[As adopted in Release No. 34-32231, April 28, 1993, 58 F.R. 26509]

                     U.S. Securities and Exchange Commission

                             Washington, D.C. 20549

                                   FORM 10-QSB

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

                 For the quarterly period ended: March 31, 2006
                  ---------------------------------------------

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

                        For the transition period from to

                        Commission file number 333-105008
            ---------------------------------------------------------

                              Caliber Energy, Inc.
    ------------------------------------------------------------------------
                     (Exact name of small business issuer as
                            specified in its charter)

                     Delaware                            87-0700927
--------------------------------------------------------------------------------
             (State or other jurisdiction              (IRS Employer
         of incorporation or organization)           Identification No.)

          9595 Wilshire Boulevard #900, Beverly Hills, California 90212
--------------------------------------------------------------------------------
                    (Address of principal executive offices)

                                 (310) 300-4064
                            Issuer's telephone number


 (Former  name,  former  address and former  fiscal year,  if changed since last
report.)

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

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



<PAGE>



                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                   PROCEEDING DURING THE PRECEDING FIVE YEARS

         Check whether the registrant  filed all documents and reports  required
to be  filed  by  Section  12,  13 or  15(d)  of  the  Exchange  Act  after  the
distribution of securities under a plan confirmed by a court. Yes ----- No -----


                      APPLICABLE ONLY TO CORPORATE ISSUERS

         State the number of shares  outstanding of each of the issuer's classes
of common equity,  as of the latest  practical  date:  March 31, 2006 62,595,000


         Transitional Small Business Disclosure Format (check one).
Yes      ;  No   X
    ----       -----



<PAGE>



                                     PART I

ITEM 1.  FINANCIAL STATEMENTS

                              CALIBER ENERGY, INC.
                         (An Exploration State Company)
                                 BALANCE SHEETS

<TABLE>
<CAPTION>

                                                                                  (Unaudited)
                                                                                  March 31,          December 31,
                                                                                     2006               2005
                                                                              ------------------  -----------------
ASSETS
Current Assets
<S>                                                                           <C>                 <C>
   Cash and cash equivalents                                                  $           68,198  $               -
   Prepaid expenses                                                                        3,425              3,425
   Receivable from oil & gas properties                                                        -             40,998
   Interest receivable                                                                         -                993
   Notes receivable                                                                            -             40,512
                                                                              ------------------  -----------------

     Total Assets                                                             $           71,623  $          85,928
                                                                              ==================  =================

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
   Accounts payable                                                           $          198,162  $         197,924
   Accrued liabilities & short term contract payable                                      80,356             52,756
   Accrued interest                                                                       26,299             20,334
                                                                              ------------------  -----------------
     Total Current Liabilities                                                           304,817            271,014
                                                                              ------------------  -----------------

Long-Term Liabilities
   Convertible debentures                                                                463,453            463,453
   Contract payable - the "Ritz Claim"                                                    15,000             15,000
                                                                              ------------------  -----------------
      Total Long-Term Liabilities                                                        478,453            478,453
                                                                              ------------------  -----------------

     Total Liabilities                                                                   783,270            749,467
                                                                              ------------------  -----------------

Stockholders' Equity
   Preferred stock, $.0001 par value, authorized 10,000,000
     shares, -0- issued                                                                        -                  -
   Common stock, $.0001 par value, authorized 500,000,000
     shares, 62,595,000 issued at March 31, 2006 and
     December 31, 2005                                                                     6,260              6,260
   Stock to be issued                                                                         10                 10
   Additional paid-in capital                                                            586,495            586,495
   Deficit accumulated during exploration state                                       (1,304,412)        (1,256,304)
                                                                              ------------------  -----------------

     Total Stockholders' Equity                                                         (711,647)          (663,539)
                                                                              ------------------  -----------------

     Total Liabilities and Stockholders' Equity                               $           71,623  $          85,928
                                                                              ==================  =================
</TABLE>

                             See accompanying notes.

                                        3

<PAGE>



                              CALIBER ENERGY, INC.
                         (An Exploration State Company)
                            STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>
                                                                                                 Accumulated
                                                                                                    Since
                                                                                                 November 6,
                                                                   (Unaudited)                       2002
                                                               For the Three Months             Inception of
                                                                  Ended March 31,                Exploration
                                                             2006              2005                 State
                                                      ------------------  ------------------  ------------------
<S>                                                   <C>                 <C>                 <C>
Revenues                                              $                -  $                -  $                -
                                                      ------------------  ------------------  ------------------

Expenses
   Consulting                                                      9,000               9,000              71,000
   Officers compensation                                          22,500              23,700             184,205
   General and administrative                                     10,853              16,649             187,833
   Investor relations                                                  -                   -              60,000
   General exploration                                                 -              12,095             334,763
                                                      ------------------  ------------------  ------------------

     Total Expenses                                               42,353              61,444             837,801

Other Income (Expense)
   Interest Income                                                   210                   -               1,203
   Interest Expense                                               (5,965)             (1,591)           (467,814)
                                                      ------------------  ------------------  ------------------

Net Income (Loss)                                     $          (48,108) $          (63,035) $       (1,304,412)
                                                      ==================  ==================  ==================

Weighted Average Shares                                       62,590,000          92,570,000
                                                      ==================  ==================

Loss per Common Share                                 $                -  $                -
                                                      ==================  ==================
</TABLE>






                             See accompanying notes.

                                        4

<PAGE>



                                               CALIBER ENERGY, INC.
                                          (An Exploration State Company)
                                       CONSOLIDATED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                                                      Deficit
                                                                                                    Accumulated
                                                                                                       Since
                                                                                                    November 6,
                                                                       (Unaudited)                    2002
                                                                 For the Three Months Ended         Inception of
                                                                        March 31,                   Exploration
                                                                2006                2005               State
                                                          -----------------  ------------------  ------------------
CASH FLOWS FROM OPERATING
ACTIVITIES:

<S>                                                       <C>                <C>                 <C>
Net Loss                                                  $         (48,108) $          (63,035) $       (1,304,412)
Adjustments used to reconcile net loss to net
  cash provided by (used in) operating activities:
   Depreciation and Amortization                                          -                   -                 744
   Stock compensation                                                     -                   -             102,000
   Interest expense from beneficial conversion                            -                   -             441,515
   Common stock to be issued for mineral rights                           -                   -              19,000
   Mineral rights expensed                                                -                   -              16,000
(Increase) decrease in prepaid expenses                                   -                   -              (3,425)
(Increase) decrease in receivables                                   40,998                   -                   -
(Increase) decrease in interest receivable                              993                   -                   -
Increase (decrease) in accrued interest                               5,965               1,591              26,299
Increase (decrease) in accounts payable                                 238              (8,776)            198,162
Increase (decrease) in accrued liabilities                           27,600             (85,474)             80,356
Increase (decrease) in contracts payable                                  -                   -              15,000
                                                          -----------------  ------------------  ------------------
Net cash used in operating activities                                27,686            (155,694)           (408,761)
                                                          -----------------  ------------------  ------------------

CASH FLOWS FROM INVESTING
ACTIVITIES:
Cash paid for website design                                              -                   -                (744)
Cash paid for mineral rights                                              -                   -             (16,000)
                                                          -----------------  ------------------  ------------------
Net cash used by investing activities                                     -                   -             (16,744)
                                                          -----------------  ------------------  ------------------

CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from convertible debentures                                      -             282,080             361,923
Proceeds from loans                                                       -                   -              78,695
Proceeds from shareholder loan                                            -                   -              22,835
Loans to related parties                                                  -                   -             (40,512)
Proceeds from loans to related parties                               40,512                   -              40,512
Proceeds on sale of common stock                                          -                   -              30,250
                                                          -----------------  ------------------  ------------------
Net Cash Provided by Financing  Activities                           40,512             282,080             493,703
                                                          -----------------  ------------------  ------------------
</TABLE>

                                       5
<PAGE>

                              CALIBER ENERGY, INC.
                         (An Exploration State Company)
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (continued)

<TABLE>
<CAPTION>
                                                                                                      Deficit
                                                                                                    Accumulated
                                                                                                       Since
                                                                                                    November 6,
                                                                       (Unaudited)                     2002
                                                                For the Three Months Ended          Inception of
                                                                        March 31,                   Exploration
                                                                2006                2005               State
                                                          -----------------  ------------------  ------------------

Net Increase (Decrease) in
<S>                                                                  <C>                <C>                  <C>
   Cash  and Cash Equivalents                                        68,198             126,386              68,198
Cash and Cash Equivalents at
   Beginning of the Period                                                -                 728                   -
                                                          -----------------  ------------------  ------------------
Cash and Cash Equivalents at
   End of the Period                                      $          68,198  $          127,114  $           68,198
                                                          =================  ==================  ==================

SUPPLEMENTAL DISCLOSURE OF CASH
  FLOW INFORMATION:
Interest                                                  $               -  $                -  $                -
Income Taxes                                              $               -  $                -  $                -

SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING
ACTIVITIES: NONE
</TABLE>



















                             See accompanying notes.


                                        6

<PAGE>



                              CALIBER ENERGY, INC.
                         (An Exploration State Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - NATURE OF OPERATIONS AND GOING CONCERN

         This summary of accounting  policies for Caliber Energy is presented to
assist in understanding the Company's  consolidated  financial  statements.  The
accounting policies conform to generally accepted accounting principles and have
been consistently applied in the preparation of the financial statements.

         The unaudited  financial  statements as of March 31, 2006,  and for the
three month  period  then ended,  reflect,  in the  opinion of  management,  all
adjustments  (which  include  only normal  recurring  adjustments)  necessary to
fairly  state the  financial  position and results of  operations  for the three
months.  Operating results for interim periods are not necessarily indicative of
the results which can be expected for full years.

         The accompanying  consolidated  financial statements have been prepared
on the basis of accounting  principles  applicable to a "going  concern",  which
assume that the Company  will  continue in  operation  for at least one year and
will be able to realize its assets and discharge its  liabilities  in the normal
course of operations.

         Several conditions and events cast doubt about the Company's ability to
continue as a "going concern".  The Company is an exploration state company, and
has  incurred  net losses of $48,108 for the three  months ended March 31, 2006,
losses of $63,035  for the three  months  ended  March 31,  2005,  and losses of
$1,304,412 since  inception.  The Company has not realized  economic  production
from  its  mineral  properties  as  of  March  31,  2006.  These  factors  raise
substantial  doubt about the Company's  ability to continue as a going  concern.
Management  continues  to actively  seek  additional  sources of capital to fund
current and future  operations.  There is no assurance  that the Company will be
successful in continuing to raise additional capital,  establishing  probable or
proven  reserves,  or  determining  if  the  mineral  properties  can  be  mined
economically.  These financial  statements do not include any  adjustments  that
might result from the outcome of these uncertainties.

Organization and Basis of Presentation

         Caliber Energy, Inc. (the Company),  an exploration state company,  was
incorporated on November 6, 2002 in the State of Delaware as Twin Ventures, Ltd.
On June 18,  2004,  the Company  changed the name to Rincon  Resources,  Inc. On
March 14, 2005, the Company changed its name to Caliber Energy, Inc.






                                        7

<PAGE>



                              CALIBER ENERGY, INC.
                         (An Exploration State Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (continued)

NOTE 1 - NATURE OF OPERATIONS AND GOING CONCERN (continued)

Nature of Operations

         The Company is an  exploration  state oil and gas company.  The Company
also has  interests in mining and mineral  properties.  On November 21, 2002 the
Company  became  actively  engaged  in  acquiring  mineral  properties,  raising
capital, and preparing properties for production.

         The  Company  did  not  have  any  significant   mining  operations  or
activities  from  inception;  accordingly,  the  Company  is deemed to be in the
exploration  state.  For purposes of recording the Company's  mineral  claims in
Canada,  the  Company  acquired  New  Heights  Capital  Corporation  (a Canadian
corporation)  and transferred the claims listed in the following  paragraph into
the subsidiary in exchange for 100% of the subsidiary's outstanding stock.

         On November 21, 2002,  the Company  acquired  mineral claims (the "Ritz
Claims")  located in the  Lillooet  Lake Region of Southwest  British  Columbia,
Canada.  The property  consists of twenty unpatented two post mineral claims and
one unpatented four post mineral claim  representing  forty units that have been
staked and  recorded  in the  Lillooet  mining  division.  The  Company  has not
commenced  economic  production and is therefore  still  considered to be in the
exploration stage.

         On July 26, 2004,  the Company  executed an agreement  and made the 1st
statutory  payment  of  $55,000  to  acquire a 75%  interest  in the Tudor  Gold
Property.  The Tudor  Gold  Property  is  located  in  eastern  Ontario,  Canada
approximately 100 miles northeast of Toronto. The property lies within Tudor and
Grimsthorpe Townships. The property consists of twenty-two contiguous unpatented
mining claims containing sixty units covering approximately 2,965 acres of land.
The  Company  intends  to  launch  a  comprehensive,   property  wide,   surface
exploration  program  immediately.  The Company  intends to follow-up with drill
testing of the  mineralized  zones of the  property.  The data  derived from the
drill  testing of the various  zones  should  enable the Company to identify and
assess gold bearing structures to ultimately establish the size and grade of the
gold resource.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

         The consolidated  financial statements for the three months ended March
31,  2006  and 2005  include  the  accounts  of  Caliber  Energy,  Inc.  and its
subsidiary New Heights Capital Corporation.  New Heights Capital Corporation was
acquired by the Company on April 22, 2003.


                                        8

<PAGE>



                              CALIBER ENERGY, INC.
                         (An Exploration State Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (continued)

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

         The  results  of  subsidiaries  acquired  or sold  during  the year are
consolidated  from their effective dates of acquisition  through their effective
dates of disposition.

         All  significant  intercompany  balances  and  transactions  have  been
eliminated.

Revenue and Cost Recognition

         The  Company  uses  the  accrual  basis  of  accounting  for  financial
statement  reporting.  Revenues and expenses are  recognized in accordance  with
Generally  Accepted  Accounting  Principles  for the  industry.  Certain  period
expenses are recorded when obligations are incurred.

Use of Estimates

         The  preparation  of  the  financial   statements  in  conformity  with
generally accepted  accounting  principles requires management to make estimates
and assumptions that affect the reported amount of assets and  liabilities,  and
disclosure of contingent  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 results.

Accounts Receivable, Deposits, Accounts Payable and Accrued Expenses

         Accounts  receivable have historically been immaterial and therefore no
allowance  for  doubtful  accounts  has  been   established.   Normal  operating
refundable  Company  deposits are listed as Other Assets.  Accounts  payable and
accrued  expenses  consist of trade  payables  created from the normal course of
business.

Mineral Properties and Mining Equipment

         Mineral  properties  and  mining  equipment  include  land  and  mining
equipment  carried  at cost.  Mining  equipment  including  mill  facilities  is
depreciated using the  straight-line  method over estimated useful lives of 5 to
15 years,  or the  units-of-production  method  based on  estimated  tons of ore
reserves  if the  equipment  is located at a producing  property  with a shorter
economic life. Mining equipment not in service is not depreciated.








