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UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C.
20549

FORM 10-K /A 
(Amendment No. 1)

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

For the fiscal year ended July 31, 2008

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

For the transition period from _____ to _____

COMMISSION FILE NUMBER000-52738

DORAL ENERGY CORP.(Exact
name of registrant as specified in its charter)

|NEVADA                                                             | 98-0555508                          
|------------------------------------------------------------------ | ------------------------------------
|State or other jurisdiction of incorporation or
      organization | (I.R.S. Employer Identification No.)
|                                                                   |                                     
|**415 West Wall, Suite 500**                                       |                                     
|**Midland**, TX********                                            | **79701**                           
|(Address of principal executive offices)                           | (Zip Code)                          

Registrant's telephone number, including area code: (432) 789-1180

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

Securities registered pursuant to Section 12(g) of the Act:
Common Stock, $0.001 Par Value Per Share.

Indicate by check mark if the registrant is a well-known
seasoned issuer, as defined by Rule 405 of the Securities Act. Yes [ ] No
[X]

Indicate by check mark if the registrant is not required to file
reports pursuant to Section 13 or Section 15(d) of the Act. Yes [ ] No
[X]

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

Indicate by check mark if disclosure of delinquent filers
pursuant to Item 405 of Regulation S-K (s229.405 of this chapter) is not
contained herein, and will not be contained, to the best of registrants
knowledge, in definitive proxy or information statements incorporated by
reference in Part III of this Form 10-K or any amendment to this Form 10-K. [
]

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.

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

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

State  the aggregate market value of the voting and non-voting common equity held by  non-affiliates computed by reference to the price at which the common equity  was sold, or the average bid and asked price of such common equity, as of the  last business day of the registrant’s most recently completed second fiscal  quarter: **$833,150 based on a price of $0.02 ($0.03 post-2009 Stock  Splits),** **being the last price at which the registrant completed a  sale of shares of its common stock.** ****

Indicate  the number of shares outstanding of each of the registrant’s classes of common  stock, as of the latest practicable date. **As of October 27, 2008, the  Registrant had 107,087,500 (85,670,000 post-2009 Stock Splits) shares of common  stock outstanding.** ****

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**EXPLANATORY NOTE**

This Amendment No.  1 to the Annual Report for Doral Energy Corp. originally filed on October 29,  2008 (the "Original Report") is being filed to provide the Company's  amended and restated consolidated financial statements for the fiscal year  ended July 31, 2008 and the comparative period ended July 31, 2007 (the  "July 2008 Financial Statements").

On November 4, 2009, we determined that the original  valuation model for the net profit overriding royalty interest (the “MAC  NPORRI”) granted to Macquarie in connection  with the Macquarie Credit Agreement contained errors that resulted in an  overstatement of the value of the MAC NPORRI. After discovering this issue, we  engaged an independent economist to re-evaluate the value of the MAC NPORRI,  resulting in a substantially lower value being assigned to the MAC NPORRI at  the date of grant than the value originally assigned for accounting purposes.  Correcting this overvaluation resulted in our recording an increase of  approximately $5.1 million in the value of notes payable and oil and gas  properties as of July 31, 2008.

The July 2008 Financial  Statements and other financial information included  in this Amendment No. 1 have been restated accordingly.  In addition, the July 2008 Financial  Statements and other financial information included in this Amendment No. 1  have been amended to give retroactive effect to our 1-for-6.25 reverse split of  our common stock (the "2009 Reverse Split") completed January 12,  2009 and our 5-for-1 forward split of our common stock (the "2009 Forward  Split") completed September 14, 2009.   Both the 2009 Reverse Split and the 2009 Forward Split (collectively referred to as the "2009 Stock  Splits") were completed after the fiscal period covered by this  Amendment No. 1 and after the filing date of the Original Report.  Our shareholders should no longer rely on our  previously filed financial statements for the year ended July 31,  2008.  These matters have been discussed by our authorized officers  and with our independent registered public accounting firm.

This Amendment No. 1 reproduces only those sections of the Original  Report that have been changed as a result of the restatement and amendments  described above.  This Amendment No. 1 is stated as of the file date  of the Original Report and does not reflect events occurring after the filing  date of the Original Report or modify or update the disclosures therein in any  way other than as required to reflect the restatements described above and to  give retroactive effect to the 2009 Stock Splits.

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|DORAL ENERGY CORP.                                 
|---------------------------------------------------
|                                                   
|AMENDMENT  NO. 1 TO   ANNUAL REPORT ON FORM 10-K /A
|FOR THE YEAR ENDED JULY 31, 2008                   
|                                                   
|TABLE OF CONTENTS                                  

|                 |                                                                                                              | PAGE
|---------------- | ------------------------------------------------------------------------------------------------------------ | ----
|EXPLANATORY NOTE | 2                                                                                                           
|PART I           |                                                                                                              | 4   
|ITEM 1.          | BUSINESS                                                                                                     | 4   
|PART II          |                                                                                                              | 14  
|ITEM 5.          | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED  STOCKHOLDER MATTER AND ISSUER PURCHASES OF EQUITY SECURITIES | 14  
|ITEM 7.          | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL  CONDITION AND RESULTS OF OPERATIONS                       | 15  
|ITEM 8.          | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA                                                                  | F-1 
|PART III         |                                                                                                              | 21  
|ITEM 12.         | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND  MANAGEMENT AND RELATED STOCKHOLDER MATTERS              | 21  
|ITEM 13.         | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND  DIRECTOR INDEPENDENCE                                   | 23  
|ITEM 15.         | EXHIBITS, FINANCIAL STATEMENT SCHEDULES                                                                      | 25  
|SIGNATURES       | 27                                                                                                          

Page 3

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PART I

The information in this discussion contains forward-looking
statements. These forward-looking statements involve risks and uncertainties,
including statements regarding the Company's capital needs, business strategy
and expectations. Any statements contained herein that are not statements of
historical facts may be deemed to be forward-looking statements. 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. Actual events or results may differ materially. In
evaluating these statements, you should consider various factors, including the
risks described below, and, from time to time, in other reports the Company
files with the United States Securities and Exchange Commission (the SEC).
These factors may cause the Company's actual results to differ materially from
any forward-looking statement. The Company disclaims any obligation to publicly
update these statements, or disclose any difference between its actual results
and those reflected in these statements.

As used in this Annual Report, the terms we, us, our,
Doral, and the Company mean Doral Energy Corp. and its wholly owned
subsidiary, unless otherwise indicated. All dollar amounts in this Annual Report
are expressed in U.S. dollars, unless otherwise indicated.

|ITEM 1. | BUSINESS.
|------- | ---------

Overview

We were incorporated on October 25, 2005 under the laws of the
State of Nevada under the name Language Enterprises Corp. On January 7, 2008,
we completed a 25-for-1 forward stock split of our common stock. As a result of
the stock split, our authorized capital increased from 100,000,000 shares of
common stock, with a par value of $0.001 per share, to 2,500,000,000 shares of
common stock, with a par value of $0.001 per share. On April 28, 2008, we
changed our name from Language Enterprises Corp. to Doral Energy Corp. To
effect the name change, we incorporated a wholly-owned subsidiary (SubCo) and
completed a merger of Subco with and into the Company, with the Company
continuing as the surviving entity. Other than the name change, no changes were
made to our articles of incorporation. Pursuant to Section 92A.380 of the Nevada
Revised Statutes, shareholder approval of the merger was not required.

We previously operated a translation brokerage business, acting
as an intermediary between clients and independent, professional translators.
However, we were unsuccessful in our efforts to generate income from this
business. We are now engaged in the acquisition, operation, exploration and
development of oil and gas properties and prospects. Our plan is to acquire
producing properties with strong proven reserves and considerable undrilled
inventory that can be explored and developed with reasonable levels of forward
risk. Currently, we hold a working interest in 66 producing oil fields and 186
wells in and around Eddy County, New Mexico (the Eddy County Properties).

Eddy County Properties

On July 29, 2008, we completed the acquisition of the Eddy
County Properties pursuant to the terms of the Purchase and Sale Agreement dated
April 25, 2008, as amended on July 17, 2008, (the Hanson Energy Agreement)
with J. Warren Hanson, an individual doing business as Hanson Energy, and his
wife, Kathie Hanson.

Under the terms of the Hanson Energy Agreement, Hanson Energy
transferred to us all of its right, title and interest in and to the Eddy County
Properties, together with all of Hanson Energys right, title and interest in
and to the lands, wells and hydrocarbons associated with the Eddy County
Properties (excluding an overriding royalty interest of 2.5% on 4 of the 66
properties acquired that were previously registered in favor of Hanson Energy)
and to the oil and gas sales contracts related thereto. As consideration for the
Eddy County Properties, we paid to Hanson Energy the following consideration
(collectively, the Purchase Price):

|(a) | An aggregate of $5,000,000 in
cash;
|--- | -----------------------------------

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|(b) | An  aggregate of 7,000,000 (5,600,000 post-2009 Stock Splits) shares of our common  stock, issued to Hanson Energy and  its nominees; and
|--- | -----------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                          
|(c) | An  overriding royalty interest of 2.5% of 8/8 on the oil and gas produced from the  Eddy County Properties.                             

In order to complete the acquisition of the Eddy County
Properties, on July 29, 2008, we entered into a Senior First Lien Secured Credit
Agreement (the Credit Agreement) with Macquarie Bank Limited (Macquarie).
Under the terms of the Credit Agreement, Macquarie has agreed to provide us
with: (i) a maximum of $25,000,000 under a revolving loan (the Revolving
Loan); and (ii) a maximum of $25,000,000 under a term loan (the Term Loan).
Upon closing of the Credit Agreement, Macquarie advanced us $2,500,000 under the
Revolving Loan and $2,800,000 under the Term Loan. These advances are subject to
an upfront advance fee of 1.00% of the total amount advanced. The advances were
used to fund our acquisition of the Eddy County Properties and for working
capital purposes. Future advances under the Credit Agreement are subject to the
approval of Macquarie. As part of the approval process, we will be required to
submit to Macquarie an estimate of expenses for work to be performed on our
properties. The details of the Credit Agreement are set out under heading Item
7  Managements Discussion and Analysis of Financial Condition and Results of
Operation.

As part of the process of acquiring the Eddy County Properties,
we have successfully applied for and received status as a licensed oil and gas
operator in the state of New Mexico. This licensing is required for us to
operate the Eddy County Properties. In conjunction with operating the Eddy
County Properties, we have successfully obtained bonding for our operations on
State of New Mexico leases, Federal BLM leases, and private lands, all of which
are included in the Eddy County Properties. We obtained the required bonding
from U.S. Specialty Insurance Company of Houston, Texas. The bonding has an
approximate value of $125,000.

In order to facilitate our transition as operator of the Eddy
County Properties, we have engaged Delta P Services of Midland, Texas to provide
supervision of field operations and engineering assistance as needed. Delta P
Services has extensive engineering and operating experience in the Eddy County
Properties area over the past 20 years. We anticipate that Delta P Services will
assist us in evaluating our production operations on the Eddy County Properties.
Delta P Services will also be responsible for receiving and coordinating
production data from the field personnel on a daily basis and transmitting the
production data to our Midland offices daily for accurate field surveillance and
reporting.

Ownership and Royalty Interests in the Eddy County
Properties

The Eddy County Properties consist of approximately 7,800 acres
located along the Artesia-Vacuum Trend near the north-western edge of the
Permian Basin. We hold a 100% working interest and an average net revenue
interest of 74.7% in 55 of the 66 leases. We hold an average of an 84.4% working
interest and an average net revenue interest of 67.1% in the remaining 11
leases. Additionally, in connection with entering into the Credit Agreement with
Macquarie, we granted to Macquarie Investment, LLC (MAC), a subsidiary of
Macquarie, a net profits overriding royalty interest (the NPORRI) on the Eddy
County Properties. Under the terms of the NPORRI, upon the earlier of our
repaying all of the amounts advanced to us under the Credit Agreement and the
maturity date specified under the Credit Agreement, MAC will be entitled to 35%
of the gross proceeds from the Eddy County Properties less associated production
and capital costs. The maturity date specified under the Credit Agreement is
July 30, 2011, however the maturity date will accelerate to July 30, 2009 if we
are unable to agree with Macquarie on an acceptable infill development drilling
program for the Eddy Country Properties by the end of November. The infill
development drilling program for the Eddy County Properties is for the drilling
of new wells on those properties with a goal of increasing production. See Item
7  Managements Discussion and Analysis of Financial Condition and Results of
Operation. Once MAC has earned $5,000,000 under the NPORRI, the NPORRI
automatically decreases to 20%.

In addition to the above royalty amounts, under the Credit
Agreement, we are required to, on a monthly basis, pay to Macquarie 100% of our
net operating cash flows from all sources (including, but not limited to the
Eddy County Properties) less an allocated amount for our general and
administrative expenses, until all amounts advanced under the Credit Agreement
have been repaid. The amount allocated for our general and administrative
expenses is equal to $125,000 per month up to Mach 31, 2009, and thereafter will
be equal to 10% of our net operating cash flows for the month. The amounts paid
to Macquarie will be applied to interest and principal payable under the Credit
Agreement.

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Oil and Natural Gas Reserves

As at July 31, 2008, the estimated proved oil and gas reserves
of the Eddy County Properties is summarized below:

Oil (Mbbl)
    Natural Gas (MMcf)Eddy County Properties as at July 31, 2008
    4,855.1
    3,226.3


Production

As of July 31, 2008, we had not received any sales or payments
from our Eddy County Properties as we acquired our interest in the Eddy County
Properties effective August 1, 2008.

Productive Wells

The following table indicates the number of productive wells
located on the Eddy County Properties as of July 31, 2008.

Gross(1)
    Net(2)Oil
    143
    139.198Gas
    18
    18.000Total
    161
    157.198


|(1) | Gross wells refers to the number of wells in which we own
      a working interest.                                               
|--- | ----------------------------------------------------------------------------------------------------------------------------------
|(2) | Net wells represents the number of wells attributable to
      our proportionate working interest in the respective gross
  wells.

Developed and Undeveloped Acreage

The following table sets forth the approximate developed
acreage and undeveloped acreage of the Eddy County Properties as of July 31,
2008:

Developed Acreage(1)
    Undeveloped Acreage(2)Gross(3)
    Net(4)
    Gross(3)
    Net(4)New Mexico
    7,444.00
    7,228.80
    427.74
    415.62


|(1) | Developed acreage consists of acres spaced or assignable
      to productive wells.                                                                                                                                                                                                      
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | Undeveloped acreage is considered to be those leased
      acres on which wells have not been drilled or completed to a point that
      would permit the production of commercial quantities of oil and gas,
      regardless of whether or not such acreage contains proved
  reserves.
|(3) | Gross acres refers to the number of acres in which we own
      a working interest.                                                                                                                                                                                                      
|(4) | Net acres represents the number of acres attributable to
      our proportionate working interest in the gross
acreage.                                                                                                                                                                  

Drilling Activities

We have not yet drilled any exploratory or development wells.
Under the terms of the Credit Agreement, we are required to obtain the approval
of Macquarie prior to commencing any drilling or developmental projects on the
Eddy County Properties. We have submitted a development plan to Macquarie and
hope to receive Macquaries approval by the end of 2008. We hope to commence
drilling activities at the end of 2008 or in early 2009. However, there are no
assurances that Macquarie will approve our current drilling and development
plan.

Present Activities

As of the date hereof, we do not have any wells in the process
of drilling, or any other related operations of material significance.

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Delivery Commitments

We are not obligated under the terms of any existing contract
or agreement to provide a fixed and determinable quantity of oil and gas in the
future.

Diamond Springs Prospect

On April 10, 2008, we entered into an agreement (the Diamond
Springs Letter Agreement) with G2 Petroleum, LLC (G2) to purchase an interest
in an oil and gas prospect covering approximately 3,300 acres located in Fremont
County, Wyoming, known as the Diamond Springs Prospect. We have decided to no
longer proceed with the acquisition of the Diamond Springs Prospect at this
time.

Hedging Transactions

In August, 2008, we entered into a costless collar hedging
transaction for a portion of our production, based on the price of NYMEX WTI
Crude Oil Monthly Average with a 25 calendar day settlement. We entered into
this hedging transaction to partially protect us against declines in the price
of oil relative to the price of oil at the time we completed the acquisition of
the Eddy County Properties.

A costless collar or zero cost collar involves the
simultaneous purchase of a put option and sale of a call option. The put option
sets a floor for the covered position, while the call option sets a cap for the
covered position. There is no net cost in entering into the costless collar as
the cost of purchasing the put is offset by the proceeds of the call.

The costless collar was created by purchasing a put option with
a strike price of $100.00 per barrel and selling a call option with a strike
price of $131.00 per barrel. The net effect of the costless collar is, if the
monthly average price of NYMEX WTI Crude Oil futures drops below $100.00 per
barrel, we effectively receive $100.00 for each barrel of production covered by
the costless collar. If the monthly average price of NYMEX WTI Crude Oil futures
rises above $131.00 per barrel, the Company receives only $131.00 per barrel for
each barrel of production covered by the costless collar. If the NYMEX WTI Crude
Oil futures price is between $100.00 and $131.00 per barrel, the costless collar
has no impact on the price received by the Company for each barrel of production
covered by the costless collar. The result is a floor on the price of $100.00
and a ceiling of $131.00.

The number of barrels of our production covered by the costless
collar for production months through July 2011 is as follows:

| | Aug 2008 - Dec 2008: | 1,900 barrels per month
| | -------------------- | -----------------------
| | Jan 2009 - Dec 2009: | 1,700 barrels per month
| | Jan 2010 - Dec 2010: | 1,600 barrels per month
| | Jan 2011 - Jul 2011: | 1,400 barrels per month

Competitors

The oil and gas industry is highly competitive. Competition is
particularly intense with respect to the acquisition of desirable producing
properties, the acquisition of oil and gas prospects suitable for enhanced
production efforts, and the hiring of experienced personnel. Our competitors in
oil and gas acquisition, development, and production include the major oil
companies in addition to numerous independent oil and gas companies, individual
proprietors and drilling programs. Many of these competitors possess and employ
financial and personnel resources substantially greater than those which are
available to us and may be able to pay more for desirable producing properties
and prospects and to define, evaluate, bid for, and purchase a greater number of
producing properties and prospects than we can. Our financial and personnel
resources to generate reserves in the future will be dependent on our ability to
select and acquire suitable producing properties and prospects in competition
with these companies.

