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U. S. Securities and Exchange Commission

Washington, D. C. 20549

FORM 10-QSB



|x | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ---------------------------------------------------------------------------------

For the quarterly period ended June 30, 2006



| ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE EXCHANGE ACT
|- | ----------------------------------------------------------------------

For the transition period from  to
.

Commission
File No. 0-9458

Eagle Exploration Company

(Exact name of registrant as specified in its character)



|                                                               |  |                                     
|-------------------------------------------------------------- |  | ------------------------------------
|Colorado                                                       |  | 84-0804143                          
|(State or other jurisdiction of incorporation or organization) |  | (IRS Employer Identification Number)

1801 Broadway Street, Suite 1010, Denver, Colorado 80202

(Address and zip code of principal executive offices)

Registrants telephone number, including area code: (303) 296-3677

Indicated by check mark
whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days. Yes x    No ̈.

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS 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 court.

Yes x    No ̈.

Indicate the number of shares outstanding of each of the issuers classed of common equity, as of the latest practicable date:



|             |  |                 
|------------ |  | ----------------
|Class        |  | Number of Shares
|Common stock |  | 3,072,836       

Transitional Small Business Disclosure format: (Check one) Yes ̈No x.



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EAGLE EXPLORATION COMPANY AND SUBSIDIARIES

INDEX TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS



|                                            |  |                                                                                                      |  |     
|------------------------------------------- |  | ---------------------------------------------------------------------------------------------------- |  | ----
|                                            |  |                                                                                                      |  | Page
|PART I                                      |  | FINANCIAL INFORMATION                                                                                |  |     
|                                            |  |                                                                                                     
|Item 1                                      |  | Condensed Consolidated Balance Sheets March 31, 2006, and June 30, 2006 (Unaudited)                 |  | 2   
|                                            |  |                                                                                                     
|                                            |  | Unaudited Condensed Consolidated Statements of Operations Three Months Ended June 30, 2006 and 2005 |  | 3   
|                                            |  |                                                                                                     
|                                            |  | Unaudited Condensed Consolidated Statement of Cash Flows Three Months Ended June 30, 2006 and 2005  |  | 4   
|                                            |  |                                                                                                     
|                                            |  | Notes to Unaudited Condensed Consolidated Financial Statements                                       |  | 5   
|                                            |  |                                                                                                     
|Item 2                                      |  | Managements Discussion and Analysis ofFinancial Condition and Results of Operations                 |  | 6   
|                                            |  |                                                                                                     
|PART II                                     |  |                                                                                                      |  |     
|                                            | 
|Item 4  Disclosure Controls and Procedures |  | 7                                                                                                   
|                                            | 
|Item 6. Exhibits and reports on Form 8-K    |  | 7                                                                                                   
|                                            | 
|SIGNATURES                                  |  | 8                                                                                                   



