UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                    FORM 10-Q

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

                       For the quarterly period ended March 31, 2008

                                             OR

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

        For the transition period from ________ to  ________

                             Commission File Number: 000-52419

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

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

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

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

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

Indicate by check mark whether the Registrant is a large  accelerated  filer, an
accelerated filer, a non-accelerated  filer, or a smaller reporting company. See
the definitions of "large accelerated  filer,"  "accelerated filer" and "smaller
reporting company" in Rule 12b-2 of the Exchange Act. (Check One):

      Large accelerated filer [  ]                Accelerated filer [  ]

      Non-accelerated filer [  ]                  Smaller reporting company [X]
(Do not check if a smaller reporting company)

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

         Class of Stock        No. Shares Outstanding          Date

            Common                 81,219,358               March 10, 2008

<PAGE>


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

                                               (Unaudited)
                                             March 31, 2008   December 31, 2007
                  ASSETS
CURRENT ASSETS
  Accounts receivable                        $           -     $      14,339
  Other receivable                                       -            63,386
  Prepaid expenses and deposits                     21,250           115,147
                                                    21,250           192,872
                                             -------------     -------------
Equipment, net                                           -            14,019
Oil and gas properties, full cost method,
   net of depletion                             23,030,925        22,945,468
Deposit on acquisition                             639,487           639,487
Refundable deposit                                       -            5,044
                                             -------------     -------------
      Total Assets                           $  23,691,662     $  23,796,890
                                             =============     =============

                  LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
  Accounts payable and accrued liabilities   $     227,670     $     821,903
  Loans payable                                    344,860           585,928
  Due to related parties                         1,367,745         1,158,415
                                             -------------     -------------
                                                 1,940,274         2,566,246

  Deferred tax liability                         6,177,000         6,177,000
  Asset retirement obligations                           -            60,692
                                             -------------     -------------
      Total Liabilities                          8,117,274         8,803,938
                                             -------------     -------------
STOCKHOLDERS' EQUITY (DEFICIT)
  Authorized (Holloman):
   10,000,000 preferred shares, par value
   $0.001 per share 150,000,000 common shares,
   par value $0.001 per share Issued and
   outstanding (Holloman):
     2,500 (December 31, 2007 - 9,000)
       preferred shares                                  3                9
     81,219,358 (December 31, 2007 - 81,219,358)
     common shares                                  81,219           81,219
  Authorized (FEH):
     10,000,000 preferred shares, par value $0.001
     150,000,000 common shares, par value $0.001
  Issued and outstanding (FEH):
     2,500,000 (December 31, 2007 - 9,000,000)
       preferred shares                              2,500            9,000
     Additional paid in capital                 17,903,746       17,903,746
     Accumulated other comprehensive
       income (loss)                                     -          (30,870)
     Deficit accumulated during the
       exploration stage                        (2,413,081)      (2,970,152)
                                             -------------     -------------
      Total Stockholders' Equity                15,574,388       14,992,952
                                             -------------     -------------
      Total Liabilities and
          Stockholders' Equity                $ 23,691,662      $23,796,890
                                              ============      ===========



                                       1
<PAGE>

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

                              Cumulative results      Three           Three
                               from May 5, 2006    Months Ended    Months Ended
                               to March 31, 2008  March 31, 2007  March 31, 2008

GENERAL AND ADMINISTRATIVE
 EXPENSES
   Consulting                       322,820               -           78,525
   Foreign exchange (gain)/loss       7,183               -             (117)
   Interest and financing costs       1,233               -              700
   Office and general               111,005               -           38,086

   Professional fees                213,405               -           53,701
   Salaries, wages, and benefits     86,666               -                -
                                 ----------       ---------       ----------
LOSS FROM CONTINUING OPERATIONS    (742,312)              -         (170,895)

NET LOSS FROM DISCONTINUED
  OPERATIONS                     (2,454,637)       (211,016)         (55,903)