                                        9

<PAGE>



                              CALIBER ENERGY, INC.
                         (An Exploration State Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (continued)

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

         During  1997,  the  Securities  and  Exchange  Commission  (SEC)  staff
reconsidered  existing accounting  practices for mineral  expenditures by United
States junior mining companies. They now interpret generally accepted accounting
policy for junior mining companies to permit  capitalization  of acquisition and
exploration  costs only after  persuasive  engineering  evidence  is obtained to
support  recoverability  of these costs  (ideally upon  determination  of proven
and/or  probable  reserves  based upon dense  drilling  samples and  feasibility
studies by a recognized independent engineer). Although the Company has obtained
samples,  and an  independent  engineer  has deemed the  properties  may contain
platinum  group metals,  management  has chosen to follow the more  conservative
method of  accounting  by  expensing  all mineral  costs,  for which there is no
feasibility study.

Land Options

         As  noted  above,  since  the  Company  interprets  generally  accepted
accounting  policies to permit  capitalization  of acquisition  costs  including
leases and land  options  only after  persuasive  engineering  evidence has been
obtained to support recoverability of these costs, these costs will be expensed.

Reclamation and Environmental Costs

         Reclamation  costs and  related  accruals  are  based on the  Company's
interpretation of environmental and regulatory  requirements.  Minimum standards
for mine  reclamation have been  established by various  governmental  agencies.
Reclamation,  site  restoration,  and closure costs for each  producing mine are
accrued over the life of the mine using the units-of-production  method. Ongoing
reclamation activities are expensed in the period incurred.

Oil and Gas Properties

         The Company  follows the full cost method of accounting for its oil and
gas  operations  whereby all costs related to the  acquisition  of petroleum and
natural  gas  interests  are  capitalized.  Such  costs  include  land and lease
acquisition  costs,   annual  carrying  charges  of  non-producing   properties,
geological and geophysical costs, costs of drilling and equipping productive and
non- productive  wells, and direct  exploration  salaries and related  benefits.
Proceeds from the disposal of oil and gas properties are recorded as a reduction
of the related  capitalized  costs without  recognition of a gain or loss unless
the  disposal  would  result in a change of 20 percent or more in the  depletion
rate. The Company operates in one cost center, being Canada. To date the Company
has not established any proven recoverable reserves on its properties.



                                       10

<PAGE>



                              CALIBER ENERGY, INC.
                         (An Exploration State Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (continued)

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

         Depletion and depreciation of the capitalized  costs are computed using
the unit-of-production  method based on the estimated proven reserves of oil and
gas determined by independent consultants.

         Estimated future removal and site  restoration  costs are provided over
the life of proven reserves on a unit-of-production  basis. Costs, which include
the  cost of  production  equipment  removal  and  environmental  clean-up,  are
estimated  each  period  by  management  based on  current  regulations,  costs,
technology and industry  standards.  The charge is included in the provision for
depletion and depreciation and the actual  restoration  expenditures are charged
to the accumulated provision amounts as incurred.

         The Company applies a ceiling test to capitalized  costs to ensure that
such costs do not exceed estimated future net revenues from production of proven
reserves  at year end market  prices  less  future  production,  administrative,
financing,  site  restoration,  and  income  tax costs plus the lower of cost or
estimated  market  value  of  unproved  properties.  If  capitalized  costs  are
determined to exceed  estimated  future net  revenues,  a write-down of carrying
value is charged to depletion in the period.

Income  Taxes

         The Company  accounts for income taxes using the liability method which
requires  recognition  of deferred tax  liabilities  and assets for the expected
future tax  consequences  of events  that have been  included  in the  financial
statements or tax returns.  Deferred tax assets and  liabilities  are determined
based on the difference between the financial statements and tax basis of assets
and  liabilities  using  enacted  tax rates in effect  for the year in which the
differences are expected to reverse.

         The  Company's  management  determines  if  a  valuation  allowance  is
necessary to reduce any tax benefits when the available benefits are more likely
than not to expire before they can be used.

Stock  Based  Compensation

         In October  1995,  the  Financial  Accounting  Standards  Board  issued
Statement of Financial Accounting Standards No. 123, "Accounting for Stock-Based
Compensation,"  (SFAS  123),  which is  effective  for periods  beginning  after
December  15,  1995.   SFAS  123  requires  that  companies   either   recognize
compensation  expense  for  grants of stock,  stock  options,  and other  equity
instruments based on fair value or provide pro-forma disclosure of the effect on
net income and earnings per share in the Notes to the Financial Statements.  The
Company has adopted SFAS 123 in accounting for stock-based compensation.

                                       11

<PAGE>



                              CALIBER ENERGY, INC.
                         (An Exploration State Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (continued)

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Cash  and  Cash  Equivalents, and Credit Risk

         For purposes of reporting  cash flows,  the Company  considers all cash
accounts  with  maturities  of 90 days or less  and  which  are not  subject  to
withdrawal  restrictions  or  penalties,  as cash  and cash  equivalents  in the
accompanying balance sheet.

         The portion of deposits in a  financial  institution  that  insures its
deposits  with the FDIC up to $100,000  per  depositor in excess of such insured
amounts are not subject to insurance and represent a credit risk to the Company.

Foreign Currency Translation and Transactions

         The  Company's  functional  currency  is the  US  dollar.  No  material
translations or transactions have occurred. Upon the occurrence of such material
transactions  or the need for  translation  adjustments,  the Company will adopt
Financial  Accounting  Standard  No. 52 and other  methods  in  conformity  with
Generally Accepted Accounting Principles.

Earnings Per Share

         Basic  earnings per common share were  computed by dividing net loss by
the weighted  average  number of shares of common stock  outstanding  during the
year. There are no dilutive  outstanding  common stock  equivalents at March 31,
2006.

NOTE 3 - EXPLORATION STATE COMPANY/ GOING CONCERN

         The Company has not begun principal  operations and as is common with a
company  in the  exploration  state,  the  Company  has  had  recurring  losses.
Continuation  of the Company as a going concern is dependent  upon obtaining the
additional  working capital  necessary to be successful in its planned activity,
and the  management of the Company has  developed a strategy,  which it believes
will accomplish this objective  through  additional equity funding and long term
financing, which will enable the Company to operate for the coming year.

NOTE 4  -  AFFILIATES  AND  RELATED  PARTIES

         Significant  relationships with (1) companies affiliated through common
ownership and/or management, and (2) other related parties are as follows:



                                       12

<PAGE>



                              CALIBER ENERGY, INC.
                         (An Exploration State Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (continued)

NOTE 4  -  AFFILIATES  AND  RELATED  PARTIES (continued)

         On July 26th,  2004, the Company  executed an agreement with Louvicourt
Gold Mines Inc.  and made a first  payment of  $55,000.00  (US) to acquire a 75%
interest and the rights to explore a series of gold occurrences  situated on the
Tudor Gold  Property.  The  President  of  Louvicourt  Gold Mines Inc. is Fenton
Scott,  a related party and father of Graeme F. Scott,  the President and CEO of
the Company.  Additionally,  Graeme F. Scott was a past  director of  Louvicourt
Gold Mines, Inc. See Note 8 for a description of this Project.

         During October 2004,  the Company  received a loan from a related party
for $19,590 for exploration  costs associated with the Tudor Gold Property.  The
loan is due on demand with interest accrued at 5% annually.  In March 2005, this
loan was converted to convertible debentures (see Note 11).

