**UNITED      STATES **

**SECURITIES      AND EXCHANGE COMMISSION **

**FORM      10-QSB**

**QUARTERLY      REPORT UNDER SECTION 13 or 15 (d) **

**OF      THE SECURITIES EXCHANGE ACT OF 1934 **

*Commission      file number 333-63432*

**Manas      Petroleum Corporation**

| Nevada                                         | 91-1918324                         |
|------------------------------------------------|------------------------------------|
| (State                or other jurisdiction of | (I.R.S.                Employer    |
| incorporation                or organization)  | Identification                No.) |

----

**Item      1. **
**Financial      Statements **

| Description                                                                                                                                                                                                                                                                              | Page                No. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------|
|                                                                                                                                                                                                                                                                                     |                    |
| FINANCIAL                INFORMATION:                                                                                                                                                                                                                                                    |                    |
|                                                                                                                                                                                                                                                                                     |                    |
| Financial                Statements                                                                                                                                                                                                                                                      |                    |
|                                                                                                                                                                                                                                                                                     |                    |
| Condensed                Consolidated Balance Sheets at June 30, 2007 (unaudited) and December                31,                2007 (audited)                                                                                                                                          | F-1                     |
|                                                                                                                                                                                                                                                                                     |                    |
| Condensed                Consolidated Statement of Operations for the Three Months Ended June                30,                2007 and 2006, for the Six Months Ended June 30, 2007 and 2006 and                for the                Period From Inception, May 25, 2004 (Unaudited) | F-2                     |
|                                                                                                                                                                                                                                                                                     |                    |
| Consolidated                Statements of Cash Flows for the Six Months Ended June 30, 2007 and                2006                and for the Period From Inception, May 25, 2004 (Unaudited)                                                                                           | F-3                     |
|                                                                                                                                                                                                                                                                                     |                    |
| Condensed                Consolidated Statement of Shareholders’ Equity/(Deficit)                                                                                                                                                                                                  | F-4                     |
|                                                                                                                                                                                                                                                                                     |                    |
| Notes                to Consolidated Financial Statements (Unaudited)                                                                                                                                                                                                                    | F-5                     |

----

| **MANAS                PETROLEUM CORPORATION**                 |
|----------------------------------------------------------------|
| **(A                DEVELOPMENT STAGE COMPANY)**               |
| **CONDENSED                CONSOLIDATED FINANCIAL STATEMENTS** |
| **UNAUDITED**                                                  |

| **CONDENSED                CONSOLIDATED BALANCE SHEET**                                                                                                                                 |   |           |          |           |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|---------------|----------------|--------|
|                                                                                                                                                                                    |   |           |          |           |   |
|                                                                                                                                                                                    |   | **06.30.2007** |          | **12.31.2006** |   |
|                                                                                                                                                                                    |   | **USD**        |          | **USD**        |   |
| **ASSETS**                                                                                                                                                                              |   |           |          |           |   |
|                                                                                                                                                                                    |   |      |          |      |   |
| Cash                and cash equivalents                                                                                                                                                |   |           | 8,537,485     |           |   | 1,090,098 |   |
| Receivables                                                                                                                                                                             |   |           | 38,360        |           |   | 48,683 |   |
|                                                                                                                                                                                    |   |           |          |           |   |   |   |
| **Total                current assets**                                                                                                                                                 |   |           | **8,575,845** |           |   | **1,138,781** |   |
| ** **                                                                                                                                                                              |   |           |          |           |   |   |   |
|                                                                                                                                                                                    |   |           |          |           |   |   |   |
| Tangible                fixed assets                                                                                                                                                    |   |           | 53,529        |           |   | 3,998 |   |
|                                                                                                                                                                                    |   |           |          |           |   |   |   |
| **Total                non-current assets**                                                                                                                                             |   |           | **53,529**    |           |   | **3,998** |   |
| ** **                                                                                                                                                                              |   |           |          |           |   |   |   |
|                                                                                                                                                                                    |   |           |          |           |   |   |   |
|                                                                                                                                                                                    |   |           |          |           |   |   |   |
| **TOTAL                ASSETS**                                                                                                                                                         |   |           | **8,629,374** |           |   | **1,142,779** |   |
| ** **                                                                                                                                                                              |   |           |          |           |   |   |   |
|                                                                                                                                                                                    |   |           |          |           |   |   |   |
| **LIABILITIES                AND SHAREHOLDERS' EQUITY**                                                                                                                                 |   |           |          |           |   |   |   |
|                                                                                                                                                                               |   |           |     |           |   |   |   |
| Bank                overdraft                                                                                                                                                           |   |           | 0             |           |   | 19,003 |   |
| Deferred                consideration for interest in CJSC South Petroleum                                                                                                              |   |           | 105,624       |           |   | 193,003 |   |
| Accounts                payable                                                                                                                                                         |   |           | 20,785        |           |   | 70,918 |   |
| Accrued                expenses                                                                                                                                                         |   |           | 247,050       |           |   | 167,664 |   |
|                                                                                                                                                                                    |   |           |          |           |   |   |   |
| **Total                current liabilities**                                                                                                                                            |   |           | **373,459**   |           |   | **450,588** |   |
|                                                                                                                                                                                    |   |           |     |           |   |   |   |
| Liability                in respect of investment in associate                                                                                                                          |   |           | 253,743       |           |   | 253,743 |   |
| Loan                owed to a major shareholder                                                                                                                                         |   |           | 201,458       |           |   | 409,920 |   |
|                                                                                                                                                                                    |   |           |          |           |   |   |   |
| **Total                non-current liabilities**                                                                                                                                        |   |           | **455,201**   |           |   | **663,663** |   |
|                                                                                                                                                                               |   |           |     |           |   |     |   |
|                                                                                                                                                                                    |   |           |          |           |   |   |   |
| **TOTAL                LIABILITIES**                                                                                                                                                    |   |           | **828,660**   |           |   | **1,114,251** |   |
|                                                                                                                                                                               |   |           |     |           |   |    |   |
|                                                                                                                                                                                    |   |           |     |           |   |     |   |
| Common                stock (300,000,000 shares authorized, USD 0.001 par value, 111,320,552                and                80,000,000 shares, respectively, issued and outstanding) |   |           | 111,320       |           |   | 80,000 |   |
| Additional                paid-in capital                                                                                                                                               |   |           | 14,696,083    |           |   | 1,466,071 |   |
| Foreign                currency translation reserve                                                                                                                                     |   |           | 53,602        |           |   | 53,464 |   |
| Deficit                accumulated during the development stage                                                                                                                         |   |           | (7,060,291    | )              |   | (1,571,007 | ) |
|                                                                                                                                                                                    |   |           |          |           |   |   |   |
| **Total                shareholders' equity**                                                                                                                                           |   |           | **7,800,714** |           |   | **28,528** |   |
|                                                                                                                                                                                    |   |           |          |           |   |   |   |
| **TOTAL                LIABILITIES AND SHAREHOLDERS' EQUITY**                                                                                                                           |   |           | **8,629,374** |           |   | **1,142,779** |   |