GAIN ON DISPOSAL OF
  DISCONTINUED OPERATIONS           783,868               -          783,868
                                 ----------       ---------       ----------
NET LOSS                       $ (2,413,081)      $(211,016)       $ 557,071

BASIC AND DILUTED NET LOSS PER
  COMMON SHARE                                       (2,110)            0.01
                                                  ----------      -----------
WEIGHTED AVERAGE NUMBER OF BASIC AND
 DILUTED COMMON SHARES OUTSTANDING                      100       81,219,358
                                                  =========       ==========




                                       2
<PAGE>

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



                              Cumulative results      Three           Three
                               from May 5, 2006    Months Ended    Months Ended
                               to March 31, 2008  March 31, 2007  March 31, 2008

OPERATING ACTIVITIES
  Net loss from continuing
   operations                     $  41,556      $        -       $  612,973
  Adjustments to reconcile
   net loss to net cash used
   in operating activities:
     Extraordinary gain from
      divestiture                  (783,868)                        (783,868)
     Foreign exchange gain/(loss)   (37,441)              -              117
     Interest accrued and
      financing costs                   700               -              700
  Changes in non-cash working
    capital items
       Prepaid expenses
         and deposits               (21,250)              -          (21,250)
       Accounts payable and
         accrued liabilities        402,822               -           57,970
                                -----------       ---------        ---------
  Cash used by continuing
    operations                     (397,482)              -         (133,358)
                                -----------       ---------        ---------
Cash used by discontinued
    operations                     (725,006)        (78,247)         (26,768)
                                -----------       ---------        ---------
FINANCING ACTIVITIES
  Common stock issued for
    cash                             60,001               -                -
  Convertible debentures
    issued                        1,500,000               -                -
  Loans payable                     585,928               -                -
  Due to  related parties         1,978,541          10,803          820,126
                                -----------       ---------        ---------
  Cash provided by financing
     activities                   4,124,470          10,803          820,126
                                -----------       ---------        ---------
INVESTING ACTIVITIES
  Equipment acquired                (23,490)              -                -
  Petroleum and natural
    gas expenditures             (2,299,874)       (107,312)        (660,000)
  Cash acquired on
    acquisition                      12,696               -                -
  Deposit on acquisition           (639,487)              -                -
  Advances to shareholder                 -               -                -
  Repayment of advances
     to shareholder                       -         (23,593)               -
  Refundable deposit                (51,827)              -                -
                                -----------       ---------        ---------
  Cash used by investing
     activities                  (3,001,982)       (130,905)        (660,000)
                                -----------       ---------        ---------
CHANGE IN CASH                            -        (198,350)               -

CASH, BEGINNING                           -         198,761                -
                                -----------       ---------        ---------
CASH, ENDING                    $         -       $     411       $        -
                                ===========       =========       ==========
SUPPLEMENTAL DISCLOSURE:
  Interest paid                 $     9,908       $       -       $        -
  Income taxes paid             $         -       $       -       $        -

NON-CASH ACTIVITIES:
  Shares issued on conversion
    of debt                     $ 1,639,722       $       -       $        -
  Shares issued for
  property acquired             $15,903,000       $       -       $        -


                                       3
<PAGE>

                           HOLLOMAN ENERGY CORPORATION
                     (formerly Endeavor Energy Corporation)
                         (An Exploration Stage Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2008
                                   (Unaudited)

1.    BASIS OF PRESENTATION

Unaudited Interim Consolidated Financial Statements

The unaudited  interim  financial  statements of Holloman  Energy  Corporation
(the "Company") have been prepared in accordance with United States  generally
accepted accounting  principles ("GAAP") for interim financial information and
the rules and regulations of the Securities and Exchange  Commission  ("SEC").
They do not  include  all  information  and  footnotes  required  by GAAP  for
complete financial statements.  However, except as disclosed herein, there has
been no  material  changes in the  information  disclosed  in the notes to the
financial  statements  for the year ended  December  31, 2007  included in the
Company's  Annual  Report  on From  10-KSB  filed  with the SEC.  The  interim
unaudited  financial  statements  should  be read in  conjunction  with  those
financial  statements  included in Form 10-KSB.  In the opinion of management,
all adjustments considered necessary for fair presentation,  consisting solely
of normal recurring  adjustments,  have been made.  Operating  results for the
three  months  ended  March 31,  2008 are not  necessarily  indicative  of the
results that may be expected for the year ending December 31, 2008.