         During December 2004, the Company received a loan from a shareholder of
$3,245 for payment of accounts payable.  The loan is due on demand with interest
accrued at 5% annually.  In March 2005,  this loan was converted to  convertible
debentures (see Note 11).

         During  the  year  ended  December  31,  2005,  the  Company  made  two
short-term loans totaling $40,512 to two affiliated  companies.  The loans carry
an interest  rate of 6% per annum.  In February  2006,  both of these loans were
repaid.

NOTE 5 - NOTES PAYABLE

         In  July  2004,  the  Company   received  a  loan  of  $58,000  from  a
third-party.  The loan is due July 14,  2005 with  interest at 5%  annually.  In
March 2005, this loan was converted to convertible debentures (see Note 11).

         In  December  2004,  the  Company  received  a loan of  $20,695  from a
third-party.  The loan is due on demand with  interest at 5% annually.  In March
2005, this loan was converted to convertible debentures (see Note 11).

NOTE 6 -  INCOME  TAXES

         As  of  December  31,  2005,  the  Company  had a  net  operating  loss
carryforward for income tax reporting purposes of approximately  $1,257,000 that
may be offset against future taxable income through 2025. Current tax laws limit
the amount of loss  available to be offset  against future taxable income when a
substantial  change in  ownership  occurs.  Therefore,  the amount  available to
offset future taxable income may be limited. No tax benefit has been reported in
the financial statements, because the Company believes there is a 50% or greater
chance the  carryforwards  will expire  unused.  Accordingly,  the potential tax
benefits of the loss  carryforwards  are offset by a valuation  allowance of the
same amount.

                                       13

<PAGE>



                              CALIBER ENERGY, INC.
                         (An Exploration State Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (continued)

NOTE 7 - LONG-TERM DEBT

         On November 21, 2002,  the Company  entered into an agreement  with Mr.
Garth Barton for the purchase of mining property,  the "Ritz Claim",  located in
the Lillooet Lake Region of Southwest British Columbia, Canada. The "Ritz Claim"
is title to forty  (40)  mineral  claim  units  that are  unpatented.  The total
purchase  price of the  claim is  $33,500  due per  terms of the  contract  with
advance  royalties of $25,000 to be paid annually  commencing 36 months from the
date of  signature  of the  agreement.  The  property  is  subject  to a royalty
agreement.

         The  contract  payment  schedule  calls  for  $13,500  to be paid  upon
delivery of a summary  geological  report and  transfer of property  title.  The
$13,500 was paid per the contract.  On February 28, 2003 a payment of $2,500 was
made per contract schedule.  Twelve months from the date of title  registration,
$2,500 becomes due with another $2,500 due twenty four months from such date. No
later than thirty six months from the date of  signature  on the  contract,  the
balance of payment is due for a total purchase price of $33,500.

NOTE 8 -  SHAREHOLDERS'  EQUITY

Preferred Stock

         The Company has authorized ten million (10,000,000) shares of preferred
stock with a par value of $.0001, none of which have been issued.

Common Stock

         The Company has authorized five hundred million (500,000,000) shares of
common stock with a par value of $.0001.

         On April 8, 2004,  180,000,000 shares were returned to the treasury and
cancelled.

         On July 23, 2004,  the Company did a 10 to 1 forward stock split of its
issued  and  outstanding  shares  of  common  stock  from  9,257,000  shares  to
92,570,000  shares. All references to common stock have been adjusted to reflect
the stock split.

         On April 6, 2005,  29,975,000  shares of common stock were  returned to
the treasury and cancelled.







                                       14

<PAGE>



                              CALIBER ENERGY, INC.
                         (An Exploration State Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (continued)

NOTE 8 -  SHAREHOLDERS'  EQUITY (continued)

Common Stock Subscribed and Issued for Cash

         During  December,  2002, the Company  undertook an offering exempt from
registration  pursuant to Section  4(2) of the  Securities  Act of 1933 to raise
$16,000 in the issuance of 32,000,000  shares of common stock for the purpose of
the acquisition and exploration of mining properties.  The Company's  management
considers this offering to be exempt under the Securities Act of 1933.

         During  March 2003,  the  Company  undertook  a  Regulation  D Rule 506
private  placement  offering to raise $14,250 for the issuance of 570,000 shares
of common stock for the purpose of mineral exploration. The Company's management
considers this offering to be exempt under the Securities Act of 1933.

Common Stock to be Issued

         On July 26, 2004, the Company entered into a property option  agreement
with Louvicourt Gold Mines,  Inc. As part of this agreement,  the Company was to
issue 100,000 shares of common stock upon the execution of the agreement.  As of
December 31, 2005, the Company had expensed $19,000 in exploration costs related
to the 100,000 shares of common stock due upon  execution of the agreement.  The
shares  were  valued at $.19 per share  and as of March 31,  2006,  had not been
issued.

Common Stock Recorded as Compensation

         The Company does not have an employee stock compensation package set up
at this time. The stock compensation that has been granted falls under Rule 144.
Compliance with Rule 144 is discussed in the following paragraph.

         In general,  under Rule 144 as  currently  in effect,  a person who has
beneficially  owned shares of a company's  common stock for at least one year is
entitled to sell within any three month  period a number of shares that does not
exceed the greater of:

1.       1% of  the  number  of  shares  of  the  company's  common  stock  then
         outstanding  which,  in our case,  would  equal  approximately  280,380
         shares as of the date of the prospectus; or
2.       The average weekly trading volume of the company's  common stock during
         the four  calendar  weeks  preceding the filing of a notice on form 144
         with respect to the sale.





                                       15

<PAGE>



                              CALIBER ENERGY, INC.
                         (An Exploration State Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (continued)

NOTE 8 -  SHAREHOLDERS'  EQUITY (continued)

         Sales under Rule 144 are also subject to manner of sale  provisions and
notice  requirements and to the availability of current public information about
the company.

         The Company  records  stock issued for services and future  services at
the fair value of the stock issued,  if known, or the fair value of the services
if the fair value of the stock is not determined and no value is contemplated in
the  contract.  The stock is  recorded  as issued in the  equity  section of the
financial  statements  when a contract  for  services is entered  into for stock
compensation.

NOTE 9 - MINERAL RIGHTS

         On November 21, 2002,  the Company  entered into an agreement  with Mr.
Garth Barton for the purchase of mining property,  the "Ritz Claim",  located in
the Lillooet Lake Region of Southwest British Columbia, Canada. The "Ritz Claim"
is title to forty  (40)  mineral  claim  units  that are  unpatented.  The total
purchase  price of the  claim is  $33,500  due per  terms of the  contract  with
advance  royalties of $25,000 to be paid annually  commencing 36 months from the
date of signature of the  agreement.  Failure to pay the advance  royalties will
cause a reversion of the property  within 10 days of such failure.  The property
is subject to a 2 1/2% Net Smelter Royalty (NSR) and a 7 1/2% Gross Rock Royalty
(GRR).  1 1/2% of the NSR can be acquired for $1.0 million within 12 months from
the  commencement of commercial  production.  Mr. Barton is required to keep the
claims in good  standing for at least 18 months from the date of the  agreement.
In addition,  Mr.  Barton will provide  geological  consulting  services for the
claims and will  maintain the claims in good  standing for a period of 36 months
with fees advanced by the Company prior to the anniversary  dates from signature
of the  agreement.  Said fees are to be deducted from the total cost.  All costs
related to this claim have been expensed in accordance  with Generally  Accepted
Accounting Principals for the industry.