Government and Environmental Regulation

The oil and gas industry is subject to heavy regulation at the
federal, state and local levels. These regulations include regulations:

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- requiring permits for the drilling of wells,
- requiring the posting of bonds for drilling and/or operating wells,
- governing the location of wells,
- governing the methods used to drill wells,
- governing surface area usage and the restoration of the land upon which
  wells are drilled,
- governing the plugging and abandoning of wells and the disposal of waste
  materials used in or generated in drilling operations, and
- setting certain environmental conservation restrictions.

The cost of complying with these regulations is high and these
regulations can have the effect of limiting our ability to engage in oil and gas
exploration activities and when or where those activities take place. Some of
these laws and regulations, including the federal Comprehensive Environmental
Response, Compensation and Liability Act (also known as CERCLA or the
Superfund law), may impose strict liability for environmental damage caused by
hazardous wastes released during oil and gas exploration and production
activities. As a result, we could become liable for the costs of environmental
cleanups, environmental damages and, in some cases, consequential damages,
regardless of whether or not there was any negligence or fault on our part. In
some cases, regulations may also require oil and gas production levels to be
kept at a level that is lower than what would be economically optimal. In other
cases, we may be completely prohibited from drilling exploratory or production
wells in certain environmentally sensitive areas even if we believe that there
are economically viable oil and gas deposits in those areas. If we violate any
of these environmental laws or regulations, we could become subject to heavy
fines or sanctions and/or be required to incur significant costs for
environmental clean up and remediation. In addition, neighboring landowners and
other third parties could file claims for personal injury claims or for damage
to property or natural resources caused by oil and gas exploration
activities.

We believe that we are currently in substantial compliance with
all applicable environmental laws and regulations. To date, we have not been
required to expend substantial amounts of money in complying with these laws and
regulations and we anticipate that the costs associated with future compliance
will not have a materially adverse effect on our financial position. However,
the laws and regulations governing the oil and gas industry are subject to
constant change as environmental issues relating this industry remain highly
politicized. Proposals and proceedings affecting oil and gas exploration
activities are periodically presented to Congress and federal regulatory bodies
as well as to state legislative and regulatory bodies. We cannot predict when or
whether such proposals may become effective. There is no assurance that the
future regulatory environment for oil and gas activities will be consistent with
the current regulatory environment. We will need to constantly monitor
developments in environmental and other laws and regulations applicable to oil
and gas activities in order to ensure compliance. There is no assurance that we
will be able to meet the costs associated with regulatory compliance in the
future.

Employees

Other than our executive officers and sole director, we have
two full-time employees.

|ITEM 1A. | RISK FACTORS.
|-------- | -------------

The following are some of the important factors that could
affect our financial performance or could cause actual results to differ
materially from estimates contained in our forward-looking statements. We may
encounter risks in addition to those described below. Additional risks and
uncertainties not currently known to us, or that we currently deem to be
immaterial, may also impair or adversely affect our business, financial
condition or results of operation.

We have an operating deficit and have incurred losses since
inception.

To date, our operations have not been profitable. Our inability
to achieve profitability is directly related to our historical inability to earn
significant revenues. We may never be able to achieve profitability.

Page 8

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Our future performance depends upon our ability to obtain
capital to find or acquire additional oil and natural gas reserves that are
economically recoverable.

Unless we successfully replace the reserves that we produce,
our reserves will decline, resulting eventually in a decrease in oil and natural
gas production and lower revenues and cash flows from operations. The business
of exploring for, developing or acquiring reserves is capital intensive. Our
ability to make the necessary capital investment to maintain or expand our oil
and natural gas reserves is limited by our relatively small size. Further, we
may commence drilling operations on our Eddy County Properties in an effort to
increase production, which would require more capital than we have available
from cash flow from operations or our revolving bank credit facility. In such
case, we would be required to seek additional sources of financing or limit our
participation in the additional drilling. In addition, our drilling activities
are subject to numerous risks, including the risk that no commercially
productive oil or gas reserves will be encountered.

The successful implementation of our business plan is
subject to risks inherent in the oil and gas business, which if not adequately
managed could result in additional losses.

Our oil and gas operations will be subject to the economic
risks typically associated with exploration and development activities,
including the necessity of making significant expenditures to locate and acquire
properties and to drill exploratory wells. In addition, the availability of
drilling rigs and the cost and timing of drilling, completing and, if warranted,
operating wells is often uncertain. In conducting exploration and development
activities, the presence of unanticipated pressure or irregularities in
formations, miscalculations or accidents may cause our exploration, development
and, if warranted, production activities to be unsuccessful. This could result
in a total loss of our investment in a particular well. If exploration efforts
are unsuccessful in establishing proved reserves and exploration activities
cease, the amounts accumulated as unproved costs will be charged against
earnings as impairments.

In addition, the availability of a ready market for our oil and
gas production depends on a number of factors, including the demand for and
supply of oil and gas and the proximity of reserves to pipelines and other
facilities. Our ability to market such production depends in substantial part on
the availability and capacity of gathering systems, pipelines and processing
facilities, in most cases owned and operated by third parties. A failure to
obtain such services on acceptable terms could materially harm our proposed oil
and gas business. We may be required to shut in wells for lack of a market or
because of inadequacy or unavailability of pipelines or gathering system
capacity. If that occurs, we would be unable to realize revenue from those wells
until arrangements are made to deliver such production to market.

Our future performance is dependent upon our ability to
identify, acquire and develop oil and gas properties, the failure of which could
result in under use of capital and losses.

The future performance of our oil and gas business will depend
upon an ability to identify, acquire and develop oil and gas reserves that are
economically recoverable. Success will depend upon the ability to acquire
working and revenue interests in properties upon which oil and gas reserves are
ultimately discovered in commercial quantities, and the ability to develop
prospects that contain proven oil and gas reserves to the point of production.
Without successful acquisition and exploration activities, we will not be able
to develop oil and gas reserves or generate revenues. There are no assurances
oil and gas reserves will be identified or acquired on acceptable terms, or that
oil and gas deposits will be discovered in sufficient quantities to enable us to
recover our exploration and development costs or sustain our business.

The successful acquisition and development of oil and gas
properties requires an assessment of recoverable reserves, future oil and gas
prices and operating costs, potential environmental and other liabilities, and
other factors. Such assessments are necessarily inexact and their accuracy
inherently uncertain. In addition, no assurance can be given that our
exploration and development activities will result in the discovery of any
reserves. Operations may be curtailed, delayed or canceled as a result of lack
of adequate capital and other factors, such as lack of availability of rigs and
other equipment, title problems, weather, compliance with governmental
regulations or price controls, mechanical difficulties, or unusual or unexpected
formations, pressures and or work interruptions. In addition, the costs of
exploration and development may materially exceed our initial estimates.

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The oil and gas exploration and production industry
  historically is a cyclical industry and market fluctuations in the prices of oil
  and gas could adversely affect our business.

Prices for oil and gas tend to fluctuate significantly in
  response to factors beyond our control. These factors include, but are not
  limited to:

| | (a) | weather conditions in the United States and
    elsewhere;                                                                  
| | --- | ----------------------------------------------------------------------------------------------------------------------------
| | (b) | economic conditions, including demand for petroleum-based
      products, in the United States and elsewhere;               
| | (c) | actions by OPEC, the Organization of Petroleum Exporting
      Countries;                                                   
| | (d) | political instability in the Middle East and other major
      oil and gas producing regions;                               
| | (e) | governmental regulations, both domestic and
    foreign;                                                                    
| | (f) | domestic and foreign tax policy;                                                                                            
| | (g) | the pace adopted by foreign governments for the
      exploration, development, and production of their national
  reserves;
| | (h) | the price of foreign imports of oil and gas;                                                                                
| | (i) | the cost of exploring for, producing and delivering oil
      and gas; the discovery rate of new oil and gas reserves;      
| | (j) | the rate of decline of existing and new oil and gas
      reserves;                                                         
| | (k) | available pipeline and other oil and gas transportation
      capacity;                                                     
| | (l) | the ability of oil and gas companies to raise
    capital;                                                                  
| | (m) | the overall supply and demand for oil and gas;
  and                                                                        
| | (n) | the availability of alternate fuel
  sources.                                                                               

Changes in commodity prices may significantly affect our
capital resources, liquidity and expected operating results. Price changes will
directly affect revenues and can indirectly impact expected production by
changing the amount of funds available to reinvest in exploration and
development activities. Reductions in oil and gas prices not only reduce
revenues and profits, but could also reduce the quantities of reserves that are
commercially recoverable. Significant declines in prices could result in
non-cash charges to earnings due to impairment. Changes in commodity prices may
also significantly affect our ability to estimate the value of producing
properties for acquisition and divestiture and often cause disruption in the
market for oil and gas producing properties, as buyers and sellers have
difficulty agreeing on the value of the properties. Price volatility also makes
it difficult to budget for and project the return on acquisitions and the
development and exploitation of projects. Commodity prices are expected to
continue to fluctuate significantly in the future.

Hedging transactions may limit potential gains on increases
to oil and gas prices.

We have entered into hedging transactions for a portion of our
expected production to reduce the risk of fluctuations in oil and gas prices.
Although these hedging transactions provide us with some protection in the event
of a decrease in oil and gas prices, they may also limit our potential gains in
the event that oil and gas prices increase. If we choose not to engage in
hedging arrangements in the future, we may be more adversely affected by changes
in oil and natural gas prices than our competitors, who may or may not engage in
hedging arrangements.

We may encounter difficulty in obtaining equipment and
services.

Higher oil and natural gas prices and increased oil and natural
gas drilling activity generally stimulate increased demand and result in
increased prices and unavailability for drilling rigs, crews, associated
supplies, equipment and services. While we have recently been successful in
acquiring or contracting for services, we could experience difficulty obtaining
drilling rigs, crews, associated supplies, equipment and services in the future.
These shortages could also result in increased costs or delays in timing of
anticipated development or cause interests in oil and natural gas leases to
lapse. We cannot be certain that we will be able to implement our drilling plans
or at costs that will be as estimated or acceptable to us.

Our ability to produce oil and gas from our oil and gas
assets may be adversely affected by a number of factors outside of our
control.

The business of exploring for and producing oil and gas
involves a substantial risk of investment loss. Drilling oil and gas wells
involves the risk that the wells may be unproductive or that, although
productive, the wells may not produce oil or gas in economic quantities. Other
hazards, such as unusual or unexpected geological formations, pressures, fires,
blowouts, loss of circulation of drilling fluids or other conditions may
substantially delay or prevent completion of any well. Adverse weather
conditions can also hinder drilling operations. A productive well may become
uneconomic if water or other deleterious substances are encountered that impair
or prevent the production of oil or gas from the well. In addition, production
from any well may be unmarketable if it is

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impregnated with water or other deleterious substances. There
can be no assurance that oil and gas will be produced from the properties in
which we have interests. In addition, the marketability of oil and gas that may
be acquired or discovered may be influenced by numerous factors beyond our
control. These factors include the proximity and capacity of oil and gas,
gathering systems, pipelines and processing equipment, market fluctuations in
oil and gas prices, taxes, royalties, land tenure, allowable production and
environmental protection.

If we are unable to maintain our working interests in
leases, our business will be adversely affected.

Our oil and gas assets are held under oil and gas leases. A
failure to meet the specific requirements of each lease may cause that lease to
terminate or expire. There are no assurances the obligations required to
maintain those leases will be met and that we will be able to meet the rental
obligations under federal, state and private oil and gas leases. If we are
unable to make rental payments and satisfy any other conditions on a timely
basis, we may lose our rights in the properties that we may acquire.

Title deficiencies could render our leases
worthless.

The existence of a material title deficiency can render a lease
worthless and can result in a large expense to our business. In acquiring oil
and gas leases or undivided interests in oil and gas leases we may forgo the
expense of retaining lawyers to examine the title to the oil or gas interest to
be placed under lease or already placed under lease. Instead, we may rely upon
the judgment of oil and gas landmen who perform the field work in examining
records in the appropriate governmental office before attempting to place under
lease specific oil or gas interest. This is customary practice in the oil and
gas industry. As a result, we may be unaware of deficiencies in the
marketability of the title to the lease. Such deficiencies could render the
lease worthless.

If we fail to maintain adequate insurance, our business
could be materially and adversely affected.

Our oil and gas operations are subject to risks inherent in the
oil and gas industry, such as blowouts, cratering, explosions, uncontrollable
flows of oil, gas or well fluids, fires, pollution, earthquakes and other
environmental risks. These risks could result in substantial losses due to
injury and loss of life, severe damage to and destruction of property and
equipment, pollution and other environmental damage, and suspension of
operations. We could be liable for environmental damages caused by previous
property owners. As a result, substantial liabilities to third parties or
governmental entities may be incurred, the payment of which could have a
material adverse effect on our financial condition and results of operations.
Any prospective drilling contractor or operator which we hire will be required
to maintain insurance of various types to cover its operations with policy
limits and retention liability customary in the industry. Therefore, we do not
plan to acquire our own insurance coverage for such prospects. The occurrence of
a significant adverse event on such prospects that is not fully covered by
insurance could result in the loss of all or part of our investment in a
particular prospect which could have a material adverse effect on our financial
condition and results of operations.

Complying with environmental and other government
regulations could be costly and could negatively impact prospective
production.

The oil and gas business is governed by numerous laws and
regulations at various levels of government. These laws and regulations govern
the operation and maintenance of our facilities, the discharge of materials into
the environment and other environmental protection issues. Such laws and
regulations may, among other potential consequences, require that we acquire
permits before commencing drilling and restrict the substances that can be
released into the environment with drilling and production activities. Under
these laws and regulations, we could be liable for personal injury, clean-up
costs and other environmental and property damages, as well as administrative,
civil and criminal penalties. Prior to commencement of drilling operations, we
may secure limited insurance coverage for sudden and accidental environmental
damages as well as environmental damage that occurs over time. However, we do
not believe that insurance coverage for the full potential liability of
environmental damages is available at a reasonable cost. Accordingly, we could
be liable, or could be required to cease production on properties, if
environmental damage occurs.

The costs of complying with environmental laws and regulations
in the future may harm our business. Furthermore, future changes in
environmental laws and regulations could occur, resulting in stricter standards
and enforcement, larger fines and liability, and increased capital expenditures
and operating costs, any of which could have a material adverse effect on our
financial condition or results of operations.

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The oil and gas industry is highly competitive, and we may
not have sufficient resources to compete effectively.

The oil and gas industry is highly competitive. We will be
competing with oil and natural gas companies and other individual producers and
operators, many of which have longer operating histories and substantially
greater financial and other resources than it does, as well as companies in
other industries supplying energy, fuel and other needs to consumers. Larger
competitors, by reason of their size and relative financial strength, can more
easily access capital markets than we can and may enjoy a competitive advantage
in the recruitment of qualified personnel. They may be able to absorb the burden
of any changes in laws and regulation in the jurisdictions in which we do
business and handle longer periods of reduced prices for oil and gas more easily
than we can. Competitors may be able to pay more for oil and gas leases and
properties and may be able to define, evaluate, bid for and purchase a greater
number of leases and properties than we can. Further, these companies may enjoy
technological advantages and may be able to implement new technologies more
rapidly than we can. Our ability to acquire oil and gas properties will depend
upon its ability to conduct efficient operations, evaluate and select suitable
properties, implement advanced technologies and consummate transactions in a
highly competitive environment.

The loss of our key persons, or our failure to attract and
retain additional personnel could adversely affect our business.

Our success depends largely upon the efforts, abilities, and
decision-making of Dr. Paul C. Kirkitelos, our Chief Executive Officer, Chief
Financial Officer, President, Secretary and Treasurer, and Mr. H. Patrick Seale,
our Chief Operating Officer. The loss of these individuals would have an adverse
effect on our business prospects. We do not currently maintain "key-man" life
insurance and there is no contract in place assuring the services of Dr.
Kirkitelos or Mr. Seale for any length of time. In the event that we should lose
our officers and we are unable to find suitable replacements, we may not be able
to develop our business, in which case investors might lose all of their
investment.

One stockholder owns a large portion of our outstanding
common stock and may act to influence certain types of corporate actions, to the
detriment of other stockholders.

Dr. Paul C. Kirkitelos owns 46,800,000 (37,440,000  post-2009 Stock Splits) common shares, which is approximately 43.7% of our  issued and outstanding common stock. Accordingly, he may exercise significant influence  over all matters requiring stockholder approval, including the election of  directors and the determination of significant corporate actions. This  concentration could also have the effect of delaying or preventing a change in  control that could otherwise be beneficial to our stockholders.

If we issue additional shares of common stock in the future
this may result in dilution to our existing stockholders.

Our  articles of incorporation authorize the issuance of 2,500,000,000 (2,000,000,000  post-2009 Stock Splits) shares of common stock. Our board of directors has the  authority to issue additional shares of common stock up to the authorized  capital stated in the articles of incorporation. Our board of directors may  choose to issue some or all of such shares to provide additional financing in  the future. The issuance of any such shares may result in a reduction of the  book value or market price of the outstanding shares of our common stock. It  will also cause a reduction in the proportionate ownership and voting power of  all other stockholders.

We have never paid dividends and do not intend to pay any in
the foreseeable future, which may delay or prevent recovery of your
investment.

We have never paid any cash dividends and currently do not
intend to pay any dividends in the foreseeable future. If we do not pay
dividends, this may delay or prevent recovery of your investment. To the extent
that we require additional funding currently not provided for in our financing
plan, it is possible that our funding sources might prohibit the payment of
dividends.

The trading price of our common stock may be volatile, with
the result that an investor may not be able to sell any shares acquired at a
price equal to or greater than the price paid by the investor.