2.    DISCONTINUED OPERATIONS

On February 1, 2008, the Company  entered into an agreement with the Company's
former  CEO for an option to  exchange  the  Company's  interest  in  Endeavor
Canada  Corporation  ("Endeavor")  for the Company's Series A preferred shares
and the Class A  preferred  shares of THE  Company's  wholly-owned  subsidiary
First Endeavor Holdings, Inc ("FEH").

      On February 15, 2008, the option was exercised.  As a result,  the 6,500
shares of the Company's  Series A preferred  stock and the  6,500,000  Class A
Preferred  shares of First  Endeavor  Holdings,  Inc.  issued to the Company's
former CEO were  returned  to the Company and  cancelled  and all  outstanding
shares of Endeavor were  transferred  to the Company's  former CEO. The assets
of  Endeavor  included  all  of  the  Company's  Canadian-based  oil  and  gas
interests.


                                       4
<PAGE>

The Company  recognized an  extraordinary  gain on its divestiture of Endeavor
as follows:

    Net liabilities of Endeavor:
         Assets                                          $  (780,467)
         Liabilities, including $351,504 in amounts
           payable to related parties                      3,401,781
         Accumulated comprehensive income                    (31,265)
                                                         -----------
                                                           2,590,049
Share consideration received                                   6,507
Intercompany receivables written off                      (1,812,688)
                                                         -----------
     Gain on disposal of discontinued operations         $   783,868
                                                         ===========

3.    OIL AND GAS PROPERTIES, unproven

In May 2007, the Company  entered into an agreement to acquire a 62.5% working
interest  in an  Australian  oil and gas  exploration  permit  area  known  as
Victoria  Permit  60  ("Vic  P60").  In  connection  with the  acquisition  of
Holloman  Petroleum  Pty,  Ltd.  ("Holloman  Petroleum"),   the  Company  also
acquired  the  remaining  37.5%  working  interest in the Vic P60  permit.  In
connection with the May 2007 agreement,  the Company paid $639,487 in the form
of a deposit on the permit awaiting  approval of the transfer of the permit by
the  Australian  government.  The Company  contracted to pay a broker  800,000
restricted common shares plus a 9% overriding  royalty interest in the acreage
covered  by the  permit to  facilitate  this  transaction.   As a result,  the
Company  has a net  revenue  interest  of  81.625%  in  the  prospect.  During
February  2008,  a  shareholder  paid  $660,000  on behalf of the  Company  to
reserve 3-D seismic capacity related to the permit.

On November 21,  2007,  the Company  purchased  seven  Australian  oil and gas
permits  for  18,600,000  shares of the  Company's  common  shares with a fair
market value of  $15,903,000.  On March 7, 2008,  the Company  entered into an
agreement  with  Holloman Oil & Gas Limited  ("Holloman O & G") which  granted
Holloman O & G its  two-thirds  working  interest  in the PEL 112  permit.  To
earn this working interest, Holloman Oil & Gas agreed to:

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

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



                                       5
<PAGE>

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

Two of the  Company's  Directors  are  officers and  shareholders  in Holloman
Corporation,  which holds a 100%  interest in Holloman  O&G and Mr.  Stevenson
acts as the president of Holloman O&G.








