directors, officers, employees and consultants to acquire ownership
of  common  stock.   The  opportunity so provided is intended  to  foster  in
participants a strong incentive to put forth maximum effort for its continued
success  and  growth,  to aid in retaining individuals  who  put  forth  such
effort,  and  to assist in attracting the best available individuals  to  the
Company in the future.

ITEM 12.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

Paul Branagan

     Paul Branagan, our sole officer and chairman of the board, is an officer
and  director  of  Millennium Plastics Corporation, another  public  company,
which  may  impact the amount of his time spent on our business matters.  Mr.
Branagan  may  have demands placed on his time, which will detract  from  the
amount  of  time he is able to devote to us. Mr. Branagan intends  to  devote
approximately 35-40 hours per week of his business time and attention to  our
activities  as  required, until such time as we have  established  sufficient
business opportunities that will require more of his time. However, there  is
no  assurance  that Mr. Branagan would not attend to other matters  prior  to
ours. We consent to and understand this potential conflict of interest.

<PAGE>

NIO Fund

     On  August  19, 2002, we entered into a letter of intent with  NIO  Fund
Investment Management Limited (NIO) whereby NIO would exclusively raise funds
throughout  Europe and invest in us.  From November 5, 2002 through  December
2,  2002,  we  issued and sold a total of 660,303 shares to NIO for  a  total
purchase price of $330,151.25, all of which was paid in cash.  In addition to
the  above  sales to NIO, we issued NIO warrants to purchase up to $3,500,000
of additional shares of our restricted common stock in the amount of $500,000
per  month for the months of March, April, May, June, August and November  of
2003  and  January of 2004.  The price per share would be at  a  discount  of
12.5%  of  the  market  price of our shares that were  being  traded  on  any
exchange or over-the-counter but not less than $0.875 per share.

ITEM  13. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K

(a)  Documents filed as part of this Report

     1.   Financial Statements:

          A.   INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
          1.     Independent Auditors Report                       F-1
          2.     Financial Statements:
               Balance Sheet                                       F-2
               Statement of Operation                              F-3
               Statement of Changes in Stockholders'               F-4
               Statement of Cash Flows                             F-5
               Notes to Consolidated Financial Statements   F-6 - F-13

     2.     During the fiscal year December 31, 2002 the Company filed the
          following 8-Ks.
          8-K/A Report filed on 9/06/02, Asset Purchase Agreement with
          Petrol Energy, Inc.
          8-K Report filed on 9/05/02, Asset Purchase Agreement with
          Petrol Energy, Inc.

     3.     Subsequent to the end of the fiscal year, the Company filed the
        following reports on Form 8-K
          NONE

<PAGE>

     4.   Exhibits
                                EXHIBIT INDEX
  Exhibit     Description
  Number
  (1)         N/A
  (2)*        Asset Purchase Agreement between Petrol Energy, Inc. and Euro
              Technology Outfitters, August 19, 2002
  (3)(i)*     Articles of Incorporation
              (a)  Certificate of Amendment of Articles of Incorporation of
              Euro Technology Outfitters, filed on August 20, 2002
              (b)  Articles of Incorporation for Euro Technology Outfitters,
              filed on March 3, 2000
  (3)(ii)*    Bylaws for Euro Technology Outfitters
  (4)         N/A
  (5)         N/A
  (8)         N/A
  (9)         N/A
  (10.1)*     Amendment to Translation and Business Consulting agreement
              with Goran Blagojevic dated dated December 20, 2002
  (10.2)*     Service and Water Disposal Agreement dated November 15, 2002
  (10.3)*     Employment agreement with Paul Branagan dated December 19,
              2002
  (10.4)*     Geologist/Technical Advisor Consulting Agreement with William
              Stoeckinger dated December 19, 2002
  (10.5)*     Land Services Consulting Agreement with Russell Frierson dated
              December 27, 2002
  (10.6)*     Land Services Consulting Agreement with Lawrence Kehoe dated
              December 27, 2002
  (10.7)*     Land Services Consulting Agreement with Cody Felton dated
              December 27, 2002
  (10.8)*     Waverly Kansas Office Lease dated January 21, 2003
  (10.9)*     2002 Master Stock Option Plan
  (10.10)     Proxy from Cornerstone Bank
  (11)        N/A
  (13)        N/A
  (15)        N/A
  (16)*       Letter of G. Brad Beckstead CPA regarding change in certifying
              accountant, September 5, 2002
  (17)        N/A
  (18)        N/A
  (19)        N/A
  (20)        N/A
  (21)        N/A
  (22)        N/A
  (23)        N/A
  (24)        N/A
  (25)        N/A
  (26)        N/A
  (31)   Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
  (32)   Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
  (99)        N/A
________________________
*  Filed in Form SB-2 on January 22, 2003

<PAGE>

ITEM  14. CONTROLS AND PROCEDURES

      We  maintain  disclosure controls and procedures that are  designed  to
ensure  that  information required to be disclosed in the Company's  Exchange
Act  reports is recorded, processed, summarized and reported within the  time
periods specified in the SEC's rules and forms, and that such information  is
accumulated and communicated to our management, including our Chief Executive
Officer  and  Chief  Accounting  Officer, as  appropriate,  to  allow  timely
decisions  regarding required disclosure controls and procedures,  management
recognized that any controls and procedures, no matter how well designed  and
operated,  can  provide  only reasonable assurance of achieving  the  desired
control  objectives,  and management necessarily was required  to  apply  its
judgment in evaluating the cost-benefit relationship of possible controls and
procedures.