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Our common shares are quoted on the OTC Bulletin Board under
the symbol "DENG. Companies quoted on the OTC Bulletin Board have traditionally
experienced extreme price and volume fluctuations. In addition, our stock price
may be adversely affected by factors that are unrelated or disproportionate to
our operating performance. Market fluctuations, as well as general economic,
political and market conditions such as recessions, interest rates or
international currency fluctuations may adversely affect the market price of our
common stock. In addition, to date, there has been no trading volume for our
shares on the OTC Bulletin Board. As a result of this potential volatility and
potential lack of a trading market, an investor may not be able to sell any of
our common stock that they acquire that a price equal or greater than the price
paid by the investor.

Because our stock is a penny stock, stockholders will be
more limited in their ability to sell their stock.

The SEC has adopted rules that regulate broker-dealer practices
in connection with transactions in penny stocks. Penny stocks are generally
equity securities with a price of less than $5.00, other than securities
registered on certain national securities exchanges or quoted on the Nasdaq
system, provided that current price and volume information with respect to
transactions in such securities is provided by the exchange or quotation system.

Because our securities constitute "penny stocks" within the
meaning of the rules, the rules apply to us and to our securities. The rules may
further affect the ability of owners of shares to sell our securities in any
market that might develop for them. As long as the trading price of our common
stock is less than $5.00 per share, the common stock will be subject to rule
15g-9 under the Securities Exchange Act of 1934 (the Exchange Act). The penny
stock rules require a broker-dealer, prior to a transaction in a penny stock, to
deliver a standardized risk disclosure document prepared by the SEC, that:

|1. | contains a description of the nature and level of risk in
      the market for penny stocks in both public offerings and secondary
      trading;                                                                                        
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|2. | contains a description of the broker's or dealer's duties
      to the customer and of the rights and remedies available to the customer
      with respect to a violation to such duties or other requirements of
      securities laws;
|3. | contains a brief, clear, narrative description of a
      dealer market, including bid and ask prices for penny stocks and the
      significance of the spread between the bid and ask price;                                           
|4. | contains a toll-free telephone number for inquiries on
      disciplinary actions;                                                                                                                                                       
|5. | defines significant terms in the disclosure document or
      in the conduct of trading in penny stocks; and                                                                                                                             
|6. | contains such other information and is in such form,
      including language, type, size and format, as the SEC shall require by
      rule or regulation.                                                                              

The broker-dealer also must provide, prior to effecting any
transaction in a penny stock, the customer with: (a) bid and offer quotations
for the penny stock; (b) the compensation of the broker-dealer and its
salesperson in the transaction; (c) the number of shares to which such bid and
ask prices apply, or other comparable information relating to the depth and
liquidity of the market for such stock; and (d) a monthly account statements
showing the market value of each penny stock held in the customer's account. In
addition, the penny stock rules require that prior to a transaction in a penny
stock not otherwise exempt from those rules; the broker-dealer must make a
special written determination that the penny stock is a suitable investment for
the purchaser and receive the purchaser's written acknowledgment of the receipt
of a risk disclosure statement, a written agreement to transactions involving
penny stocks, and a signed and dated copy of a written suitably statement. These
disclosure requirements may have the effect of reducing the trading activity in
the secondary market for our stock.

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PART II

|ITEM 5. | **MARKET  FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER  PURCHASES OF EQUITY SECURITIES.**
|------- | -------------------------------------------------------------------------------------------------------------------

Market Information

Quotations  for our common stock were entered on the OTC Bulletin Board under the symbol  “LNGG” beginning on April 20, 2007. Our symbol was changed to “LNGE” on January  8, 2008 upon completion of our 25-for-1 stock split. As a result of our name  change to “Doral Energy Corp.”, our OTC Bulletin Board symbol was changed to  “DENG” on April 30, 2008. The high and the low bid prices for our shares since  April 20, 2007 as reported by the OTC Bulletin Board were:

|Quarter Ended    | High  | Low  
|---------------- | ----- | -----
|April 30, 2007   | $0.00 | $0.00
|July 31, 2007    | $0.00 | $0.00
|October 31, 2007 | $0.00 | $0.00
|January 31, 2008 | $0.40 | $0.06
|April 30, 2008   | $1.55 | $1.88
|July 31, 2008    | $0.00 | $0.00

The  above quotations have been adjusted to reflect our 25-for-1 stock split  effective January 8, 2008. (The above quotations have not been adjusted to  reflect the 2009 Stock Splits.)  Quotations provided by the OTC Bulletin Board  reflect inter-dealer prices, without retail mark-up, markdown or commission and  may not represent actual transactions.

Holders

As  of October 27, 2008, there were 107,087,500 (85,670,000 post-2009 Stock Splits)  shares of our common stock issued and outstanding that are held of record by 42  registered stockholders. We believe that a number of stockholders may hold  their shares of our common stock in brokerage accounts and registered in the  name of stock depositories.

Dividends

We have not declared any dividends on our common stock since
our inception. There are no dividend restrictions that limit our ability to pay
dividends on our common stock in our Articles of Incorporation or Bylaws. Our
governing statute, Chapter 78 of the Nevada Revised Statutes (the NRS), does
provide limitations on our ability to declare dividends. Section 78.288 of the
NRS prohibits us from declaring dividends where, after giving effect to the
distribution of the dividend:

|(a) | we would not be able to pay our debts as they become due
      in the usual course of business; or                                                                                                                                                                                                                                                                                                                                                                     
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|(b) | our total assets would be less than the sum of our total
      liabilities plus the amount that would be needed, if we were to be
      dissolved at the time of distribution, to satisfy the preferential rights
      upon dissolution of stockholders who may have preferential rights and
      whose preferential rights are superior to those receiving the distribution
      (except as otherwise specifically allowed by our Articles of
      Incorporation).

Recent Sales of Unregistered Securities

All unregistered sales of our equity securities made during the
year ended July 31, 2008 have been reported by us in our Quarterly Reports or in
our Current Reports filed with the SEC during the year.

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|ITEM 7. | **MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF  OPERATIONS.**
|------- | --------------------------------------------------------------------------------------------

PLAN OF OPERATION

We are an early stage company engaged in the acquisition,
development and operation of prospective and producing oil and gas properties,
interests in oil and gas joint ventures, and other activities in the oil and gas
industry. Our goal is to focus on the acquisition of producing properties with
strong proven reserves and considerable undrilled inventory that can be explored
and developed with reasonable levels of forward risk. Our strategy involves
finding acquisitions that can be paid for with a combination of cash and shares
of our common stock, with an emphasis toward minimizing the cash outlay. The
Permian Basin of Texas and New Mexico is a geographic area of particular
interest to us in seeking future acquisitions, due both to the successful
history of the region in oil and gas production, and to the fact that our
operations office in Midland, Texas.

Our initial work program will be focused on increasing
production from existing wells on the Eddy County Properties. We anticipate that
this work program will include inspection and evaluation of existing wells,
pumping units, and production facilities to insure proper operational integrity;
testing of all wells to ascertain accurate daily oil, gas, and water production
rates; performing mechanical repair job workovers to restore any wells to
production that are found to be off-production; carrying out well repair and
clean-out workovers which will include well chemical treatments and/or acid
stimulations to restore wells to higher prior production rates; and implementing
improvements in downhole pump designs and production facility equipment and
piping to increase operational efficiencies. We plan to carry out this work
program within the first few months of our acquisition of the Eddy County
Properties in an effort to maximize near-term oil and gas production prior to
commencing our drilling program, as described below. We anticipate that this
work program will be funded through subsequent advances from Macquarie under the
Credit Agreement. In order to obtain additional advances from Macquarie, we are
required to submit a detailed development plan for Macquaries approval. We have
submitted a proposed development plan to Macquarie, and we hope to receive their
approval for this plan before the end of 2008, with the operational phase of the
work program expected to begin by the end of 2008 or in early 2009. We believe
that carrying out the work program will increase production incrementally, even
while work is being carried out sequentially on various wells. There are no
assurances that Macquarie will approve the development plan that we have
submitted to them, or that we will begin our work program within the hoped for
time frame.

In addition to increasing production through improvement of
existing wells, we also plan to create additional value by implementing an
infill development drilling program on the Eddy County Properties. The current
producing wells have been drilled on 40 acre well spacing. By carrying out an
infill development drilling program to redevelop the leases on 20 acre well
spacing, we anticipate that this will increase production from the Eddy County
Properties. Offset operators in this area over the past 20 to 30 years have
successfully performed infill drilling programs such as this with very good
success, accessing and developing oil and gas reserves that would not have been
produced otherwise by the wells drilled on 40 acre spacing patterns. We have
identified over 250 potential 20 acre infill locations on the Eddy County
Properties, and 166 of these locations have been classified as proved
undeveloped locations in our current in-house reserves. The infill development
drilling program will be started as soon as practical, but some potential delays
may be encountered due to the availability of casing and tubing, the
availability of suitable drilling rigs, and the availability of frac stimulation
equipment and services. We anticipate that our infill development drilling
program will be carried out by us over the next several years.

Our engineers and geologists will consult with Macquarie Banks
engineers and geologists, in order to plan the first six to nine months of for
the infill development drilling on the Eddy County Properties (the Development
Plan). The selection and timing of individual wells to be drilled under the
Development Plan will be made based on: (i) new geological structure and net pay
maps of the pay zones being prepared; (ii) the quality of current producing
wells on the lease including both cumulative production to-date and estimated
ultimate recovery from target reservoirs; (iii) the presence of previously
undeveloped and un-produced intervals in target pay zones present on the lease;
(iv) volumetric reserve calculations where appropriate; (v) the status of lease
production facilities and capacities; and (vi) access to gas sales markets for
casinghead gas production. We anticipate that we will complete the Development
Plan during the implementation of our initial work program to raise the
production from current producing wells.

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In carrying out our plan of operation, we anticipate that our
operating expenses for the next twelve months will be as follows:

|Budget During the Next Twelve Months             |  
|------------------------------------------------ | -
|Expenses                                         |  
|Drilling and Development                         | $
|Lease Operating Expenses & Taxes                 | $
|Salaries                                         | $
|Professional Fees (Legal, Accounting, Technical) | $
|Other General & Administrative Expenses          | $
|Interest Expense                                 | $
|Total                                            | $

As of July 31, 2008, we had a working capital surplus of
$415,885. Based on our current estimated revenues from the Eddy County
Properties, we will need to acquire additional financing through the sale of our
common stock or obtain additional advances on our credit facility with Macquarie
in order to complete our plan of operation. See Liquidity and Capital
Resources, below.

RESULTS OF OPERATION

|Summary of Year End Results         |   |                    |   |   |            |   |  |                       | 
|----------------------------------- | - | ------------------ | - | - | ---------- | - |  | --------------------- | 
|                                    |   | Year Ended July 31 |   |   | Percentage |  
|                                    |   | 2008               |   |   | 2007       |   |  | Increase / (Decrease) | 
|Revenue                             | $ | -                  |   |   | -          |   |  | n/a                   | 
|General and Administrative Expenses |   | (493,929           | ) |   | (85,395    | ) |  | 478.4%                | 
|Miscellaneous Income                |   | -                  |   |   | 3,736      |   |  | (100)%                | 
|Interest Expense                    |   | 9,944              |   |   | -          |   |  | n/a                   | 
|Net Loss                            | $ | (503,872           | ) | $ | (81,659    | ) |  | 517.0%                | 

Revenues

As of July 31, 2008, we had not earned any revenues from our
oil and gas operations as our acquisition of the Eddy County Properties was not
effective until August 1, 2008. We expect to begin to recognize revenues for
periods subsequent to our July 31, 2008 year end.

Under the terms of the Credit Agreement, we will be required
to, on a monthly basis, pay to Macquarie 100% of our net operating cash flows
from all sources (including, but not limited to the Eddy County Properties) less
an allocated amount for our general and administrative expenses, until all
amounts advanced under the Credit Agreement have been repaid. The amount
allocated for our general and administrative expenses is equal to $125,000 per
month up to Mach 31, 2009, and thereafter will be equal to 10% of our net
operating cash flows for the month. The amounts paid to Macquarie will be
applied to interest and principal payable under the Credit Agreement.

We have entered into a costless collar hedging transaction,
which provides us with partial protection against variations in the price of
crude oil. For a detailed description of this hedging transaction, see Item 1
Description of Business. The net effect of the costless collar is to set a
floor of $100 on the price to be received for each barrel of production covered
and a ceiling of $131 for each barrel of production covered. The number of
barrels of our production covered by the costless collar for production months
through July 2011 is as follows:

| | Aug 2008 - Dec 2008: | 1,900 barrels per month
| | -------------------- | -----------------------
| | Jan 2009 - Dec 2009: | 1,700 barrels per month
| | Jan 2010 - Dec 2010: | 1,600 barrels per month
| | Jan 2011 - Jul 2011: | 1,400 barrels per month

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General and Administrative Expenses

Our general and administrative expenses for the years ended
July 31, 2008 and 2007, consisted of the following:

|                                |   | Year Ended July 31, |  |   | Percentage | 
|------------------------------- | - | ------------------- |  | - | ---------- | 
|                                |   | 2008                |  |   | 2007       | 
|General Office and Overhead     | $ | 31,291              |  | $ | 7,438      | 
|Payroll Expenses and Management |   | 124,243             |  |   | 36,000     | 
|Services                        |   |                     |  |   |            | 
|Professional Fees               |   | 312,815             |  |   | 40,958     | 
|Other Expenses                  |   | 24,428              |  |   | 999        | 
|Sales, Marketing & PR           |   | 1,151               |  |   | -          | 
|Total                           | $ | 493,928             |  | $ | 85,395     | 

All of our general and administrative expenses increased
significantly during the year ended July 31, 2008. The increases in general
office and overhead expenses primarily relate to costs associated with rent for
our new offices and the development of a website.

Additional professional fees incurred during the period relate
to fees for additional services provided by our consulting engineer and
operations team in connection with the acquisition of the Eddy County
Properties, and for legal and accounting services provided in connection with
our acquisition of the Eddy Country Properties and in connection with meeting
our ongoing reporting obligations under the Exchange Act.

Additional amounts recorded for payroll expenses and management
services relate primarily to amounts recorded in respect of management fees
payable to Paul Kirkitelos, our Chief Executive Officer, President, Chief
Financial Officer, Treasurer, Secretary and sole director. We have a verbal
agreement with Mr. Kirkitelos to pay him $15,000 for his services.

We expect all of our expenses to continue to increase
substantially during the fiscal year ending July 31, 2009 as a result of our
operational and developmental activities related to our oil and gas
properties.

LIQUIDITY AND CAPITAL RESOURCES

|Working Capital           |   |                  |   |   |                  |   |  |                       | 
|------------------------- | - | ---------------- | - | - | ---------------- | - |  | --------------------- | 
|                          |   |                  |   |   |                  |   |  | Percentage            | 
|                          |   | At July 31, 2008 |   |   | At July 31, 2007 |   |  | Increase / (Decrease) | 
|Current Assets            | $ | 687,136          |   | $ | 31,268           |   |  | 2,097.6%              | 
|Current Liabilities       |   | (271,251         | ) |   | (5,875           | ) |  | 4,517.0%              | 
|Working Capital (Deficit) | $ | 415,885          |   | $ | 25,393           |   |  | 1,537.8%              | 

|Cash Flows                                    |   |                     |   |   |                     |  
|--------------------------------------------- | - | ------------------- | - | - | ------------------- | -
|                                              |   | Year Ended          |   |   | Year Ended          |  
|                                              |   | July
      31, 2008 |   |   | July
      31, 2007 |  
|Cash Flows Used in Operating Activities       | $ | (294,632            | ) | $ | (36,855             | )
|Cash Flows Used in Investing Activities       |   | (5,097,090          | ) |   | --                  |  
|Cash Flows From Financing Activities          |   | 5,415,000           |   |   | 974                 |  
|Net Increase (Decrease) in Cash During Period | $ | 23,278              |   | $ | (35,881             | )

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As at July 31, 2008, we had a working capital surplus of
$415,885. Although the Eddy County Properties generate cash flows, under the
terms of our Credit Agreement with Macquarie, until we have repaid all amounts
advanced by Macquarie, we will be required to pay Macquarie 100% of our net
operating cash flows from all sources, less an allocated amount for our general
administrative expenses. As such, until such time as we have repaid all amounts
advanced to us by Macquarie, we expect that our primary sources of financing
will be additional advances from Macquarie under the Credit Agreement, other
forms of debt financing and proceeds from the sale of our common stock. However,
there is no assurance that we will be able to obtain additional financing from
these or any other sources in the future. If we sell additional shares of our
common stock, existing stockholders will experience a dilution of their
proportionate interests in our Company.

During the year ended July 31, 2008, we entered into the
following loan agreements:

|(a) | a loan agreement with Little Bay Consulting SA (Little
      Bay), dated as of March 7, 2008, for an aggregate sum of $220,000. Under
      the terms of the loan agreement, we agreed to pay interest to Little Bay
      at a rate of 5% per annum. The loan from Little Bay is unsecured and
      repayable by July 1, 2010;         
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                            
|(b) | loan agreements with Green Shoe Investments Ltd. (Green
      Shoe), dated as of May 9, 2008 and May 23, 2008, for an aggregate
      principal sum of $250,000. Under the terms of the loan agreements, we
      agreed to pay interest to Green Shoe at a rate of 5% per annum, and to
      repay the loans on or before July 1, 2010;
|    |                                                                                                                                                                                                                                                                                                                                            
|(c) | a loan agreement with Little Bay, dated as of July 18,
      2008, for the principal sum of $100,000. Under the terms of the loan
      agreement, we agreed to pay interest to Little Bay at a rate of 5% per
      annum, and to repay the loan on or before July 18, 2010; and                                                          
|    |                                                                                                                                                                                                                                                                                                                                            
|(d) | a loan agreement with Green Shoe, dated as of July 18,
      2008, for the principal sum of $50,000. Under the terms of the loan
      agreement, we agreed to pay interest to Green Shoe at a rate of 5% per
      annum, and to repay the loan on or before July 18,
2010.                                                               

Subsequent to the year ended July 31, 2008, we entered into a
loan agreement with Little Bay, dated as of October 3, 2008, for the principal
sum of $200,000. Under the terms of the loan agreement, we agreed to pay
interest at a rate of 5% per annum, and to repay the loan on or before October
1, 2010.