----

| **MANAS                PETROLEUM CORPORATION**                 |
|----------------------------------------------------------------|
| **(A                DEVELOPMENT STAGE COMPANY)**               |
| **CONDENSED                CONSOLIDATED FINANCIAL STATEMENTS** |
| **UNAUDITED**                                                  |

|                                                                                      |         |                                          |                             |                                        |   |                           |   |               |                             |                              |   |
|-------------------------------------------------------------------------------------------|--------------|-----------------------------------------------|----------------------------------|---------------------------------------------|--------|--------------------------------|--------|--------------------|----------------------------------|-----------------------------------|--------|
| **CONDENSED                CONSOLIDATED STATEMENTS OF OPERATIONS**                        |         |                                          |                             |                                        |   |                           |   |               |                             |                              |   |
|                                                                                      |         | **For                the three months ended** |                             | **For                the six months ended** |   | **Period                from** |   |
|                                                                                      |         |                                          |                             |                                        |   |                           |   |               |                             | **05.25.2004**                    |   |
|                                                                                      |         |                                          |                             |                                        |   |                           |   |               |                             | **(Inception)                to** |   |
|                                                                                      |         | **06.30.2007**                                |                             | **06.30.2006**                              |   | **06.30.2007**                 |   | **06.30.2006**     |                             | **06.30.2007**                    |   |
|                                                                                      |         | **USD**                                       |                             | **USD**                                     |   | **USD**                        |   | **USD**            |                             | **USD**                           |   |
| **OPERATING                REVENUES**                                                     |         |                                          |                             |                                        |   |                           |   |               |                             |                              |   |
|                                                                                 |         |                                |                             |                         |   |                 |   |     |                             |                         |   |
| Other                revenues                                                             |         |                                          | -                                |                                        |   | -                              |   |               | -                                |                              |   | - |   |   | 115,148 |   |
|                                                                                      |         |                                          |                             |                                        |   |                           |   |               |                             |                              |   |   |   |   |   |   |
| **Total                revenues**                                                         |         |                                          | **-**                            |                                        |   | **-**                          |   |               | **-**                            |                              |   | **-** |   |   | **115,148** |   |
| **  **                                                                          |         |                                          |                        |                                        |   |                           |   |               |                        |                              |   |    |   |   |    |   |
|                                                                                      |         |                                          |                             |                                        |   |                           |   |               |                             |                              |   |   |   |   |   |   |
| **OPERATING                EXPENSES**                                                     |         |                                          |                             |                                        |   |                           |   |               |                             |                              |   |   |   |   |   |   |
|                                                                                      |         |                                          |                             |                                        |   |                           |   |               |                             |                              |   |   |   |   |   |   |
| Personnel                costs                                                            |         |                                          | (1,679,208                       | )                                           |   | (50,168                        | )      |               | (1,696,219                       | )                                 |   | (92,655 | ) |   | (2,033,628 | ) |
| Exploration                costs                                                          |         |                                          | -                                |                                        |   | (37,731                        | )      |               | (45,901                          | )                                 |   | (77,964 | ) |   | (204,373 | ) |
| Depreciation                                                                              |         |                                          | (3,547                           | )                                           |   | (3,704                         | )      |               | (3,808                           | )                                 |   | (7,072 | ) |   | (34,807 | ) |
| Consulting                fees                                                            |         |                                          | (224,368                         | )                                           |   | (241,518                       | )      |               | (422,201                         | )                                 |   | (462,199 | ) |   | (2,753,425 | ) |
| Administrative                costs                                                       |         |                                          | (3,217,783                       | )                                           |   | (282,435                       | )      |               | (3,389,772                       | )                                 |   | (438,601 | ) |   | (5,505,623 | ) |
|                                                                                      |         |                                          |                             |                                        |   |                           |   |               |                             |                              |   |   |   |   |   |   |
| **Total                operating expenses**                                               |         |                                          | **(5,124,906**                   | **)**                                       |   | **(615,555**                   | **)**  |               | **(5,557,902**                   | **)**                             |   | **(1,078,491** | **)** |   | **(10,531,857** | **)** |
|                                                                                 |         |                                          |                        |                                        |   |                           |   |               |                             |                              |   |   |   |   |   |   |
|                                                                                 |         |                                          |                        |                                        |   |                      |   |               |                             |                              |   |   |   |   |   |   |