      Within  90  days prior to the date of this report, we  carried  out  an
evaluation,  under  the  supervision  and  with  the  participation  of   our
management,  including our Chief Executive Officer and our  Chief  Accounting
Officer,  of  the effectiveness of the design and operation of the  Company's
disclosure  controls  and  procedures.  Based on  the  foregoing,  our  Chief
Executive  Officer and Chief Accounting Officer concluded that the  Company's
disclosure controls and procedures were effective.

      There  has been no significant changes in our internal controls  or  in
other   factors  that  could  significantly  affect  the  internal   controls
subsequent to the date we completed our evaluation.

<PAGE>

                                 SIGNATURES

      Pursuant  to the requirements of Section 13 or 15(d) of the  Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed
on our behalf by the undersigned, thereunto duly authorized.

PETROL OIL AND GAS, INC.           DATED:  August 26, 2003



By:/S/Paul Branagan
   Paul Branagan, President

      Pursuant  to the requirements of the Securities Exchange Act  of  1934,
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                Title                              Date

/S/Paul Branagan         President, Secretary/Treasurer,    August 26, 2003
Paul Branagan            CEO, Chairman,
                         Chief Accounting Officer

/S/Paul Branagan         Director                           August 26, 2003
Loren Moll


<PAGE>

                          Petrol Oil and Gas, Inc.
                        Index To Financial Statements


Report of Independent Certified Public Accountants            F-1

Consolidated Balance Sheets, December 31, 2002 and 2001       F-2

Consolidated Statement of Operations for the
Years Ended December 31, 2002, 2001
  and from inception (March 3, 2000) to December 31, 2002     F-3

Consolidated Statement of Stockholders' Equity from
inception (March 3, 2000) to  December 31, 2002               F-4

Consolidated Statement of Cash Flows for the Year
Ended December 31, 2002, 2001,and from inception
(March 3, 2000) to December 31, 2002                          F-5

Notes to Consolidated Financial Statements             F-6 - F-16

<PAGE>

                      REPORT OF INDEPENDENT ACCOUNTANTS



To the Board of Directors and Shareholders of Petrol Oil & Gas, Inc.:

     We  have  audited the balance sheets of Petrol Oil & Gas Inc.  (formerly
known  as  Euro Technology Outfitters), as of December 31, 2002 and 2001  and
the  related statements of operations, shareholders' equity, and  cash  flows
for  the years then ended and for the period of inception (March 3, 2000)  to
December 31, 2002.  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 audits.

     We  conducted our audits in accordance with auditing standards generally
accepted  in  the United States.  Those standards require that  we  plan  and
perform  the audit to obtain reasonable assurance about 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,  assessing  the  accounting   principles   used   and
significant  estimates  made  by  management,  and  evaluating  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 Petrol Oil & Gas,
Inc.  at  December 31, 2002 and 2001 and the results of their operations  and
their  cash  flows for the years then ended and for the period  of  inception
(March 3, 2000) to December 31, 2002 in conformity with accounting principles
generally accepted in the United States.

     The  accompanying financial statements have been prepared assuming  that
the  Company will continue as a going concern. As discussed in Note 2 to  the
financial statements, the Company has no established source of revenue.  This
raises  substantial doubt about its ability to continue as a  going  concern.
Management's plans in regard to these matters are also described in  Note  2.
The  financial  statements do not include any adjustments that  might  result
from the outcome of this uncertainty.





                                             WEAVER & MARTIN, LLC

Kansas City, Missouri

March 14, 2003

<PAGE>
<TABLE>

                           Petrol Oil & Gas, Inc.
               (Formerly known as Euro Technology Outfitters)
                        (A Development Stage Company)
                                Balance Sheet

                                                      December 31,
                                                  2002            2001
<S>                                         <C>               <C>
  Assets
  Current assets:
    Cash                                     $     161,836     $          --
                                             -------------     -------------
  Oil and gas properties using full cost
  accounting:
    Properties not subject to amortization         282,956                --
                                             -------------     -------------
                                                   444,792                --
                                             =============     =============

  Liabilities and shareholders' equity
  Current liabilities:
    Accounts payable                               109,969                --
    Due to officer                                  25,000                --

       Total current liabilities                   134,969                --
                                             -------------     -------------
  Contingencies and commitments

  Shareholders' equity:
   Preferred stock, $.001 par, authorized               --                --
  10,000,000 shares; no shares issued
   Common stock, $.001 par, authorized              13,152             6,454
  100,000,000 shares; 13,151,993 and
  6,476,240 issued and outstanding at
  December 31, 2002, and 2001
    Stock for services not issued 215,000          107,500                --
  shares
    Additional paid in capital                     898,870                --
    Deficit accumulated under the                (709,699)           (6,454)
  development stage
                                             -------------     -------------
                                                   309,823                --
                                             -------------     -------------
                                             $     444,792     $          --
                                             =============     =============
</TABLE>

                     See notes to financial statements.

