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UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C.
20549

Form 10-Q

(Mark One)

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

For the quarterly period ended June 30, 2012

or

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

For the transition period from to Commission File Number
000-31503

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

|Nevada                                                                | N/A                              
|--------------------------------------------------------------------- | ---------------------------------
|(State or other jurisdiction of incorporation or
      organization)  | (IRS Employer Identification No.)
|                                                                      |                                  
|Suite 1660  1055 West Hastings St, Vancouver,
      British Columbia | V6E 2E9                          
|(Address of principal executive offices)                              | (Zip Code)                       

604-568-4700(Registrants telephone number,
including area code)

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.[ X ] YES [   ] NO

Indicate by check mark whether the registrant has submitted
electronically and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation
S-T (§232.405 of this chapter) during the preceding 12 months (or for such
shorter period that the registrant was required to submit and post such
files).[   ] YES [   ] NO

Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer, or a small
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 Exchange Act[   ] YES [ X ] NO

Indicate by check mark whether the registrant has submitted
electronically and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation
S-T (§232.405 of this chapter) during the preceding 12 months (or for such
shorter period that the registrant was required to submit and post such
files).[   ] YES [   ] NO

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

Check whether the registrant has filed all documents and reports
required to be filed by Sections 12, 13 or 15(d) of the Exchange Act after the
distribution of securities under a plan confirmed by a court.[   ] YES [   ]
NO

APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the
issuers classes of common stock, as of the latest practicable date.
6,629,528
common shares issued and outstanding as of August 17, 2012

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PART 1  FINANCIAL INFORMATION

Item 1. Financial Statements.

Our unaudited interim consolidated financial statements for the
three and six month periods ended June 30, 2012 form part of this quarterly
report. They are stated in United States Dollars (US$) and are prepared in
accordance with United States generally accepted accounting principles.

---

EDEN ENERGY CORP.(An Exploration Stage Company)

Consolidated Financial Statements (Expressed in United
States dollars)

June 30, 2012

(Unaudited)

---

|Eden Energy Corp.             
|------------------------------
|(An Exploration Stage Company)
|Consolidated Balance Sheets   

|                                                                                                                                                                |   | June 30,    |   |   | December 31, |  
|--------------------------------------------------------------------------------------------------------------------------------------------------------------- | - | ----------- | - | - | ------------ | -
|                                                                                                                                                                |   | 2012        |   |   | 2011         |  
|                                                                                                                                                                |   | (Unaudited) |   |   |              |  
|Assets                                                                                                                                                          |   |             |   |   |              |  
|Current Assets                                                                                                                                                  |   |             |   |   |              |  
|Cash                                                                                                                                                            | $ | 878         |   | $ | 23,270       |  
|Restricted cash (Note 9)                                                                                                                                        |   |            |   |   | 500,000      |  
|Other receivables                                                                                                                                               |   | 7,815       |   |   | 6,637        |  
|Prepaid expenses                                                                                                                                                |   | 29,890      |   |   | 31,068       |  
|Total Current Assets                                                                                                                                            |   | 38,583      |   |   | 560,975      |  
|Oil and gas properties (Note 3)                                                                                                                                 |   | 1           |   |   | 1            |  
|Equipment, net of depreciation of $72,045 (December 31, 2011 -
      $70,916)                                                                                   |   | 3,073       |   |   | 5,015        |  
|Total Assets                                                                                                                                                    | $ | 41,657      |   | $ | 565,991      |  
|                                                                                                                                                                |   |             |   |   |              |  
|Liabilities and Stockholders Deficit                                                                                                                           |   |             |   |   |              |  
|Current Liabilities                                                                                                                                             |   |             |   |   |              |  
|Accounts payable                                                                                                                                                | $ | 716,097     |   | $ | 628,049      |  
|Loan payable (Note 6)                                                                                                                                           |   | 717,123     |   |   | 1,167,260    |  
|Total Liabilities                                                                                                                                               |   | 1,433,220   |   |   | 1,795,309    |  
|Contingencies and Commitments (Notes 1 and
      7)                                                                                                             |   |             |   |   |              |  
|Stockholders Deficit                                                                                                                                           |   |             |   |   |              |  
|Preferred Stock:                                                                                                                                                |   | (162.245    | ) |   |              |  
|10,000,000 preferred shares authorized, $0.001
      par value    None issued                                                                                   |   |            |   |   |             |  
|Common Stock: (Note 8)   
      40,000,000 shares authorized, $0.001 par value    6,629,528
      shares issued and outstanding (December 31, 2011  6,629,528) |   | 6,630       |   |   | 6,630        |  
|Additional paid-in capital                                                                                                                                      |   | 50,956,760  |   |   | 50,956,760   |  
|Deficit                                                                                                                                                         |   | (52,192,708 | ) |   | (52,192,708  | )
|Deficit accumulated in the exploration stage (Note 1)                                                                                                           |   | (162.245    | ) |   |             |  
|Total Stockholders Deficit                                                                                                                                     |   | (1,391,563  | ) |   | (1,229,318   | )
|Total Liabilities
      and Stockholders Deficit                                                                                                               | $ | 41,657      |   | $ | 565,991      |  

The accompanying notes are an integral part of these
consolidated financial statements F-1

---

|Eden Energy Corp.                   
|------------------------------------
|(An Exploration Stage Company)      
|Consolidated Statement of Operations
|(Unaudited)                         

|                                                                               |   |              |   |   |              |   |   |            |   |   |            |   |   | For the period         |  
|------------------------------------------------------------------------------ | - | ------------ | - | - | ------------ | - | - | ---------- | - | - | ---------- | - | - | ---------------------- | -
|                                                                               |   | Three Months |   |   | Three Months |   |   | Six Months |   |   | Six Months |   |   | January 1, 2012        |  
|                                                                               |   | Ended        |   |   | Ended        |   |   | Ended      |   |   | Ended      |   |   | (Inception of          |  
|                                                                               |   | June 30,     |   |   | June 30,     |   |   | June 30,   |   |   | June 30,   |   |   | exploration stage)     |  
|                                                                               |   | 2012         |   |   | 2011         |   |   | 2012       |   |   | 2011       |   |   | to
      June 30, 2012 |  
|                                                                               |   |              |   |   |              |   |   |            |   |   |            |   |   |                        |  
|Expenses                                                                       |   |              |   |   |              |   |   |            |   |   |            |   |   |                        |  
|                                                                               |   |              |   |   |              |   |   |            |   |   |            |   |   |                        |  
|Depreciation and amortization                                                  | $ | 813          |   | $ | 8,522        |   | $ | 1,942      |   | $ | 11,690     |   | $ | 1,942                  |  
|General and administrative                                                     |   | 18,964       |   |   | 389,882      |   |   | 34,492     |   |   | 454,666    |   |   | 34,492                 |  
|Interest expense                                                               |   | 24,417       |   |   | 25,440       |   |   | 51,116     |   |   | 50,556     |   |   | 51,116                 |  
|Management fees                                                                |   | 15,000       |   |   | 23,231       |   |   | 30,000     |   |   | 74,566     |   |   | 30,000                 |  
|Professional fees                                                              |   | 30,808       |   |   | 20,721       |   |   | 36,228     |   |   | 64,333     |   |   | 36,228                 |  
|Stock-based
      compensation                                                 |   | -            |   |   | 83,498       |   |   | -          |   |   | 83,498     |   |   | -                      |  
|                                                                               |   |              |   |   |              |   |   |            |   |   |            |   |   |                        |  
|Operating expenses                                                             |   | 90,002       |   |   | 551,294      |   |   | 153,778    |   |   | 739,309    |   |   | 153,778                |  
|                                                                               |   |              |   |   |              |   |   |            |   |   |            |   |   |                        |  
|Loss before other items                                                        |   | (90,002      | ) |   | (551,294     | ) |   | (153,778   | ) |   | (739,309   | ) |   | (153,778               | )
|                                                                               |   |              |   |   |              |   |   |            |   |   |            |   |   |                        |  
|Other items                                                                    |   |              |   |   |              |   |   |            |   |   |            |   |   |                        |  
|                                                                               |   |              |   |   |              |   |   |            |   |   |            |   |   |                        |  
|Loss on foreign exchange                                                       |   | (9           | ) |   | (1,586       | ) |   | (8,492     | ) |   | (6,174     | ) |   | (8,492                 | )
|Interest income                                                                |   | -            |   |   | 32           |   |   | 25         |   |   | 74         |   |   | 25                     |  
|                                                                               |   |              |   |   |              |   |   |            |   |   |            |   |   |                        |  
|Loss from continuing operations                                                |   | (90,011      | ) |   | (552,848     | ) |   | (162,245   | ) |   | (745,409   | ) |   | (162,245               | )
|                                                                               |   |              |   |   |              |   |   |            |   |   |            |   |   |                        |  
|Discontinued operations (Note 11) Loss from discontinued
      operations      |   |             |   |   | (146,436     | ) |   |           |   |   | (235,378   | ) |   |                       |  
|                                                                               |   |              |   |   |              |   |   |            |   |   |            |   |   |                        |  
|Net loss and comprehensive loss                                                | $ | (90,011      | ) | $ | (699,284     | ) | $ | (162,245   | ) | $ | (980,787   | ) | $ | (162,245               | )
|                                                                               |   |              |   |   |              |   |   |            |   |   |            |   |   |                        |  
|                                                                               |   |              |   |   |              |   |   |            |   |   |            |   |   |                        |  
|Basic and diluted
      loss per share  continuing operations                 | $ | (0.01        | ) | $ | (0.26        | ) | $ | (0.02      | ) | $ | (0.37      | ) |   |                        |  
|Basic and diluted loss per share  discontinued operations                     | $ | (0.00        | ) | $ | (0.07        | ) | $ | (0.00      | ) | $ | (0.12      | ) |   |                        |  
|                                                                               |   |              |   |   |              |   |   |            |   |   |            |   |   |                        |  
|Weighted average number of common shares outstanding  basic
      and diluted |   | 6,630,000    |   |   | 2,089,000    |   |   | 6,630,000  |   |   | 2,034,000  |   |   |                        |  