         On April 22, 2003, the Company  acquired the  outstanding  common share
(one common  share) of New Heights  Capital  Corporation,  an inactive  Canadian
corporation, for the purpose of recording the Company's Canadian "Ritz Claim" in
a Canadian  corporation  as required.  The "Ritz Claim" was  transferred  to the
subsidiary in exchange for the subsidiary's  outstanding  common share of stock.
New Heights  Capital  Corporation is a wholly owned  Canadian  subsidiary of the
Company.










                                       16

<PAGE>



                              CALIBER ENERGY, INC.
                         (An Exploration State Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (continued)

NOTE 9 - MINERAL RIGHTS (continued)

         On July 26, 2004,  the Company  executed a Property  Option  Agreements
with Louvicourt Gold Mines,  Inc.  ("Louvicourt")  (see Note 3) to acquire a 75%
interest in the Tudor Gold  Property.  The Company  agreed to make the following
cash and share option payments to Louvicourt:

         1. $55,000 upon the full execution of the Agreement.
         2.  $55,000  on or before one year from the date of full  execution  of
         this  Agreement.  3. 100,000 shares of common stock upon full execution
         of this  Agreement,  and 4. 200,000 shares of common stock on or before
         one year from the date of full
                  execution of this Agreement.

         The Company also agreed to fund work programs on the mineral  claims by
advancing exploration funds to Louvicourt on the following basis:

         1.       by no later  than July 31,  2004,  the  Company  will  advance
                  Exploration Funds of $150,000
         2.       by no later than one year from the signing of this  Agreement,
                  the  Company  will  advance  additional  Exploration  Funds of
                  $350,000;
         3.       by no later than two years from the signing of this Agreement,
                  the  Company  will  advance  additional  Exploration  Funds of
                  $250,000; and
         4.       by no later than 4 years from the  signing of this  Agreement,
                  the  Company  will  advance  additional  Exploration  Funds of
                  $1,250,000.

         Provided  the Company has made the option  payments  and  advanced  the
exploration  funds required for work programs  costing a total of $750,000,  the
Company  shall have  earned an  immediately  vested 50%  interest in the mineral
claims.  Provided  the Company has made the option  payments  and  advanced  the
exploration funds required for work programs costing a total of $1,250,000,  the
Company shall have earned an immediately  vested  additional 25% interest in the
mineral  claims,  bringing the Company's total interest in the mineral claims to
75%.

         As of December 31, 2005, the Company had paid Louvicourt a cash payment
of $55,000 as part of this  agreement.  The $55,000 was expensed in 2004 as part
of exploration  costs.  The Company has accrued $150,000 in accounts payable for
the  exploration  funds due on July 31, 2004. This $150,000 was expensed in 2004
as part of exploration  costs.  The Company also expensed $19,000 in exploration
costs in 2004 related to the 100,000  shares of common stock due upon  execution
of the  agreement.  The shares were valued at $.19 per share and as of March 31,
2006, had not been issued.







                                       17

<PAGE>



                              CALIBER ENERGY, INC.
                         (An Exploration State Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (continued)

NOTE 9 - MINERAL RIGHTS (continued)

         The Tudor Gold Property is located in Tudor and  Grimsthorpe  Townships
in the  Madoc-  Bancroft  region of the  Providence  of  Ontario  and is located
approximately 100 miles northeast of Toronto,  Canada.  The property consists of
twenty-two  contiguous  unpatented mining claims containing sixty units covering
approximately   2,965  acres  of  land.   The   Company   intends  to  launch  a
comprehensive,  property wide, surface  exploration  program  immediately.  Once
further funding is acquired and the agreement can be fully executed, the Company
intends  to  follow-up  with  drill  testing  of the  mineralized  zones  of the
property.  The data derived from the drill  testing of the various  zones should
enable the Company to identify and assess gold bearing  structures to ultimately
establish the size and grade of the gold resource.

NOTE 10 -  COMMITMENTS  AND  CONTINGENCIES

         As of March 31, 2006, all activities of the Company have been conducted
by corporate  officers from either their homes or business  offices.  Currently,
there  are no  outstanding  debts  owed by the  company  for  the  use of  these
facilities and there are no commitments for future use of the facilities.

         The  Company's  "Ritz  Claims" will revert back to the seller within no
less  than a 10 day  period  if the  Company  fails to make the  $25,000  annual
advance  royalty  payments per the sales contract  commencing 36 months from the
date of the contract.

         On June 1, 2004, the Company  entered into a consulting  agreement with
Mr. Robert  McIntosh.  Mr. McIntosh will provide  geological and  administrative
services to the Company for $3,000 per month.

         Pursuant  to  consulting  agreements  dated June 1, 2004,  the  Company
agreed to pay $2,500 per month to the CFO and director of the Company and $5,000
per month to the President and director of the Company. Pursuant to a consulting
agreement  dated April 23, 2004,  the Company  agreed to pay $400 per month to a
director.

         Management  is not aware of any  contingent  matters  that could have a
material  adverse  effect  on the  Company's  financial  condition,  results  of
operations, or liquidity.








                                       18

<PAGE>



                              CALIBER ENERGY, INC.
                         (An Exploration State Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (continued)

NOTE 11 - CONVERTIBLE DEBENTURES

         On March 9, 2005, the Company executed three Convertible Debentures for
up to $870,000. The notes are due and payable in full on or before March 9, 2006
and carry an interest rate of 5% per annum.  The notes are  convertible,  at the
discretion  of the  holder,  into  shares of common  stock of the  Company  at a
conversion price of $.10 per share.

         On March 9, 2005, the Company sold $383,610 of convertible  debentures.
On that date the fair market value of the stock was $.20.  Since the fair market
value of the stock was greater than the  conversion  price of $.10,  the Company
has recognized interest expense of $383,610.

         On June 1, 2005, the Company sold $50,000 of convertible debentures. On
that date the fair  market  value of the stock was $.18.  Since the fair  market
value of the stock was greater than the  conversion  price of $.10,  the Company
has recognized interest expense of $40,000.

         On June 10, 2005, the Company sold $29,842 of  convertible  debentures.
On that date the fair value of the stock was $.16.  Since the fair market  value
of the stock was  greater  than the  conversion  price of $.10,  the Company has
recognized interest expense of $17,905.

         As of March 31, 2006, the Company had received  approximately  $463,453
from the  convertible  debentures.  As of March 31,  2006,  accrued  interest on
convertible debentures was $26,299.

NOTE 12 - OIL AND GAS PROPERTIES

         On March 28, 2005,  the Company  entered into an agreement  with Salida
Capital,  Inc.  (Salida)  whereby  the  Company  will be  entitled to 49% of the
benefits and interests earned by Salida, pursuant to an agreement between Salida
and Vega  Resources,  Ltd.  (Vega),  on  certain  lands  known  as the  Bolloque
Prospect,  located in the  Province  of  Alberta.  To earn the  interest  in the
Bolloque  Prospect,  the Company shall be required to assume the  obligations of
Salida  pursuant to Salida's  agreement  with Vega,  including the drilling of a
test well, and the drilling of two additional  option wells.  If all three wells
are not drilled and completed,  or capped and abandoned, as the case may be, the
Company  will earn no interest in the Bolloque  Prospect.  During the year ended
December 31, 2005, the Company paid $40,998 towards the drilling of wells. These
costs had been capitalized.  However, the Company was unable to advance the full
funds for the Test-Well,  and was in default pursuant to the original agreement.
On August 26, 2005,  the Company and Salida  agreed that Salida would  reimburse
the Company the full amount of its investment in the Test-Well. In consideration
for the  advancement of funds paid,  Salida will grant the Company a 10% carried
interest in the


                                       19

<PAGE>



                              CALIBER ENERGY, INC.
                         (An Exploration State Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (continued)

NOTE 12 - OIL AND GAS PROPERTIES (continued)

section of lands  earned by Salida  under the Vega  Participation  Agreement  by
virtue of the completion of the Test-Well. At December 31, 2005, the capitalized
cost  of  the  investment  in  oil  and  gas  properties  of  $40,998  has  been
reclassified  as a  receivable.  On March 3, 2006,  the  Company  received  this
payment from Salida.