<PAGE>
<TABLE>

                           Petrol Oil & Gas, Inc.
               (Formerly known as Euro Technology Outfitters)
                        (A Development Stage Company)
                           Statement of Operations

                                                          March 3, 2000
                                                         (inception) to
                               Year Ended December        December 31,
                                       31,
                                2002         2001             2002
<S>                         <C>          <C>         <C>
 Revenue:                    $       --    $      --   $                  --
                              ---------    ---------   ---------------------
                                      -
  Professional and              639,508           --                 639,508
  consulting fees
  Salary                         42,738           --                  42,738
  Travel                         10,480           --                  10,480
  Miscellaneous expense          10,519          349                  16,973
                              ---------    ---------   ---------------------

  Net loss                   $(703,245)    $   (349)         $     (709,699)
                              =========    =========   =====================


  Basic and diluted
  earnings per share         $   (0.08)    $      --      $           (0.11)
                              =========    =========   =====================

  Weighted shares
  outstanding                 8,338,208    6,454,360               6,685,447
                              =========    =========   =====================
</TABLE>

                     See notes to financial statements.

<PAGE>
<TABLE>

                           Petrol Oil & Gas, Inc.
               (Formerly known as Euro Technology Outfitters)
                        (A Development Stage Company)
                      Statement of Shareholders' Equity

                                                               Additional
                                     Common Stock                Paid-in
                            Per Share Shares       Amount        Capital
<S>                         <C>       <C>          <C>       <C>
March 3, 2000 (inception)    $0.001    5,000,000    $ 5,000   $           --

Net loss from inception
 to December 31, 2000                         --         --               --
                                     -----------    -------   --------------

Balance December 31, 2000              5,000,000      5,000               --

January 1, 2001 issued for
debt paid
 by the shareholder of        0.001    1,405,000      1,405               --
company stock

April 1, 2001 issued for
debt paid by
 the shareholder of           0.001       22,060         22               --
company stock

July 1, 2001 issued for
debt paid by
 the shareholder of           0.001       13,240         13               --
company stock

October 1, 2001 issued for
debt paid
 by the shareholder of        0.001       14,060         14               --
company stock

Net loss for the year
ended
 December 31, 2001                            --         --               --
                                     -----------    -------   --------------

Balance December 31, 2001              6,454,360      6,454               --

July 1, 2002 issued for
debt paid by
 the shareholder of           0.001       21,880         22               --
company stock

Stock contributed to
capital by the
 shareholder of company       0.001  (5,826,240)    (5,826)            5,826
stock

Stock issued in an asset      0.001   10,918,300     10,918           39,662
purchase

Stock sold                    0.538      883,693        884          474,712

Stock for services not        0.500           --         --               --
issued

Stock issued for services     0.500      700,000        700          349,300

Options issued for
services
 Includes $7,738 value of
options for
 president of the company                     --         --           29,370

Net loss for the year
ended
 December 31, 2002                            --         --               --
                                     -----------   --------   --------------

Balance December 31, 2002             13,151,993   $ 13,152        $ 898,870
                                     ===========   ========   ==============

</TABLE>
<PAGE>
<TABLE>

                Statement of Shareholders' Equity (Continued)

                             Stock For        Deficit
                             Services       Accumulated          Total
                            Not Issued         During        Shareholders'
                                            Development     Equity (Deficit)
                                               Stage
<S>                        <C>           <C>                <C>
March 3, 2000 (inception)   $        --   $              --  $         5,000

Net loss from inception
 to December 31, 2000                --             (6,105)          (6,105)
                            -----------    ----------------  ---------------

Balance December 31, 2000            --             (6,105)          (1,105)

January 1, 2001 issued for
debt paid
 by the shareholder of               --                  --            1,405
company stock

April 1, 2001 issued for
debt paid by
 the shareholder of                  --                  --               22
company stock

July 1, 2001 issued for
debt paid by
 the shareholder of                  --                  --               13
company stock

October 1, 2001 issued for
debt paid
 by the shareholder of               --                  --               14
company stock

Net loss for the year
ended
 December 31, 2001                   --               (349)            (349)
                            -----------    ----------------  ---------------