The accompanying notes are an integral part of these
consolidated financial statements F-2

---

|Eden Energy Corp.                   
|------------------------------------
|(An Exploration Stage Company)      
|Consolidated Statement of Cash Flows
|(Unaudited)                         

|                                                      |   |            |   |   |            |   |   | For the period         |  
|----------------------------------------------------- | - | ---------- | - | - | ---------- | - | - | ---------------------- | -
|                                                      |   | Six Months |   |   | Six Months |   |   | January 1, 2012        |  
|                                                      |   | Ended      |   |   | Ended      |   |   | (Inception of          |  
|                                                      |   | June 30,   |   |   | June 30,   |   |   | exploration stage)     |  
|                                                      |   | 2012       |   |   | 2011       |   |   | to
      June 30, 2012 |  
|                                                      |   |            |   |   |            |   |   |                        |  
|Cash provided by (used in):                           |   |            |   |   |            |   |   |                        |  
|                                                      |   |            |   |   |            |   |   |                        |  
|Operating Activities:                                 |   |            |   |   |            |   |   |                        |  
|Net loss for the period                               | $ | (162,245   | ) | $ | (980,787   | ) | $ | (162,245               | )
|                                                      |   |            |   |   |            |   |   |                        |  
|Non-cash items:                                       |   |            |   |   |            |   |   |                        |  
|                                                      |   |            |   |   |            |   |   |                        |  
|Depletion, depreciation
      and amortization        |   | 1,942      |   |   | 103,884    |   |   | 1,942                  |  
|Accrued
      interest on loan payable                |   | 49,863     |   |   | 48,767     |   |   | 49,863                 |  
|Stock based compensation                              |   |           |   |   | 83,498     |   |   |                       |  
|                                                      |   |            |   |   |            |   |   |                        |  
|Changes in non-cash operating assets and liabilities: |   |            |   |   |            |   |   |                        |  
|                                                      |   |            |   |   |            |   |   |                        |  
|Accrued petroleum
      revenues                      |   |           |   |   | 45,675     |   |   |                       |  
|Other
      receivables                               |   | (1,178     | ) |   | (1,140     | ) |   | (1,178                 | )
|Prepaid expenses and
      other                      |   | 1,178      |   |   | 7,928      |   |   | 1,178                  |  
|Accounts payable and accrued
      liabilities        |   | 88,048     |   |   | 322,856    |   |   | 88,048                 |  
|                                                      |   |            |   |   |            |   |   |                        |  
|                                                      |   | (22,392    | ) |   | (369,319   | ) |   | (22,392                | )
|                                                      |   |            |   |   |            |   |   |                        |  
|Investing Activities:                                 |   |            |   |   |            |   |   |                        |  
|Restricted cash                                       |   | 500,000    |   |   | 30,676     |   |   | 500,000                |  
|Disposal of property and equipment                    |   |           |   |   | 752        |   |   |                       |  
|                                                      |   |            |   |   |            |   |   |                        |  
|                                                      |   | 500,000    |   |   | 31,428     |   |   | 500,000                |  
|                                                      |   |            |   |   |            |   |   |                        |  
|Financing Activities:                                 |   |            |   |   |            |   |   |                        |  
|Repayment on loan payables                            |   | (500,000   | ) |   |           |   |   | (500,000               | )
|Proceeds from the sale of common stock                |   |           |   |   | 105,000    |   |   |                       |  
|                                                      |   |            |   |   |            |   |   |                        |  
|                                                      |   | (500,000   | ) |   | 105,000    |   |   | (500,000               | )
|                                                      |   |            |   |   |            |   |   |                        |  
|Effect of exchange rate changes on cash               |   |           |   |   |           |   |   |                       |  
|                                                      |   |            |   |   |            |   |   |                        |  
|Decrease in cash                                      |   | (22,392    | ) |   | (232,891   | ) |   | (22,392                | )
|                                                      |   |            |   |   |            |   |   |                        |  
|Cash, beginning                                       |   | 23,270     |   |   | 281,664    |   |   | 23,270                 |  
|                                                      |   |            |   |   |            |   |   |                        |  
|Cash, ending                                          | $ | 878        |   | $ | 48,773     |   | $ | 878                    |  
|                                                      |   |            |   |   |            |   |   |                        |  
|Supplementary disclosure:                             |   |            |   |   |            |   |   |                        |  
|Interest paid                                         | $ |           |   | $ | 50,411     |   |   |                        |  
|Income taxes paid                                     | $ |           |   | $ |           |   |   |                        |  

The accompanying notes are an integral part of these
consolidated financial statements F-3

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|Eden Energy Corp.                                     
|------------------------------------------------------
|(An Exploration Stage Company)                        
|June 30, 2012                                         
|Notes to the Interim Consolidated Financial Statements
|(Unaudited)                                           

|1. | Basis of Presentation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | The unaudited interim consolidated financial statements
      of Eden Energy Corp. (the Company) have been prepared by management in
      accordance with generally accepted accounting principles in the United
      States for interim financial information and conforms with the rules and
      regulations of the Security and Exchange Commission and reflects all
      adjustments (all of which are normal and recurring in nature) that, in the
      opinion of management, are necessary for fair presentation of the interim
      periods presented. The results of operations for the interim periods
      presented are not necessarily indicative of the results to be expected for
      any subsequent quarter or for the entire year ending December 31, 2012.
      Certain information and footnote disclosures normally included in
      financial statements prepared in accordance with generally accepted
      accounting principles in the United States have been condensed or omitted.
      These unaudited interim consolidated financial statements and notes
      included herein should be read in conjunction with the Companys audited
      consolidated financial statements and notes for the year ended December
      31, 2011, included in the Companys Annual Report on Form 10-K. The
      accounting principles applied in the preparation of these interim
      consolidated financial statements are consistent with those applied for
      the year ended December 31, 2011.                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | The Companys interim consolidated financial statements
      are prepared on a going concern basis in accordance with generally
      accepted accounting principles in the United States which contemplates the
      realization of assets and discharge of liabilities and commitments in the
      normal course of business. The Company has experienced negative cash flows
      from operations to date and has accumulated losses of $52,354,953 since
      inception including a loss for the current period of $162,245. To date the
      Company has funded operations through the issuance of capital stock and
      debt. Managements plan is to continue raising additional funds through
      future equity or debt financings, if available, as needed until it
      acquires and achieves profitable operations from its oil and gas
      activities. Given the Companys focus of operations in natural gas
      production and the related supply and pricing challenges, there may be
      difficulty in raising further funding. The ability of the Company to
      continue its operations as a going concern is dependent on continuing to
      raise sufficient new capital to fund its exploration and development
      commitments and to acquire and fund ongoing losses if, as and when needed,
      and ultimately on generating profitable operations. These factors raise
      substantial doubt regarding the Companys ability to continue as a going
      concern. These financial statements do not include any adjustments to the
      recoverability and classification of recorded asset amounts and
      classification of liabilities that might be necessary should the Company
      be unable to continue as a going concern. See also Notes 6, 7 and
    11.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | Exploration Stage Company                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | As of January 1, 2012, the Company became as exploration
      stage company as defined in the Securities and Exchange Commission
      Industry Guide 7 and is subject to compliance with the Financial
      Accounting Standards Boards (FASB) Accounting Standards Codification
      (ASC) Topic 915 Development Stage Entities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|2. | Recently Issued Accounting Pronouncements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | The Company has implemented all new accounting
      pronouncements that are in effect and that may impact its financial
      statements and does not believe that there are any other new accounting
      pronouncements that have been issued that might have a material impact on
      its financial position or results of operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|3. | Oil and Gas Properties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | During the year ended December 31, 2011, the Company sold
      its interest in its remaining oil and gas property in the United States
      for $500,000, but retained 50% of the interest in and to all mineral
      rights below the base of the Iles formation in 640 acres in Rio Blanco
      County. The Company left a nominal value of $1 to reflect this remaining
      interest based on the uncertainty of realization. The disposal of its
      interest in the prior year ended December 31, 2011 resulted in an
      impairment loss of $790,759 charged to discontinued operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | Depletion expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | Depletion expense for the six months ended June 30, 2012
      of $nil (2011 - $86,784) was recorded.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