| Gain                from sale of investment                                               |         |                                          | -                                |                                        |   | -                              |   |               | -                                |                              |   | - |   |   | 3,126,967 |   |
| Loss                from sale of investment                                               |         |                                          | (900                             | )                                           |   | -                              |   |               | (900                             | )                                 |   | - |   |   | (900 | ) |
|                                                                                      |         |                                          |                             |                                        |   |                           |   |               |                             |                              |   |   |   |   |   |   |
| **OPERATING                LOSS**                                                         |         |                                          | **(5,125,806**                   | **)**                                       |   | **(4,401,094**                 | **)**  |               | **(5,558,802**                   | **)**                             |   | **(1,078,491** | **)** |   | **(7,290,642** | **)** |
| **  **                                                                          |         |                                          | ** **                       |                                        |   | **   **         |   |               | **  **                 |                              |   | **  ** |   |   |    |   |
|                                                                                      |         |                                          |                             |                                        |   |                           |   |               |                             |                              |   |   |   |   |   |   |
| **NON-OPERATING                INCOME / (EXPENSE)**                                       |         |                                          |                             |                                        |   |                           |   |               |                             |                              |   |   |   |   |   |   |
|                                                                                      |         |                                          |                             |                                        |   |                           |   |               |                             |                              |   |   |   |   |   |   |
| Exchange                differences                                                       |         |                                          | (27,599                          | )                                           |   | 27,961                         |   |               | (27,020                          | )                                 |   | 26,375 |   |   | (49,910 | ) |
| Interest                income                                                            |         |                                          | 96,081                           |                                        |   | 4,429                          |   |               | 101,637                          |                              |   | 8,659 |   |   | 147,847 |   |
| Interest                expense                                                           |         |                                          | (2,626                           | )                                           |   | (2,990                         | )      |               | (4,775                           | )                                 |   | (5,398 | ) |   | (72,727 | ) |
|                                                                                      |         |                                          |                             |                                        |   |                           |   |               |                             |                              |   |   |   |   |   |   |
| **Loss                before taxes and equity in net income of                associate** |         |                                          | **(5,059,949**                   | **)**                                       |   | **(5,704,104**                 | **)**  |               | **(5,488,960**                   | **)**                             |   | **(1,048,855** | **)** |   | **(7,265,432** | **)** |
| **  **                                                                          |    |                                          |                        |                                        |   |                      |   |               |                             |                              |   |    |   |   |    |   |
|                                                                                      |         |                                          |                             |                                        |   |                           |   |               |                             |                              |   |   |   |   |   |   |
| Taxes                                                                                     |         |                                          | (351                             | )                                           |   | (354                           | )      |               | (324                             | )                                 |   | (354 | ) |   | (1,172 | ) |
| Equity                in net loss of associate                                            |         |                                          |                                  |                                        |   | -                              |   |               | -                                |                              |   | - |   |   | 201,960 |   |
| Minority                interest in net income                                            |         |                                          | ***-***                          |                                        |   | ***-***                        |   |               | ***-***                          |                              |   | ***-*** |   |   | (5,308 | ) |
|                                                                                      |         |                                          |                             |                                        |   |                           |   |               |                             |                              |   |   |   |   |   |   |
| **Net                loss**                                                               |         |                                          | **(5,060,300**                   | **)**                                       |   | **(5,704,455**                 | **)**  |               | **(5,489,284**                   | **)**                             |   | **(1,049,209** | **)** |   | **(7,069,952** | **)** |
|                                                                                 |         |                                          |                   |                                        |   |                      |   |               |                        |                              |   |    |   |   |     |   |
| ** **                                                                                |         |                                          | **                  ** |                                        |   |                      |   |               | **                  ** |                              |   |                    |   |   |                    |   |
| Weighted                average number of outstanding shares                              |         |                                          | 110,150,648                      |                                        |   | 100,110,400                    |   |               | 105,130,524                      |                              |   | 100,110,400 |   |   | 100,909,359 |   |
|                                                                                      |         |                                          |                             |                                        |   |                           |   |               |                             |                              |   |   |   |   |   |   |
| **Basic                loss per share**                                                   |         |                                          | **(0.0459**                      | **)**                                       |   | **(0.0518**                    | **)**  |               | **(0.0522**                      | **)**                             |   | **(0.0105** | **)** |   | **(0.0701** | **)** |