Balance December 31, 2001            --             (6,454)               --

July 1, 2002 issued for
debt paid by
 the shareholder of                  --                  --               22
company stock

Stock contributed to
capital by the
 shareholder of company              --                  --               --
stock

Stock issued in an asset             --                  --           50,580
purchase

Stock sold                           --                  --          475,596

Stock for services not          107,500                  --          107,500
issued

Stock issued for services            --                  --          350,000

Options issued for
services
 Includes $7,738 value of
options for
 president of the company            --                  --           29,370

Net loss for the year
ended
 December 31, 2002                   --           (703,245)        (703,245)
                            -----------    ----------------  ---------------

Balance December 31, 2002      $107,500         $ (709,699)    $     309,823
                            ===========    ================  ===============
</TABLE>

                     See notes to financial statements.

<PAGE>
<TABLE>


                           Petrol Oil & Gas, Inc.
               (Formerly known as Euro Technology Outfitters)
                        (A Development Stage Company)
                           Statement of Cash Flows

                                                            March 3, 2000
                                                           (inception) to
                                Year Ended December 31,     December 31,
                                    2002        2001            2002
Operating activities:
<S>                            <C>             <C>          <C>
  Net loss                      $ (703,245)     $   (349)    $     (709,699)
Adjustments to reconcile net
income to cash
 used in operating activities
   Stock and options issued for     486,870           --             486,870
services
  Change in assets and
liabilities-
   Accounts payable                  20,589           --              20,589
   Due to officer                    25,000      (1,105)              25,000
                                 ----------    ---------  ------------------
   Cash used in operating         (170,786)      (1,454)           (664,110)
activities
                                 ----------    ---------  ------------------

Investing activities:
  Additions to oil & gas
property not subject to
  amortization                    (142,995)           --           (142,995)
                                 ----------    ---------  ------------------

     Cash used in investing       (142,995)           --           (142,995)
activities
                                 ----------    ---------  ------------------

Financing activities:
  Stock issued for debt paid by          21        1,454               6,475
shareholder
   Of Company stock
  Stock sold                        475,596           --             475,596
                                 ----------    ---------  ------------------

     Cash provided from             475,617        1,454             744,571
financing activities
                                 ----------    ---------  ------------------

Increase in cash                    161,836           --             161,836
Beginning cash                           --           --                  --
                                 ----------    ---------  ------------------

Ending cash                      $  161,836    $      --  $          161,836
                                 ==========    =========  ==================

Supplemental cash flow
information:
  Interest paid                  $       --    $      --  $               --
                                 ==========    =========  ==================

  Income taxes paid              $       --    $      --  $               --
                                 ==========    =========  ==================

Non cash financing activities:
  Stock issued for assets        $   50,580    $      --  $           50,580
acquired
                                 ==========    =========  ==================

  Addition to oil & gas
property not
  subject to amortization and
accounts payable
  assumed in asset purchase      $   89,381    $      --  $           89,381
                                 ==========    =========  ==================

  Stock contributed to paid in   $    5,826    $      --  $            5,826
capital
  Stock and options issued for   $  379,370    $      --  $          379,370
services
  Stock for services not issued  $  107,500    $      --  $          107,500
                                 ==========    =========  ==================
</TABLE>

                     See notes to financial statements.

<PAGE>

                          PETROL OIL AND GAS, INC.
                    (Formerly Euro Technology Outfitters)
                        (A Development Stage Company)
                        NOTES TO FINANCIAL STATEMENTS

NOTE 1 -  SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The  Company is currently a development stage enterprise reporting under  the
provisions of Statement of Financial Accounting Standards ("SFAS") No. 7.

Organization and business

On  March  3,  2000  Euro Technology Outfitters (Euro)  was  incorporated  in
Nevada.   Euro  was a reporting public shell with no business  activity.   On
August  19,  2002 Euro acquired, in an asset purchase agreement, land  leases
and accumulated expenditures and assumed liabilities from Petrol Energy, Inc.
Petrol  Energy, Inc. received 10,918,300 shares of Euro and transferred  into
Euro  property  leases  that the Company will use  for  the  development  and
exploration of oil, gas, and methane.  This transaction was recorded based on
one-year land lease payments totaling $50,580 made by Petrol Energy Inc. that
hadn't  been  amortized. The par value of the Euro shares issued was  $10,918
and  additional  paid-in  capital was $39,662.  Also recorded  were  accounts
payable  totaling  $89,381 which represented costs relating  to  expenditures
made by Petrol Energy on the leased properties acquired by the Company.   The
total  asset value for this transaction was $139,961 and was recorded in  the
oil  &  gas  properties using full cost accounting-properties not subject  to
amortization  account.  The transaction was recorded in this  manner  because
the  fair market value of the lease costs and payables were determined to  be
the fair market value of the shares that were issued.