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EAGLE EXPLORATION COMPANY AND SUBSIDIARIES



|PART I | FINANCIAL INFORMATION
|------ | ---------------------

Item 1

Condensed Consolidated Balance Sheets



|                                                                                                                                                  |  |                |            |   |               |   |            |  
|------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------- | ---------- | - | ------------- | - | ---------- | -
|                                                                                                                                                  |  | March 31, 2006 |            |   | June 30, 2006 |  
|                                                                                                                                                  |  |                |            |   | (Unaudited)   |  
|Assets                                                                                                                                            |  |                |            |   |               |   |            |  
|Current assets                                                                                                                                    |  |                |            |   |               |   |            |  
|Cash and cash equivalents                                                                                                                         |  | $              | 750,843    |   |               | $ | 671,506    |  
|Marketable securities                                                                                                                             |  |                | 98,776     |   |               |   | 82,815     |  
|Accounts receivable                                                                                                                               |  |                | 7,208      |   |               |   | 9,724      |  
|                                                                                                                                                  |  |                |            |   |               |   |            |  
|Total current assets                                                                                                                              |  |                | 856,827    |   |               |   | 764,045    |  
|                                                                                                                                                  |  |                |            |   |               |   |            |  
|Non-current assets                                                                                                                                |  |                |            |   |               |   |            |  
|Office furniture, equipment and other, net of accumulated depreciation of $212,298 and $213,206 at March 31, 2006 and June 30, 2006,
respectively |  |                | 43,730     |   |               |   | 42,822     |  
|Investment in option to purchase real estate                                                                                                      |  |                | 265,067    |   |               |   | 293,926    |  
|Other assets                                                                                                                                      |  |                | 24,837     |   |               |   | 24,837     |  
|                                                                                                                                                  |  |                |            |   |               |   |            |  
|Total non-current assets                                                                                                                          |  |                | 333,634    |   |               |   | 361,585    |  
|                                                                                                                                                  |  |                |            |   |               |   |            |  
|Total assets                                                                                                                                      |  | $              | 1,190,461  |   |               | $ | 1,125,630  |  
|                                                                                                                                                  |  |                |            |   |               |   |            |  
|Liabilities and Stockholders Equity                                                                                                              |  |                |            |   |               |   |            |  
|Current liabilities                                                                                                                               |  |                |            |   |               |   |            |  
|Accounts payable                                                                                                                                  |  | $              | 1,060      |   |               | $ | 1,060      |  
|Accrued expenses                                                                                                                                  |  |                | 11,385     |   |               |   | 11,385     |  
|                                                                                                                                                  |  |                |            |   |               |   |            |  
|Total current liabilities                                                                                                                         |  |                | 12,445     |   |               |   | 12,445     |  
|                                                                                                                                                  |  |                |            |   |               |   |            |  
|Stockholders equity                                                                                                                              |  |                |            |   |               |   |            |  
|Common stock, no par value; authorized 10,000,000 shares; 3,072,836 shares issued and outstanding                                                 |  |                | 6,632,998  |   |               |   | 6,632,998  |  
|Accumulated deficit                                                                                                                               |  |                | (5,491,130 | ) |               |   | (5,543,253 | )
|Unrealized gain on investments available-for-sale                                                                                                 |  |                | 36,148     |   |               |   | 23,440     |  
|                                                                                                                                                  |  |                |            |   |               |   |            |  
|                                                                                                                                                  |  |                | 1,178,016  |   |               |   | 1,113,185  |  
|                                                                                                                                                  |  |                |            |   |               |   |            |  
|Total liabilities and stockholders equity                                                                                                        |  | $              | 1,190,461  |   |               | $ | 1,125,630  |  
|                                                                                                                                                  |  |                |            |   |               |   |            |  

See notes to unaudited condensed consolidated financial statements.



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EAGLE EXPLORATION COMPANY AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Operations



|                                                             |  |                                     |           |   |      |   |           |  
|------------------------------------------------------------ |  | ----------------------------------- | --------- | - | ---- | - | --------- | -
|                                                             |  | For the Three Months Ended
June 30, |          
|                                                             |  | 2006                                |           |   | 2005 |  
|Revenues                                                     |  |                                     |           |   |      |   |           |  
|Oil and gas                                                  |  | $                                   | 12,206    |   |      | $ | 10,977    |  
|                                                             |  |                                     |           |   |      |   |           |  
|Total revenue                                                |  | $                                   | 12,206    |   |      | $ | 10,977    |  
|                                                             |  |                                     |           |   |      |   |           |  
|Expenses                                                     |  |                                     |           |   |      |   |           |  
|Depreciation                                                 |  |                                     | 908       |   |      |   | 1,813     |  
|General and administrative expenses                          |  |                                     | 53,441    |   |      |   | 56,222    |  
|                                                             |  |                                     |           |   |      |   |           |  
|Total expense                                                |  |                                     | 54,349    |   |      |   | 58,035    |  
|                                                             |  |                                     |           |   |      |   |           |  
|Loss from operations                                         |  |                                     | (42,143   | ) |      |   | (47,058   | )
|                                                             |  |                                     |           |   |      |   |           |  
|Other income (expense)                                       |  |                                     |           |   |      |   |           |  
|Interest and dividend income                                 |  |                                     | 7,411     |   |      |   | 4,949     |  
|Equity in losses in LLC                                      |  |                                     | (17,391   | ) |      |   | 0         |  
|                                                             |  |                                     |           |   |      |   |           |  
|Total other (expense)                                        |  |                                     | (9,980    | ) |      |   | 4,949     |  
|                                                             |  |                                     |           |   |      |   |           |  
|Net loss before other comprehensive income                   |  |                                     | (52,123   | ) |      |   | (42,109   | )
|                                                             |  |                                     |           |   |      |   |           |  
|Other comprehensive income                                   |  |                                     |           |   |      |   |           |  
|Unrealized loss on investments available-for-sale            |  |                                     | (12,708   | ) |      |   | (3,995    | )
|                                                             |  |                                     |           |   |      |   |           |  
|Total other comprehensive income loss                        |  |                                     | (12,708   | ) |      |   | (3,995    | )
|                                                             |  |                                     |           |   |      |   |           |  
|Comprehensive loss                                           |  | $                                   | (64,831   | ) |      | $ | (46,104   | )
|                                                             |  |                                     |           |   |      |   |           |  
|Basic and diluted weighted average common shares outstanding |  |                                     | 3,072,836 |   |      |   | 3,072,836 |  
|                                                             |  |                                     |           |   |      |   |           |  
|Basic and diluted loss per common share                      |  | $                                   | (.02      | ) |      | $ | (.02      | )
|                                                             |  |                                     |           |   |      |   |           |  