----

| **MANAS                PETROLEUM CORPORATION**                 |
|----------------------------------------------------------------|
| **(A                DEVELOPMENT STAGE COMPANY)**               |
| **CONDENSED                CONSOLIDATED FINANCIAL STATEMENTS** |
| **UNAUDITED**                                                  |

| **CONDENSED                CONSOLIDATED CASH FLOW STATEMENT**           |   |                                        |           |                           |   |                              |   |
|-------------------------------------------------------------------------|--------|---------------------------------------------|----------------|--------------------------------|--------|-----------------------------------|--------|
|                                                                    |   |                                        |           |                           |   |                              |   |
|                                                                    |   | **For                the six months ended** |           | **Period                from** |   |
|                                                                    |   |                                        |           |                           |   | **05.25.2004**                    |   |
|                                                                    |   |                                        |           |                           |   | **(Inception)                to** |   |
|                                                                    |   | **06.30.2007**                              |           | **06.30.2006**                 |   | **06.30.2007**                    |   |
|                                                                    |   | **USD**                                     |           | **USD**                        |   | **USD**                           |   |
|                                                                    |   |                                        |           |                           |   |                              |   |
| **OPERATING                ACTIVITIES**                                 |   |                                        |           |                           |   |                              |   |
|                                                               |   |                                   |           |                 |   |                         |   |
|                                                                    |   |                                        |           |                           |   |                              |   |
| **Net                loss for the period**                              |   |                                        | **(5,489,284** | **)**                          |   | **(1,049,209**                    | **)**  |   | **(7,069,952** | **)** |
|                                                               |   |                                        | ** **     |                           |   | ** **                        |   |   | ** ** |   |
| **   **                                                  |   |                                        |      |                           |   |                         |   |   |    |   |
|                                                                    |   |                                        |           |                           |   |                              |   |   |   |   |
| **To                reconcile net loss to net cash used**               |   |                                        |           |                           |   |                              |   |   |   |   |
| **in                operating activities**                              |   |                                        |           |                           |   |                              |   |   |   |   |
| **  **                                                        |   |                                        |      |                           |   |                              |   |   |    |   |
| **  **                                                        |   |                                        |      |                           |   |                              |   |   |   |   |
| Gain                from sale of investment                             |   |                                        | -              |                           |   | -                                 |   |   | (3,126,967 | ) |
| Loss                from sale of investment                             |   |                                        | 900            |                           |   | -                                 |   |   | 900 |   |
| Equity                in net loss of associate                          |   |                                        | -              |                           |   | -                                 |   |   | (201,960 | ) |
| Depreciation                                                            |   |                                        | 3,808          |                           |   | 7,072                             |   |   | 34,807 |   |
| Exchange                differences                                     |   |                                        | 27,020         |                           |   | (26,375                           | )      |   | 49,910 |   |
| Decrease                / (increase) in receivables                     |   |                                        | 16,207         |                           |   | 61,723                            |   |   | (32,475 | ) |
| (Decrease)                / increase in accounts payables               |   |                                        | (480,831       | )                              |   | (42,550                           | )      |   | (409,913 | ) |
| (Decrease)                / increase in accrued expenses                |   |                                        | 73,196         |                           |   | (24,967                           | )      |   | 240,860 |   |
| Stock-based                compensation                                 |   |                                        | 3,911,957      |                           |   | -                                 |   |   | 3,911,957 |   |
|                                                                    |   |                                        |           |                           |   |                              |   |   |   |   |
| **Cash                outflow from operating activities**               |   |                                        | **(1,937,027** | **)**                          |   | **(1,074,306**                    | **)**  |   | **(6,602,833** | **)** |
| **  **                                                        |   |                                        |           |                           |   |                         |   |   |    |   |