On  August  20,  2002,  the  Company amended its  Articles  of  Incorporation
changing its name from Euro Technology Outfitters to Petrol Oil and Gas, Inc.
and  increased its authorized capital stock to 100,000,000 shares  of  Common
Stock  $0.001 par value and, 10,000,000 shares of Preferred Stock $0.001  par
value.

Fair value of financial instruments

The  carrying  amounts  of cash and notes payable to an Officer  approximates
fair value because of the short-term natures of these items.

<PAGE>


                          PETROL OIL AND GAS, INC.
                    (Formerly Euro Technology Outfitters)
                        (A Development Stage Company)
                        NOTES TO FINANCIAL STATEMENTS

Loss per share

Basic and diluted loss per share was computed in accordance with Statement of
Financial Accounting Standards No. 128.  Basic loss per share is computed  by
dividing  the  net loss available to common shareholders (numerator)  by  the
weighted average of common shares outstanding (denominator) during the period
and  excludes  the potentially diluted common shares.  Diluted net  loss  per
share  gives effect to all potential diluted common shares outstanding during
a  period.   The  effect  of dilutive securities were  not  included  in  the
calculation  of diluted earnings per share because to do so would  have  been
anti-dilutive.

Use of Estimates

The  preparation  of  financial statements in conformity with  United  States
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 amount of revenues and expenses
during  the  reporting  period.   Actual  results  could  differ  from  those
estimates.

Cash and cash equivalents

Cash  and cash equivalents include cash in banks and certificates of  deposit
which mature within three months of the date of purchase.

Oil and gas properties

The  Company  follows  the full cost method of accounting  for  oil  and  gas
properties.  Accordingly, all costs associated with acquisition, exploration,
and  development of oil and gas reserves, including directly related overhead
costs and interest, are capitalized.

All  capitalized  costs  included in the estimated future  costs  to  develop
proved  reserves,  will be amortized on the unit-of-production  method  using
estimates  of proved reserves.  Investments in unproved properties and  major
development projects are not amortized until proved reserves associated  with
the projects can be determined or until impairment occurs.  If the result  of
an  assessment indicate that the properties are impaired, the amount  of  the
impairment is added to the capitalized costs to be amortized.

<PAGE>

                          PETROL OIL AND GAS, INC.
                    (Formerly Euro Technology Outfitters)
                        (A Development Stage Company)
                        NOTES TO FINANCIAL STATEMENTS

In  addition,  the capitalized costs are subject to a "ceiling  test,"  which
basically  limits  such  costs to the aggregate  of  the  "estimated  present
value," discounted at a 10% interest rate of future net revenues from  proved
reserves, based on current economic and operating conditions, plus the  lower
of cost or fair market value of unproved properties.

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
as income.

Abandonment's  of properties are accounted for as adjustments of  capitalized
costs with no loss recognized.

Long-lived assets

Long-lived assets to be held and used or disposed of other than by  sale  are
reviewed  for impairment whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable.

Stock based compensation

The Company accounts for stock issued for services by non-employees based  on
the fair value of the issued stock using as a price per share the most recent
stock  sale.   The Company accounts for stock options issued for services  by
non-employees  based on the fair value of the options as  determined  by  the
Black-Scholes  pricing model. The Black-Scholes pricing model determines  the
fair  value of options based on certain assumptions. The assumptions are  the
interest rates of comparable term U S Treasury obligations, the number of day
the  option  has to expiration, the option strike price, the price,  dividend
yield and volatility of the company stock.  In calculating the fair value  of
the  options issued in the period ending December 31, 2002 the price used for
company stock was the most recent sale of stock.  A company is considered  to
be  a  public  company  as  defined by SFAS 123  when  the  company  files  a
registration  statement.  As a public company actual or estimated  volatility
rates must be used.  Until the company is considered to be a public company a
volatility rate of zero can be used. Petrol filed its registration  statement
after  December  31,  2002  so a volatility rate of  zero  was  used  in  the
calculation  of  fair  value  for  all  options  issued  in  these  financial
statements.  Any future issues of options will have a volatility rate that is
based on the actual rate experienced or an estimated rate if the stock is not
trading on any exchange.

<PAGE>


                          PETROL OIL AND GAS, INC.
                    (Formerly Euro Technology Outfitters)
                        (A Development Stage Company)
                        NOTES TO FINANCIAL STATEMENTS

The  cost  of  stock  and options issued for services  to  non-employees  are
charged to expense on the date an agreement to provide services is signed and
the stock and options are earned.  This cost can be amortized to expense over
the  life of an agreement to provide services if there is a quantifiable  way
to  determine that the services are being performed ratably over the contract
period.   All  contracts for services entered into by  the  Company  for  the
period ended December 31, 2002 were charged completely to expense at the date
the  contracts were signed because these equity instruments were fully vested
and nonforfeitable.