F-4

---

|Eden Energy Corp.                                     
|------------------------------------------------------
|(An Exploration Stage Company)                        
|June 30, 2012                                         
|Notes to the Interim Consolidated Financial Statements
|(Unaudited)                                           

|4. | Asset Retirement Obligations                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   | Asset retirement obligations consists of estimated final
      well closure and associated ground reclamation costs estimated to be
      incurred by the Company in the future once the economical life of its oil
      and gas wells are reached. The Company has no remaining asset retirement
      obligations after the sale of its oil and gas wells. A reconciliation
      between the estimated opening and closing asset retirement obligations
      balance is provided below:

| |                      |  | June 30, |  |  | December 31, |  
| | -------------------- |  | -------- |  |  | ------------ | -
| |                      |  | 2012     |  |  | 2011         |  
| |                      |  | $        |  |  | $            |  
| | Beginning balance    |  |         |  |  | 269,005      |  
| | Liabilities incurred |  |         |  |  |             |  
| | Accretion            |  |         |  |  | 16,657       |  
| | Assets disposed of   |  |         |  |  | (285,662     | )
| |                      |  |          |  |  |              |  
| | Ending balance       |  |         |  |  |             |  

|5. | Related Party Transactions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   | Refer to Note 6.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   | Related party transactions are measured at the exchange
      amount which is the amount of consideration established and agreed to by
      the related parties.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|6. | Loan Payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   | On October 2, 2009, the Company entered into a loan
      agreement to borrow the principal sum of up to $1,000,000 (the Loan)
      from a company owned and controlled by the President and director. The
      Loan is secured pursuant to a general security agreement over all of the
      Companys assets. Funds drawn on the loan bear interest at 20% per annum,
      payable quarterly, commencing three months after receiving the funds.
      Repayment of the principal amount of the Loan and any accrued and unpaid
      amounts and interest was to be made on the earlier of October 5, 2010,
      subject to extension upon mutual agreement, and an Event of Default, as
      that term is defined in the Loan agreement. The Company entered into
      various amendments to extend the due date to July 4, 2011 and thereafter
      on a month to month basis unless notice was given by either party at least
      one month in advance. As at June 30, 2012 $217,123 (December 31, 2011 -
      $167,260) in accrued interest is owing on this loan. During the six months
      ended June 30, 2012, the Company paid $Nil in interest (six months ended
      June 30, 2011 - $50,411). A portion of interest accrued during the prior
      six month period ended June 30, 2011 has been included in discontinued
      operations as interest on debt that is required to be repaid as a result
      of a disposal transaction is allocated to discontinued
  operations.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   | On October 4, 2011 the loan was called by the lender and
      was in default and due immediately. As per Clause 7(a) of the Security
      Agreement relating to this loan, the Company was required to hold in trust
      and transfer to the loan holder any funds received from the Security
      Interest until all principle and accrued interest has been paid. Upon the
      sale of the oil and gas interests as discussed in Note 3, the $500,000
      received on the sale was classified as restricted cash as at December 31,
      2011. The $500,000 was paid to the loan holder in January,
  2012.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          

F-5

---

|Eden Energy Corp.                                     
|------------------------------------------------------
|(An Exploration Stage Company)                        
|June 30, 2012                                         
|Notes to the Interim Consolidated Financial Statements
|(Unaudited)                                           

|7. | Contingency                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|8. | Common Stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | On January 7, 2010, the Company effected a 1:5 reverse
      stock-split of the authorized, issued and outstanding common stock. As a
      result, the authorized share capital decreased from 100,000,000 shares of
      common stock with a par value of $0.001 to 20,000,000 shares of common
      stock with a par value of $0.001. The issued and outstanding share capital
      decreased from 49,467,856 shares of common stock to 9,893,563 shares of
      common stock. On August 31, 2010, the Company increased the authorized
      share capital to 200,000,000 shares of common stock with a par value of
      $0.001. On March 8, 2011, the Company effected a 1:5 reverse stock-split
      of the authorized, issued and outstanding common stock. As a result, the
      authorized share capital decreased from 200,000,000 shares of common stock
      with a par value of $0.001 to 40,000,000 shares of common stock with a par
      value of $0.001. The issued and outstanding share capital decreased from
      9,893,563 shares of common stock to 1,978,894 shares of common
    stock.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | All share amounts have been retroactively adjusted for
      all periods presented in the financial statements reflecting the above
      reverse stock splits.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | During the six month period ended June 30, 2012, the
      Company did not issue any shares of common stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | During the prior year ended December 31, 2011, the
      Company issued the following:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | Stock Options                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | Effective May 1, 2005 and amended December 20, 2007, the
      Company adopted an amended stock option plan to issue up to 171,053 shares
      of common stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | On May 17, 2011, the Company adopted a 2011 Stock Option
      Plan (the 2011 Stock Option Plan) to issue up to 395,778 shares of
      common stock. The adoption of the 2011 Stock Option Plan terminates the
      previous Amended 2004 Stock Option Plan. The plan allows for the granting
      of share purchase options at a price of not less than fair value of the
      stock and for a term not to exceed ten years. The total number of options
      granted to any person shall not exceed 5% of the issued and outstanding
      common stock of the Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | During the year ended December 31, 2011, the Company
      granted 280,000 stock options with immediate vesting terms to officers and
      directors to acquire 280,000 common shares exercisable at $0.30 per share
      on or before May 17, 2016. The Company recorded stock based compensation
      of $83,498, as management fee expense.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          

F-6

---

|Eden Energy Corp.                                     
|------------------------------------------------------
|(An Exploration Stage Company)                        
|June 30, 2012                                         
|Notes to the Interim Consolidated Financial Statements
|(Unaudited)                                           

|8. | Capital Stock (continued)                                                                                                                                                                                                             
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                       
|   | Stock Options (continued)                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                       
|   | The fair value for stock options granted during the year
      ended December 31, 2011 was estimated at the grant date using the
      Black-Scholes option-pricing model. The weighted average assumptions used
      are as follows:

Year EndedDecember 31, 2011Expected dividend yield
    
    0%Risk-free interest rate
    
    1.80%Expected volatility
    
    245%Expected option life (in years)
    
    5


During the year ended December 31,
2011, 202,000 stock options expired and/or were cancelled with exercise prices
ranging between $0.30 and $62.50 per share. During the six month period ended
June 30, 2012, 80,000 stock options expired and/or were cancelled with an
exercise price of $0.30 per share.

A summary of the Companys stock option
activity is as follows:

WeightedWeighted
    
    
    AverageNumber of
    
    
    Average
    
    
    RemainingOptions
    
    
    Exercise Price
    
    
    Contractual LifeOutstanding, December 31, 2011
    
    180,000
    
    $
    0.30
    
    
    4.38Expired/Cancelled
    
    (80,000
    )
    
    0.30Granted
    
    -
    
    
    -Outstanding, June
      30, 2012
    
    100,000
    
    $
    0.30
    
    
    3.88


There were no unvested stock options at
June 30, 2012. As at June 30, 2012, the intrinsic value of the outstanding and
exercisable stock options was $nil.

Share Purchase Warrants

A summary of the changes in the
Companys common share purchase warrants is presented below:

Weighted AverageNumber
    
    
    Exercise PriceBalance, December 31, 2011 and June 30, 2012
    
    347,000
    
    $
    0.60


Additional information regarding
warrants as at June 30, 2012 is as follows:

Number of
      Warrants
    Exercise Price
    Expiry
      Date300,000
    $ 0.60
    May 30, 201347,000
    $
      0.60
    June
      9, 2013347,000


|9. | Restricted Cash                                                                                                                                                                                                                                                                                                                                                      
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                      
|   | As at June 30, 2012 restricted cash consists of $nil
      (December 31, 2011 - $500,000). The balance of restricted cash as at
      December 31, 2011 related to the sale of oil and gas properties as
      described in Note 3, and during the six month period ended June 30, 2012,
      was used to repay a portion of the loan further described in Note
  6.

F-7

---

|Eden Energy Corp.                                     
|------------------------------------------------------
|(An Exploration Stage Company)                        
|June 30, 2012                                         
|Notes to the Interim Consolidated Financial Statements
|(Unaudited)                                           

|10. | Reclassifications                                                                                                                                                                                                                                                            
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                              
|    | Certain items presented for comparative purposes have
      been reclassified to conform to the presentation adopted in the current
      period.                                                                                                                            
|    |                                                                                                                                                                                                                                                                              
|11. | Discontinued Operations                                                                                                                                                                                                                                                      
|    |                                                                                                                                                                                                                                                                              
|    | During the year ended December 31, 2011 the Company sold
      its remaining oil and gas assets and as a result has disclosed the results
      of its oil and gas asset group as discontinued operations. The results of
      discontinued operations are summarized below:

| |                                        |  | Three months ended |   |  | Six months ended |  
| | -------------------------------------- |  | ------------------ | - |  | ---------------- | -
| |                                        |  | June 30, 2011      |   |  | June 30, 2011    |  
| |                                        |  | $                  |   |  | $                |  
| |                                        |  |                    |   |  |                  |  
| | Revenue                                |  | 163,558            |   |  | 323,095          |  
| |                                        |  |                    |   |  |                  |  
| | Expenses                               |  |                    |   |  |                  |  
| | Depletion and
      depreciation       |  | 67,127             |   |  | 92,194           |  
| | General
      and administrative costs |  | 49,331             |   |  | 93,876           |  
| | Interest                               |  | 24,932             |   |  | 49,590           |  
| | Management fees                        |  | 51,175             |   |  | 106,790          |  
| | Oil and gas operating
      expenses   |  | 108,422            |   |  | 198,269          |  
| | Taxes                                  |  | 9,007              |   |  | 17,754           |  
| |                                        |  |                    |   |  |                  |  
| | Total Expenses                         |  | 309,994            |   |  | 558,473          |  
| |                                        |  |                    |   |  |                  |  
| |                                        |  | (146,436           | ) |  | (235,378         | )

F-8

---

Item 2. Managements Discussion and Analysis of Financial
Condition and Results of Operations

Forward-Looking Statements

This quarterly report contains forward-looking statements.
These statements relate to future events or our future financial performance. In
some cases, you can identify forward-looking statements by terminology such as
may, should, expects, plans, anticipates, believes, estimates,
predicts, potential or continue or the negative of these terms or other
comparable terminology. These statements are only predictions and involve known
and unknown risks, uncertainties and other factors, including the risks in the
section entitled Risk Factors, that may cause our or our industrys actual
results, levels of activity, performance or achievements to be materially
different from any future results, levels of activity, performance or
achievements expressed or implied by these forward-looking statements.

Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee future results,
levels of activity, performance or achievements. Except as required by
applicable law, including the securities laws of the United States, we do not
intend to update any of the forward-looking statements to conform these
statements to actual results.