|                                                                    |   |                                        |           |                           |   |                              |   |   |   |   |
| **INVESTING                ACTIVITIES**                                 |   |                                        |           |                           |   |                              |   |   |   |   |
|                                                                    |   |                                        |           |                           |   |                              |   |   |   |   |
| Purchase                of tangible fixed assets and computer software  |   |                                        | (53,049        | )                              |   | -                                 |   |   | (167,372 | ) |
| Sale                of tangible fixed assets and computer software      |   |                                        | -              |                           |   | (3,433                            | )      |   | 79,326 |   |
| Proceeds                from sale of investment                         |   |                                        | -              |                           |   | -                                 |   |   | 4,000,000 |   |
| Acquisition                of investment in associate                   |   |                                        | -              |                           |   | -                                 |   |   | (67,747 | ) |
|                                                                    |   |                                        |           |                           |   |                              |   |   |   |   |
| **Cash                inflow (outflow) from investing activities**      |   |                                        | **(53,049**    | **)**                          |   | **(3,433**                        | **)**  |   | **3,844,207** |   |
|                                                          |   |                                        |      |                           |   |                    |   |   |    |   |
|                                                                    |   |                                        |           |                           |   |                              |   |   |   |   |
| **FINANCING                ACTIVITIES**                                 |   |                                        |           |                           |   |                              |   |   |   |   |
|                                                                    |   |                                        |           |                           |   |                              |   |   |   |   |
| Contribution                share capital founders                      |   |                                        | -              |                           |   | -                                 |   |   | 80,019 |   |
| Issuance                of units                                        |   |                                        | 9,685,997      |                           |   | -                                 |   |   | 9,685,997 |   |
| Cash                arising on recapitalization                         |   |                                        | 6,510          |                           |   | -                                 |   |   | 6,510 |   |
| Major                shareholder loan repaid                            |   |                                        | (208,462       | )                              |   | -                                 |   |   | (3,184,374 | ) |
| Major                shareholder loan raised                            |   |                                        | -              |                           |   | 805,632                           |   |   | 4,653,720 |   |
| Related                company loan raised / (repaid)                   |   |                                        | -              |                           |   | (112,890                          | )      |   | - |   |
| Decrease                in bank overdraft                               |   |                                        | (19,003        | )                              |   | -                                 |   |   | - |   |
|                                                                    |   |                                        |           |                           |   |                              |   |   |   |   |
| **Cash                flows from financing activities**                 |   |                                        | **9,465,042**  |                           |   | **692,742**                       |   |   | **11,241,872** |   |
| **   **                                                  |   |                                        |      |                           |   |                         |   |   |    |   |
|                                                                    |   |                                        |           |                           |   |                              |   |   |   |   |
| **Net                change in cash and cash equivalents**              |   |                                        | **7,474,966**  |                           |   | **(384,997**                      | **)**  |   | **8,483,246** |   |
| **  **                                                        |   |                                        |      |                           |   |                         |   |   |    |   |
|                                                                    |   |                                        |           |                           |   |                              |   |   |   |   |
| Cash                and cash equivalents at the beginning of the period |   |                                        | 1,090,098      |                           |   | 1,551,938                         |   |   | 1,090,098 |   |
| Currency                translation effect on cash and cash equivalents |   |                                        | (27,579        | )                              |   | (172,972                          | )      |   | 42,043 |   |
|                                                                    |   |                                        |           |                           |   |                              |   |   |   |   |
| **Cash                and cash equivalents at the end of the period**   |   |                                        | **8,537,485**  |                           |   | **993,969**                       |   |   | **9,615,387** |   |

----

| **MANAS                PETROLEUM CORPORATION**                                |
|-------------------------------------------------------------------------------|
| **(A                DEVELOPMENT STAGE COMPANY)**                              |
| **CONDENSED                CONSOLIDATED FINANCIAL                STATEMENTS** |