The  Company  accounts  for  its stock option plan  in  accordance  with  the
provisions of SFAS No. 123. "Accounting for Stock Based Compensation".   SFAS
No  123 permits entities to recognize as expense over the vesting period  the
fair   value   of  all  stock-based  awards  on  the  date  of   the   grant.
Alternatively, SFAS No. 123 also allows entities to apply the  provisions  of
Accounting  Principles  Board ("APB") Opinion No. 25, "Accounting  for  Stock
Issued  to Employees", and related interpretations and provide pro forma  net
income and pro forma earnings per share disclosures for employee stock option
grants  as  if the fair-value-based method defined in SFAS No. 123  had  been
applied.  The Company has elected to apply the provisions of APB No.  25  and
when required provide the pro forma disclosure provisions of SFAS No. 123.

The Company uses the "intrinsic value-based method" for measuring the cost of
compensation  expense  for stock options granted to employees.   This  method
defines the Company's cost as the excess of the option's market value at  the
time of the grant over the amount that the employee is required to pay.

Recent accounting pronouncements

In November 2002, the Financial Accounting Standards Board (FASB) issued FASB
Interpretation  No.  45  ("FIN 45") "Guarantor's  Accounting  and  Disclosure
Requirements for Guarantees, Including Guarantees of Indebtedness of Others."
FIN  45  requires  that  upon  issuance of a guarantee,  the  guarantor  must
recognize  a liability for the fair value of the obligation it assumes  under
that  guarantee.   The  disclosure provisions of FIN  45  are  effective  for
financial statements of interim or annual periods that end after December 15,
2002.  The provision for initial recognition and measurement are effective on
a prospective basis for guarantees that are issued or modified after December
31, 2002, irrespective of a Guarantor's year-end.  The adoption of FIN 45  by
the  Company during the quarter ended March 31, 2003 will not have a material
impact on its current financial position and results of operations.

<PAGE>

                          PETROL OIL AND GAS, INC.
                    (Formerly Euro Technology Outfitters)
                        (A Development Stage Company)
                        NOTES TO FINANCIAL STATEMENTS

In  December  2002, the FASB issued SFAS No. 148, "Accounting for Stock-Based
Compensation, Transition and Disclosure, an Amendment of FAS No. 123."   SFAS
No. 148 provides additional transition guidance for those entities that elect
to  voluntarily adopt the accounting provisions of SFAAS No. 123.   SFAS  No.
148  also  requires  that entities that continue to account  for  stock-based
compensation awards using the intrinsic value method of APB No.  25  will  be
required  to  provide more prominent disclosures than currently  required  by
SFAS  123,  including  disclosures  in  interim  financial  statements.   The
transition and annual disclosure provisions of SFAS No. 148 are effective for
fiscal  years  ending  after December 15, 2002.  The new  interim  disclosure
provisions  are  effective  for  the first  interim  period  beginning  after
December 15, 2002.  The Company will continue to account for employee  stock-
based  compensation  under  APB  No. 125 and  related  interpretations.   The
Company  will  adopt  the  annual disclosure requirements  in  its  financial
statements  for the year ended December 31, 2003, and the interim  disclosure
requirements  beginning in its financial statements  for  the  quarter  ended
March 31, 2003.

NOTE 2 -  GOING CONCERN

The  Company's financial statements are prepared using the generally accepted
accounting  principles applicable to a going concern, which contemplates  the
realization of assets and liquidation of liabilities in the normal course  of
business.   The  ability of the Company to continue as  a  going  concern  is
dependent  upon  the ability in its endeavors to seek additional  sources  of
capital,  and  in  attaining  future  profitable  operations.  Management  is
currently  initiating  their business plan and  in  the  process  of  raising
additional capital.  The accompanying financial statements do not include any
adjustments that might be necessary should the company be unable to  continue
as a going concern.

NOTE 3 -  STOCKHOLDERS' EQUITY

Common stock

The aggregate number of shares of common stock that the Company has authority
to  issue is 100,000,000 shares at a par value of $0.001.  As of December 31,
2002,  13,151,993 shares were issued and outstanding.  However, there  is  an
additional 215,000 shares that were bought but unissued at December 31, 2002.

Preferred stock

The  aggregate  number  of shares of preferred stock  that  the  Company  has
authority  to  issue is 10,000,000 shares at a par value of  $0.001.   As  of
December 31, 2002, no shares of preferred stock were issued.

<PAGE>

                          PETROL OIL AND GAS, INC.
                    (Formerly Euro Technology Outfitters)
                        (A Development Stage Company)
                        NOTES TO FINANCIAL STATEMENTS

Stock Issuance's

At  inception,  the Company issued 5,000,000 shares of common stock.   During
the period from inception to August 19, 2002 the Company issued an additional
1,476,240  shares  of  common stock in exchange for  liabilities  paid  by  a
shareholder. On August 21, 2002, a shareholder contributed to paid in capital
5,826,240 shares of Company stock

On August 19, 2002, the Company executed an Asset Purchase Agreement, whereby
the Company issued 10,918,300 shares of its restricted common stock (See Note
1 organization and business).