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

GENERAL  - This  discussion  should  be read in  conjunction  with  Management's
Discussion and Analysis of Financial  Condition and Results of Operations in the
Company's annual report on Form 10-KSB for the year ended December 31, 2005.

PLAN OF OPERATIONS

         The  following  discussion  and  analysis  provides  information  which
management  believes is  relevant  to an  assessment  and  understanding  of our
results of operations and financial condition.  The discussion should be read in
conjunction  with our financial  statements and notes thereto  appearing in this
prospectus.

         The accompanying  financial statements have been prepared assuming that
we will continue as a going concern.  As discussed in the notes to the financial
statements,  we have experienced  losses from inception.  Our financial position
and operating results raise substantial doubt about its ability to continue as a
going  concern.  The financial  statements do not include any  adjustments  that
might result from the outcome of this uncertainty.

         The  following   discussion  and  analysis   contains   forward-looking
statements, which involve risks and uncertainties. Our actual results may differ
significantly  from the  results,  expectations  and  plans  discussed  in these
forward-looking statements.

         On January  2005,  Caliber  Energy,  Inc.  (formerly  Rincon  Resources
(OTCBB:  RIRI),  reported the completion of the channel  sampling program on the
Main  Prospect  of the Tudor  Gold  Project in Ontario  Canada.  The  channeling
sampling  program tested 3 parallel  gold-bearing  shear  structures and several
parallel sub-fractures in a 300 m section of the Main Prospect. Each of the main
structures  returned  assay  values  ranging  7.4 to  59.7  g/t Au  over  widths
averaging 0.1 to 0.5 m. Broad zones of mineralization  assaying 0.5 to +2 g/t Au
over intervals ranging 2 to 15 metres wide surround the high-grader intervals.


                                       20

<PAGE>



         The Vardy Zone is another gold  structure on the Tudor  Property and is
located 1 km north of the Main Prospect. Gold mineralization occurs in a steeply
dipping  ductile-brittle  deformation  zone  ranging 50 to 250  metres  wide and
extends over 2.6 kilometres.  The deformation zone cuts mafic metavolcanic rocks
and has strong ankerite alteration. The structure contains chlorite schists that
envelop a sheared and folded core  region of chlorite - sericite  schists.  Gold
mineralization  in the Vardy Zone is associated with  silicification  and quartz
stringer  systems  similar  to the  gold  bearing  mineralization  in  the  Main
Prospect. Native gold is also found in deformed sucrosic quartz veins that occur
in  fracture  zones and are  believed  to  represent  an older gold event in the
structure. The Vardy Zone has returned assay values up to 20 g/t Au. An historic
drill  hole  located 2 km north on the  structure  returned  2.1 g/t Au over 1.2
metres. The Tudor Gold Project is situated in the historic  Madoc-Bancroft  gold
region in  eastern  Ontario,  Canada  and is  located  in Tudor and  Grimsthorpe
Township's.  The property  consists of 22  contiguous  unpatented  mining claims
containing 60 units and covers  approximately 1,200 hectares of land. The former
Rincon  Resources  had been granted an option by  Louvicourt  Gold Mines Inc. to
acquire  50% of the mineral  rights to the  property  by  incurring  exploration
expenditures of $500,000 (US) within one year. Rincon can gain an additional 25%
title to the property by  incurring an  additional  exploration  expenditure  of
$250,000 (US) within two years.

         After careful  consideration as to the results of the Tudor Project and
the  gereral  gold  market in general,  management  on March 2, 2005  decided to
change direction from gold exploration into the energy sector.  With the current
near record  prices for most energy  commodities,  management  is of the opinion
that in order to increase  shareholder  value,  the Company  would  benefit from
energy  projects that have a low risk, high rate of return and could provide the
Company cash flow under time frames that are more favorable than metals.

         The Company also  announced it was  considering a name change and CUSIP
number that would more adequately  reflect that move into the energy sector.  In
addition,  management was reviewing several very promising projects in oil & gas
and coal that are available for immediate  acquisition,  which will fulfill this
new  direction  mandate.  Management  then  reported  that it was  currently  in
negotiations, subject to thorough and favorable due diligence on several oil and
gas projects in California and Canada as well as three advanced coal projects of
outstanding merit in Eastern Europe and Canada. The Company was to report on the
ongoing developments once formal agreements have been executed.

         On March 14th,  2005, the Company  announced the name change to Caliber
Energy,  Inc. In addition,  corporate  office moved to 11300 West Olympic Blvd.,
Suite 800 Los  Angeles,  CA.  Corporate  Counsel  was  changed  to  Dieterich  &
Associates of Los Angeles.

         Caliber discussed initial details of a prospective Russian coal project
located in the Yakutia  Region.  Management  believed that the name change would
better  reflect  the  mandated  change  into energy  sector  projects.  Official
notification  of the name change and new CUSIP  number was  expected  shortly at
which time the Company was to advise shareholders as to the effective timing and
new trading symbol. Management wished to emphasize that there will be no changes
to the capitalization of the Company.  Caliber Energy, Inc. also announced plans
to pursue avenues of debt

                                       21

<PAGE>



financing for the upcoming  projects and does not  anticipate  extensive  equity
dilution through financings.

         The Company  detailed  initial  disclosure on coal projects that it was
currently in  negotiations  to acquire,  subject to thorough and  favorable  due
diligence,  on three  advanced  coal  projects of  outstanding  merit in Eastern
Europe and Canada. This due diligence is ongoing, and is now pleased to announce
that it has also formed a  strategic  partnership  to explore  and develop  coal
projects in the Yakutia region of eastern Russia.  This prolific  coal-producing
region of Russia has published reports that list over 900 explored coal deposits
and  occurrences.  This  includes  large  undeveloped  resources  of high demand
metallurgical grade coal. Under the terms of the proposed  exploitation  venture
with the Russian  partner,  the Company will commit to finance  exploration  and
development of a new metallurgical coal project. By providing project financing,
equipment and technology,  the Company will be granted a portion of revenue from
sales contracts already in place to supply  metallurgical grade coal to existing
buyers in the Far East.

         In a related corporate  development,  the Company announced that it had
appointed  Mr.  David  Naylor as a  director  and Chief  Financial  Officer.  He
replaces Mr. Brian Rhodes. Mr. Naylor is a Certified Management Accountant (CMA)
with over fifteen years of  experience  in various roles that include  financial
management and public company accounting expertise.

         On March 18, 2005 official  notification on the name change was made to
Caliber  Energy,  Inc. and that the company  would as of the  effective  date of
March 21, 2005,  trade under the symbol (OTCBB:  CALB). The Company was issued a
new CUSIP number, 13000A100.

         On  March  14th,  the  Company  announced  it had  executed  a  farm-in
agreement with a private Nevada company to acquire a 49% working interest in the
Belloque  Project.  Under  the  terms of the  agreement,  Caliber  will earn its
working interest by drilling,  casing and completing one exploratory well on the
leases.

         The  Belloque  Project  consists  of a  Leduc  (Devonian)  reef  target
underlying  three sections of Petroleum and Natural Gas leases.  Three other P &
NG leases are included in the project  area.  The Project  lands  consist of six
sections of P & NG rights leased from the Crown,  three  sections are thought to
overly a Leduc reef build-up on the edge the Cooking Lake platform.