See notes to unaudited condensed consolidated financial statements.



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EAGLE EXPLORATION COMPANY AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Cash Flows



|                                                                            |  |                                     |         |   |      |   |         |  
|--------------------------------------------------------------------------- |  | ----------------------------------- | ------- | - | ---- | - | ------- | -
|                                                                            |  | For the Three Months Ended
June 30, |        
|                                                                            |  | 2006                                |         |   | 2005 |  
|Cash flows from operating activities                                        |  |                                     |         |   |      |   |         |  
|Net loss                                                                    |  | $                                   | (52,123 | ) |      | $ | (42,109 | )
|                                                                            |  |                                     |         |   |      |   |         |  
|Adjustments to reconcile net loss to net cash used in operating activities: |  |                                     |         |   |      |   |         |  
|Depreciation                                                                |  |                                     | 908     |   |      |   | 1,813   |  
|Equity in losses in LLC                                                     |  |                                     | 17,391  |   |      |   | 0       |  
|Change in assets and liabilities:                                           |  |                                     |         |   |      |   |         |  
|(Increase) Decrease in accounts receivable                                  |  |                                     | (2,516  | ) |      |   | 372     |  
|                                                                            |  |                                     |         |   |      |   |         |  
|                                                                            |  |                                     | 15,783  |   |      |   | 2,185   |  
|                                                                            |  |                                     |         |   |      |   |         |  
|Net cash flows used in operating activities                                 |  |                                     | (36,340 | ) |      |   | (39,924 | )
|                                                                            |  |                                     |         |   |      |   |         |  
|Cash flows from investing activities                                        |  |                                     |         |   |      |   |         |  
|Payment of contribution to equity investment in LLC                         |  |                                     | (46,250 | ) |      |   | 0       |  
|Proceeds from the sale of investments available-for-sale                    |  |                                     | 3,253   |   |      |   | 0       |  
|                                                                            |  |                                     |         |   |      |   |         |  
|Net cash flows used in investing activities                                 |  |                                     | (42,997 | ) |      |   | 0       |  
|                                                                            |  |                                     |         |   |      |   |         |  
|Net (decrease) in cash and cash equivalents                                 |  |                                     | (79,337 | ) |      |   | (39,924 | )
|Cash and cash equivalents, beginning of year                                |  |                                     | 750,843 |   |      |   | 938,301 |  
|                                                                            |  |                                     |         |   |      |   |         |  
|Cash and cash equivalents, end of quarter                                   |  | $                                   | 671,506 |   |      | $ | 898,377 |  
|                                                                            |  |                                     |         |   |      |   |         |  

Supplemental disclosure of cash flow information:

The change in unrealized loss on investments available for sale for the three months ended June 30, 2006 and June 30, 2005 was $12,708 and
$3,995, respectively.