Our financial statements are stated in United States Dollars
(US$) and are prepared in accordance with United States Generally Accepted
Accounting Principles.

In this quarterly report, unless otherwise specified, all
dollar amounts are expressed in United States dollars and all references to
common shares refer to the common shares in our capital stock.

As used in this current report and unless otherwise indicated,
the terms "we", "us", "our", "our company and "Eden" mean Eden Energy Corp.
and/or our subsidiaries, unless otherwise indicated.

General Overview

Our company, Eden Energy Corp., was incorporated in the State
of Nevada on January 29, 1999, under the name E-Com Technologies Corp. On June
16, 2004 we effected a 2 for 1 stock split of our common stock and our preferred
stock. On August 6, 2004 we changed our name to Eden Energy Corp. and increased
our authorized capital to 100,000,000 shares of common stock having a $0.001 par
value and 10,000,000 shares of preferred stock having a $0.001 par value. On
January 7, 2010 we effected a share consolidation of our authorized and issued
and outstanding shares of common stock on a 5 old for 1 new basis, such that our
authorized capital decreased from 100,000,000 shares of common stock with a par
value of $0.001 to 20,000,000 shares of common stock with a par value of $0.001
and, correspondingly, our issued and outstanding shares of common stock
decreased from 49,467,856 shares of common stock to 9,893,563 shares of common
stock. On May 20, 2010, our board of directors approved an amendment to our
Articles to increase our authorized share capital to 200,000,000 common shares
with a par value of $0.001 per share. This increase in authorized capital
received approval of the requisite stockholders of our shares at our annual and
special meeting held in Vancouver BC, Canada on August 3, 2010. Our authorized
capital increased to 200,000,000 shares of common stock having a $0.001 par
value and 10,000,000 shares of preferred stock having a $0.001 par value. On
March 8, 2011, our company effected a 5 old for 1 new reverse stock-split of the
authorized, issued and outstanding common stock. As a result, the authorized
share capital decreased from 200,000,000 shares of common stock with a par value
of $0.001 to 40,000,000 shares of common stock with a par value of $0.001. The
issued and outstanding share capital decreased from 9,893,563 shares of common
stock to 1,978,894 shares of common stock.

During the year ended December 31, 2011, the Company issued the
following shares: 300,000 shares by way of private placement, 47,000 shares by
way of debt settlement, and 4,303,590 shares by way of debt settlement.

| | 1. | From mid 2004 through to mid 2008 we were an exploration
      stage oil and gas company engaged in the exploration for petroleum and
      natural gas in the State of Nevada and in the Province of Alberta, Canada.
      Effective September 2006 we commenced with a natural gas
      development-drilling program in the White River Dome, Ant Hill Unit
      located in the Piceance Basin in Colorado. The White River Dome
    project became our primary focus of activity
mid 2008 due to the belief it represented the combination of good commercial
returns while providing a large number of low risk development locations. We
commenced receiving revenues from our White River Dome project during 2008 and
have moved from an exploration stage company to an operating company. Due to the
sale of the remaining oil and gas asset during the year ended December 31, 2011,
the Company had no production or revenues for the six months ended June 30,
2012. Net production from continuing operations for the three months ended June
30, 2011 was 24,895 Mcfe. On January 1, 2012, we became an exploration stage
company.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

3

---

The decline in natural gas prices over the past two years
impaired the valuation of our Colorado assets and eroded our access to reserve
based financing for continued drilling in Colorado. The commencement date for
our continuous drilling program in Colorado was extended to no later than July
1, 2010. On June 30, 2010 we provided notice to EnCana we would not drill
additional earning wells nor continue the drilling program in Colorado thus
terminating our drilling and development agreement effective July 1, 2010.
Management plans to continue to review other potential exploration projects,
which may be presented to them from time to time.

In order to continue operating we entered into a loan agreement
whereby under certain terms and conditions we could borrow up to $1,000,000 from
a company owned and controlled by our president. As of December 31, 2009 we had
borrowed the full amount. During the six months ended June 30, 2012, the Company
repaid $500,000 of this loan. Additional funds to meet loan retirement
obligations and to cover future costs of company operations will be required as
the loan is in default. There is uncertainty that further funding can be raised
when necessary or that the loan can be extended upon maturity. Effectively the
loan holder, who is also the sole remaining director and officer, has security
over all of the assets of the Company and the Company is reliant upon his
continued direction and support.

On May 17, 2011 our directors approved the adoption of the 2011
Stock Option Plan which permits our company to issue up to 395,778 shares of our
common stock to directors, officers, employees and consultants of our company
upon the exercise of stock options granted under the 2011 Plan.

Awards under our 2011 Plan will vest as determined by our board
of directors and as established in stock option agreements to be entered into
between our company and each participant receiving an award.

Additional funds to meet loan retirement obligations and to
cover future costs of company operations will be required. There is uncertainty
that further funding can be raised when necessary.

Due to the implementation of British Columbia Instrument 51-509
on September 30, 2008 by the British Columbia Securities Commission, we have
been deemed to be a British Columbia based reporting issuer. As such, we are
required to file certain information and documents at www.sedar.com.

4

---

Our Current Business

We were primarily focused and engaged in managing the White
River Dome, Ant Hill Unit Project in Colorado. During the prior year ended
December 31, 2011 we sold our interest in this asset, but retained 50% of our
interest in and to all rights below the base of the Iles formation. We expect to
monitor industry activity in formations below the Iles formation and may pursue
exploration of these rights if we deem them attractive. We will also continue to
monitor new exploration projects that may be attractive, subject to
financing.

White River Dome, Ant Hill Unit Drilling and Development
Project  Colorado

The White River Dome, Ant Hill Project is a natural gas
development-drilling program located in the Piceance Basin of western Colorado.
Through agreements entered into September 1, 2006 and August 31, 2007 we had an
85% working interest in these prospective lands, and Eden carried the Unit
Operator for 15% of the total well cost in each new well drilled on 40-acre
drill site quarter/quarter section. For each well drilled, Eden earned a 100%
interest in a diagonal 40-acre tract, located in the same 160-acre quarter
section. The Unit Operator retains its 100% interest in the two remaining offset
locations in each 160-acre drilling block. On July 26, 2010 Koch Exploration
Company LLC was designated Unit Operator of the Ant Hill Unit assuming all
rights, duties and obligations of the resigning Unit Operator, EnCana.

After the initial four locations were drilled, Eden elected to
develop 4 additional 160-acre drilling blocks on acreage outside the existing
Participating Areas under the same terms, which initiated Edens continuing
drilling commitment. On June 30, 2010 we provided notice to EnCana that we would
not drill additional earning wells nor continue the drilling program in Colorado
thus terminating our Drilling and Development Agreement effective July 1,
2010.

Ant Hill Unit  Colorado

The primary targets are the Cameo Coal and Williams Fork
Sandstones of the Cretaceous Mesaverde Group, found at an average depth of 8,100
feet. As of January 1, 2011 cumulative production from the field is in excess of
approximately 85 Bcfe from 162 wells, with current production averaging 6.08
MMcf/d from 79 active wells. Typical well life in the field is in the range of
25-30 years. Gas from the Ant Hill unit typically contains about 25% carbon
dioxide, which is removed at a local natural gas treatment plant. Drilling and
completion costs have historically been in the $2,000,000 range per well
throughout the field, though with service costs declining due to general
economic conditions, we estimate costs now to be in the $1,500,000 range. Lease
operating and gas gathering costs have increased in the unit with recent
amendments to our agreements and the change in Unit operator. Operations in the
White River Dome Field are largely prohibited in the winter months.

Effective March 1, 2011 we entered into an Amendment to Gas
Marketing Agreement with Koch Exploration Company, LLC which provides that the
Operator shall charge and deduct from production proceeds a fee for the
processing and treating of Edens gas in an amount equal to Edens allocated
share, on a volume basis, of the Operators actual gas plant costs,
inclusive.

On February 28, 2011 we received an independent reserve report
from MHA Petroleum Consultants Inc., of Lakewood, Colorado, which was effective
January 1, 2011. Using an average of 2010 monthly actual received oil and gas
prices in accordance with SEC criteria, net to Eden, the report assigned our
eight proved developed producing wells net reserves of approximately 1.03 Bcfe
with a pre tax PV10 value of $1.70 million. Our eight associated proved and
undeveloped well locations were not included in the SEC report as they are
uneconomical to develop using the current SEC reserve criteria. As an
alternative evaluation, effective December 31, 2010 in accordance with the
current Canadian Oil and Gas Handbook NI 51-101 reserve evaluation criteria,
which uses the Sproule December 31, 2010 oil and gas price forecast, MHA
Petroleum Consultants Inc. assigned Eden net proved reserves of approximately
5.47 Bcfe with a pre tax PV 10 value of $3.20 million.

5

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In December 2011, the Company completed the sale of its oil and
gas asset in Colorado, USA for $500,000 in cash. The Companys revenues from
discontinued operations were $459,385. In total, the Companys loss from
discontinued operations was $984,408. The Company has no remaining oil and gas
assets, except for a nominal interest in the underlying mineral rights.

Noah Project - Nevada

From August 2004 to July 2008 we conducted an exploration
program in Nevada, which cumulated in the drilling of the Noah Federal #1 well
in the spring of 2008. Though the well encountered its target formation, log
analysis and the lack of oil or gas shows did not support further testing and
our project in Nevada was terminated. Accordingly, we recognized total
impairment of $8,398,382 related to the Noah project during the year ended
December 31, 2008. Subsequently, we assigned all our rights, title, and
interests to our partners in the project area.