| **CONDENSED                CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY /                (DEFICIT)** |   |                                |            |
|---------------------------------------------------------------------------------------------------------|--------|-------------------------------------|-----------------|
|                                                                                                    |   |                                |            |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                    |   |                                |            |   |   |   |   |   |   |   |   |   |   |   |   |
| **SHAREHOLDERS'                EQUITY / (DEFICIT)**                                                     |   | **Number                of Shares** |            | **Share                Capital** |   | **Additional                paid-in capital** |   | **Deficit                accumulated during the development stage** |   | **Accumulated                Other Compre-hensive Income (Loss)** |   | **Total                share-holders' equity / (deficit)** |   | **Compre-hensive                Income (Loss)** |   |
|                                                                                                    |   |                                |            |   |   |   |   |   |   |   |   |   |   |   |   |
| **Balance                May 25, 2004**                                                                 |   |                                | **-**           |   |   | **-** |   |   | - |   |   | **-** |   |   | **-** |   |   | **-** |   |   | **-** |   |
| Contribution                share capital from founders                                                 |   |                                | 80,000,000      |   |   | 80,000 |   |   | 19 |   |   | - |   |   | - |   |   | **80,019** |   |   | **-** |   |
| Currency                translation adjustment                                                          |   |                                | -               |   |   | - |   |   | - |   |   | - |   |   | (77,082 | ) |   | **(77,082** | **)** |   | (77,082 | ) |
| Net                loss for the period                                                                  |   |                                | -               |   |   | - |   |   | - |   |   | (601,032 | ) |   | **-** |   |   | **(601,032** | **)** |   | (601,032 | ) |
| **Balance                December 31, 2004**                                                            |   |                                | **80,000,000**  |   |   | **80,000** |   |   | **19** |   |   | **(601,032** | **)** |   | **(77,082** | **)** |   | **(598,095** | **)** |   | **(678,114** | **)** |
|                                                                                                    |   |                                |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                    |   |                                |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Balance                January 1, 2005**                                                              |   |                                | **80,000,000**  |   |   | **80,000** |   |   | **19** |   |   | **(601,032** | **)** |   | **(77,082** | **)** |   | **(598,095** | **)** |   |      |   |
| Currency                translation adjustment                                                          |   |                                | -               |   |   | - |   |   | - |   |   |    |   |   | 218,699 |   |   | **218,699** |   |   | 218,699 |   |
| Net                loss for the year                                                                    |   |                                | -               |   |   | - |   |   | - |   |   | (1,993,932 | ) |   | - |   |   | **(1,993,932** | **)** |   | (1,993,932 | ) |
| **Balance                December 31, 2005**                                                            |   |                                | **80,000,000**  |   |   | **80,000** |   |   | **19** |   |   | **(2,594,964** | **)** |   | **141,617** |   |   | **(2,373,328** | **)** |   | **(1,775,233** | **)** |
|                                                                                                    |   |                                |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                    |   |                                |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Balance                January 1, 2006**                                                              |   |                                | **80,000,000**  |   |   | **80,000** |   |   | **19** |   |   | **(2,594,964** | **)** |   | **141,617** |   |   | **(2,373,328** | **)** |   |    |   |
| Forgiveness                of debt by major shareholder                                                 |   |                                | -               |   |   | - |   |   | 1,466,052 |   |   | - |   |   | - |   |   | **1,466,052** |   |   | **-** |   |
| Currency                translation adjustment                                                          |   |                                | -               |   |   | - |   |   | - |   |   | - |   |   | (88,153 | ) |   | **(88,153** | **)** |   | (88,153 | ) |
| Net                income for the year                                                                  |   |                                | -               |   |   | - |   |   | - |   |   | 1,023,957 |   |   | - |   |   | **1,023,957** |   |   | 1,023,957 |   |
| **Balance                December 31, 2006**                                                            |   |                                | **80,000,000**  |   |   | **80,000** |   |   | **1,466,071** |   |   | **(1,571,007** | **)** |   | **53,464** |   |   | **28,528** |   |   | **935,804** |   |
|                                                                                                    |   |                                |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                    |   |                                |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Balance                January 1, 2007 DWM Group**                                                    |   |                                | **80,000,000**  |   |   | **80,000** |   |   | **1,466,071** |   |   | **(1,571,007** | **)** |   | **53,464** |   |   | **28,528** |   |   |     |   |
| Recapitalization                transaction (Note 1)                                                    |   |                                | 20,110,400      |   |   | 20,110 |   |   | (356,732 | ) |   | - |   |   | - |   |   | (336,622 | ) |   | **-** |   |
| Stock-based                compensation                                                                 |   |                                | 880,000         |   |   | 880 |   |   | 3,911,077 |   |   | - |   |   | - |   |   | 3,911,957 |   |   | **-** |   |
| Private                placement, issued for cash                                                       |   |                                | 10,330,152      |   |   | 10,330 |   |   | 9,675,667 |   |   | - |   |   | - |   |   | 9,685,997 |   |   | **-** |   |
| Currency                translation adjustment                                                          |   |                                | -               |   |   | - |   |   | - |   |   | - |   |   | 138 |   |   | 138 |   |   | 138 |   |
| Net                loss for the period                                                                  |   |                                | -               |   |   | - |   |   | - |   |   | (5,489,284 | ) |   | - |   |   | (5,489,284 | ) |   | (5,489,284 | ) |
| **Balance                June 30, 2007**                                                                |   |                                | **111,320,552** |   |   | **111,320** |   |   | **14,696,083** |   |   | **(7,060,291** | **)** |   | **53,602** |   |   | **7,800,714** |   |   | **(5,489,146** | **)** |