Macquarie Credit Agreement

On July 29, 2008, we entered into a Senior First Lien Secured
Credit Agreement (the Credit Agreement) with Macquarie Bank Limited
(Macquarie). Under the terms of the Credit Agreement, Macquarie has agreed to
provide us with: (i) a maximum of $25,000,000 under a revolving loan (the
Revolving Loan); and (ii) a maximum of $25,000,000 under a term loan (the
Term Loan). Upon closing of the Credit Agreement, Macquarie advanced us
$2,500,000 under the Revolving Loan and $2,800,000 under the Term Loan. These
advances are subject to an upfront advance fee of 1.00% of the total amount
advanced. The advances were used to fund our acquisition of the Eddy County
Properties and for working capital purposes. Future advances are subject to
prior approval by Macquarie and we are required to submit to Macquarie an
estimate of expenses for work to be performed on our properties.

Interest:Amounts advanced to us under the
Revolving Loan will bear interest at a rate equal to (i) the Prime Rate (as
determined under the Credit Agreement) plus 1.25% per annum; or (ii) the LIBOR
(as determined under the Credit Agreement) plus 3.00% per annum. Amounts
advanced to us under the Term Loan will bear interest at a rate equal to (i) the
Prime Rate plus 4.75%; or (ii) the LIBOR plus 6.50% per annum. We have the
option to elect the Prime Rate or the LIBOR for each advance under the Revolving
Loan and the Term Loan. However, we are only allowed to have six LIBOR advances
outstanding at one time. Interest on the Revolving Loan and the Term Loan is
payable by us monthly in arrears on the twentieth day of each month, commencing
on September 20, 2008.

Maturity:The loans mature on July 30, 2011.
However, if we are unable to agree with Macquarie on an infill development
drilling program for the Eddy Country Properties by the end of November, the
maturity date for the loans will accelerate to July 30, 2009.

Page 18

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Security:Our obligations under the Credit
Agreement are secured by a first priority mortgage and security interest over
all of our assets and undertaking, including the Eddy County Properties.

Cash Flow Payments: Under the Credit Agreement, we are
required to, on a monthly basis, pay to Macquarie 100% of our net operating cash
flows from all sources (including, but not limited to, the Eddy County
Properties) less an allocated amount for our general and administrative
expenses, until all amounts advanced under the Credit Agreement have been
repaid. The amount allocated for our general and administrative expenses is
$125,000 per month up to March 31, 2009, and thereafter will be equal to 10% of
our net operating cash flows from the month. The amounts paid to Macquarie will
be applied to interest and principal payable under Credit Agreement.

Assignment of Net Profits Overriding Royalty
Interest:In connection with the Credit Agreement, we also conveyed a
net profits overriding royalty interest (the NPORRI) to Macquarie Investments,
LLC (MAC), a subsidiary of Macquarie. Under the terms of the NPORRI,
commencing with the earlier of the date at which all amounts advanced to us by
Macquarie have been repaid and the maturity date for those loans, we will be
required to pay to MAC 35% of the gross proceeds from the Eddy Country
Properties less associated production and capital costs. Once MAC has earned
$5,000,000 under the NPORRI, the NPORRI will automatically decrease to 20%.

Conversion Agreement:In connection with the
assignment of the NPORRI, we have entered into a Conversion Agreement dated July
29, 2008 with MAC. Under the terms of the Conversion Agreement, either MAC or
Doral will have the right to convert the NPORRI into shares of our common stock.
The number of shares to be converted is determined by dividing the value of the
NPORRI by the volume weighted average of the stock price for the sixty trading
days preceding the conversion date. However, there are three pre-conditions
prior to either party exercising the conversion right: (i) Doral must be listed
on the American Stock Exchange or such other exchange as approved by MAC (the
Approved Exchange); (ii) no more than sixty-five percent of the issued and
outstanding shares of our common stock may be held by officers, directors and
beneficial owners holding more than ten percent of our common stock; and (iii)
the average trading volume of our common stock traded on the Approved Exchange
over the sixty trading days prior to the conversion date must be equal to or
greater than fifty percent of the common stock that are eligible to be traded on
the Approved Exchange.

Events of Default:The Credit Agreement also
contains events of default which are customary for such financings. The events
of default include, but are not limited to, default of payment; failure to
comply with any term, condition or covenant of the Credit Agreement; bankruptcy
or insolvency related defaults; judgment pertaining to receivership or
liquidation; federal tax lien or judgment against us of more than $100,000; our
failure to comply with any government regulations on our properties; the
operator is removed or withdraws and no replacement is acceptable to Macquarie;
a change in control occurs; or a material adverse event occurs.

Remedies of Default: Upon an event of default,
Macquarie has the right under the Credit Agreement to: (i) accelerate payment on
all outstanding promissory notes and loans due; (ii) sell any collateral; and
(iii) carry out our rights under our operating agreements with respect to our
Eddy County Properties.

As a result of our entry into the Credit Agreement, Little Bay
and Green Shoe entered into subordination agreements with Macquarie and Doral.
Accordingly, the loans provided by Little Bay and Green Shoe will be subordinate
to the loans provided to us by Macquarie.

Private Placement Offering

In  May, 2008, our sole director, Paul C. Kirkitelos, approved a private placement  offering (the “Offering”) of up to 3,000,000 (2,400,000 post-2009 Stock Splits)  shares of our common stock at a price of $0.75 ($0.94 Post-2009 Stock Splits)  per share to be made solely to persons who qualify as accredited investors as  that term is defined under Regulation D promulgated under the Securities Act of  1933 (the “Securities Act”). On September 12, 2008, we reduced the offering  price to $0.50 ($0.625 post-2009 Stock Splits) per share and increased the  total number of shares available under the offering to 4,500,000 (3,600,000  post-2009 Stock Splits) shares. We do not intend to register the Offering under  the Securities Act and any shares issued under the Offering may not be  reoffered or resold in the United    States absent an effective registration  under the Securities Act or an applicable exemption from the registration  requirements.

Although  we have received subscription proceeds from some subscribers under the  Offering, we have not yet accepted those subscriptions and have not yet issued  any shares under the Offering. There is no minimum number of shares to be sold under the Offering,  and there are no assurances as to the number of shares that will be sold under  the Offering, if any. If any shares are issued under the Offering, existing  stockholders will have their interests diluted.

Page 19

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OFF-BALANCE SHEET ARRANGEMENTS

We have no significant off-balance sheet arrangements that have
or are reasonably likely to have a current or future effect on our financial
condition, changes in financial condition, revenue or expenses, results of
operations, liquidity, capital expenditures or capital resources that is
material to our stockholders.

CRITICAL ACCOUNTING POLICIES

The preparation of financial statements in conformity with
generally accepted accounting principles (GAAP) in the United States has
required our management to make assumptions, estimates and judgments that affect
the amounts reported in the financial statements, including the notes thereto,
and related disclosures of commitments and contingencies, if any. Our
significant accounting policies are disclosed in the notes to the audited
financial statements for the fiscal year ended July 31, 2008 included in this
Annual Report on Form 10-K.

Page 20

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|ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY
      DATA.
|------- | --------------------------------------------------

Index to Financial Statements: 
  Audited financial
  statements as of July 31, 2008, including:

Financial Statements of Doral Energy Corp.

|Report
      of Independent Registered Public Accounting Firm of Malone & Bailey
      PC, Certified Public Accountants and Business Consultants;                               | F-1 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----
|                                                                                                                                                                                |     
|Report
      of Independent Registered Public Accounting Firm of Morgan & Company,
      Chartered Accountants;                                                                 | F-2 
|                                                                                                                                                                                |     
|Consolidated
      Balance Sheets as of July 31, 2008 and 2007                                                                                                                  | F-3 
|                                                                                                                                                                                |     
|Consolidated
      Statements of Expenses for the years ended July 31, 2008 and 2007 and for
      the period from October 25, 2005 (inception) through July 31,
        2008   | F-4 
|                                                                                                                                                                                |     
|Consolidated
      Statements of Stockholders Equity for the period from October 25, 2005
      (inception) through July 31, 2008                                              | F-5 
|                                                                                                                                                                                |     
|Consolidated
      Statements of Cash Flows for the years ended July 31, 2008 and 2007 and
      for the period from October 25, 2005 (inception) through July 31,
        2008 | F-6 
|                                                                                                                                                                                |     
|Notes
      to the Consolidated Financial Statements                                                                                                                            | F-7 
|                                                                                                                                                                                |     
|Pro Forma Financial Information.                                                                                                                                                |     
|                                                                                                                                                                                |     
|Unaudited Pro Forma Condensed Financial
      Statements of Doral Energy Corp. and the Eddy County Properties                                                                   |     
|                                                                                                                                                                                |     
|Unaudited
      Pro Forma Condensed Statement of Operations for the year ended July 31,
      2008                                                                              | F-20
|                                                                                                                                                                                |     
|Unaudited
      Pro Forma Condensed Statement of Operations for the year ended July 31,
      2007                                                                              | F-21
|                                                                                                                                                                                |     
|Notes
      to Unaudited Pro Forma Condensed Financial Statements                                                                                                               | F-22

F-1

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
  FIRM

To the Stockholders of 
  Doral Energy Corp. 
  (formerly
  Language Enterprises Corp.)
  (An Exploration Stage Company) 
  Manhattan
  Beach, CA

We have audited the accompanying consolidated balance sheet of
  Doral Energy Corp. as of July 31, 2008 and the related consolidated statements
  of expenses, stockholders equity, and cash flows for the year then ended and
  for the period from October 25, 2005 (inception) through July 31, 2008. These
  consolidated financial statements are the responsibility of the Company's
  management. Our responsibility is to express an opinion on these consolidated
  financial statements based on our audit.

We conducted our audit in accordance with the standards of the
  Public Company Accounting Oversight Board (United States). Those standards
  require that we plan and perform an audit to obtain reasonable assurance about
  whether the financial statements are free of material misstatement. The Company
  is not required to have, nor were we engaged to perform, an audit of its
  internal control over financial reporting. Our audit included consideration of
  internal control over financial reporting as a basis for designing audit
  procedures that are appropriate in the circumstances, but not for the purpose of
  expressing an opinion on the effectiveness of the Companys internal control
  over financial reporting. Accordingly, we express no such opinion. An audit also
  includes examining, on a test basis, evidence supporting the amounts and
  disclosures in the financial statements, assessing the accounting principles
  used and significant estimates made by management, as well as evaluating the
  overall financial statement presentation. We believe that our audit provides a
  reasonable basis for our opinion.

In our opinion, the financial statements referred to above
  present fairly, in all material respects, the financial position of Doral Energy
  Corp. as of December 31, 2007 and the results of their operations and cash flows
  for the periods referred to above, in conformity with accounting principles
  generally accepted in the United States of America.

As discussed in Note 10 to the financial statements, errors
  resulting in an understatement of assets and liabilities were discovered by
  management. Accordingly, adjustments have been made as of July 31, 2008 to
  correct the errors.

/s/ Malone & Bailey, PC 
  www.malone-bailey.com
  Houston, Texas

October 28, 2008, except note 10 
  which is dated December
  16, 2009

F-1

---





REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
  FIRM

To the Stockholders and Directors of 
  Doral Energy Corp. 
  (Formerly Language Enterprises Corp.)
  (A Development Stage Company)

We have audited the accompanying balance sheet of Doral Energy
  Corp. (formerly Language Enterprises Corp.) (a development stage company) as of
  July 31, 2007, and the related statements of expenses, comprehensive loss, cash
  flows, and stockholders equity for the year ended July 31, 2007, and for the
  cumulative period from inception, October 25, 2005, to July 31, 2007. These
  financial statements are the responsibility of the Company's management. Our
  responsibility is to express an opinion on these financial statements based on
  our audits.

We conducted our audits in accordance with the standards of the
  Public Company Accounting Oversight Board (United States). Those standards
  require that we plan and perform an audit to obtain reasonable assurance whether
  the financial statements are free of material misstatement. The Company is not
  required to have, nor were we engaged to perform, an audit of its internal
  control over financial reporting. Our audit included consideration of internal
  control over financial reporting as a basis for designing audit procedures that
  are appropriate in the circumstances but not for the purpose of expressing an
  opinion on the effectiveness of the Companys internal control over financial
  reporting. Accordingly, we express no such opinion. An audit includes examining,
  on a test basis, evidence supporting the amounts and disclosures in the
  financial statements. An audit also includes assessing the accounting principles
  used and significant estimates made by management, as well as evaluating the
  overall financial statement presentation. We believe that our audits provide a
  reasonable basis for our opinion.

In our opinion, the financial statements referred to above
  present fairly, in all material respects, the financial position of Doral Energy
  Corp. (formerly Language Enterprises Corp.) (a development stage company) as of
  July 31, 2007, and the results of its operations and its cash flows for the year
  ended July 31, 2007, and for the cumulative period from inception, October 25,
  2005, to July 31, 2007, in conformity with accounting principles generally
  accepted in the United States of America.

|Vancouver, Canada | “Morgan & Company”   
|----------------- | ---------------------
|October 24, 2007  | Chartered Accountants

|Tel: (604) 687-5841 |                                     | P.O. Box 10007 Pacific Centre
|------------------- | ----------------------------------- | -----------------------------
|Fax: (604) 687-0075 | Sute 1488 - 700 West Georgia Street
|www.morgan-cas.com  | Vancouver, B.C. V7Y 1A1            



F-2

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|Doral Energy Corp.                   
|-------------------------------------
|(formerly Language Enterprises Corp.)
|(an Exploration Stage Company)       
|Consolidated Balance Sheets          
|July 31, 2008 and 2007               

|                                                                                   |   | 2008       |   |   | 2007     |  
|---------------------------------------------------------------------------------- | - | ---------- | - | - | -------- | -
|ASSETS                                                                             |   | (Restated) |   |   |          |  
|Current assets                                                                     |   |            |   |   |          |  
|Cash and
      cash equivalents                                                    | $ | 54,500     |   | $ | 31,268   |  
|Restricted cash  note
      proceeds restricted as to use                         |   | 566,960    |   |   | -        |  
|Prepaid
      insurance                                                            |   | 65,676     |   |   | -        |  
|Total current assets                                                               |   | 687,136    |   |   | 31,268   |  
|                                                                                   |   |            |   |   |          |  
|Office equipment, net of depreciation                                              |   | 104        |   |   | 248      |  
|Oil and gas properties  Proved, using full
      cost method of accounting        |   | 19,834,246 |   |   | -        |  
|Deferred financing cost                                                            |   | 58,040     |   |   | -        |  
|Security deposit                                                                   |   | 1,105      |   |   | -        |  
|                                                                                   |   |            |   |   |          |  
|Total assets                                                                       | $ | 20,580,631 |   | $ | 31,516   |  
|                                                                                   |   |            |   |   |          |  
|                                                                                   |   |            |   |   |          |  
|LIABILITIES AND STOCKHOLDERS EQUITY                                               |   |            |   |   |          |  
|Current liabilities                                                                |   |            |   |   |          |  
|Accounts payable                                                                   | $ | 201,947    |   | $ | 1,334    |  
|Accounts payable  related
      party                                             |   | 50,919     |   |   | 4,541    |  
|Accrued interest payable                                                           |   | 9,943      |   |   | -        |  
|Other current liabilities                                                          |   | 8,442      |   |   | -        |  
|Total current liabilities                                                          |   | 271,251    |   |   | 5,875    |  
|                                                                                   |   |            |   |   |          |  
|Notes payable, net of discount of $181,746 and
      $0, respectively              |   | 5,738,254  |   |   | -        |  
|Asset retirement obligation                                                        |   | 918,902    |   |   | -        |  
|Total liabilities                                                                  |   | 6,928,407  |   |   | 5,875    |  
|                                                                                   |   |            |   |   |          |  
|STOCKHOLDERS EQUITY                                                               |   |            |   |   |          |  
|Common shares, $0.001 par
      value, 2,000,000,000 shares authorized, 85,862,000 |   |            |   |   |          |  
|and 80,070,000 shares issued and outstanding, respectively                         |   | 85,862     |   |   | 80,070   |  
|Additional paid-in capital                                                         |   | 14,188,489 |   |   | 63,780   |  
|Accumulated deficit                                                                |   | (622,127   | ) |   | (118,209 | )
|Total stockholders equity                                                         |   | 13,652,224 |   |   | 25,641   |  
|                                                                                   |   |            |   |   |          |  
|Total liabilities and stockholders equity                                         | $ | 20,580,631 |   | $ | 31,516   |  

The accompanying notes are an integral part of these
  consolidated financial statements.

F-3

---

|Doral Energy Corp.                                                                  
|------------------------------------------------------------------------------------
|(formerly Language Enterprises Corp.)                                               
|(an Exploration Stage Company)                                                      
|Consolidated Statements of Expenses                                                 
|For the years ended July 31, 2008 and 2007 and                                      
|for the period from October 25, 2005 (date of
      inception) through July 31, 2008

|                                     |   |            |   |   |            |   |   | Inception           |  
|------------------------------------ | - | ---------- | - | - | ---------- | - | - | ------------------- | -
|                                     |   |            |   |   |            |   |   | through             |  
|                                     |   | 2008       |   |   | 2007       |   |   | July
      31, 2008 |  
|                                     |   |            |   |   |            |   |   |                     |  
|Expenses:                            |   |            |   |   |            |   |   |                     |  
|General and administrative           | $ | 493,929    |   | $ | 85,395     |   |   | 615,934             |  
|Miscellaneous income                 |   | -          |   |   | (3,736     | ) |   | (3,736              | )
|Operating loss                       |   | (493,929   | ) |   | (81,659    | ) |   | (612,198            | )
|                                     |   |            |   |   |            |   |   |                     |  
|Other expense:                       |   |            |   |   |            |   |   |                     |  
|Interest expense                     |   | (9,943     | ) |   | -          |   |   | (9,943              | )
|                                     |   |            |   |   |            |   |   |                     |  
|Net loss                             | $ | (503,872   | ) | $ | (81,659    | ) | $ | (622,141            | )
|                                     |   |            |   |   |            |   |   |                     |  
|                                     |   |            |   |   |            |   |   |                     |  
|Net loss per share:                  |   |            |   |   |            |   |   |                     |  
|Basic and diluted                    | $ | (0.01      | ) | $ | (0.00      | ) |   |                     |  
|                                     |   |            |   |   |            |   |   |                     |  
|                                     |   |            |   |   |            |   |   |                     |  
|Weighted average shares outstanding: |   |            |   |   |            |   |   |                     |  
|Basic and diluted                    |   | 80,242,022 |   |   | 80,070,000 |   |   |                     |  

The accompanying notes are an integral part of these
  consolidated financial statements.