         Leduc reef fields  further south from this play have had oil production
rates of several hundred barrels per day and better wells have produced over one
million barrels of oil. Oil well spacing is normally 4 wells per section.  Wells
in the area that have  penetrated  the  flanks  of the reef have  tested  water,
showing that there is porosity and permeability  within the Leduc zone. The play
is predicated on there being oil trapped in the top of the reef.

         Most wells in the area were  drilled  for  Mannville  sands and natural
gas. Gas production is occurring from these sands under the project lands. These
gas rights are excluded from the project  farm-in lands,  as other oil companies
own  them but  show  the  presence  of  economic  hydrocarbons.  Mapping  of the
shallower zones indicate that there is structural drape over an underlying reef,
the

                                       22

<PAGE>



Leduc target horizon. A seismic line has been purchased and is being reprocessed
to confirm that the reef is present.

         The Wabamun  Formation,  about 200 meters  shallower than the Leduc, is
often  productive  where there is an underlying Leduc reef. The Wabamun tends to
be more uniform in thickness but drape across the underlying reef creates a trap
and a reservoir if porosity has been  developed in the zone. The Wabamun thus is
a  secondary  target in this  project.  The Nisku  Formation,  about 100  meters
shallower than the Leduc also forms reservoirs in the same way.

         The first well will be spudded  following  seismic  interpretation  and
completion  of geologic  mapping to determine a suitable  location for drilling.
Drilled is planned in May-June  2005 after spring  breakup is over and road bans
restricting movement of heavy equipment by the Province are lifted. The depth to
the top of the Leduc is about  1000  meters  and a cased and  completed  well is
estimated to cost between $500,000 and $600,000.

         On  April  4th  the   Company   reported  it  had   commenced   seismic
interpretation  and geologic mapping to determine a suitable target location for
drilling an oil well on the Bolloque Project; a Leduc oil play. The seismic line
purchased and being interpreted  covers an area where the Company has identified
three  sections that cover a topographic  high,  potentially  coincident  with a
Leduc reef that may represent the extension of the prolific Leduc D-3 pools. The
project is located 60 miles directly north of Edmonton,  Alberta in the prolific
oil producing Leduc area.  Leduc "reef" oil fields south of Bolloque contain oil
wells that currently produce oil at rates of several hundred barrels per day and
also wells that have  cumulatively  produced over one million barrels of oil. Of
the 680 oil wells drilled in D-3 pools, the production has been between a low of
145 and a high 400  barrels  per day with pay  thickness  of 35 to 142 feet.  On
April 7th, the Company reported that it had returned  29,975,000 common Reg. 144
shares  to  treasury.  This  represents  a  32.4%  decrease  of the  issued  and
outstanding shares of the Company, which now has been reduced from 92,570,000 to
62,595,000.

         On April 18th,  Caliber  reported that a third a third party  reservoir
engineer  and an  independent  geophysicist  completed  the  seismic  review and
interpretation  on the  Bolloque  Project.  The  seismic  line that  crosses the
Company's leases is a previously shot, east-west, 2-D seismic line. The line was
purchased and re-interpreted by the independent  consultants to the Company. The
interpretation  confirms  that a Leduc  Pinnacle  Reef buildup  exists under the
Company leases.

         An estimate made from the seismic  section  indicates a reef buildup of
approximately 30 meters (98.5 feet). Drill Stem Tests (D.S.T.'s) of this zone in
nearby  wells  gave  significant  fluid  recoveries  from the flanks of the reef
indicating  good  permeability.  The reef has never  been  tested for oil at its
highest  development  coincident  to a  topographic  high.  The Company plans on
drilling at the highest location on the leases to test for an oil  accumulation.
The presence of a strong  structural trap has increased  greatly the probability
of success of  discovering a significant  oil  accumulation  on the leases.  The
Company now feels that the  Bolloque may  represent a northern  extension of the
historic  Leduc reef and that it may  represent  the  extension  of the prolific
Leduc D-3 pools. In a direct analog  comparison,  the Acheson D-3A pool with 100
oil wells with an average pay thickness of 82 feet and had peak production rates
of 300 barrels per day.


                                       23

<PAGE>



         The  project  is  located 60 miles  north of  Edmonton,  Alberta in the
prolific  oil  producing  Leduc  area.  Leduc Reef oil fields  south of Bolloque
contain oil wells that produce oil at rates of several  hundred  barrels per day
and also well that have  cumulatively  produced over one million barrels of oil.
Of the 680 oil wells drilled in D-3 pools, the production has been between a low
of 145 and a high of 400 barrels per day with pay  thickness  of 35 to 142 feet.
Drilling as reported  earlier is planned during  May-June 2005 following  spring
breakup when road bans  restricting  movement of heavy equipment by the Province
are lifted.  The well depth to test the top of the Leduc is approximately  3,300
feet (1,100  metres) and an oil well is estimated to cost  $280,000 for dry hole
and an  additional  $125,000  to complete  the well.  Caliber is earning its 49%
working  interest by drilling,  casing and completing an exploratory well on the
leases.

         On May 2nd, the Company  reported that it was moving  forward in making
the necessary  preparations for the spud of the first oil well at Bolloque.  The
Company and the  operator of the  project,  Transaction  Oil and Gas Ventures of
Calgary have begun the well licensing,  required  permitting and have picked the
well location. Site preparations will commence when the government road bans are
lifted,  anticipated to be shortly.  The spud preparations of the first oil well
at Bolloque are for the well designation of  7-1-64-25W4M.  Caliber is advancing
funds  required to complete the well  licensing and site  preparations  totaling
$45,000 as part of the executed  Authority  for  Expenditure  (A.F.E.)  totaling
$329,000 to drill,  test and case the well. Access to the well site is excellent
and  government  road bans are now being lifted.  The first well location is 200
yards from a producing  gas well and 2 miles from a municipal  road.  Caliber is
sourcing a drilling rig for the project.

         Caliber  reported that the Company's share of a "Coal Sales  Agreement"
has been finalized. Caliber's interest in the Sales Agreement for 500,000 metric
tonnes of metallurgical  grade coal is anticipated to generate revenue in excess
of one  million  dollars to the Company  over the next 6 months.  The Company is
moving forward on the first coal shipment that will commence once export permits
are issued and credit facilities are in place.

         The Company updated the Bolloque Oil Play.  Caliber recently  announced
the  preparations  for the spud of the first oil well at the  Bolloque  Project,
Alberta  Canada.  The well  designation is 7-1-  64-25W4M.  Caliber is advancing
funds  required to complete the well  licensing and site  preparations  totaling
$45,000 as part of the executed  Authority  for  Expenditure  (A.F.E.)  totaling
$329,000 to drill,  test and case the well. Access to the well site is excellent
and  government  road bans are now being lifted.  The first well location is 200
yards from a producing  gas well and 2 miles from a municipal  road.  Caliber is
sourcing a drilling rig for the project.  A spud date has been  estimated for on
or around June 4th, 2005 dependent on rig availability.