On September 20, 2010 we received a refund of $332,150 from our
joint venture partner relating to road and site reclamation costs which we had
prepaid by AFE when drilling was initially scheduled to commence. A remaining
$25,000 has been held by our partner to cover final site reclamation costs,
which all or some may be refunded if final costs are less than $25,000. More
detailed information on this project is available in our 2008 and 2009 year end
filings.

Cherry Creek Project - Nevada

On October 21, 2005, we commenced with a second exploration
project in Nevada called Cherry Creek. On July 28, 2008, subsequent to the Noah
well drilling and after a careful review of the technical aspects involved, we
terminated the project. Accordingly, we recognized total impairment of $876,195
related to the Cherry Creek project during the year ended December 31, 2008.
Subsequently, we assigned all our rights, title, and interests to our partner in
the project area. More detailed information on this project is available in our
2008 and 2009 year end filings.

Chinchaga Project  Alberta

From March 13, 2006 to February 2007 in conjunction with our
partners, we conducted an exploration program in Alberta, which cumulated with
drilling two exploratory wells. Both wells were plugged and abandoned in early
2007 and we recognized total impairment of $1,462,214 relating to the dry wells.
By drilling these wells we have earned an interest in certain lands for
potential future exploration. In the year ended December 31, 2010 we recognized
additional impairment on these properties of $647,915 and unless there is a
significant improvement in natural gas prices in the near future, management is
unlikely to focus further in this area. More detailed information on this
project is available in our 2008 and 2009 year end filings.

6

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Cash Requirements

Due to the Companys current financial situation, it is
challenging for management to comment on plans for the next twelve-month period.

In Colorado, we currently hold an interest in the mineral
rights below the Iles formation in 640 gross acres in Rio Blanco county. Our
current focus of activity is seeking out new business opportunities.

We anticipate we will not have adequate operating cash flow for
the next twelve month period. Additional funds to meet obligations and to cover
the costs of company operations will be required in future and there is
uncertainty that further funding can be raised.

Our net cash used in financing activities during the six month
period ended June 30, 2012 was $500,000 as compared to $100,000 provided by
financing activities used during the six months ended June 30, 2011.

We will require additional funds in the future to maintain
operations and further funds to implement our growth strategy in our gas
development operations. These funds may be raised through equity financing, debt
financing, or other sources, which may result in further dilution in the equity
ownership of our shares. There is still no assurance that we will be able to
maintain operations at a level sufficient for an investor to obtain a return on
his investment in our common stock. Further, we may continue to be
unprofitable.

In order to continue operating on October 2, 2009 we entered
into a loan agreement whereby under certain terms and conditions we could borrow
up to $1,000,000 from D. Sharpe Management Inc., a company owned and controlled
by our president and director. As of December 31, 2009 we had borrowed the full
amount. On October 14, 2010 we disclosed that we had entered into an amendment
to the loan agreement with D. Sharpe Management Inc., extending the due date for
the loan to April 5, 2011.

On April 1, 2011, we entered into an amending agreement with D.
Sharpe Management Inc., wherein the loan was further extended to May 5, 2011.
All other terms of the loan agreement remain unchanged. The maturity date of the
loan payable was extended to July 4, 2011, and thereafter on a month to month
basis unless notice is given by either party at least one month in advance.

On October 4, 2011, the loan went into default. During the six
month period ended June 30, 2012, the Company repaid $500,000 of this loan.

7

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Estimated Net Expenditures During the Next Twelve
Months

Over the next twelve months we expect to expend funds as
follows:

$General, Administrative, and Corporate
      Expenses
    
    150,000Interim Loan Interest Expense
    
    50,000Interim Loan Retirement
    
    500,000Total
    
    700,000


We have recurring losses from operations. The continuation of
our company is dependent upon our company attaining and maintaining profitable
operations and raising additional capital as needed.

The continuation of our business is dependent upon obtaining
further financing, a successful program of exploration and/or development, and,
finally, achieving a profitable level of operations. The issuance of additional
equity securities by us could result in a significant dilution in the equity
interests of our current stockholders. Obtaining commercial loans, assuming
those loans would be available, will increase our liabilities and future cash
commitments.

There are no assurances that we will be able to obtain further
funds required for our continued operations. As noted herein, we are pursuing
various financing alternatives to meet our immediate and long-term financial
requirements. There can be no assurance that additional financing will be
available to us when needed or, if available, that it can be obtained on
commercially reasonable terms. If we are not able to obtain the additional
financing on a timely basis, we will be unable to conduct our operations as
planned, and we will not be able to meet our other obligations as they become
due. In such event, we will be forced to scale down or perhaps even cease our
operations.

Purchase of Significant Equipment

We do not intend to purchase any significant equipment
(excluding oil and gas activities) over the twelve months ending June 30, 2013
other than office computers, furnishings, and communication equipment as
required.

Research and Development

We have incurred $Nil in research and development expenditures
over the last two fiscal years.

Employees

Currently our only employees are our directors and officers. We
do and will continue to outsource contract employment as needed. With project
advancement and if we are successful in any exploration or drilling programs, we
may retain additional employees.

Off-Balance Sheet Arrangements

We have no 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, revenues or expenses, results of operations,
liquidity, capital expenditures or capital resources that is material to
stockholders.

8

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Critical Accounting Policies

The discussion and analysis of our financial condition and
results of operations are based upon our financial statements, which have been
prepared in accordance with the accounting principles generally accepted in the
United States of America. Preparing financial statements requires management to
make estimates and assumptions that affect the reported amounts of assets,
liabilities, revenue, and expenses. These estimates and assumptions are affected
by managements application of accounting policies. We believe that
understanding the basis and nature of the estimates and assumptions involved
with the following aspects of our financial statements is critical to an
understanding of our financial statements.

Use of Estimates

The preparation of financial statements
in conformity with U.S. generally accepted accounting principles 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 period. The Company regularly evaluates estimates
and assumptions. The Company bases its estimates and assumptions on current
information and markets, historical experience and various other factors
including forward looking assumptions that it believes to be reasonable under
the circumstances, the results of which form the basis for making judgments
about the carrying values of assets and liabilities and the accrual of costs and
expenses that are not readily apparent from other sources. The actual results
experienced by the Company may differ materially and adversely from the
Companys estimates. To the extent there are material differences between the
estimates and the actual results, future results of operations will be affected.
The most significant estimates with regard to these financial statements relate
to recoverable values of oil and gas properties, the provision for income taxes,
depreciation, depletion and asset retirement obligations.

Oil and Gas Properties

The Company utilizes the full cost
method to account for its investment in oil and gas properties. Accordingly, all
costs associated with acquisition, exploration and development of oil and gas
reserves, including such costs as leasehold acquisition costs, capitalized
interest costs relating to unproved properties, geological expenditures,
tangible, and intangible development costs including direct internal costs are
capitalized to the full cost pool. When the Company commences production from
established proven oil and gas reserves, capitalized costs, including estimated
future costs to develop the reserves and estimated abandonment costs, net of
salvage, will be depleted on the units-of-production method using estimates of
proved reserves. Investments in unproved properties and major development
projects including capitalized interest, if any, are not depleted until proved
reserves associated with the projects can be determined. Unproved properties are
evaluated annually for impairment, and if the future exploration of unproved
properties are determined uneconomical the amount of such properties are added
to the capitalized cost to be depleted, while if the unproved properties are
abandoned completely the amount of such properties is written off.

The capitalized costs included in the
full cost pool are subject to a "ceiling test", which limits such costs to the
aggregate of the estimated present value, using a ten percent discount rate, of
the future net revenues from proved reserves, based on current economic and
operating conditions plus the lower of cost and estimated net realizable value
of unproven properties.

Sales of proved and unproved properties are accounted
  for as adjustments of capitalized costs with no gain or loss recognized, unless
  such adjustments would significantly alter the relationship between capitalized
  costs and proved reserves of oil and gas, in which case the gain or loss is
  recognized in the statement of operations.

Long-Lived Assets

In accordance with ASC 360, Property
Plant and Equipment,the Company tests long-lived assets or asset groups for
recoverability when events or changes in circumstances indicate that their
carrying amount may not be recoverable. Circumstances which could trigger a
review include, but are not limited to: significant decreases in the market
price of the asset; significant adverse changes in the business climate or legal
factors; accumulation of costs significantly in excess of the amount originally
expected for the acquisition or construction of the asset; current period cash
flow or operating losses combined with a history of losses or a forecast of
continuing losses associated with the use of the asset; and current expectation
that the asset will more likely than not be sold or disposed significantly
before the end of its estimated useful life. Recoverability is assessed based on
the carrying amount of the asset and its fair value which is generally
determined based on the sum of the discounted cash flows expected to result from
the use and the eventual disposal of the asset, as well as specific appraisal in
certain instances. An impairment loss is recognized when the carrying amount is
not recoverable and exceeds fair value.

9

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Financial Instruments

The Companys financial instruments
consist of cash and cash equivalents, accrued petroleum revenues, other
receivables, accounts payable, and loan payable. Pursuant to ASC 820, Fair
Value Measurements and Disclosuresand ASC 825, Financial Instrumentsthe fair value of cash equivalents is determined based on Level 1 inputs,
which consist of quoted prices in active markets for identical assets.
Management believes that the recorded values of all of the Companys other
financial instruments approximate their current fair values because of their
nature and respective relatively short maturity dates or durations.

Revenue Recognition

Oil and natural gas revenues are
recorded using the sales method whereby the Company recognizes oil and natural
gas revenue based on the amount of oil and gas sold to purchasers when title
passes, the amount is determinable and collection is reasonably assured. Actual
sales of oil and gas are based on sales, net of the associated volume charges
for processing fees and for costs associated with delivery, transportation,
marketing, and royalties in accordance with industry standards. Operating costs
and taxes are recognized in the same period in which revenue is earned.