F-4

---

|Doral Energy Corp.                                                                  
|------------------------------------------------------------------------------------
|(formerly Language Enterprises Corp.)                                               
|(an Exploration Stage Company)                                                      
|Consolidated Statements of Stockholders Equity                                     
|For the period from October 25, 2005 (date of
      inception) through July 31, 2008

|                                                                           |  |            |  |   |        |  |   | Additional |   |   |             |   |   |            |  
|-------------------------------------------------------------------------- |  | ---------- |  | - | ------ |  | - | ---------- | - | - | ----------- | - | - | ---------- | -
|                                                                           |  | Common     |  |   | Par    |  |   | Paid-In    |   |   | Accumulated |   |   |            |  
|                                                                           |  | Shares*    |  |   | Amount |  |   | Capital    |   |   | Deficit     |   |   | Total      |  
|                                                                           |  |            |  |   |        |  |   |            |   |   |             |   |   |            |  
|Balance, October 25, 2005 (date of
      inception)                        |  | -          |  | $ | -      |  | $ | -          |   | $ | -           |   | $ | -          |  
|January 26, 2006- Shares issued for cash at $0.01                          |  | 52,000,000 |  |   | 52,000 |  |   | (26,000    | ) |   | -           |   |   | 26,000     |  
|March 26, 2006-Shares issued for cash at
      $0.02                       |  | 24,000,000 |  |   | 24,000 |  |   | -          |   |   | -           |   |   | 24,000     |  
|May 19, 2006- Shares issued for cash at $0.10                              |  | 4,070,000  |  |   | 4,070  |  |   | 16,280     |   |   | -           |   |   | 20,350     |  
|Fair value of rent and management services
      donated by Directors      |  | -          |  |   | -      |  |   | 31,500     |   |   | -           |   |   | 31,500     |  
|Net loss                                                                   |  | -          |  |   | -      |  |   | -          |   |   | (36,610     | ) |   | (36,610    | )
|Foreign currency translation adjustment                                    |  | -          |  |   | -      |  |   | -          |   |   | 492         |   |   | 492        |  
|Total comprehensive loss                                                   |  |            |  |   |        |  |   |            |   |   | (36,118     | ) |   |            |  
|                                                                           |  |            |  |   |        |  |   |            |   |   |             |   |   |            |  
|Balance, July 31, 2006                                                     |  | 80,070,000 |  |   | 80,070 |  |   | 21,780     |   |   | (36,118     | ) |   | 65,732     |  
|Fair value of rent and management services
      donated by Directors      |  | -          |  |   | -      |  |   | 42,000     |   |   | -           |   |   | 42,000     |  
|Net loss                                                                   |  | -          |  |   | -      |  |   | -          |   |   | (81,659     | ) |   | (81,659    | )
|Foreign currency translation adjustment                                    |  | -          |  |   | -      |  |   | -          |   |   | (432        | ) |   | (432       | )
|Total comprehensive loss                                                   |  |            |  |   |        |  |   |            |   |   | (82,091     | ) |   |            |  
|                                                                           |  |            |  |   |        |  |   |            |   |   |             |   |   |            |  
|Balance, July 31, 2007                                                     |  | 80,070,000 |  |   | 80,870 |  |   | 69,780     |   |   | (118,209    | ) |   | 25,641     |  
|Fair value of rent and management services
      donated by Directors      |  | -          |  |   | -      |  |   | 10,501     |   |   | -           |   |   | 10,501     |  
|April 25, 2008- Shares issued as security deposit on Hanson
      Property |  | 400,000    |  |   | 400    |  |   | 999,600    |   |   | -           |   |   | 1,000,000  |  
|June 18, 2008- Shares issued for cash at
      $0.50                       |  | 160,000    |  |   | 160    |  |   | 99,840     |   |   | -           |   |   | 100,000    |  
|June 27, 2008- Shares issued for cash at $0.50                             |  | 32,000     |  |   | 32     |  |   | 19,968     |   |   | -           |   |   | 20,000     |  
|July 29, 2008- Shares issued for the
      acquisition of Hanson Property  |  | 5,200,000  |  |   | 5,200  |  |   | 12,994,800 |   |   | -           |   |   | 13,000,000 |  
|Net loss                                                                   |  | -          |  |   | -      |  |   | -          |   |   | (503,872    | ) |   | (503,872   | )
|Foreign currency translation adjustment                                    |  | -          |  |   | -      |  |   | -          |   |   | (46         | ) |   | (46        | )
|Total comprehensive loss                                                   |  |            |  |   |        |  |   |            |   |   | (503,918    | ) |   |            |  
|                                                                           |  |            |  |   |        |  |   |            |   |   |             |   |   |            |  
|Balance, July 31, 2008                                                     |  | 85,862,000 |  | $ | 85,862 |  | $ | 14,188,489 |   | $ | (622,127    | ) | $ | 13,652,224 |  

* The common stock issued has been
  retroactively restated to reflect a forward stock split of 25 new shares of
  common stock for one old share of common stock, effective January 7, 2008, the
  reverse stock split of 1 new share of common stock for 6.25 shares of old share
  of common stock effective January 23, 2009, and the forward stock split of five
  new shares of common stock for one old share of common stock effective September
  14, 2009. The number of authorized shares and the par value per share, as well
  as certain per share information, as referred to in these financial statements
  have been restated where applicable to give retroactive effect of the forward
  stock split.

The accompanying notes are an integral part of these
  consolidated financial statements.

F-5

---

|Doral Energy Corp.                                                              
|--------------------------------------------------------------------------------
|(formerly Language Enterprises Corp.)                                           
|(an Exploration Stage Company)                                                  
|Consolidated Statements of Cash Flows                                           
|For the years ended July 31, 2008 and 2007 and for                              
|the period from October 25, 2005 (date of inception)
      through July 31, 2008

|                                                                              |   |            |   |   |         |   |   | Inception     |  
|----------------------------------------------------------------------------- | - | ---------- | - | - | ------- | - | - | ------------- | -
|                                                                              |   |            |   |   |         |   |   | through       |  
|                                                                              |   | 2008       |   |   | 2007    |   |   | July 31, 2008 |  
|                                                                              |   | (Restated) |   |   |         |   |   |               |  
|CASH FLOWS FROM OPERATING ACTIVITIES                                          |   |            |   |   |         |   |   |               |  
|Net loss                                                                      | $ | (503,872   | ) | $ | (81,659 | ) | $ | (622,141      | )
|Adjustments to reconcile net loss to cash used
      by operating activities: |   |            |   |   |         |   |   |               |  
|Depreciation, depletion and amortization                                      |   | 144        |   |   | 144     |   |   | 300           |  
|Non cash interest
      expense                                               |   | 9,943      |   |   | -       |   |   | 9,943         |  
|Contribution of rent and salary                                               |   | 10,501     |   |   | 42,000  |   |   | 84,001        |  
|Changes in
      operating assets and liabilities:                            |   |            |   |   |         |   |   |               |  
|Prepaid expenses and other current assets                                     |   | (65,676    | ) |   | 1,326   |   |   | (65,676       | )
|Deposits                                                                      |   | (1,105     | ) |   | -       |   |   | (1,105        | )
|Accounts payable                                                              |   | 209,055    |   |   | 1,334   |   |   | 210,389       |  
|Accounts payable  related party                                              |   | 46,378     |   |   | -       |   |   | 46,378        |  
|NET CASH USED BY OPERATING ACTIVITIES                                         |   | (294,632   | ) |   | (36,855 | ) |   | (337,911      | )
|                                                                              |   |            |   |   |         |   |   |               |  
|CASH FLOWS FROM INVESTING ACTIVITIES                                          |   |            |   |   |         |   |   |               |  
|Purchase of
      property and equipment                                      |   | -          |   |   | -       |   |   | (404          | )
|Purchase of oil and gas properties                                            |   | (5,097,090 | ) |   | -       |   |   | (5,097,090    | )
|CASH FLOWS USED IN INVESTING ACTIVITIES                                       |   | (5,097,090 | ) |   | -       |   |   | (5,097,494    | )
|                                                                              |   |            |   |   |         |   |   |               |  
|CASH FLOWS FROM FINANCING ACTIVITIES                                          |   |            |   |   |         |   |   |               |  
|Amounts due to related party                                                  |   | -          |   |   | 974     |   |   | 4,541         |  
|Proceeds from
      issuance of notes payable, gross                          |   | 5,920,000  |   |   | -       |   |   | 5,920,000     |  
|Deferred financing costs incurred                                             |   | (53,000    | ) |   | -       |   |   | (53,000       | )
|Change in note
      proceeds restricted as to use                            |   | (572,000   | ) |   |         |   |   | (572,000      | )
|Proceeds from sale of common stock                                            |   | 120,000    |   |   | -       |   |   | 190,350       |  
|CASH FLOWS PROVIDED BY FINANCING ACTIVITIES                                   |   | 5,415,000  |   |   | 974     |   |   | 5,489,891     |  
|                                                                              |   |            |   |   |         |   |   |               |  
|NET INCREASE(DECREASE) IN CASH AND CASH                                       |   |            |   |   |         |   |   |               |  
|EQUIVALENTS                                                                   |   | 23,278     |   |   | (35,881 | ) |   | 54,486        |  
|Effect of
      unrealized exchange rate changes                              |   | (46        | ) |   | (432    | ) |   | 14            |  
|Cash and cash equivalents, beginning of period                                |   | 31,268     |   |   | 67,581  |   |   | -             |  
|Cash and cash
      equivalents, end of period                                | $ | 54,500     |   | $ | 31,268  |   | $ | 54,500        |  
|                                                                              |   |            |   |   |         |   |   |               |  
|                                                                              |   |            |   |   |         |   |   |               |  
|Supplemental disclosures of cash flow
      information:                      |   |            |   |   |         |   |   |               |  
|Interest paid                                                                 | $ | -          |   | $ | -       |   | $ | -             |  
|Income taxes paid                                                             | $ | -          |   | $ | -       |   | $ | -             |  
|Noncash investing and financing transactions:                                 |   |            |   |   |         |   |   |               |  
|Stock issued for purchase of
      oil and gas properties                     | $ | 14,000,000 |   | $ | -       |   | $ | 14,000,000    |  
|Discount on Macquarie Credit Agreement                                        | $ | 181,746    |   | $ | -       |   | $ | 181,746       |  
|Asset retirement obligation
      incurred                                    | $ | 918,902    |   | $ | -       |   | $ | 918,902       |  

The accompanying notes are an integral part of these
  consolidated financial statements

F-6

---

Doral Energy Corp.(formerly Language Enterprises
      Corp.)(an Exploration Stage Company)Notes to
    Consolidated Financial Statements

NOTE 1  ORGANIZATION AND BUSINESS OPERATIONS

Language Enterprises Corp. (the Company or Doral) was
  incorporated under the laws of Nevada, USA, on October 25, 2005. Our principal
  executive offices are in Manhattan Beach, California. In February 2008, the
  Company formed Doral West Corp., a wholly owned subsidiary to participate in
  future acquisitions. Effective April 28, 2008, Language Enterprise Corp. changed
  its name to Doral Energy Corp.

Until recently the Company had operated a translation brokerage
  business, acting as an intermediary between clients and independent,
  professional translators located throughout the world with whom they are
  associated. On July 29, 2008, the Company acquired certain oil and gas
  properties and changed their business focus to that of a company engaged in the
  acquisition, operation, exploration and development of oil and gas properties
  and prospects. The future plan is to acquire additional producing properties
  with strong proven reserves and considerable undrilled inventory that can be
  explored and developed with reasonable levels of forward risk. The Company
  anticipates financing these acquisitions with a combination of cash and shares
  of common stock.

The Company is a licensed oil and gas operator in the state of
  New Mexico.

NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

The financial statements of the Company have been prepared in
  accordance with generally accepted accounting principles in the United States of
  America (GAAP) and the Securities and Exchange Commission Act 1934.

Doral is an exploration stage company. The accompanying
  consolidated financial statements are prepared in accordance with SFAS No. 7,
  Accounting and Reporting by Development Stage Enterprises and SEC Industry
  Guide 7.

Use of estimates

The preparation of financial statements in conformity with
  generally accepted accounting principles in the United States requires
  management to make estimates and assumptions that affect the reported amounts of
  assets and liabilities and disclosure of contingent assets and liabilities at
  the date of the financial statements, and the reported amounts of revenues and
  expenses during the reporting periods. Actual results could materially differ
  from those estimates.

Management believes that it is reasonably possible the
  following material estimates affecting the financial statements could
  significantly change in the coming year: (1) estimates of proved oil and gas
  reserves, and (2) forecast forward price curves for natural gas and crude oil.
  The oil and gas industry in the United States has historically experienced
  substantial commodity price volatility, and such volatility is expected to
  continue in the future. Commodity prices affect the level of reserves that are
  considered commercially recoverable; significantly influence Dorals current and
  future expected cash flows; and impact the PV10 derivation of proved reserves
  presented in Doral supplemental oil and gas reserve disclosures made herein.

Reclassification

Certain prior period amounts have been reclassified to conform
  to current period presentation.

Principles of consolidation

The consolidated financial statements include the accounts of
  Doral Energy Corp. and its 100% owned subsidiary Doral West Corporation.

F-7

---

Cash and cash equivalents

For purposes of the balance sheet and statement of cash flows,
  the Company considers all highly liquid debt instruments purchased with maturity
  of three months or less to be cash equivalents. At July 31, 2008 and 2007, the
  Company had no cash equivalents. Doral may, in the normal course of operations,
  maintain cash balances in excess of federally insured limits. As of July 31,
  2008, there were no cash balances in excess of federally insured limits.

Restricted cash  note proceeds restricted as to
  use

At July 31, 2008, Doral has $566,960 of restricted cash. The
  restricted cash represents proceeds from the revolving loan payable to Macquarie
  (See Note 5) which are restricted as to use under the terms of the credit
  agreement. These funds may be used to pay lease operating expenses, note
  interest, certain fees associated with obtaining the note and certain general
  and administrative expenses. Subsequent to July 31, 2008, all of the restricted
  cash was transferred to available cash accounts.

Office equipment

Property and equipment is stated at cost. Depreciation is
  computed on a straight-line basis over the estimated useful lives ranging from
  three to five years.

Oil and gas properties

Doral follows the full cost method of accounting for its oil
  and natural gas properties, whereby all costs incurred in connection with the
  acquisition, exploration for and development of petroleum and natural gas
  reserves are capitalized. Such costs include lease acquisition, geological and
  geophysical activities, rentals on non-producing leases, drilling, completing
  and equipping of oil and gas wells and administrative costs directly
  attributable to those activities and asset retirement costs. Disposition of oil
  and gas properties are accounted for as a reduction of capitalized costs, with
  no gain or loss recognized unless such adjustment would significantly alter the
  relationship between capital costs and proved reserves of oil and gas, in which
  case the gain or loss is recognized to income.

Depletion and depreciation of proved oil and gas properties is
  calculated on the units-of-production method based upon estimates of proved
  reserves. Such calculations include the estimated future costs to develop proved
  reserves. Oil and gas reserves are converted to a common unit of measure based
  on the energy content of 6,000 cubic feet of gas to one barrel of oil. Costs of
  unevaluated properties are not included in the costs subject to depletion. These
  costs are assessed periodically for impairment.

Ceiling test

In applying the full cost method, Doral performs an impairment
  test (ceiling test) at each reporting date, whereby the carrying value of oil
  and gas property and equipment is limited to the estimated present value of
  the future net revenues from its proved reserves, discounted at a 10-percent
  interest rate and based on current economic and operating conditions, plus the
  cost of properties not being amortized, plus the lower of cost or fair market
  value of unproved properties included in costs being amortized, less the income
  tax effects related to any book and tax basis differences of the properties. As
  of July 31, 2008, no impairment of oil and gas properties was recorded.

Asset retirement obligation

In accordance with SFAS No. 143, Accounting for Asset
  Retirement Obligations, Doral records the fair value of a liability for asset
  retirement obligations (ARO) in the period in which an obligation is incurred
  and records a corresponding increase in the carrying amount of the related
  long-lived asset. For Doral, asset retirement obligations primarily relate to
  the abandonment of oil and gas properties. The present value of the estimated
  asset retirement cost is capitalized as part of the carrying amount of oil and
  gas properties and is depleted over the useful life of the asset. The settlement
  date fair value is discounted at Dorals credit adjusted risk-free rate in
  determining the abandonment liability. The abandonment liability is accreted
  with the passage of time to its expected settlement fair value. Revisions to
  such estimates are recorded as adjustments to ARO and capitalized asset
  retirement costs and are charged to operations in the period in which they
  become known. At the time the abandonment cost is incurred, Doral is required to
  recognize a gain or loss if the actual costs do not equal the estimated costs
  included in ARO.

The amounts recognized for ARO are based upon numerous
  estimates and assumptions, including future abandonment costs, future
  recoverable quantities of oil and gas, future inflation rates, and the credit
  adjusted risk free interest rate.

F-8

---

Environmental

The Company is subject to environmental laws and regulations of
  various U.S. jurisdictions. These laws, which are constantly changing, regulate
  the discharge of materials into the environment and may require the Company to
  remove or mitigate the environmental effects of the disposal or release of
  petroleum or chemical substances at various sites.