         On September 28, the Company  updated the progress and events  relating
to the  Company's  energy  projects.  Caliber  has now signed a Letter of Intent
(L.O.I) to acquire certain Coal Mining Licenses in the  Sakha-Yakutsk  region of
the Russian Federation.  The coal resource on the licenses is reported to exceed
300 million  tonnes.  The  acquisition is subject to a due diligence  process as
well as site and facilities  inspection.  Recently,  a major Russian  integrated
mining  and steel  group was  reported  to have  paid  over $10  million  for an
equivalent  coal  license in the  region.  Caliber  maintains  a  strategic  and
competitive  advantage  through its  existing  joint  venture  partnership  with
Canadian based Dolman  Investments Ltd. and local Russian operating groups.  The
Company also wishes to report that the scope of the previously  announced  "Coal
Sales  Agreement" from sales contracts to export coal has increased from 500,000
metric tonnes of  metallurgical  grade coal to include an additional 3.0 million
tonnes of thermal coal. The timing of the implementation of this coal sales

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program has encountered a delay due to the increased scope of the aforementioned
additional  thermal coal contact.  The Company will report when these  important
sales contracts are finalized.

         The  Company has reduced its  participation  in the  Bolloque  oil play
located in Alberta  Canada in order to fully  concentrate  on the  Russian  coal
ventures.  Caliber has retained a 10% carried  working  interest in the Bolloque
Project  and the  7-1-64-25W4M  well.  Caliber  has been  carried  on all  costs
pertaining to the drilling and  completion of the 7-1 well.  Caliber will report
on the results of the well testing when available.

SUBSEQUENT EVENTS

         The Company began negotiations with a private Company to participate in
oil and gas  exploration  in Kansas.  The oil and gas boom returned to Kansas in
2005. Its impact on the state economy  depends on how long it lasts.  Kansas oil
and gas production was worth $4.7 billion in 2005, according to estimates by the
Kansas  Geological  Survey at the  University of Kansas.  The total value of oil
produced in the state in 2005 was estimated at about $1.8 billion, up from about
$500 million in 2004.  The total value of natural gas  production  was more than
$2.8  billion in 2005,  up from $2.2  billion  the  previous  year.  Natural gas
production in 2005 is estimated at 380 billion cubic feet, down about 20 billion
cubic feet from the previous year. The statewide peak was 990 billion cubic feet
in 1970.

         Caliber  will join  other  partners  that have  acquired  participation
rights  in a large  data  base  that  includes  a  geophysical  survey  covering
approximately  one million acres,  located in central Kansas,  covering parts of
Ellsworth,  Salina,  McPherson,  Reno, Harvey,  Kingman,  and Sedgwick counties.
Total  cumulative oil  production  through 1999 from these counties is more than
978 million  barrels of oil. The  geophysical  survey  utilized RAM  technology,
owned by Paramount  Energy  Corp.,  which is a geophysical  methodology  used to
highlight oil and gas deposits. Unlike 2-D and 3-D seismic methods, which gather
information  based upon  artificially  induced sonic  responses  recorded at the
surface,  RAM technology  identifies "unique bright spots" using its proprietary
software to process certain aspects of the earth's magnetic field data.

         Data is collected by a low flying  aircraft  equipped with  specialized
equipment  and  then  analyzed  by RAM  software.  These  "unique  bright  spot"
anomalies  can be  correlated  to  near-surface  alterations  caused by the slow
geochemical  processes  that  occur  over  both  oil and gas  deposits.  The RAM
technology is an indirect hydrocarbon indicator independent of structure so it a
good tool in areas where  seismic is not.  Since RAM data is  collected  from an
aircraft, large acreage surveys can be acquired many times faster and many times
less  costly  than   traditional   seismic.   That  makes  RAM  an  ideal  first
reconnaissance  tool.  Several  identified RAM anomalies  interpreted within the
survey area are believed to have hydrocarbon  potential over  multi-sections  of
lands that have never been  tested  with a drill  bit.  Most  nearby  production
within this region of the Central Kansas  Platform  produces from  Mississippian
age and older limestone rocks above the Arbuckle dolomite formation. Some of the
accumulations  of hydrocarbons  are  stratagraphically  trapped and unrelated to
structure and therefore not easily  identifiable  by  traditional  seismic.  The
magnetic survey and  interpretation of the region is of excellent  quality.  Oil
wells will be drilled to test the most promising  prospects to the deepest known
petroleum  formation,  the Arbuckle,  generally  less than 4000' in depth in the
Central Kansas  Platform.  Drilling costs have been estimated to be in the order
of $200,000 for a cased and completed well.


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<PAGE>



         The Central Kansas  Platform  covered by the survey and  interpretation
contains some of the most prolific  production  from shallow depths in that part
of the country.  There are many  established oil fields within the boundaries of
the survey area. The survey  indicates  "bright spots" that could be hydrocarbon
accumulations  not  yet  discovered  by  traditional   seismic  or  other  older
exploration technologies.  Multiple prospects are expected to be generated after
more extensive field tests. When formalized,  Caliber will join partners who are
proceeding  to further  evaluate  the most  prospective  oil and gas targets for
drilling utilizing  complimentary  geochemical and geophysical  methodologies in
their field testing. The operator will then recommend leases for acquisition and
the exploration program will commence.

         Caliber will join other  Companies  which are Silver  Star,  with a 20%
working interest,  Fidelis Energy,  Inc. which has a 25% working  interest,  and
Cascade Energy, Inc. which also has a 25% working interest.  The private company
will be  carried  through  the  drilling  and  completion  of the  first two (2)
exploratory  wells. The 70% working interest partners will pay 100% of the costs
of drilling and completing the initial two wells.  Subsequent to those first two
wells,  all  participants  in the play will  contribute on a straight up working
interest basis.

ITEM 3.  CONTROLS AND PROCEDURES

         The Company's Chief Executive  Officer and Chief Financial  Officer are
responsible for establishing and maintaining  disclosure controls and procedures
for the Company.

         (a) Evaluation of Disclosure Controls and Procedures

         As of the end of the period covered by this report, the Company carried
out an  evaluation,  under the  supervision  and with the  participation  of the
Company's management, including the Company's President, of the effectiveness of
the design and operation of the  Company's  disclosure  controls and  procedures
pursuant to Rule 13a-15 under the  Securities  Exchange Act of 1934,  as amended
(the  "Exchange  Act").  Based  upon the  evaluation,  the  Company's  President
concluded that, as of the end of the period, the Company's  disclosure  controls
and  procedures  were effective in timely  alerting him to material  information
relating to the Company  required to be included in the reports that the Company
files and submits pursuant to the Exchange Act.

         (b) Changes in Internal Controls

         Based on his evaluation as of March 31, 2006, there were no significant
changes in the Company's  internal  controls over financial  reporting or in any
other areas that could  significantly  affect the  Company's  internal  controls
subsequent to the date of his most recent  evaluation,  including any corrective
actions with regard to significant deficiencies and material weaknesses.

                           PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

         None.




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ITEM 2.  CHANGES IN SECURITIES

         None.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

         None.

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

         None.

ITEM 5.  OTHER INFORMATION

         None.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

Exhibit
Number          Title of Document

31.1     Certification  Pursuant  to Section  302 of the  Sarbanes-Oxley  Act of
         2002.
31.2     Certification  Pursuant  to Section  302 of the  Sarbanes-Oxley  Act of
         2002.
32.1     Certification  Pursuant  to Section  906 of the  Sarbanes-Oxley  Act of
         2002.
32.2     Certification  Pursuant  to Section  906 of the  Sarbanes-Oxley  Act of
         2002.

(b) Reports on Form 8-K filed.

         None.




















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<PAGE>



                                   SIGNATURES

         In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.


Caliber Energy, Inc.
(Registrant)


DATE:      May 12, 2006




/S/     Graeme Scott
--------------------
Graeme Scott
President, CEO and Director
(Principal Executive Officer)

/S/     David Naylor
--------------------
David Naylor
Treasurer, CFO and Director
(Principal Financial Officer)

























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