                                       6
<PAGE>

                           FORWARD LOOKING STATEMENTS

The information  contained in this Form 10-Q contains certain  forward-looking
statements  within the meaning of Section 27A of the  Securities  Act of 1933,
as amended,  Section 21E of the  Securities  Exchange Act of 1934, as amended,
and  the   Private   Securities   Litigation   Reform   Act  of  1995.   These
forward-looking  statements involve risks and  uncertainties,  including among
other things,  statements  regarding our capital needs,  business strategy and
expectations.  Any statement  which does not contain an historical fact may be
deemed to be a  forward-looking  statement.  In some cases,  you can  identify
forward-looking  statements by terminology  such as "may",  "will",  "should",
"expect", "plan", "intend", "anticipate",  "believe",  "estimate",  "predict",
"potential"  or  "continue",  the  negative of such terms or other  comparable
terminology.  In evaluating  forward looking  statements,  you should consider
various  factors  outlined  in our latest Form  10-KSB  filed with  Securities
Exchange  Commission  on April 15,  2008,  and,  from  time to time,  in other
reports  we file with the U.S.  Securities  and  Exchange  Commission  ("SEC).
These  factors  may cause our  actual  results to differ  materially  from any
forward-looking  statement.  We disclaim  any  obligation  to publicly  update
these  statements,  or disclose any difference  between its actual results and
those reflected in these statements.

ITEM 2.  MANAGEMENT'S  DISCUSSION  AND  ANALYSIS OF  FINANCIAL  CONDITION  AND
RESULTS OF OPERATIONS

The following  discussion and analysis of our financial  condition and plan of
operations  should  be  read  in  conjunction  with  our  unaudited  financial
statements  and  related  notes  included  as part of this report and our Form
10-KSB for the year ended  December  31, 2007 filed with  Securities  Exchange
Commission on April 15, 2008.

General

Holloman Energy  Corporation  ("we" or the "Company") was  incorporated on May
14, 2004. Between May 2004 and May 2007 we were relatively inactive.

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

For accounting  purposes,  our  acquisition of Endeavor  Canada  constituted a
recapitalization  and the  acquisition  was accounted for as a reverse  merger
whereby  Endeavor Canada was deemed to have acquired us. As a result,  for the
period from August 3, 2007,  the merger date,  through  February 15, 2008, the
date on which we divested  of  Endeavor  Canada  (see  below),  our  financial
statements  reflect  the  historical  operations  of  Endeavor  Canada and our
operations.

Endeavor Canada was  incorporated  in May 2006.  Between May 2006 and December
2007 Endeavor  Canada  acquired its oil and gas properties in Alberta,  Canada
but was  otherwise  relatively  inactive.  As a result,  a  comparison  of our
operations  for the three months ended March 31, 2008 with our  operations for
the three months ended March 31, 2007 is not meaningful.


                                       7
<PAGE>

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

On  February  1, 2008 we  entered  into an  agreement  with our  former  Chief
Executive  Officer,  Cameron King,  which provided us the option of exchanging
all of our interest in Endeavor  Canada for the our Series A Preferred  shares
and the Class A Preferred shares of First Endeavor Holdings,  Inc.  previously
issued to Mr. King in connection with our original acquisition of Endeavor.

On February 15, 2008 the option was exercised.  As a result,  the 6,500 shares
of our Series A Preferred stock and the 6,500,000 Class A Preferred  shares of
First Endeavor  Holdings  issued to Mr. King were returned to us and cancelled
and all outstanding  shares of Endeavor  Canada were  transferred to Mr. King.
The assets of Endeavor  Canada  included all of the  Company's  Canadian-based
oil and gas holdings.

We have  recognized  net losses from the  discontinued  operations of Endeavor
Canada totaling  $2,455,000 and an extraordinary  gain upon the divestiture of
Endeavor Canada of $783,868.