Environmental costs that relate to current operations are
  expensed or capitalized as appropriate. Costs are expensed when they relate to
  an existing condition caused by past operations and will not contribute to
  current or future revenue generation. Liabilities related to environmental
  assessments and/or remedial efforts are accrued when property or services are
  provided or can be reasonably estimated.

Future income taxes

Income taxes are accounted for using the asset/liability method
  of income tax allocation. Future income taxes are recognized for the future
  income tax consequences attributable to differences between the carrying values
  of assets and liabilities and their respective income tax bases. Future income
  tax assets and liabilities are measured using income tax rates expected to apply
  to taxable income in the years in which temporary differences are expected to be
  recovered or settled. The effect on future income tax assets and liabilities of
  a change in income tax rates is included in earnings in the period that such
  change in income tax rates is enacted. Future income tax assets are recorded in
  the financial statements if realization is considered more likely than not.

Revenue and cost recognition

Doral uses the sales method to account for sales of crude oil
  and natural gas. Under this method, revenues are recognized based on actual
  volumes of oil and gas sold to purchasers. The volumes sold may differ from the
  volumes to which Doral is entitled based on the interest in the properties.
  These differences create imbalances which are recognized as a liability only
  when the imbalance exceeds the estimate of remaining reserves. Doral had no
  production, revenue or imbalances as of July 31, 2008. Costs associated with
  production are expensed in the period incurred.

Loss per share

Basic net loss per common share is computed by dividing net
  loss by the weighted-average number of common shares outstanding during the
  period. Diluted net loss per common share is determined using the
  weighted-average number of common shares outstanding during the period, adjusted
  for the dilutive effect of common stock equivalents. In periods when losses are
  reported, the weighted-average number of common shares outstanding excludes
  common stock equivalents, because their inclusion would be anti-dilutive.

Comprehensive Loss

Comprehensive loss is the total of (1) net loss plus (2) all
  other changes in net assets arising from non-stockholder sources, which are
  referred to as other comprehensive income. The Company has presented other
  comprehensive income on the statement of stockholders equity.

Fair value of financial instruments

The carrying value of cash and cash equivalents, accounts
  payable and accrued expenses and other liabilities approximates fair value due
  to the short term maturity of these instruments. The carrying value of the notes
  payable are believed to approximate their fair value as of July 31, 2008 based
  upon the relatively short period these instruments have been outstanding during
  fiscal year 2008.

New Accounting Pronouncements

Doral does not expect the adoption of recently issued
  accounting pronouncements have a significant impact on their results of
  operations, financial position or cash flows.

F-9

---

NOTE 3  OIL AND GAS PROPERTIESAcquisition of
      Eddy County Properties

On July 29, 2008, the Company acquired a working interest in 66
  producing oil fields and approximately 186 wells (the Eddy County Properties)
  in and around Eddy County, New Mexico. The acquisition of the Eddy County
  Properties was completed pursuant to the terms of the Purchase and Sale
  Agreement dated April 25, 2008, as amended on July 17, 2008, (the Hanson Energy
  Agreement) between J. Warren Hanson, an individual doing business as Hanson
  Energy, and his wife, Kathie Hanson, and the Company. Under the terms of the
  Hanson Energy Agreement, Hanson Energy transferred to Doral all of its right,
  title and interest in and to the Eddy County Properties, together with all of
  Hanson Energys right, title and interest in and to the lands, wells and
  hydrocarbons associated with the Eddy County Properties, and to the oil and gas
  sales contracts related thereto (collectively, the Assets).

The Eddy County Properties consist of approximately 7,800 acres
  and are located along the Artesia-Vacuum Trend near the northwestern edge of the
  Permian Basin. As a result of the acquisition of the Eddy County Properties,
  Doral currently holds a 100% working interest and an average of a 74.7% net
  revenue interest in 55 of the 66 leases. In addition, the Company holds an
  average of an 84.4% working interest and an average of a 67.1% net revenue
  interest in the remaining 11 leases. Our leasehold rights vary between leases,
  but they generally extend from the surface to approximately 3,500 feet in depth.
  Doral will be entitled to production from the Eddy County Properties beginning
  August 1, 2008.

As consideration for the Assets, Doral paid to Hanson Energy
  the following consideration:

|(a) | Upon execution of the Hanson Energy Agreement, a deposit
      (the Deposit) of $100,000 in cash plus and 2,500,000 shares of common
      stock;                                                                                                                                                                           
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                               
|(b) | Upon execution of the Amendment Agreement to the Hanson
      Energy Agreement dated July 17, 2008, an amount of $150,000 in cash, paid
      as an increase to the Deposit amount; and                                                                                                                                       
|    |                                                                                                                                                                                                                                                                                                                               
|(c) | Upon closing, $4,750,000 in cash and 5,600,000 shares of
      our common stock, and an overriding royalty interest of 2.5% of 8/8 on the
      oil and gas produced from the Assets. The cash portion of the Purchase
      Price is subject to future adjustment pursuant to the terms of the Hanson
      Energy Agreement.

The total purchase price was as follows:

|Cash paid to Hanson Energy                                                                                                                                                                    | $ | 5,000,000  |  
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | - | ---------- | -
|Common stock issued to Hanson Energy (5,600,000 shares valued at $2.50 per share based on last traded stock price ( post reverse
      stock split and after forward stock split restatement) |   | 14,000,000 |  
|Cash paid for other acquisition costs                                                                                                                                                         |   | 97,090     |  
|Asset retirement obligation incurred                                                                                                                                                          |   | 918,902    |  
|Total purchase price                                                                                                                                                                          | $ | 20,015,992 |  
|Less: Net profits overriding royalty
      interest                                                                                                                                           |   | (181,746   | )
|Net purchase price                                                                                                                                                                            | $ | 19,834,746 |  

The total purchase price was allocated to proved oil and gas
  properties, as this was the only asset purchased.

The following table reflects selected pro forma financial
  information as if the acquisition of the Eddy County Properties has occurred as
  of the beginning of each of the years ended July 31, 2008 and 2007:

|                       |   | Year ended    |   |   | Year ended    |  
|---------------------- | - | ------------- | - | - | ------------- | -
|                       |   | July 31, 2008 |   |   | July 31, 2007 |  
|Revenues  oil and gas | $ | 2,165,565     |   | $ | 1,561,660     |  
|Net Loss               |   | ($846,401     | ) |   | ($1,293,988   | )
|Earnings per Share     |   | ($0.01        | ) |   | ($0.00        | )

F-10

---

Oil and gas properties

All of the Dorals oil and gas properties are located in the
  United States. Oil and gas properties are made up of the following at July 31,
  2008:

|                                                                 |   | Amount     | 
|---------------------------------------------------------------- | - | ---------- | 
|Properties subject to amortization                               | $ | 19,834,746 | 
|Properties not subject to amortization                           |   | -          | 
|Less: accumulated depreciation, depletion
      and amortization |   | -          | 
|Oil and gas properties, net                                      | $ | 19,834,746 | 

No depletion was charged during the year ended July 31, 2008,
  because there was no production attributable to the Company during that period.

NOTE 4  INCOME TAXES

Deferred income taxes are recorded at the expected tax rate of
  35%. SFAS No. 109 Accounting for Income Taxes requires that deferred tax
  assets be reduced by a valuation allowance if it is more or likely than not that
  some portion or all of the deferred tax asset will not be realized.

Reconciliation between actual tax expense (benefit) and income
  taxes computed by applying the combined U.S. federal income tax rate and state
  income tax rate to net loss is as follows:

|                                           |   | 2008     |  
|------------------------------------------ | - | -------- | -
|Computed at U.S. and State statutory rates | $ | (176,355 | )
|Changes in valuation allowance             |   | 176,355  |  
|Total                                      | $ | -        |  
|                                           |   |          |  
|                                           |   |          |  
|                                           |   | July 31, |  
|                                           |   | 2008     |  
|Deferred tax asset attributable to:        |   |          |  
|Net operating loss                         | $ | 217,749  |  
|Less: valuation allowance                  |   | (217,749 | )
|                                           |   |          |  
|Total                                      | $ | -        |  

The components giving rise to the deferred tax assets described
  above have been included in the accompanying consolidated balance sheet as
  noncurrent assets. As of July 31, 2008, the deferred tax assets are net of a
  full valuation allowance of $217,749 based on the amount that management
  believes will ultimately be realized. Realization of deferred tax assets is
  dependent upon sufficient future taxable income during the period that
  deductible temporary differences and carryforwards are expected to be available
  to reduce taxable income. At July 31, 2008, Doral had loss carryforwards of
  approximately $622,000 for tax purposes which will begin to expire in 2026.

F-11

---

NOTE 5  NOTES PAYABLE 
  Notes payable are made up
  of the following at July 31, 2008:

|                                                                                                                                        |   | Amount    | 
|--------------------------------------------------------------------------------------------------------------------------------------- | - | --------- | 
|Little Bay note payable, bearing interest
      at 5% per annum, maturing in July 2010                                                  | $ | 320,000   | 
|Greenshoe note payable, bearing interest at 5% per annum,
      maturing on July 1, 2010                                                |   | 300,000   | 
|Term Loan payable to Macquarie, bearing
      interest at LIBOR plus 6.50%, maturing on July 30, 2011, net of discount
      of $96,017 |   | 2,703,983 | 
|Revolving Loan payable to Macquarie, bearing interest at
      LIBOR plus 3.00%, maturing on July 30, 2011, net of discount of $85,729  |   | 2,414,271 | 
|Total                                                                                                                                   | $ | 5,738,254 | 

Little Bay Notes Payable

On March 7, 2008, Doral entered into a loan agreement with
  Little Bay Consulting SA (Little Bay) pursuant to which Little Bay agreed to
  loan the Company $220,000. On July 18, 2008, Doral received an additional
  $100,000 from Little Bay. The loans from Little Bay are unsecured, carry an
  annual interest rate of 5.0%, are due July 1, 2010, and July 18, 2010
  respectively and are nonconvertible.

During September and October 2008, Doral received additional
  loan proceeds of $200,000 from Little Bay. The loans are unsecured, carry an
  annual interest rate of 5.0%, and are due October 1, 2010.

Greenshoe Notes Payable

In May 2008, Doral signed loan agreements for $250,000 with
  Greenshoe Investments Ltd. (Greenshoe). On July 18, 2008, Doral received an
  additional $50,000 of loan from Greenshoe. The loans from Greenshoe are
  unsecured, carry an annual interest rate of 5.0%, are due July 1, 2010, and July
  18, 2010 respectively and are nonconvertible.

Macquarie Credit Agreement

On July 29, 2008, the Company entered into a Senior First Lien
  Secured Credit Agreement (the Credit Agreement) with Macquarie Bank Limited
  (Macquarie). Under the terms of the Credit Agreement, Macquarie has agreed to
  provide Doral with: (i) a maximum of $25,000,000 under a revolving loan (the
  Revolving Loan); and (ii) a maximum of $25,000,000 under a term loan (the
  Term Loan). Upon closing of the Credit Agreement, Macquarie advanced
  $2,500,000 of the Revolving Loan and $2,800,000 of the Term Loan. These advances
  are subject to an upfront advance fee of 1.00% of the total amount advanced. The
  advances were used to fund the acquisition of the Eddy County Properties and for
  working capital purposes. Future advances are subject to the approval of
  Macquarie.

The Term Loan and the Revolving Loan are secured by all of the
  assets of the Company. Interest accrued on the Term Loan and the Revolving Loan
  is payable monthly beginning on September 20, 2008. The Credit Agreement
  requires that Doral must pay 100 percent of net operating cash flow to Macquarie
  monthly beginning on September 20, 2008. This payment will be applied first to
  accrued interest and fees, second to principal on the Term Loan and last to
  principal on the Revolving Loan . At July 31, 2008, the applicable
  interest rate under the Term Loan and the Revolving Loan was 8.96% and 5.46%,
  respectively. The effective interest rates on the Term and Revolving Loans
  combined is approximately 130%.

F-12

---

Provided that the Company submits a Development Plan (as such
  term is defined in the Credit Agreement) acceptable to Macquarie (at its sole
  discretion) within 120 days from the closing date, or July 29, 2008, the Credit
  Agreement will mature on July 30, 2011. In the event the Company fails to submit
  an acceptable Development Plan to Macquarie, the maturity date will be
  accelerated to July 30, 2009.In connection with the Credit Agreement, Doral
  granted Macquarie a net profits overriding royalty interest (NPORRI) in the
  Eddy County Properties. Beginning on the maturity date of the Credit Agreement
  (July 30, 2011), or earlier if all amounts advanced under the Credit Agreement
  are repaid before July 30, 2011,Doral will pay Macquarie 35% of its net profits
  on the Eddy County Properties. After Macquarie has received $5,000,000 this
  percentage will drop to 20% in perpetuity. Dorals original value of the NPORRI
  created an original recorded discount of $5,300,000 on the Term and Revolving
  loans with a corresponding reduction in proved oil and gas properties. This
  value and discount have since been determined to be incorrect. The corrected
  discount is $181,746 causing an increase in the carrying amount of the Term and
  Revolving loans and the proved oil and gas properties. See note 10 for details.

The NPORRI is convertible into common stock of Doral contingent
  on the following conditions being met:

- Dorals Common Stock is listed on the American Stock Exchange or another
    exchange approved by Macquarie;
- No more than 65 percent of Dorals common stock is held by affiliates or
    insiders of the Company; and
- The average trading volume of the shares of common stock on the exchange is
    equal to or greater than 50% of the outstanding shares of common stock;

The NPORRI is convertible at Doral or Macquaries option after
  the conversion requirements listed above are met. After either party issues a
  notice of conversion, the NPORRI will be valued by investment bankers approved
  by both parties. The number of shares to be issued will be determined by
  dividing the value of the NPORRI by the volume weighted average trading price of
  the common stock for the 60 days prior to conversion. The conversion feature
  expires on July 29, 2018. Because the conversion option is contingent on future
  events, no value has been assigned to this conversion feature.

The Credit Agreement also contains events of default which are
  customary for such financings. The events of default include, but are not
  limited to, default of payment; failure to comply with any term, condition or
  covenant of the Credit Agreement; bankruptcy or insolvency related defaults;
  judgment pertaining to receivership or liquidation; federal tax lien or judgment
  against us of more than $100,000; our failure to comply with any government
  regulations on our properties; the operator is removed or withdraws and no
  replacement is acceptable to Macquarie; a change in control occurs; or a
  material adverse event occurs.

Upon an event of default, Macquarie has the right under the
  Credit Agreement to: (i) accelerate payment on all outstanding promissory notes
  and loans due; (ii) sell any collateral; and (iii) carry out our rights under
  our operating agreements with respect to our Eddy County Properties.

The aggregate maturities of our debt for the five years
  subsequent to July 31, 2008 are as follows:

|Year ending July 31, |   |           | 
|-------------------- | - | --------- | 
|2009                 | $ | -         | 
|2010                 |   | -         | 
|2011                 |   | 5,920,000 | 
|Total                | $ | 5,920,000 | 

NOTE 6  ASSET RETIREMENT OBLIGATION

Asset retirement obligation activity for the year ended July
  31, 2008 is as follows:

|                                                        |   | Amount  | 
|------------------------------------------------------- | - | ------- | 
|Asset retirement obligations, beginning of
      year   | $ | -       | 
|Fair value of liabilities assumed in
      acquisitions |   | 918,902 | 
|Accretion expense                                       |   | -       | 
|Asset retirement obligations, end of year               | $ | 918,902 | 

F-13

---

NOTE 7  STOCKHOLDERS EQUITY

Effective January 7, 2008, the Company amended its Articles of
  Incorporation by splitting its issued and authorized capital on a 25-for-1
  basis. Accordingly, the Companys authorized capital of common stock has been
  increased from 100,000,000 shares to 2,500,000,000 shares of common stock,
  $0.001 par value per share, and the Companys issued and outstanding shares were
  increased on a 25-for-1 basis such that each shareholder now holds twenty five
  shares for each one share previously held. As a result of the stock split, the
  number of Company shares outstanding increased from 4,003,500 to 85,670,000 on
  January 7, 2008. All share and per-share data (except par value) have been
  adjusted to reflect the retroactive effect of the forward stock split for all
  periods presented. In addition to the forward stock split in January 2008, there
  was a reverse stock split at 6.25 and a stock split on September 14, 2009 of 5
  common shares of Doral Energy Stock in exchange for 1 current common share of
  Doral Energy Stock. This retroactive effect is recognized in these financial
  statements and integrated notes from inception to date.

In June 2008, Doral completed a private placement of 192,000
  shares of common stock at a price of $0.625 per share and received total cash
  proceeds of $120,000. These shares have not yet been issued but have been
  treated as issued in the accompanying financial statements.

In August 2008, Doral completed an additional private placement
  of 8,040 shares of common stock at a price of $0.6250 per share and received
  total cash proceeds of $5,025.

NOTE 8  RELATED PARTY TRANSACTIONS

During the years ended July 31, 2008 and 2007, directors of the
  Company contributed management services with a value of $7,501 and $36,000,
  respectively, and rent with a value of $3,000 and $6,000, respectively. These
  items were charged to operations and credited to additional paid-in capital
  during the respective periods.

At July 31, 2008, Doral had accounts payable to the CEO of the
  Company in the amount of $50,919. These amounts represent unpaid salary and
  expense reimbursements.

NOTE 9  SUBSEQUENT EVENTS

In August 2008, the Company entered into a hedging transaction
  in the form of a costless collar. This hedge was entered in order to partially
  protect the Company against a decline in the price of oil relative to its price
  at the time the Eddy County Properties acquisition was completed.

The net effect of the costless collar is that if the monthly
  average price of NYMEX WTI Crude Oil futures drops below $100.00 per barrel, the
  Company effectively receives $100.00 for each barrel of production covered by
  the costless collar. If the NYMEX WTI Crude Oil futures price rises above
  $131.00 per barrel, the Company receives $131.00 per barrel for each barrel of
  production covered by the costless collar. The result is a floor on the price
  of $100.00 and a ceiling of $131.00.