----

**MANAS            PETROLEUM CORPORATION**

**(A            DEVELOPMENT STAGE COMPANY)**

**CONDENSED            CONSOLIDATED FINANCIAL STATEMENTS**

**UNAUDITED**

*NOTES            TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS*

**1.**
**CORPORATE      INFORMATION**

**Operating      environment**

**(Kyrgyz      Republic & Republic of Tajikistan)**

**2.**
**GOING      CONCERN**

----

**MANAS            PETROLEUM CORPORATION**

**(A            DEVELOPMENT STAGE COMPANY)**

**CONDENSED            CONSOLIDATED FINANCIAL STATEMENTS**

**UNAUDITED**

*NOTES            TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS*

**3.**
**ACCOUNTING      POLICIES **

**Foreign      currency translation**

----

**MANAS          PETROLEUM CORPORATION**

**(A            DEVELOPMENT STAGE COMPANY)**

**CONDENSED            CONSOLIDATED FINANCIAL STATEMENTS**

**UNAUDITED**

*NOTES            TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS*

| Average                    Rates                  |   | 01.01.-06.30.07 |     | 2006   |   | 2005   |   |
|---------------------------------------------------|--------|-----------------|----------|--------|--------|--------|--------|
|                                              |   | TJS             |     | CHF    |   | CHF    |   |
| USD                                               |   | 3.4391          |     | 1.2536 |   | 1.2458 |   |
|                                              |   |            |     |   |   |   |   |
| Balance                    Sheet period-end rates |   |            | 06.30.07 |   |   | 2006   |   |   | 2005 |   |
|                                         |   |            | TJS      |   |   | CHF    |   |   | CHF |   |
| USD                                               |   |            | 3.4394   |   |   | 1.2198 |   |   | 1.3179 |  |

**4.**
**NEW      ACCOUNTING STANDARDS NOT YET ADOPTED**

*FASB      Statement No. 157, Fair Value Measurements*

*The      Fair Value Option for Financial Assets and Financial Liabilities*

**TANGIBLE      FIXED ASSETS **

| **2007**                                                   |   | **Office                  Equipment & Furniture** |         | **Vehicles** |   | **Leasehold                  Improvements** |   | **Total** |         |
|------------------------------------------------------------|--------|-------------------------------------------------------|--------------|--------------|--------|---------------------------------------------|--------|-----------|--------------|
|                                                       |   | **USD**                                               |         | **USD**      |   | **USD**                                     |   | **USD**   |         |
| **Cost                  at January 1**                     |   |                                                  | **5,436**    |         |   | **-**                                       |   |      | **-**        |   |   | **5,436** |   |
| Exchange                  differencies                     |   |                                                  | (20          | )            |   | -                                           |   |      | -            |   |   | **(20** | **)** |
| Recapitalization                  transaction (Note 1)     |   |                                                  | 3,407        |         |   | -                                           |   |      | -            |   |   | **3,407** |   |
| Additions                                                  |   |                                                  | 49           |         |   | 53,000                                      |   |      | -            |   |   | **53,049** |   |
| Disposals                                                  |   |                                                  | -            |         |   | -                                           |   |      | -            |   |   | **-** |   |
| **Cost                  at June 30**                       |   |                                                  | **8,872**    |         |   | **53,000**                                  |   |      | **-**        |   |   | **61,872** |   |
|                                                       |   |                                                  |    |         |   |                                   |   |      |    |   |   |    |   |
| **Accumulated                  depreciation at January 1** |   |                                                  | **(1,438**   | **)**        |   | **-**                                       |   |      | **-**        |   |   | **(1,438** | **)** |
| Exchange                  differencies                     |   |                                                  | 26           |         |   | -                                           |   |      | -            |   |   | **26** |   |
| Recapitalization                  transaction (Note 1)     |   |                                                  | (3,123       | )            |   | -                                           |   |      | -            |   |   | **(3,123** | **)** |
| Depreciation                                               |   |                                                  | (808         | )            |   | (3,000                                      | )      |      | -            |   |   | **(3,808** | **)** |
| Disposals                                                  |   |                                                  | -            |         |   | -                                           |   |      | -            |   |   | **-** |   |
| **Accumulated                  depreciation at June 30**   |   |                                                  | **(5,344**   | **)**        |   | **(3,000**                                  | **)**  |      | **-**        |   |   | **(8,344** | **)** |
|                                                       |   |                                                  |         |         |   |                                        |   |      |         |   |   |   |   |
| **Net                  book value at June 30**             |   |                                                  | **3,529**    |         |   | **50,000**                                  |   |      | **-**        |   |   | **53,529** |   |