Recent Accounting Pronouncements

The Company has implemented all new accounting pronouncements
that are in effect and that may impact its financial statements and does not
believe that there are any other new accounting pronouncements that have been
issued that might have a material impact on its financial position or results of
operations.

Going Concern

The Company has experienced negative cash flows from operations
and has accumulated losses of $52,354,953 since inception including a loss for
the current period of $162,245.

In December 2011, the Company completed the sale of
substantially all of its oil and gas asset in Colorado, USA for $500,000 in
cash. The Company has no remaining oil and gas assets, except for a nominal
interest in the underlying mineral rights.

The Company, in prior years had provided specific and general
security agreements for a borrowing facility from a company controlled by the
President of the Company. During the current year the security holder demanded
payment under the loan security agreement and as a consequence $500,000 of
proceeds on sale of assets was restricted for payment to the security holder.
This amount was paid in January 2012.

The Board of directors has resigned and the President and
security holder became the sole director and officer of the Company and remains
as such to date.

Due to the Companys loan being in default and the continuing
charge on assets under the security agreement, there is substantial doubt as to
the Companys ability to continue as a going concern. The Company is wholly
dependant on the support of the President and security holder for continued
support financially and for future operations of the Company.

To date the Company has funded operations through the issuance
of capital stock and debt. Managements plan, which is subject to the support of
the President and security holder, is to continue to fund operational cash needs
by related party loans and support until such time as new business opportunities
arise that warrant raising equity capital.

10

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Results of Operations  Three Months Ended June 30, 2012 and
2011

The following summary of our results of operations should be
read in conjunction with our financial statements for the quarter ended June 30,
2012, which are included herein.

Our operating results for the three months ended June 30, 2012,
for the three months ended June 30, 2011 and the changes between those periods
for the respective items are summarized as follows:

Three Months Ended
      June 30, 2012 $
    Three Months Ended
      June 30, 2011 $
    Change Between Three Month
      Period Ended June 30, 2012 and June 30,
      2011 $Revenue
    -
    -
    -Depletion, depreciation and amortization
    813
    8,522
    (7,709)General and administrative
    18,964
    389,882
    (370,918)Interest expense
    24,417
    25,440
    (1,023)Management fees
    15,000
    23,231
    (8,231)Oil and gas operating expenses
    -
    -
    -Production taxes
    -
    -
    -Professional Fees
    30,808
    20,721
    10,087Stock based compensation
    -
    83,498
    83,498Loss on foreign exchange
    9
    1,586
    (1,577)Interest income
    -
    (32)
    32Net loss
    90,011
    552,848
    (462,837)


Our accumulated losses increased to $52,354,953 as of June 30,
2012. Our financial statements report a net loss of $90,011 for the three month
period ended June 30, 2012 compared to a net loss of $552,848 for the three
month period ended June 30, 2011. Our company recognized depletion, depreciation
and amortization of its capitalized assets of $813 during the three months ended
June 30, 2012, compared to $8,522 for the three months ended June 30, 2011. The
depletion rate for Colorado production for the three months ended June 30, 2012
was $Nil/mcfe (June 30, 2011 - $1.50/mcfe).

11

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Results of Operations  Six Months Ended June 30, 2012 and
2011

The following summary of our results of operations should be
read in conjunction with our financial statements for the quarter ended June 30,
2012, which are included herein.

Our operating results for the six months ended June 30, 2012,
for the six months ended June 30, 2011 and the changes between those periods for
the respective items are summarized as follows:

Six Months Ended
      June 30, 2012 $
    Six Months Ended
      June 30, 2011 $
    Change Between Six Month
      Period Ended June 30, 2012 and June 30,
      2011 $Revenue
    -
    -
    -Depletion, depreciation and amortization
    1,942
    11,690
    (9,748)General and administrative
    34,492
    454,666
    (420,174)Interest expense
    51,116
    50,556
    560Management fees
    30,000
    74,566
    (44,566)Oil and gas operating expenses
    -
    -
    -Production taxes
    -
    -
    -Professional Fees
    36,228
    64,333
    (28,105)Stock based compensation
    -
    83,498
    (83,498)Loss on foreign exchange
    8,492
    6,174
    2,319Interest income
    (25)
    (74)
    49Net loss
    162,245
    745,409
    (583,164)


Our total liabilities as of June 30, 2012 were $1,433,220 as
compared to total liabilities of $1,795,309 as of December 31, 2011. The
$362,089 decrease was largely due to a repayment of $500,000 on a loan, offset
by an increase in accounts payable.

During the six month period ended June 30, 2012 we expended
$Nil on exploration, development and acquisition of oil and gas properties as
compared to $Nil expended during the six month period ended June 30, 2011.

12

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Liquidity and Financial Condition

Working Capital

|                           |   | At         |   |  | At           |  
|-------------------------- | - | ---------- | - |  | ------------ | -
|                           |   | June 30,   |   |  | December 31, |  
|                           |   | 2012       |   |  | 2011         |  
|Current assets             | $ | 38,583     |   |  | 560,975      |  
|Current liabilities        |   | 1,433,220  |   |  | 1,795,309    |  
|Working capital deficiency | $ | (1,394,637 | ) |  | (1,234,334   | )

Cash Flows

|                                                            |   | Six Months Ended |  
|----------------------------------------------------------- | - | ---------------- | -
|                                                            |   | June 30          |  
|                                                            |   | 2012             |  
|Cash flows provided by (used in) operating
      activities | $ | (22,392          | )
|Cash flows provided by (used in) investing activities       |   | 500,000          |  
|Cash flows provided by (used in) financing
      activities |   | (500,000         | )
|Effect of exchange rate changes on cash                     |   | -                |  
|Net increase (decrease) in cash during
      period         | $ | (22,392          | )

Operating Activities

Net cash used in operating activities was $22,392 in the six
months ended June 30, 2012 compared with net cash used in operating activities
of $369,319 in the same period in 2011. The decrease in net cash used in
operating activities of $346,927 is mainly because of a decrease in payments on
accounts payable and accrued liabilities, as well as a decrease in oil and gas
revenue received during the six month period ended June 30, 2012 compared to the
six months ended June 30, 2011.

Investing Activities

Net cash provided by investing activities was $500,000 in the
six months ended June 30, 2012 compared to net cash provided by investing
activities of $31,428 in the same period in 2011. The increase in cash provided
by of $468,572 in investing activities is mainly due to the change in restricted
cash in the six month period ended June 30, 2012.

Financing Activities

Net cash used in financing activities was $500,000 in the six
months ended June 30, 2012 compared to net cash provided by financing of
$105,000 in the same period in 2011. The difference in cash used of $605,000 in
financing activities is mainly due to a repayment of $500,000 on a loan from a
related party.

Oil and gas sales volume comparisons for the six months
ended June 30, 2012 compared to the six months ended June 30, 2011

Due to the sale of the Companys only producing asset in the
year ended December 31, 2011, we had no oil and gas sales or net production for
the six months ended June 30, 2012 as compared to oil and gas sales of $323,094
and approximately 52,425 Mcfe net production in the same period in 2011.

13

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Item 3. Quantitative and Qualitative Disclosures About
Market Risk

As a smaller reporting company, we are not required to
provide the information required by this Item.

Item 4. Controls and Procedures

Managements Report on Disclosure Controls and
Procedures

We maintain disclosure controls and procedures that are
designed to ensure that information required to be disclosed in our reports
filed under the Securities Exchange Act of 1934, as amended, is recorded,
processed, summarized and reported within the time periods specified in the
Securities and Exchange Commission's rules and forms, and that such information
is accumulated and communicated to our management, consisting of our president
and chief executive officer (who is acting as our principal executive officer,
our chief financial officer, (our principal financial officer and our principle
accounting officer) to allow for timely decisions regarding required disclosure.

As of June 30, 2012, the end of the quarter covered by this
report, we carried out an evaluation, under the supervision and with the
participation of our president, of the effectiveness of the design and operation
of our disclosure controls and procedures. Our president believes that our
disclosure controls and procedures were still effective as of the end of the
period covered by this quarterly report in providing reasonable assurance
regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordances with US generally
accepted accounting principles.

Changes in Internal Control over Financial
Reporting

There have been no changes in our internal controls over
financial reporting that occurred during our quarter ended June 30, 2012 that
have materially or are reasonably likely to materially affect, our internal
controls over financial reporting.

PART II

OTHER INFORMATION

Item 1. Legal Proceedings

On December 21, 2009 Ontrea Inc. filed an action in the courts
of British Columbia, Canada against Eden Canada Holdings Ltd., a registered name
of Eden Energy Corp. in Canada, claiming arrears rent and accelerated rent
overdue of $109,273 plus damages. Eden Canada Holdings Ltd. filed its Statement
of Defense on February 1, 2010. On May 13, 2011, Ontrea was awarded judgement
against our company and during the year ended December 31, 2011, our company
recognized a loss of $338,936 which was included in our statement of
operations.

Other than this, we know of no material, existing or pending
legal proceedings against us, nor are we involved as a plaintiff in any material
proceeding or pending litigation. There are no proceedings in which any of our
directors, officers or affiliates, or any registered or beneficial shareholder,
is an adverse party or has a material interest adverse to our company.

14

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Item 1A. Risk Factors

Our business operations are subject to a number of risks and
uncertainties, including, but not limited to those set forth below:

We have had negative cash flows from operations If we are
unable to obtain financing in the amounts and on terms deemed acceptable to us,
we may be unable to continue our business and as a result may be required to
scale back or cease operations for our business, the result of which would be
that our stockholders would lose some or all of their investment.