On  August  19,  2002, the Company entered into a letter of intent  with  NIO
Funds Investment Management Limited (NIO) whereby NIO would exclusively raise
funds  throughout Europe and invest in Petrol.  A fee of 2% will  be  charged
for  all  funds raised and will be netted against the amount sent to  Petrol.
The funds raised will be used to purchase up to 750,000 restricted shares  of
common  stock at a price of  $.50 per share and an additional 250,000  shares
at  a  price  of  $.75 per share.  In addition, the Company granted  NIO  the
privilege  of  purchasing  additional shares of restricted  common  stock  of
Petrol  in  the amount of $500,000 per month for the months of March,  April,
May,  June, August and November of 2003 and January of 2004.  The  price  per
share  would  be at a discount of 12.5% of the market price of Petrol  shares
that  were being traded on any exchange or over-the-counter but not less than
$.875 per share.  There was no value assigned to the ability to invest in the
Company  based on the Black-Scholes pricing model.  NIO raised a net  capital
amount of $475,596 and 883,693 shares were issued.

The  Board  of  Directors on December 16, 2002 adopted the 2002 stock  option
plan for 3,000,000 shares.

The Company entered into a land services consulting agreement on December 27,
2002 with Lawrence Kehoe, Cody Felton and Russell Frierson.  The term of  the
agreement   is  for  one  year.   Mr.  Kehoe  and  Mr.  Felton  received   as
consideration 325,000 shares each of Company stock and 325,000 stock  options
allowing  them to purchases shares of Company stock at a price  of  $.50  per
share with a three year life.  Mr. Frierson received 50,000 shares of Company
stock  and  50,000 options to purchase Company stock at a price of  $.50  per
share  for  a  three year life.  The value assigned to the stock  issued  was
$350,000  and  was  charged  to professional fee  expense  on  the  date  the
agreements  were signed and the stock was earned.  The value of  the  options
using  the  Black-Scholes  pricing  model was  $20,086  using  the  following
assumptions:

<PAGE>


                          PETROL OIL AND GAS, INC.
                    (Formerly Euro Technology Outfitters)
                        (A Development Stage Company)
                        NOTES TO FINANCIAL STATEMENTS

                    Interest rate       1.97%
                    Days to expiration  1095
                    Strike Price        $.50
                    Stock price         $.50
                    Volatility          0%
                    Yield               0%

The  options value was charged to professional fee expense with an offset  to
paid-in capital.

The Company entered into an employment agreement with Paul Branagan on August
20,  2002.  The three-year agreement provided for compensation at $11,250 per
month  for  year 1 and $13,333 per month for years 2 and 3.   Recorded  as  a
payable  to Officer is $25,000, which represents the amount that hasn't  been
paid  to  Mr.  Branagan as of December 31, 2002.  Mr. Branagan also  received
1,250,000  options.   The  options have a three year  life  and  250,000  are
exercisable  at $.50 per share; 250,000 are exercisable at $1.00  per  share;
250,000  exercisable  at $1.50 per share; 250,000 exercisable  at  $2.00  per
share  and 250,000 exercisable at $2.50 per share.  The value of the  options
using the Black-Scholes pricing model was $7,738 which was recorded as salary
and additional paid in capital.  The assumptions used are as follows:

               Interest rate       2.13%
               Days to expiration  1095
               Stock price         $.50
               Strike price        various $.50 to $2.50
               Volatility          0%
               Yield               0%

The  Company entered into a geologist/technical advisor consulting  agreement
on  December 1, 2002 with William Stoeckinger.  The agreement is  for  a  one
year term and Mr. Stoeckinger received 160,000 shares (subsequent to December
31,  2002)  upon  signing the agreement, 20,000 shares per month  for  twelve
months,  50,000  options  exercisable at $.50 per share  and  50,000  options
exercisable  at $1.00 per share for a three year period.  The value  assigned
to  the  stock  for  services not issued was $80,000 and was  recorded  as  a
professional  fee expense.  Mr. Stoeckinger also was paid $4,055  during  the
year.   The  value of the options using the Black-Scholes pricing  model  was
$1,548  which was recorded as a professional fee expense and additional  paid
in capital.  The assumptions used are as follows:

<PAGE>

                          PETROL OIL AND GAS, INC.
                    (Formerly Euro Technology Outfitters)
                        (A Development Stage Company)
                        NOTES TO FINANCIAL STATEMENTS

                    Interest rate       2.13%
                    Days to expiration  1095
               Stock price         $.50
               Strike price        various $.50 to $2.50
               Volatility          0%
               Yield               0%

The  Company  entered into a retainer agreement for translation and  business
consulting on August 20th, 2002 with Goran Blagojevic.  The agreement may  be
terminated  at  any  time by either party.  Mr. Blagojevic  received  500,000
warrants to acquire Company stock at a price of $.75 per share over  a  three
year life. The value of the options using the Black-Scholes pricing model was
zero.  The assumptions used are as follows:

               Interest rate       2.15%
               Days to expiration  1095
               Stock price         $.50
               Strike price        $.75
               Volatility          0%
               Yield               0%

Mr.  Blagojevic, on December 27, 2002 accepted 55,000 share of Company  stock
as  payment  for an outstanding invoice totaling $27,500.  These shares  were
not  issued  at  December 31, 2002 and the amount due  was  included  in  the
account  stock for services not issued.  Mr. Blagojevic also received $24,991
in professional fees in the year ended December 31, 2002.