The number of barrels of our production
  covered by the costless collar for production months through July 2011 is:

|Aug 2008 - Dec 2008: | 1,900 barrels per month
|-------------------- | -----------------------
|Jan 2009 - Dec 2009: | 1,700 barrels per month
|Jan 2010 - Dec 2010: | 1,600 barrels per month
|Jan 2011 - Jul 2011: | 1,400 barrels per month

NOTE 10  RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL
  STATEMENTS

The financial statements presented herein as of July 31, 2008
  have been restated for an error in the valuation of the MAC NPORRI.

Management determined that the original valuation model for the
  net profit overriding royalty interest (the MAC NPORRI) granted to Macquarie
  in connection with the Macquarie Credit Agreement contained errors that resulted
  in an overstatement of the value of the MAC NPORRI. After discovering this
  issue, the Company engaged an independent economist to reevaluate the value of
  the MAC NPORRI, resulting in a substantially lower value being assigned to the
  MAC NPORRI at the date of grant than the value originally assigned for
  accounting purposes. Correcting this overvaluation resulted in our recording an
  increase of approximately $5,118,254 in the value of notes payable and oil and
  gas properties as of July 31, 2008. In order to correct the error described
  above, Doral has restated its financial statements as of July 31, 2008.

F-14

---

The effects of the restatement on the balance sheet as of July
  31, 2008 are summarized as follows:

|                       |   | As Previously |  |   |             |  |   | As         | 
|---------------------- | - | ------------- |  | - | ----------- |  | - | ---------- | 
|                       |   | Reported      |  |   | Adjustments |  |   | Restated   | 
|                       |   |               |  |   |             |  |   |            | 
|Oil and gas properties | $ | 14,715,992    |  | $ | 5,118,254   |  | $ | 19,834,246 | 
|Total assets           |   | 15,462,377    |  |   | 5,118,254   |  |   | 20,580,631 | 
|                       |   |               |  |   |             |  |   |            | 
|Notes payable          |   | 620,000       |  |   | 5,118,254   |  |   | 5,738,254  | 
|Total liabilities      |   | 1,810,253     |  |   | 5,118,254   |  |   | 6,928,407  | 

F-15

---

NOTE 11 - SUPPLEMENTAL INFORMATION ON OIL AND GAS PRODUCING
  ACTIVITIES (UNAUDITED)

There are numerous uncertainties inherent in estimating
  quantities of proved crude oil and natural gas reserves. Crude oil and natural
  gas reserve engineering is a subjective process of estimating underground
  accumulations of crude oil and natural gas that cannot be precisely measured.
  The accuracy of any reserve estimate is a function of the quality of available
  data and of engineering and geological interpretation and judgment.

The Company retained an in-house reserve engineer, to perform
  an evaluation of proved reserves as of July 31, 2008. Results of drilling,
  testing and production subsequent to the date of the estimates may justify
  revision of such estimates. Accordingly, reserve estimates are often different
  from the quantities of crude oil and natural gas that are ultimately recovered.
  All of the Companys reserves are located in the United States.

There were no proved reserves at July 31, 2007.

The following supplemental unaudited information regarding
  Dorals oil and gas activities is presented pursuant to the disclosure
  requirements of SFAS No. 69. The standardized measure of discounted future net
  cash flows is computed by applying fiscal year-end prices of oil and gas to the
  estimated future production of proved oil and gas reserves, less estimated
  future expenditures (based on fiscal year-end cost estimates assuming
  continuation of existing economic conditions) to be incurred in developing and
  producing the proved reserves, less estimated future income tax expenses (based
  on fiscal year-end statutory tax rates) to be incurred on pre-tax net cash flows
  less tax basis of the properties and available credits, and assuming
  continuation of existing economic conditions. The estimated future net cash
  flows are then discounted using a rate of 10 percent per year to reflect the
  estimated timing of the future cash flows.

|Capitalized Costs Relating to Oil and Gas
      Producing Activities as of July 31, 2008 and 2007:   |   |            |  |  
|---------------------------------------------------------------------------------------------------- | - | ---------- |  | -
|                                                                                                     |   |            |  |  
|                                                                                                     |   | 2008       |  |  
|Proved properties                                                                                    |   |            |  |  
|Mineral interests                                                                                    | $ | -          |  | $
|Wells, equipment and facilities                                                                      |   | 19,834,246 |  |  
|Total proved properties                                                                              |   | 19,834,246 |  |  
|                                                                                                     |   |            |  |  
|Unproved properties                                                                                  |   |            |  |  
|Mineral interests                                                                                    | $ | -          |  | $
|Uncompleted wells, equipment
      and facilities                                                    |   | -          |  |  
|Total unproved properties                                                                            |   | -          |  |  
|                                                                                                     |   |            |  |  
|Less: accumulated depreciation, depletion and amortization                                           |   | -          |  |  
|Net capitalized costs                                                                                | $ | 19,834,246 |  | $
|                                                                                                     |   |            |  |  
|Costs Incurred in Oil and Gas
      Producing Activities for the Years Ended July 31, 2008 and 2007: |   |            |  |  
|                                                                                                     |   |            |  |  
|                                                                                                     |   | 2008       |  |  
|Acquisition of proved properties                                                                     | $ | 19,834,246 |  | $
|Acquisition of unproved properties                                                                   |   | -          |  |  
|Development costs                                                                                    |   | -          |  |  
|Exploration costs                                                                                    |   | -          |  |  
|Total costs
      incurred                                                                           | $ | 19,834,246 |  | $

F-16

---

Results of Operations for Oil and Gas Producing Activities for
  the Year Ended July 31, 2008:

|                                                            |   | 2008 | 
|----------------------------------------------------------- | - | ---- | 
|Revenues                                                    | $ | -    | 
|Production costs                                            |   | -    | 
|Exploration expenses                                        |   | -    | 
|Depreciation, depletion and amortization                    |   | -    | 
|Accretion expense                                           |   | -    | 
|Income before income tax                                    |   | -    | 
|Income tax                                                  |   | -    | 
|Results of operations from oil and gas producing activities | $ | -    | 

Proved Reserves:

Dorals proved oil and natural gas reserves have been estimated
  by independent petroleum engineers. Proved reserves are the estimated quantities
  that geologic and engineering data demonstrate with reasonable certainty to be
  recoverable in future years from known reservoirs under existing economic and
  operating conditions. Proved developed reserves are the quantities expected to
  be recovered through existing wells with existing equipment and operating
  methods. Due to the inherent uncertainties and the limited nature of reservoir
  data, such estimates are subject to change as additional information becomes
  available. The reserves actually recovered and the timing of production of these
  reserves may be substantially different from the original estimate. Revisions
  result primarily from new information obtained from development drilling and
  production history; acquisitions of oil and natural gas properties; and changes
  in economic factors. All proved reserves are located in the United States.
  Proved reserves as of July 31, 2008 are summarized in the table below:

|Proved Natural Gas and Oil Reserves at July 31, 2008:                            |   |              |   |  |           | 
|-------------------------------------------------------------------------------- | - | ------------ | - |  | --------- | 
|                                                                                 |   |              |   |  |           | 
|                                                                                 |   | Oil          |   |  | Gas       | 
|                                                                                 |   | (Bbls)       |   |  | (Mcf)     | 
|Proved reserves - beginning of period                                            |   | -            |   |  | -         | 
|Purchase of minerals in place                                                    |   | 4,928,090    |   |  | 3,222,420 | 
|Production                                                                       |   |              |   |  | -         | 
|Proved reserves - end of period                                                  |   | 4,928,090    |   |  | 3,222,420 | 
|                                                                                 |   |              |   |  |           | 
|Proved developed reserves - end of period                                        |   | 964,460      |   |  | 92,930    | 
|                                                                                 |   |              |   |  |           | 
|Standardized Measure of Discounted Future
      Net Cash Flows at July 31, 2008: |   |              |   |  |           | 
|                                                                                 |   |              |   |  |           | 
|                                                                                 |   | 2008         |   |  |           | 
|Future cash inflows                                                              | $ | 568,253,760  |   |  |           | 
|Future production costs                                                          |   | (148,942,130 | ) |  |           | 
|Future development costs                                                         |   | (30,984,280  | ) |  |           | 
|Future income taxes                                                              |   | (130,763,975 | ) |  |           | 
|10% annual discount for estimated timing of
      cash flows                     |   | (156,739,882 | ) |  |           | 
|Standardized measure of discounted future net cash flows:                        | $ | 100,823,493  |   |  |           | 

Future cash inflows are computed by applying year-end commodity
  prices, adjusted for location and quality differentials on a
  property-by-property basis, to year-end quantities of proved reserves, except in
  those instances where fixed and determinable price changes are provided by
  contractual arrangements at year-end. In its 2008 year-end reserve report, the
  Company used the July 31, 2008 WTI Cushing spot price of $124.17 per Bbl and
  Henry Hub spot natural gas price of $9.26 per MMbtu, adjusted by property for
  energy content, quality, transportation fees, and regional price differentials.
  The weighted average price over the lives of the properties was $127.76 per Bbl
  for oil and $7.66 per Mcf for gas.

F-17

---

Future production and development costs, which include
  dismantlement and restoration expense, are computed by estimating the
  expenditures to be incurred in developing and producing the Companys proved
  crude oil and natural gas reserves at the end of the year, based on the year-end
  costs, and assuming continuation of existing economic conditions. While the
  Company believes that future operating costs can be reasonably estimated, future
  prices are difficult to estimate since market prices are influenced by events
  beyond its control. Future global economic and political events will most likely
  result in significant fluctuations in future oil prices, while future U.S.
  natural gas prices will continue to be influenced by primarily domestic market
  factors, including supply and demand, weather patterns and public policy .

Future income tax expenses are computed by applying the
  appropriate year-end statutory tax rates to the estimated future pretax net cash
  flows relating to the Companys proved crude oil and natural gas reserves, less
  the tax basis of the properties involved. The future income tax expenses give
  effect to tax credits and allowances, but do not reflect the impact of general
  and administrative costs and exploration expenses of ongoing operations relating
  to the Companys proved crude oil and natural gas reserves.

Changes in Standardized Measure of Discounted Future Net Cash
  Flows for the Year Ended July 31, 2008:

|                                                             |   | 2008        |  
|------------------------------------------------------------ | - | ----------- | -
|Beginning of period                                          | $ | -           |  
|Purchase of minerals in place                                |   | 152,011,208 |  
|Sales of oil and gas produced, net of
      production costs |   | -           |  
|Net change in income taxes                                   |   | (51,187,715 | )
|Timing and other                                             |   | -           |  
|                                                             |   |             |  
|End of period                                                | $ | 100,823,493 |  

F-18

---

Doral Energy Corp. Unaudited Pro Forma Condensed
      Financial Statements

The following unaudited pro forma condensed financial
  statements and related notes are presented to show the pro forma effects of the
  acquisition of the Eddy County Properties on the actual results of operations
  and financial position of Doral Energy Corp. for the periods presented.

The pro forma condensed statements of operations for the years
  ended July 31, 2008 and 2007 contain a column entitled "Eddy County Historical".
  This column contains only the revenue and direct operating expenses of the
  Permian Basin Properties for the eleven months ended July 31, 2008 and for the
  year ended August 31, 2007. During the periods presented, the Permian Basin
  Properties were not accounted for or operated in accordance with generally
  accepted accounting principles. The Permian Basin Properties were accounted for
  without capitalizing many of the costs related to the full cost method of
  accounting as followed by the Company and there were no reserve studies nor was
  there calculated an amortization rate per equivalent unit of production. Also
  excluded are other expenses which include interest, accretion of retirement
  obligations, general and administrative expenses and corporate income taxes.
  These condensed pro forma statements of operations are not indicative of the
  results of operations of the acquired properties due to the exclusion of the
  above mentioned expenses.

The pro forma condensed statements of operations is presented
  to show income from continuing operations as if the Eddy County transaction
  occurred as of the beginning of the periods presented.

Pro forma data are based on assumptions and include adjustments
  as explained in the notes to the unaudited pro forma condensed financial
  statements. The pro forma data are not necessarily indicative of the financial
  results that would have been attained had the transaction occurred on the dates
  referenced above and should not be viewed as indicative of operations in future
  periods. The unaudited pro forma condensed financial statements should be read
  in conjunction with notes thereto, Dorals financial statements as of and for
  the years ended July 31, 2008 and 2007 included elsewhere in this Form 10-K.

F-19

---

|DORAL ENERGY CORP.                         
|-------------------------------------------
|Pro Forma Condensed Statement of Operations
|For the year ended July 31, 2008           
|(Unaudited)                                

|                                            |   |            |   |   | Eddy       |  |   |             |   |     |   |            |  
|------------------------------------------- | - | ---------- | - | - | ---------- |  | - | ----------- | - | --- | - | ---------- | -
|                                            |   | Doral      |   |   | County     |  |   | Pro Forma   |   |     |   |            |  
|                                            |   | Historical |   |   | Historical |  |   | Adjustments |   |     |   | Pro Forma  |  
|Revenues                                    | $ | -          |   | $ | 2,165,565  |  | $ | -           |   |     | $ | 2,165,565  |  
|                                            |   |            |   |   |            |  |   |             |   |     |   |            |  
|Lease operating expense                     |   | -          |   |   | 607,161    |  |   | -           |   |     |   | 607,161    |  
|Depreciation, depletion and amortization    |   | 144        |   |   | -          |  |   | 458,215     |   | (a) |   | 458,359    |  
|General and administrative                  |   | 493,785    |   |   | -          |  |   | 1,006,215   |   | (b) |   | 1,500,000  |  
|Total operating expenses                    |   | 493,929    |   |   | 607,161    |  |   |             |   |     |   | 2,565,520  |  
|                                            |   |            |   |   |            |  |   |             |   |     |   |            |  
|Operating income (loss)                     |   | (493,929   | ) |   | 1,558,404  |  |   | -           |   |     |   | (399,955   | )
|                                            |   |            |   |   |            |  |   |             |   |     |   |            |  
|Interest expense                            |   | (9,943     | ) |   | -          |  |   | (436,503    | ) | (c) |   | (446,446   | )
|                                            |   |            |   |   |            |  |   |             |   |     |   |            |  
|Net income (loss)                           | $ | (503,872   | ) | $ | 1,558,404  |  |   |             |   |     | $ | (846,401   | )
|                                            |   |            |   |   |            |  |   |             |   |     |   |            |  
|Basic and diluted earnings per common share | $ | (0.00      | ) |   |            |  |   |             |   |     | $ | (0.00      | )
|                                            |   |            |   |   |            |  |   |             |   |     |   |            |  
|Weighted shares outstanding                 |   | 80,242,021 |   |   |            |  |   | 5,450,274   |   | (d) |   | 85,692,295 |  

The accompanying notes to the unaudited pro forma condensed
  financial statements 
  are an integral part of these statements.

F-20

---

|DORAL ENERGY CORP.                         
|-------------------------------------------
|Pro Forma Condensed Statement of Operations
|For The Year Ended July 31, 2007           
|(Unaudited)                                

|                                            |   |            |   |   | Eddy       |  |   |             |   |     |   |            |  
|------------------------------------------- | - | ---------- | - | - | ---------- |  | - | ----------- | - | --- | - | ---------- | -
|                                            |   | Doral      |   |   | County     |  |   | Pro Forma   |   |     |   |            |  
|                                            |   | Historical |   |   | Historical |  |   | Adjustments |   |     |   | Pro Forma  |  
|Revenues                                    | $ | -          |   | $ | 1,561,660  |  | $ | -           |   |     | $ | 1,561,660  |  
|                                            |   |            |   |   |            |  |   |             |   |     |   |            |  
|Lease operating expense                     |   | -          |   |   | 520,204    |  |   | -           |   |     |   | 520,204    |  
|Depreciation, depletion and amortization    |   | 144        |   |   | -          |  |   | 403,609     |   | (a) |   | 403,753    |  
|General and administrative                  |   | 85,251     |   |   | -          |  |   | 1,414,749   |   | (b) |   | 1,500,000  |  
|Total operating expenses                    |   | 85,395     |   |   | 520,204    |  |   |             |   |     |   | 2,423,957  |  
|                                            |   |            |   |   |            |  |   |             |   |     |   |            |  
|Operating income (loss)                     |   | (85,395    | ) |   | 1,041,456  |  |   |             |   |     |   | (862,297   | )
|                                            |   |            |   |   |            |  |   |             |   |     |   |            |  
|Interest expense                            |   | -          |   |   | -          |  |   | (435,427    | ) | (c) |   | (435,427   | )
|Other income                                |   | 3,736      |   |   | -          |  |   | -           |   |     |   | 3,736      |  
|                                            |   |            |   |   |            |  |   |             |   |     |   |            |  
|Net income (loss)                           | $ | (81,659    | ) | $ | 1,041,456  |  |   |             |   |     | $ | (1,293,988 | )
|                                            |   |            |   |   |            |  |   |             |   |     |   |            |  
|Basic and diluted earnings per common share | $ | (0.00      | ) |   |            |  |   |             |   |     | $ | (0.02      | )
|                                            |   |            |   |   |            |  |   |             |   |     |   |            |  
|Weighted shares outstanding                 |   | 80,070,000 |   |   |            |  |   | 5,600,000   |   | (d) |   | 85,670,000 |  

The accompanying notes to the unaudited pro forma condensed
  financial statements 
  are an integral part of these statements.

F-21

---

DORAL ENERGY CORP. 
  Notes to Unaudited Pro Forma
  Condensed Financial Statements 
  (Unaudited)

NOTE 1 - BASIS OF PRESENTATION

Dorals acquisition of the Eddy County Properties is described
  elsewhere in this annual report on Form 10-K. The unaudited pro forma condensed
  statements of operations for the years ended July 31, 2008 and 2007 are based on
  the financial statements of Doral for the years ended July 31, 2008 and 2007 and
  the nine months ended April 30, 2008 and the statements of revenue and direct
  operating expenses of the Eddy County Properties for the year ended August 31,
  2007 and the nine months ended May 31, 2008 and the assumptions and adjustments
  described below.