Liquidity and Capital Resources

In May 2007 we entered into an agreement to acquire a 62.5%  working  interest
in an Australian oil and gas exploration  permit area known as Victoria Permit
60 ("Vic P60") for $639,487.  In connection  with the  acquisition of Holloman
Petroleum,  as  described  below,  we acquired  the  remaining  37.5%  working
interest in the Vic P60 permit.  As the holder of the permit we  committed  to
complete  the work  program  required by the VIC P60 Permit.  We project  that
seismic  work,  interpretation  of data  and  related  work  will  require  an
investment  of $6 to $9 million  prior to October  2008.  Further,  the Permit
requires us to drill at least one well before  November  2009. We estimate the
cost of drilling that well will  approximate  $57 million.  We will attempt to
joint  venture  this  prospect  with third  parties  which will pay all,  or a
significant  portion of the costs  required  to explore for oil and gas in the
area covered by the Permit.

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

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


                                       8
<PAGE>

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

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

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

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

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

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

As of March 31,  2008 we did not have any  proven oil or gas  reserves  and we
did not  have  any  revenues.  As  such,  our oil and gas  properties  are not
subject to depletion.  At March 31, 2008, we had advances payable to:

     o    Unrelated parties in the amount of $344,860;
     o    Grant  Petersen,  our current Chief Executive  Officer,  and an entity
          controlled by Mr. Petersen, in the amount of $228,861;
     o    Other members of our Board of Directors in the amount of $30,000; and
     o    Holloman Corporation in the amount of $1,108,884.

These  advances were used to support our  operations  in  Australia,  maintain
fund  raising  efforts,  and pay  general  and  administrative  expenses.  All
advances are unsecured,  non-interest bearing, and are due on demand. Holloman
Corporation  is an  affiliate.  We  believe  a  substantial  portion  of these
advances  will be repaid  with  restricted  common  stock under the terms of a
private placement authorized by our Board of Directors on March 3, 2008.


                                       9
<PAGE>

Our material  future  contractual  obligations  as of March 31, 2008 are shown
below.

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

  Loans and Advances     $1,712,605   $1,712,605        --              --


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

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

We are  attempting  to raise the capital  required to  implement  our business
plan. If we are unable  to complete  additional joint  venture agreements with
third   parties  to  explore  for  oil  and   gas, we   believe  our  plan  of
operations would  require  approximately  $25,000,000  in  financing  over the
twelve-month period ending March 31, 2009.

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

Critical Accounting Policies and Estimates

Measurement Uncertainty

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

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


                                       10
<PAGE>

Petroleum and Natural Gas Properties

We follow the full cost method of  accounting  for our  petroleum  properties;
accordingly,  all  costs  incidental  to  the  acquisition,   exploration  and
development  of  oil  and  gas  properties,  including  costs  of  undeveloped
leasehold, dry holes and leasehold equipment, are capitalized.  Internal costs
incurred  that are  directly  identified  with  acquisition,  exploration  and
development  activities not related to production,  general corporate overhead
or similar  activities,  are also  capitalized.  Interest  costs  incurred and
attributable to unproved oil and gas properties  under current  evaluation and
major  development  projects of oil and gas properties  are also  capitalized.
All  costs  related  to  production  activities,  including  work  over  costs
incurred  solely to maintain or increase levels of production from an existing
completion interval, are charged to expense as incurred.

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

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

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

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

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


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<PAGE>

Joint Venture Activities

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

Deferred Income Taxes

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

Loss per share

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

ITEM 4T.    CONTROLS AND PROCEDURES

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

Management's Report on Internal Control Over Financial Reporting

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


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<PAGE>

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

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

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

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

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

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

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

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<PAGE>

                          PART II -OTHER INFORMATION

ITEM 6.  EXHIBITS

 Exhibit
 Number        Description of Exhibits

   31          Rule 13a-14(a) Certifications
   32          Section 1350 Certifications



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<PAGE>

                                  SIGNATURES

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


                                      HOLLOMAN ENERGY CORPORATION

Date: May 14, 2008
                                      By:  /s/ Grant Petersen
                                          --------------------------------------
                                         Grant   Petersen,   Chief   Executive
                                         Officer,  Principal Financial Officer
                                         and Chief Accounting Officer








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