----

**MANAS          PETROLEUM CORPORATION**

**(A            DEVELOPMENT STAGE COMPANY)**

**CONDENSED            CONSOLIDATED FINANCIAL STATEMENTS**

**UNAUDITED**

*NOTES            TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS*

**5.**
**STOCK      COMPENSATION PROGRAM**

**6.**
**WARRANTS**

----

**MANAS            PETROLEUM CORPORATION**

**(A            DEVELOPMENT STAGE COMPANY)**

**CONDENSED            CONSOLIDATED FINANCIAL STATEMENTS**

**UNAUDITED**

*NOTES            TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS*

**7.**
**RELATED      PARTY DISCLOSURE**

**CJSC      South Petroleum Company summarized financial information:**

The      following summarized financial information (in USD thousand) as of June 30,      2007      and for the period from January 1, 2007 to June 30, 2007 is presented for CJSC      South Petroleum Company which is a significant equity method investee that      is      not consolidated:

| Current                  assets                    |   |   | 101,819 |   |
|----------------------------------------------------|--------|--------|---------|--------|
| Non-current                  assets                |   |   | 46,896  |   |
| Current                  liabilities               |   |   | 3,336   |   |
| Non-current                  liabilities           |   |   | 147,485 |   |
| Gross                  revenues                    |   |   | 0       |   |
| Gross                  profit                      |   |   | 0       |   |
| Income                  from continuing operations |   |   | -80,532 |   |
| Net                  income                        |   |   | -80,532 |   |

| **Board                  of directors**                                                                                  |   | **01.01-06.30.07** |         | **01.01-06.30.06** |   |
|--------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------------|--------------------|--------|
|                                                                                                                     |   | **USD**            |         | **USD**            |   |
| Payments                  to a director for office rent                                                                  |   |               | 37,110       |               |   | 47,199 |   |
| Payments                  to related companies controlled by directors for rendered consulting                  services |   |               | -            |               |   | 192,139 |   |
|                                                                                                                     |   |               |         |               |   |   |   |
|                                                                                                                     |   |               | **06.30.07** |               |   | **06.30.06** |   |
|                                                                                                                |   |               | **USD**      |               |   | **USD** |   |
| Loan                  from a director                                                                                    |   |               | 201,458      |               |   | 4,543,905 |   |
| Loan                  from a related company controlled by a director                                                    |   |               | -            |               |   | 127,297 |   |

**8.**
**COMMITMENTS      & CONTINGENT LIABILITIES**

**Legal      actions and claims (Kyrgyz Republic & Republic of      Tajikistan)**

----

**MANAS            PETROLEUM CORPORATION**

**(A            DEVELOPMENT STAGE COMPANY)**

**CONDENSED            CONSOLIDATED FINANCIAL STATEMENTS**

**UNAUDITED**

*NOTES            TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS*

|                                          |   | **06.30.07** |        | **12.31.06** |   |
|-----------------------------------------------|--------|--------------|-------------|--------------|--------|
|                                     |   | **USD**      |        | **USD**      |   |
| Within                  1 year                |   |         | 37,714      |         |   | 9,948 |   |
| Between                  2 and 5 years        |   |         | 67,820      |         |   | 4,972 |   |
| After                  5 years                |   |         | 0           |         |   | 0 |   |
| **Total                  future commitments** |   |         | **105,534** |         |   | **14,920** |   |

**9.**
**PERSONNEL      COSTS AND EMPLOYEE BENEFIT PLANS**

**10.**
**EARNINGS      PER SHARE **

----

**Item      2. **
**Management’s      Discussion and Analysis of Financial Condition and Results      of**
**Operation**

----

|   | - | Excellent                network in the CIS and Balkan                countries, |
|--------|---|----------------------------------------------------------------------------------|

|   | - | increase                of value through exploration of known                structures, |
|--------|---|------------------------------------------------------------------------------------------|

|   | - | exploration                of new structures identified by previous geological research                and |
|--------|---|------------------------------------------------------------------------------------------------------------|

|   | - | modern                geological knowledge and new concepts implemented to existing seismic                and                well data base. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------|

----

***Subsequent      Events***

***Status      of current and proposed Oil Exploration Projects***

----

|   | - | The                project team in Adelaide, Ausralia has been primarily engaged in                technical                review work to define the prospects and leads in preparation for                the                seismic program to be initiated in the third quarter of                2007. |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | Consolidation                of the seismic database has been undertaken with data acquired in                Bishkek                transferred to the database in Adelaide. Reprocessing of Soviet era                seismic data and digitising of well logs has                continued. |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | The                office in Bishkek has been involved in general office administration                and                management, acquiring new staff and building relationships with industry                and government. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

**Item      3. Controls and Procedures.**

----

**PART      II**

**Item      1. Legal Proceedings**

**Item      2. Unregistered Sales of Equity Securities and Use of      Proceeds**

|   | · | Exhibit                99.1 8-K announcing private placement filed on August 14,                2007 |
|--------|--------|------------------------------------------------------------------------------------------------------|

|   | · | Exhibit                99.5 8-K announcing the acquisition of DWM by the                Company filed on April 17, 2007 |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------|

**Item      3. Defaults Upon Senior Securities **

**Item      4. Submission of Matters to a Vote of Security Holders **

**Item      5. Other Information **

**Item      6. Exhibits and Reports on Form 8-K **

----

----

**SIGNATURES**

**Manas      Petroleum Corporation**

----