NOTE 2 - PRO FORMA ADJUSTMENTS

The unaudited pro forma statements of operations reflect the
  following adjustments:

| | a. | Record incremental depreciation, depletion and accretion
      expense, using units of production method, resulting from the purchase of
      the Eddy County Properties. There was no expense attributed to the Eddy
      County purchase.                                                                                                                                                              
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                            
| | b. | Record estimated increase in general and administrative
      expense as a result of the purchase of the Eddy County Properties.
      Following the acquisition of the Permian Basin Properties, general and
      administrative expenses are expected to be $125,000 per month.                                                                                                                         
| |    |                                                                                                                                                                                                                                                                                                                                                                                                            
| | c. | Record interest expense and amortization of deferred
      financing costs. Interest expense was $393,836 and $392,760 for the years
      ended July 31, 2008 and 2007, respectively, on the debt of $5,800,000.
      Fees associated with the financing of the Eddy County Properties were
      $128,000 with amortization expense of $42,667 for each of the years ended
      July 31, 2008 and 2007.
| |    |                                                                                                                                                                                                                                                                                                                                                                                                            
| | d. | Shares issued for the acquisition of the Eddy County
      Properties.                                                                                                                                                                                                                                                                                                                                     

F-22

---

PART III

|ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
      OWNERS AND MANAGEMENT AND **RELATED STOCKHOLDER
    MATTERS.**
|-------- | -------------------------------------------------------------------------------------------------------------

EQUITY COMPENSATION PLANS 
  As at July 31, 2008,
  we did not have any equity compensation plans (including individual compensation
  arrangements) in place under which our equity securities are authorized for
  issuance.

Subsequent to our year ended July 31, 2008, we entered into an
  agreement with an with Mr. Bloodworth, our Operations Manager, pursuant to which
  we agreed to issue 250,000 (200,000 post-2009 Stock Splits)  shares to him if he
  successfully discharges his duties and obligations under the employment
  agreement for a period of one year. The equity compensation arrangement with Mr.
  Bloodworth has not been approved by our security holders.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
  MANAGEMENT

The following table sets forth certain information concerning
  the number of shares of our common stock owned beneficially as of October 27,
  2008 by: (i) each person (including any group) known to us to own more than five
  percent (5%) of any class of our voting securities, (ii) each of our directors
  and each of our named executive officers, and (iii) officers and directors as a
  group. Unless otherwise indicated, the shareholders listed possess sole voting
  and investment power with respect to the shares shown.

|                       |                                                                                                                                     | Amount                                                                      |           
|---------------------- | ----------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------- | ----------
|                       |                                                                                                                                     | and Nature of                                                               | Percentage
|                       | Name and Address                                                                                                                    | Beneficial                                                                  | of Common 
|Title of Class         | of Beneficial Owner                                                                                                                 | Ownership                                                                   | Stock(1)  
|DIRECTORS AND OFFICERS
|Common Stock           | Paul C. Kirkitelos 
      Chief
      Executive Officer, Chief Financial Officer, President, Secretary and
      Treasurer Director | 46,800,000 
      (37,440,000
      post 2009 Stock Splits) 
      (direct) | 43.7%     
|                       |                                                                                                                                     |                                                                             |           
|Common Stock           | H. Patrick Seale 
      Chief
      Operating Officer                                                                               | 2,000,000 
      (1,600,000 post
      2009 Stock Splits) 
      (direct)   | 1.9%      
|                       |                                                                                                                                     |                                                                             |           
|Common Stock           | All Officers and Directors
      as a Group (2 persons)                                                                             | 48,800,000 
      (39,040,000
      post 2009 Stock Splits)                 | 45.6%     
|                       |                                                                                                                                     |                                                                             |           
|5% STOCKHOLDERS       
|                       |                                                                                                                                     |                                                                             |           
|                       |                                                                                                                                     | Amount                                                                      |           

Page 21

---

|               |                                                                                                                                                                                                                          | and Nature of                                                               | Percentage
|-------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------- | ----------
|               | Name and Address                                                                                                                                                                                                         | Beneficial                                                                  | of Common 
|Title of Class | of Beneficial Owner                                                                                                                                                                                                      | Ownership                                                                   | Stock(1)  
|Common Stock   | Paul C. Kirkitelos 
      Chief
      Executive Officer, Chief Financial Officer,       President, Secretary and
      Treasurer Director 
      111 N. Sepulveda Blvd, Suite 250 
      Manhattan
      Beach, CA 90266 | 46,800,000 
      (37,440,000
      post 2009 Stock Splits) 
      (direct) | 43.7%     
|               |                                                                                                                                                                                                                          |                                                                             |           
|Common Stock   | J. Warren Hanson (2)
      P.O. Box 1348 
      Artesia, NM 88210                                                                                                                                                        | 6,930,000 
      (5,600,000 post
      2009 Stock Splits) 
      (direct)   | 6.5%      
|               |                                                                                                                                                                                                                          |                                                                             |           
|Common Stock   | Kathie Hanson (2)
      P.O. Box 1348 
      Artesia, NM 88210                                                                                                                                                           | 6,930,000 
      (5,600,000 post
      2009 Stock Splits) 
      (direct)   | 6.5%      
|               |                                                                                                                                                                                                                          |                                                                             |           
|Common Stock   | Everett Willard Gray, II (3)
      2002 Bedford 
      Midland, Texas 79701                                                                                                                                              | 9,700,000 
      (7,760,000 post
      2009 Stock Splits) 
      (Indirect) | 9.1%      

| | (1) | Under Rule 13d-3, a beneficial owner of a security
      includes any person who, directly or indirectly, through any contract,
      arrangement, understanding, relationship, or otherwise has or shares: (i)
      voting power, which includes the power to vote, or to direct the voting of
      shares; and (ii) investment power, which includes the power to dispose or
      direct the disposition of shares. Certain shares may be deemed to be
      beneficially owned by more than one person (if, for example, persons share
      the power to vote or the power to dispose of the shares). In addition,
      shares are deemed to be beneficially owned by a person if the person has
      the right to acquire the shares (for example, upon exercise of an option)
      within 60 days of the date as of which the information is provided. In
      computing the percentage ownership of any person, the amount of shares
      outstanding is deemed to include the amount of shares beneficially owned
      by such person (and only such person) by reason of these acquisition
      rights. As a result, the percentage of outstanding shares of any person as
      shown in this table does not necessarily reflect the persons actual
      ownership or voting power with respect to the number of shares of common
      stock actually outstanding on October 27, 2008. As of October 27, 2008,
      there were 107,087,500 (85,670,000 post-2009 Stock Splits)  shares of our
    common stock issued and outstanding.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | (2) | J. Warren Hanson and Kathie Hanson hold the 6,930,000
      (5,544,000 post-2009 Stock Splits) shares listed as beneficially owned by
    them as joint tenants.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | (3) | Everett Willard Gray II holds the shares listed as
      beneficially owned by him indirectly through WS Oil & Gas Limited, a
      limited partnership controlled by Mr. Gray.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               

CHANGES IN CONTROL

We are not aware of any further arrangement that might result
  in a change in control in the future.

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|ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED
      TRANSACTIONS, AND DIRECTOR INDEPENDENCE.
|-------- | --------------------------------------------------------------------------------

RELATED TRANSACTIONS

Except as disclosed below, none of the following persons has,
  during the fiscal year, had any material interest, director or indirect, in any
  transaction with us or in any presently proposed transaction that has or will
  materially affect us:

|(a) | any director or officer;                                                                                                                                                                                    
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) | any proposed nominee for election as a
      director;                                                                                                                                                      
|(c) | any person who beneficially owns, directly or indirectly,
      shares carrying more than 5% of the voting rights attached to the
      Company's Common Stock;                                             
|(d) | any promoters; or                                                                                                                                                                                           
|(e) | any relative or spouse of any of the foregoing persons,
      or any relative of such spouse, who has the same house as such person or
      who is a director or officer of any parent or
      subsidiary.

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Acquisition of Eddy County Properties

On July 29, 2008, we completed our acquisition of the Eddy
  County Properties pursuant to the terms and conditions of the Hanson Energy
  Agreement. As consideration for the Eddy County Properties, we paid and issued
  to J. Warren Hanson, doing business as Hanson Energy, and his wife Kathie Hanson
  the following consideration:

|(a) | An aggregate of $5,000,000 in cash;                                                                                                             
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                 
|(b) | An aggregate of 7,000,000 (5,600,000 post-2009 Stock
      Splits) shares of our common stock, issued to Hanson Energy and its
    nominees; and
|    |                                                                                                                                                 
|(c) | An overriding royalty interest of 2.5% of 8/8 on the oil
      and gas produced from the Eddy County Properties.                                

Mr. and Mrs. Hanson are the joint owners of more than 5% of our
  outstanding common stock.

Diamond Spring Prospect

On April 10, 2008, we entered into the Diamond Springs Letter
  Agreement with G2 Petroleum, LLC (G2), a company which E. Willard Gray (a
  holder of more than five percent of our common stock) is the managing director,
  to purchase an interest in an oil and gas prospect covering approximately 3,300
  acres located in Fremont County, Wyoming, known as the Diamond Springs Prospect.
  We have decided to no longer proceed with the acquisition of the Diamond Springs
  Prospect.

DIRECTOR INDEPENDENCE

Our common stock is quoted on the OTC Bulletin Board
  inter-dealer quotation system, which does not have director independence
  requirements. Under NASDAQ Rule 4200(a)(15), a director is not considered to be
  independent if he or she is also an executive officer or employee of the
  corporation. There is no member of our Board who is not an executive officer or
  employee. As a result, we have no independent directors.

As a result of our limited operating history and minimal
  resources, our management believes that it will have difficulty in attracting
  independent directors. In addition, we would likely be required to obtain
  directors and officers insurance coverage in order to attract and retain
  independent directors. Our management believes that the costs associated with
  maintaining such insurance is prohibitive at this time.

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|ITEM 15. | EXHIBITS, FINANCIAL STATEMENT SCHEDULES.
|-------- | ----------------------------------------

|Exhibit |                                                                                                                                                                                                                                                
|------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Number  | Description of Exhibits                                                                                                                                                                                                                        
|2.1     | Agreement and Plan of Merger
      dated April 21, 2008 between Language Enterprises Corp. (as surviving
      entity) and Doral Energy Corp. (as merging entity) and changing the name
      of the surviving entity to Doral Energy Corp. (6)
|3.1     | Articles of Incorporation. (1)                                                                                                                                                                                                                 
|3.2     | Certificate of Change Pursuant
      to NRS 78.209 increasing the authorized capital of common stock to
      2,500,000,000 shares, par value $0.001 per share (25-for-1 Stock Split). (3)                                                     
|3.3     | Articles of Merger between Language Enterprises
      Corp. (as surviving entity) and Doral Energy Corp. (as merging entity). (6)                                                                                                              
|3.4     | Bylaws. (1)                                                                                                                                                                                                                                    
|10.1    | Form of Translator Engagement Agreement. (1)                                                                                                                                                                                                   
|10.2    | Translator Services Agreement
      with Toro Resources Corp. (1)                                                                                                                                                                              
|10.3    | Translator Services Agreement with Magnus
      International Resources, Inc. (1)                                                                                                                                                              
|10.4    | Jonathan Moore Loan Letter. (1)                                                                                                                                                                                                                
|10.5    | Loan Agreement dated as of March 7, 2008 with
      Little Bay Consulting SA. (4)                                                                                                                                                              
|10.6    | Letter Agreement dated April
      10, 2008 with G2 Petroleum, LLC. (5)                                                                                                                                                                        
|10.7    | Purchase and Sale Agreement dated April 25,
      2008 with J. Warren Hanson, doing business as Hanson Energy, and his wife
      Kathie Hanson. (7)                                                                                           
|10.8    | Loan Agreement between the
      Company (as borrower) and Green Shoe Investments Ltd. (as lender) dated
      May 9, 2008 for the amount of $100,000. (8)                                                                                     
|10.9    | Loan Agreement between the Company (as
      borrower) and Green Shoe Investments Ltd. (as lender) dated May 23, 2008
      for the amount of $150,000. (9)                                                                                    
|10.10   | Title Work Agreement dated May
      12, 2008 with Arena Resources, Inc. (10)                                                                                                                                                                  
|10.11   | Amendment Agreement to Share Purchase Agreement
      dated July 17, 2008 between J. Warren Hanson, doing business as Hanson
      Energy, his wife Kathie Hanson, and Doral Energy Corp. (formerly Language
      Enterprises Corp.) (11)     
|10.12   | Loan Agreement dated July 18,
      2008 between Doral Energy Corp. and Little Bay Consulting SA. (11)                                                                                                                                         
|10.13   | Loan Agreement dated July 18, 2008 between
      Doral Energy Corp. and Green Shoe Investments Ltd. (11)                                                                                                                                       
|10.14   | Credit Agreement dated July 29,
      2008 between Doral Energy Corp. and Macquarie Bank Limited. (12)                                                                                                                                         
|10.15   | Security Agreement dated July 29, 2008 between
      Doral Energy Corp. and Macquarie Bank Limited. (12)                                                                                                                                       
|10.16   | Subordination Agreement dated
      July 29, 2008 between Doral Energy Corp., Green Shoe Investments Ltd. and
      Macquarie Bank Limited. (12)                                                                                               
|10.17   | Subordination Agreement dated July 29, 2008
      between Doral Energy Corp., Little Bay Consulting SA and Macquarie Bank
      Limited. (12)                                                                                                  
|10.18   | Net Profits Overriding Royalty
      Interest Conveyance dated July 29, 2008 between Doral Energy Corp. and
      Macquarie Investments, LLC. (12)                                                                                             
|10.19   | Conversion Agreement dated July 29, 2008
      between Doral Energy Corp. and Macquarie Investments, LLC. (12)                                                                                                                                 
|10.20   | Loan Agreement dated October 3,
      2008 between Doral Energy Corp. and Little Bay Consulting SA. (13)                                                                                                                                       
|21.1    | List of
      Subsidiaries.(14)                                                                                                                                                                                                                
|14.1    | Code of Ethics. (2)                                                                                                                                                                                                                            
|31.1    | Certification of Principal Executive Officer
      pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                  
|31.2    | Certification of Principal
      Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of
      2002.                                                                                                                            
|32.1    | Certification of Principal Executive Officer
      pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of
      the Sarbanes-Oxley Act of 2002.                                                                             
|32.2    | Certification of Principal
      Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant
      to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                             

|(1) | Filed as an exhibit to our Registration Statement on Form
      SB-2 filed on September 11, 2006.                              
|--- | -------------------------------------------------------------------------------------------------------------------------------
|(2) | Filed as an exhibit to our Annual Report on Form 10-KSB
      for the year ended July 31, 2007 filed on October 30,
      2007.

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|(3)  | Filed as an exhibit to our Current Report on Form 8-K
      filed on January 9, 2008.                 
|---- | ------------------------------------------------------------------------------------------------------
|(4)  | Filed as an exhibit to our Current Report on Form 8-K
      filed on March 12, 2008.                  
|(5)  | Filed as an exhibit to our Current Report on Form 8-K
      filed on April 16, 2008.                  
|(6)  | Filed as an exhibit to our Current Report on Form 8-K
      filed on April 28, 2008.                  
|(7)  | Filed as an exhibit to our Current Report on Form 8-K
      filed on May 1, 2008.                     
|(8)  | Filed as an exhibit to our Current Report on Form 8-K
      filed on May 13, 2008.                    
|(9)  | Filed as an exhibit to our Current Report on Form 8-K
      filed on May 21, 2008.                    
|(10) | Filed as an exhibit to our Current Report on Form 8-K
      filed on May 27, 2008.                    
|(11) | Filed as an exhibit to our Current Report on Form 8-K
      filed on July 23, 2008.                   
|(12) | Filed as an exhibit to our Current Report on Form 8-K
      filed on August 4, 2008.                  
|(13) | Filed as an exhibit to our Current Report on Form 8-K
      filed on October 22, 2008.                
|(14) | Filed as an exhibit to our Annual Report on Form 10-K
    Report originally filed on October 29, 2008.

Page 26

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SIGNATURES

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

|      |                       |  |     | DORAL ENERGY CORP.                                     
|----- | --------------------- |  | --- | -------------------------------------------------------
|      |                       |  |     |                                                        
|      |                       |  |     |                                                        
|      |                       |  |     |                                                        
|Date: | March
      10 , 2010 |  | By: | /s/
      Everett Willard Gray, II                     
|      |                       |  |     | EVERETT WILLARD GRAY, II                               
|      |                       |  |     | Vice-Chairman and Chief Executive Officer              
|      |                       |  |     | (Principal Executive Officer)                          
|      |                       |  |     |                                                        
|      |                       |  |     |                                                        
|      |                       |  |     |                                                        
|      |                       |  |     |                                                        
|Date: | March
      10 , 2010 |  | By: | H.
      Patrick Seale                                 
|      |                       |  |     | H. PATRICK SEALE                                       
|      |                       |  |     | Chief Operating Officer, Chief Financial
      Officer,
|      |                       |  |     | President, Secretary, Treasurer and Director           
|      |                       |  |     | (Principal Accounting Officer)                         

Pursuant to the requirements of the Securities Exchange Act of
  1934, this report has been signed below by the following persons on behalf of
the registrant and in the capacities and on the dates indicated.

|Date: | March
      10, 2010 |  | By: | /s/
      Everett Willard Gray, II                       
|----- | -------------------- |  | --- | ---------------------------------------------------------
|      |                      |  |     | EVERETT WILLARD GRAY, II                                 
|      |                      |  |     | Vice-Chairman, Chief Executive Officer and
      Director
|      |                      |  |     |                                                          
|      |                      |  |     |                                                          
|      |                      |  |     |                                                          
|      |                      |  |     |                                                          
|Date: | March
      10, 2010 |  | By: | /s/
      H. Patrick Seale                               
|      |                      |  |     | H. PATRICK SEALE                                         
|      |                      |  |     | Chief Operating Officer, Chief Financial
      Officer,  
|      |                      |  |     | President, Secretary,
      Treasurer and Director       

Page 27

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