A summary of stock options and warrants is as follows:

                             Options            Warrants
Outstanding at 1/1/02              0                   0
Granted                    2,050,000             500,000
Cancelled                          0                   0
Exercised                          0                   0
Outstanding at 12/31/02    2,050,000             500,000


The average exercise price of the options are $1.12 and the warrants are $.86

<PAGE>

                          PETROL OIL AND GAS, INC.
                    (Formerly Euro Technology Outfitters)
                        (A Development Stage Company)
                        NOTES TO FINANCIAL STATEMENTS

NOTE 4 -  COMMITMENTS

The land leases owned by the Company have payments past due of $7,240.  There
is  $347,877 due by December 31, 2003, and $1,570 due by December 31, 2004.

On  November 15, 2002, the Company entered into a Service and Water  Disposal
Agreement  with  two  companies, whereby the Company will  be  provided  with
pumping  services  as  well as transportation of  its  produced  water  to  a
disposal  well.  The Company will pay $10.00 per day for each  well  that  is
provided  with pumping services and will pay at the rate of $60.00  per  hour
for water hauling and $250.00 per month for the use of the disposal well.

NOTE 5 -  INCOME TAX

Deferred income taxes are determined based on the tax effect of items subject
to differences in book and taxable income.  The only deferred tax item is the
operations  loss  carry forward of approximately $703,245  which  expires  in
2017.

The net deferred tax is as follows;

Non-current asset for net
loss carry forward            $239,000
Valuation allowance            (239,000)
Total deferred tax net                 -

A  reconciliation of the previous for income taxes to the stationary  federal
rate for continuing operations is as follows;

Statutory tax rate  34.0%
Valuation allowance <34.0>
Effective tax rate    0.0%

NOTE 6-   RELATED PARTY TRANSACTIONS

A  shareholder  (sole) of the Company paid debt (bills) of the  Company  from
inception  until July 2002 and received shares of the Company valued  at  par
value.   The  total  shares issued including inception  was  6,476,240  which
represented  approximately  $6,476  of  Company  bills  paid  by   the   sole
shareholder.  The shareholder later contributed back to the Company 5,826,240
shares at a par value of approximately $5,826.

<PAGE>

                          PETROL OIL AND GAS, INC.
                    (Formerly Euro Technology Outfitters)
                        (A Development Stage Company)
                        NOTES TO FINANCIAL STATEMENTS

Included  in  accounts payable is an amount due the President of the  Company
for compensation.

NOTE 7-   SUBSEQUENT EVENTS

On  January  21, 2003 the Company entered into a lease agreement  for  office
space.  The term of the agreement is one year and rent is $300 per month.

On  February  6,  2003,  the  Company entered  into  a  loan  agreement  with
Cornerstone  Bank, whereby Cornerstone Bank has provided the Company  with  a
line of credit in the amount of $250,000, which expires on May 6, 2003.   The
interest  rate  on  the loan is 2.000% above the Corporate  Base  Rate.   The
Company has pledged to Cornerstone Bank all of its assets, including, but not
limited  to 1,000,000 shares of its $0.001 par value common stock to be  held
by  Cornerstone Bank as collateral until the loan has been paid in full under
the  terms  and conditions of the agreement, or in the event of  default  the
sale  of  the  collateral.  The Company received an  irrevocable  proxy  from
Cornerstone  which gives its Board of Directors full voting rights  over  the
pledged shares.

On  March  13,  2003, 350,000 shares of Company stock was sold  for  $262,500
($.75 per share).

NOTE 8 -  SUPPLEMENTAL OIL AND GAS DISCLOSURE

Oil and gas operations

The  Company currently has only begun preliminary exploration and as a result
has  no  revenue or production.  Capitalized costs relating to  oil  and  gas
producing  activities  at  December 31, 2002 totaled  $282,956  and  was  all
classified as properties not subject to amortization for unproven properties.

The  total  cumulative  and  for the year ended December  31,  2002  cost  of
$282,956  is  classified  as follows- $141,187 in cost  relating  to  mineral
interest  and  property  (property acquisition cost)  and  $141,769  in  cost
relating  to uncompleted wells, equipment and facilities (exploration  cost).
There was no cost allocated to wells and related equipment and facilities and
support  equipment  and facilities used in oil and gas  producing  activities
(development costs).