To date we have had negative cash flows from operations and we
have been dependent on sales of our equity securities and debt financing to meet
our cash requirements. We have incurred losses totaling approximately $162,246
for the six months ended June 30, 2012, and cumulative losses of $52,354,953 to
June 30, 2012. As of June 30, 2012 we had a working capital deficit of
$1,394,637. We do not expect positive cash flow from operations in the next
twelve month period and there is no assurance that actual cash requirements will
not exceed our estimates, or that our sales projections will be realized as
estimated.

We will depend almost exclusively on outside capital to pay for
the continued exploration and development of our properties. Such outside
capital may include the sale of additional stock and/or commercial borrowing.
Capital may not continue to be available if necessary to meet these continuing
development costs or, if the capital is available, that it will be on terms
acceptable to us. The issuance of additional equity securities by us would
result in a significant dilution in the equity interests of our current
stockholders. Obtaining commercial loans, assuming those loans would be
available, will increase our liabilities and future cash commitments.

If we are unable to obtain financing in the amounts and on
terms deemed acceptable to us, we may be unable to continue our business and as
a result may be required to scale back or cease operations for our business, the
result of which would be that our stockholders would lose some or all of their
investment.

A decline in the price of our common stock could affect our
ability to raise further working capital and adversely impact our
operations.

A prolonged decline in the price of our common stock could
result in a reduction in the liquidity of our common stock and a reduction in
our ability to raise capital. Because our operations have been primarily
financed through the sale of equity securities, a decline in the price of our
common stock could be especially detrimental to our liquidity and our continued
operations. Any reduction in our ability to raise equity capital in the future
would force us to reallocate funds from other planned uses and would have a
significant negative effect on our business plans and operations, including our
ability to develop new products and continue our current operations. If our
stock price declines, we may not be able to raise additional capital or generate
funds from operations sufficient to meet our obligations.

We have a history of losses and fluctuating operating
results. We expect to continue to incur operating losses and negative cash flow
until we receive significant commercial production from our properties

From inception through to June 30, 2012, we have incurred
aggregate losses of approximately $52,354,953. Our loss from operations for the
six months ended June 30, 2012 was $162,246. There is no assurance that we will
operate profitably or will generate positive cash flow in the future. In
addition, our operating results in the future may be subject to significant
fluctuations due to many factors not within our control, such as the
unpredictability of when customers will purchase our production and/or services,
the size of customers purchases, the demand for our production and/or services,
and the level of competition and general economic conditions. If we cannot
generate positive cash flows in the future, or raise sufficient financing to
continue our normal operations, then we may be forced to scale down or even
close our operations. Until such time as we generate significant revenues, we
expect an increase in development costs and operating costs. Consequently, we
expect to continue to incur operating losses and negative cash flow until we
receive significant commercial production from our properties.

15

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We have a limited operating history and if we are not
successful in continuing to grow our business, then we may have to scale back or
even cease our ongoing business operations.

We have limited history of revenues from operations and have
limited significant tangible assets. We have yet to generate positive earnings
and there can be no assurance that we will ever operate profitably. Our company
has a limited operating history and must still be considered in the early
development stage. The success of our company is significantly dependent on a
successful acquisition, drilling, completion and production program. Our
companys operations will be subject to all the risks inherent in the
establishment of a developing enterprise and the uncertainties arising from the
absence of a significant operating history. We may be unable to locate
recoverable reserves, extract the reserves economically, and/or operate on a
profitable basis. We are in the early development stage of an operating company
and potential investors should be aware of the difficulties normally encountered
by enterprises in the development stage. If our business plan is not successful,
and we are not able to operate profitably, investors may lose some or all of
their investment in our company.

Trading of our stock may be restricted by the SEC's "Penny
Stock" regulations, which may limit a stockholder's ability to buy and sell our
stock.

The U.S. Securities and Exchange Commission has adopted
regulations which generally define "penny stock" to be any equity security that
has a market price (as defined) less than $5.00 per share or an exercise price
of less than $5.00 per share, subject to certain exceptions. Our securities are
covered by the penny stock rules, which impose additional sales practice
requirements on broker-dealers who sell to persons other than established
customers and "accredited investors." The term "accredited investor" refers
generally to institutions with assets in excess of $5,000,000 or individuals
with a net worth in excess of $1,000,000 or annual income exceeding $200,000 or
$300,000 jointly with their spouse. The penny stock rules require a
broker-dealer, prior to a transaction in a penny stock not otherwise exempt from
the rules, to deliver a standardized risk disclosure document in a form prepared
by the SEC, which provides information about penny stocks and the nature and
level of risks in the penny stock market. The broker-dealer also must provide
the customer with current bid and offer quotations for the penny stock, the
compensation of the broker-dealer and its salesperson in the transaction and
monthly account statements showing the market value of each penny stock held in
the customer's account. The bid and offer quotations, and the broker-dealer and
salesperson compensation information, must be given to the customer orally or in
writing prior to effecting the transaction and must be given to the customer in
writing before or with the customer's confirmation. In addition, the penny stock
rules require that prior to a transaction in a penny stock not otherwise exempt
from these 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 agreement to the transaction. These disclosure requirements
may have the effect of reducing the level of trading activity in the secondary
market for the stock that is subject to these penny stock rules. Consequently,
these penny stock rules may affect the ability of broker-dealers to trade our
securities. We believe that the penny stock rules discourage investor interest
in and limit the marketability of, our common stock.

The Financial Industry Regulatory Authority, or FINRA, has
adopted sales practice requirements which may also limit a stockholder's ability
to buy and sell our stock.

In addition to the "penny stock" rules described above, FINRA
has adopted rules that require that in recommending an investment to a customer,
a broker-dealer must have reasonable grounds for believing that the investment
is suitable for that customer. Prior to recommending speculative low priced
securities to their non-institutional customers, broker-dealers must make
reasonable efforts to obtain information about the customer's financial status,
tax status, investment objectives and other information. Under interpretations
of these rules, FINRA believes that there is a high probability that speculative
low priced securities will not be suitable for at least some customers. FINRA
requirements make it more difficult for broker-dealers to recommend that their
customers buy our common stock, which may limit your ability to buy and sell our
stock and have an adverse effect on the market for our shares.

Trading in our common shares on the OTC Bulletin Board is
limited and sporadic making it difficult for our shareholders to sell their
shares or liquidate their investments.

Our common shares are currently listed for public trading on
the OTC Bulletin Board. The trading price of our common shares has been subject
to wide fluctuations. Trading prices of our common shares may fluctuate in response to a number of factors, many of which will be beyond
our control. The stock market has generally experienced extreme price and volume
fluctuations that have often been unrelated or disproportionate to the operating
performance of companies with no current business operation. There can be no
assurance that trading prices and price earnings ratios previously experienced
by our common shares will be matched or maintained. These broad market and
industry factors may adversely affect the market price of our common shares,
regardless of our operating performance.

16

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In the past, following periods of volatility in the market
price of a company's securities, securities class-action litigation has often
been instituted. Such litigation, if instituted, could result in substantial
costs for us and a diversion of management's attention and resources.

Because of the early stage of development and the nature of
our business, our securities are considered highly speculative.

Our securities must be considered highly speculative, generally
because of the nature of our business and the early stage of our development. We
have largely been engaged in the business of exploring and until only recently
attempting to develop commercial reserves of oil and gas. Our Alberta property
is in the exploration stage and without known reserves of oil and gas. Only our
Colorado properties have commenced production and due to depressed natural gas
prices are proving uneconomical to develop. We have not generated significant
revenues nor have we realized a profit from our operations to date and there is
little likelihood that we will generate significant revenues or realize any
profits in the short term. Any profitability in the future from our business
will be dependent upon attaining adequate levels of internally generated
revenues through locating and developing economic reserves of oil and gas, which
itself is subject to numerous risk factors as set forth herein. Since we have
not generated adequate revenues, we will have to raise additional monies through
either securing industry reserve based debt financing, or the sale of our equity
securities or debt, or combinations of the above in order to continue our
business operations.

As our properties are in the exploration and early
development stage there can be no assurance that we will establish commercial
discoveries and/or profitable production programs on these properties.

Exploration for economic reserves of oil and gas is subject to
a number of risk factors. Few properties that are explored are ultimately
developed into producing oil and/or gas wells. Our past Nevada properties and
our Alberta properties have been fully impaired and are without proven reserves
of oil and gas. We may not establish commercial discoveries on these properties.
Our Colorado property is in early stage development drilling and is proving
uneconomical for us to continue drilling.

The potential profitability of oil and gas ventures depends
upon factors beyond the control of our company.

The potential profitability of oil and gas properties is
dependent upon many factors beyond our control. For instance, world prices and
markets for oil and gas are unpredictable, highly volatile, potentially subject
to governmental fixing, pegging, controls, or any combination of these and other
factors, and respond to changes in domestic, international, political, social,
and economic environments. Additionally, due to worldwide economic uncertainty,
the availability and cost of funds for production and other expenses have become
increasingly difficult, if not impossible, to project. These changes and events
may materially affect our financial performance.

Adverse weather conditions can also hinder drilling operations.
A productive well may become uneconomic in the event water or other deleterious
substances are encountered which impair or prevent the production of oil and/or
gas from the well. In addition, production from any well may be unmarketable if
it is impregnated with water or other deleterious substances. The marketability
of oil and gas, which may be acquired or discovered, will be affected by
numerous factors beyond our control. These factors include the proximity and
capacity of oil and gas pipelines and processing equipment, market fluctuations
of prices, taxes, royalties, land tenure, allowable production and environmental
protection. These factors cannot be accurately predicted and the combination of
these factors may result in our company not receiving an adequate return on
invested capital.