See notes to unaudited condensed consolidated financial statements.



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EAGLE EXPLORATION COMPANY AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements

Opinion of Management

1. The financial information furnished reflects all adjustments, which are, in the opinion of management, necessary for a fair presentation of the
financial position at June 30, 2006 and March 31, 2006, and of the condensed consolidated statements of operations and condensed consolidated statements of cash flows for the three months ended June 30, 2006 and 2005. The results of
operations and statements of cash flows for the periods presented are not necessarily indicative of those to be expected for the entire year.

2. The
accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles. For further information refer to the audited consolidated financial statements and notes thereto for the year ended March 31, 2006, included in the Companys 10-KSB filed with
the Securities and Exchange Commission on June 29, 2006.



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EAGLE EXPLORATION COMPANY AND SUBSIDIARIES



|Item 2: | Managements Discussion and Analysis of Financial Condition and Results of Operation
|------- | ------------------------------------------------------------------------------------

Financial Condition, Liquidity and Capital Resources

The Companys cash at June 30, 2006 was $671,506 as compared to cash for the year ended March 31, 2006 of $750,843. This decrease in cash of $79,337 was primarily due to a contribution to the equity
investment and interest expense in the Buffalo Highlands, LLC, and operating costs.

Stockholders equity decreased from $1,178,016 at
March 31, 2006 to $1,113,185 at June 30, 2006 or $64,831. The Company incurred an unrealized loss on investments available-for-sale for the period ended June 30, 2006 of $12,708 and a net loss before other comprehensive income of
$52,123.

Results of Operations

For the Three Months Ended June 30, 2006, Compared to the Three Months Ended June 30, 2005.

For the three months ended June 30, 2006, the Companys oil and gas revenue was $12,206 as compared to $10,977 for the three months ended June 30, 2005. This increase in revenue is primarily due to the increased price in oil
and gas. Other expenses of $9,980 include interest and dividend income of $7,411 offset by the equity losses in LLC of $17,391 for the period ended June 30, 2006 and $4,949 for the period ended June 30, 2005.

Unrealized loss on investments available-for-sale was $12,708 for the period ended June 30, 2006, and $3,995 for the period ended June 30,
2005. This resulted in a comprehensive loss of $64,831 for the period ended June 30, 2006 and $46,104 for the period ended June 30, 2005.



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PART II

Item 4  Disclosure Controls and Procedures

As of the end of the period covered by this report, the Company
conducted an evaluation, under the supervision and with the participation of the principal executive officer and principal financial officer, of the Companys disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under
the Securities Exchange Act of 1934 (the Exchange Act)). Based on this evaluation, the principal executive officer and principal financial officer concluded that the Companys disclosure controls and procedures are effective to
ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules
and forms. There was no change in the Companys internal control over financial reporting during the Companys most recently completed fiscal quarter that has materially affected, or is reasonably likely to materially affect, the
Companys internal control over financial reporting.

Item 6. Exhibits and reports on Form 8-K

(a) Exhibits



|             |  |                                                                                                                                                           
|------------ |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit 31.1 |  | Certification of President/Chief Executive Officer Pursuant to 18 USC Section 1350, as adopted pursuant to section 302 of the Sarbanes-Oxley Act of 2002  
|             | 
|Exhibit 31.2 |  | Certification of Secretary/Vice President Operations Pursuant to 18 USC Section 1350, as adopted pursuant to section 302 of the Sarbanes-Oxley Act of 2002
|             | 
|Exhibit 32.1 |  | Certification of President/Chief Executive Officer Pursuant to 18 USC Section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002  
|             | 
|Exhibit 32.2 |  | Certification of Secretary/Vice President Operations Pursuant to 18 USC Section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002

(b) No reports on Form 8-K have been filed during the quarter ended June 30, 2006.



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SIGNATURES

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



EAGLE EXPLORATION COMPANY (Registrant)By:

/s/ Raymond N. JoeckelRaymond N. Joeckel President/Chief Executive
Officer


By:

/s/ Paul M. JoeckelSecretary/Chief Financial Officer


Date: August 11, 2006



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