17

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Competition in the oil and gas industry is highly
competitive and there is no assurance that we will be successful in acquiring
the leases.

The oil and gas industry is intensely competitive. We compete
with numerous individuals and companies, including many major oil and gas
companies, which have substantially greater technical, financial and operational
resources and staff. Accordingly, there is a high degree of competition for
desirable oil and gas leases, suitable properties for drilling operations and
necessary drilling equipment, as well as for access to funds. We cannot predict
if the necessary funds can be raised or that any projected work will be
completed. Our budget does not anticipate the potential acquisition of
additional acreage in Alberta although this may change at any time without
notice. This acreage may not become available or if it is available for leasing,
that we may not be successful in acquiring the leases. There are other
competitors that have operations in these areas and the presence of these
competitors could adversely affect our ability to acquire additional leases.

The marketability of natural resources will be affected by
numerous factors beyond our control, which may result in us not receiving an
adequate return on invested capital to be profitable or viable.

The marketability of natural resources, which may be acquired
or discovered by us, will be affected by numerous factors beyond our control.
These factors include market fluctuations in oil and gas pricing and demand, the
proximity and capacity of natural resource markets and processing equipment,
governmental regulations, land tenure, land use, regulation concerning the
importing and exporting of oil and gas and environmental protection regulations.
The exact effect of these factors cannot be accurately predicted, but the
combination of these factors may result in us not receiving an adequate return
on invested capital to be profitable or viable.

Oil and gas operations are subject to comprehensive
regulation, which may cause substantial delays or require capital outlays in
excess of those anticipated causing an adverse effect on our company.

Oil and gas operations are subject to federal, state, and local
laws relating to the protection of the environment, including laws regulating
removal of natural resources from the ground and the discharge of materials into
the environment. Oil and gas operations are also subject to federal, state, and
local laws and regulations, which seek to maintain health and safety standards
by regulating the design and use of drilling methods and equipment. Various
permits from government bodies are required for drilling operations to be
conducted; no assurance can be given that such permits will be received.
Environmental standards imposed by federal, provincial, or local authorities may
be changed and any such changes may have material adverse effects on our
activities. Moreover, compliance with such laws may cause substantial delays or
require capital outlays in excess of those anticipated, thus causing an adverse
effect on us. Additionally, we may be subject to liability for pollution or
other environmental damages, which it may elect not to insure against due to
prohibitive premium costs and other reasons. To date we have not been required
to spend any material amount on compliance with environmental regulations.
However, we may be required to do so in future and this may affect our ability
to expand or maintain our operations.

Governmental Regulations

Our oil and gas operations are subject to various United States
and Canadian federal, state/provincial and local governmental regulations.
Matters subject to regulation include discharge permits for drilling operations,
drilling and abandonment bonds, reports concerning operations, the spacing of
wells, and pooling of properties and taxation. From time to time, regulatory
agencies have imposed price controls and limitations on production by
restricting the rate of flow of oil and gas wells below actual production
capacity in order to conserve supplies of oil and gas. The production, handling,
storage, transportation and disposal of oil and gas, by-products thereof, and
other substances and materials produced or used in connection with oil and gas
operations are also subject to regulation under federal, state, provincial and
local laws and regulations relating primarily to the protection of human health
and the environment. To date, expenditures related to complying with these laws,
and for remediation of existing environmental contamination, have not been
significant in relation to the results of operations of our company. The
requirements imposed by such laws and regulations are frequently changed and
subject to interpretation, and we are unable to predict the ultimate cost of
compliance with these requirements or their effect on our operations.

18

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Exploration and production activities are subject to certain
environmental regulations, which may prevent or delay the commencement or
continuance of our operations.

In general, our exploration and production activities are
subject to certain federal, state and local laws and regulations relating to
environmental quality and pollution control. Such laws and regulations increase
the costs of these activities and may prevent or delay the commencement or
continuance of a given operation. Compliance with these laws and regulations has
not had a material effect on our operations or financial condition to date.
Specifically, we are subject to legislation regarding emissions into the
environment, water discharges and storage and disposition of hazardous wastes.
In addition, legislation has been enacted which requires well and facility sites
to be abandoned and reclaimed to the satisfaction of state authorities. However,
such laws and regulations are frequently changed and we are unable to predict
the ultimate cost of compliance. Generally, environmental requirements do not
appear to affect us any differently or to any greater or lesser extent than
other companies in the industry.

We believe that our operations comply, in all material
respects, with all applicable environmental regulations.

Our operating partners maintain insurance coverage customary to
the industry; however, we are not fully insured against all possible
environmental risks.

Exploratory and development drilling involves many risks and
we may become liable for pollution or other liabilities, which may have an
adverse effect on our financial position.

Drilling operations generally involve a high degree of risk.
Hazards such as unusual or unexpected geological formations, power outages,
labor disruptions, blow-outs, sour gas leakage, fire, inability to obtain
suitable or adequate machinery, equipment or labor, and other risks are
involved. We may become subject to liability for pollution or hazards against
which it cannot adequately insure or which it may elect not to insure. Incurring
any such liability may have a material adverse effect on our financial position
and operations.

Any change to government regulation/administrative practices
may have a negative impact on our ability to operate and our
profitability.

The laws, regulations, policies or current administrative
practices of any government body, organization or regulatory agency in the
United States, Canada, or any other jurisdiction, may be changed, applied or
interpreted in a manner which will fundamentally alter the ability of our
company to carry on our business.

The actions, policies or regulations, or changes thereto, of
any government body or regulatory agency, or other special interest groups, may
have a detrimental effect on us. Any or all of these situations may have a
negative impact on our ability to operate and/or our profitably.

Our By-laws contain provisions indemnifying our officers and
directors against all costs, charges and expenses incurred by them.

Our By-laws contain provisions with respect to the
indemnification of our officers and directors against all costs, charges and
expenses, including an amount paid to settle an action or satisfy a judgment,
actually and reasonably incurred by him, including an amount paid to settle an
action or satisfy a judgment in a civil, criminal or administrative action or
proceeding to which he is made a party by reason of his being or having been one
of our directors or officers.

Investors' interests in our company will be diluted and
investors may suffer dilution in their net book value per share if we issue
additional shares or raise funds through the sale of equity securities.

Our constating documents authorize the issuance of 40,000,000
shares of common stock with a par value of $0.001 and 10,000,000 shares of
preferred stock with a par value of $0.001. In the event that we are required to
issue any additional shares or enter into private placements to raise financing
through the sale of equity securities, investors' interests in our company will
be diluted and investors may suffer dilution in their net book value per share
depending on the price at which such securities are sold. If we issue any such
additional shares, such issuances also will cause a reduction in the proportionate ownership and
voting power of all other shareholders. Further, any such issuance may result in
a change in our control.

19

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Our By-laws do not contain anti-takeover provisions, which
could result in a change of our management and directors if there is a take-over
of our company.

We do not currently have a shareholder rights plan or any
anti-takeover provisions in our By-laws. Without any anti-takeover provisions,
there is no deterrent for a take-over of our company, which may result in a
change in our management and directors.

As a result of a majority of our directors and officers are
residents of other countries other than the United States, investors may find it
difficult to enforce, within the United States, any judgments obtained against
our company or our directors and officers.

We do not currently maintain a permanent place of business
within the United States. In addition, a majority of our directors and officers
are nationals and/or residents of countries other than the United States, and
all or a substantial portion of such persons' assets are located outside the
United States. As a result, it may be difficult for investors to enforce within
the United States any judgments obtained against our company or our officers or
directors, including judgments predicated upon the civil liability provisions of
the securities laws of the United States or any state thereof.

Other Risks

Trends, Risks and Uncertainties

We have sought to identify what we believe to be the most
significant risks to our business, but we cannot predict whether, or to what
extent, any of such risks may be realized nor can we guarantee that we have
identified all possible risks that might arise. Investors should carefully
consider all of such risk factors before making an investment decision with
respect to our common stock.

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

On May 30, 2011, we issued an aggregate of 300,000 units at a
price of $0.35 per unit pursuant to a private placement for total proceeds of
$105,000. Each unit consists of one share of common stock and one warrant. One
warrant is exercisable at $0.60 for a period of 24 months from the date of
issuance. We issued the securities to three non-U.S. persons in an offshore
transaction relying upon Regulation S and/or Section 4(2) of the Securities Act
of 1933.

On June 9, 2011, we issued 47,000 units at a price of $0.35 per
unit pursuant to a debt settlement with an officer of our company. Each unit
consists of one share of common stock and one warrant. One warrant is
exercisable at $0.60 for a period of 24 months from the date of issuance. We
issued the securities to one U.S. person relying upon Rule 506 of Regulation D
of the Securities Act of 1933.

On November 10, 2011, the Company issued 4,303,590 shares of
common stock with a market value of $284,881 pursuant to debt settlement and
subscription agreements with officers and directors of the Company to settle
$215,180 of debt outstanding. As a result the Company recorded a loss on debt
settlement of $69,701 in the prior year ended December 31, 2011.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclsoures

Not applicable.

20

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Item 5. Other Information

None.

Item 6. Exhibits

|Exhibit | Description                                                                                                                                                                                                                                               
|------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Number  |                                                                                                                                                                                                                                                           
|(3)     | (i) Articles of Incorporation; and (ii) Bylaws                                                                                                                                                                                                            
|3.1     | Articles of Incorporation (incorporated by reference from
      our Registration Statement on Form 10-SB, filed on September 11, 2000).                                                                                                                   
|3.2     | Bylaws (incorporated by reference from our Registration
      Statement on Form 10-SB, filed on September 11, 2000).                                                                                                                                      
|3.3     | Certificate of Amendment filed with the Secretary of
      State of Nevada on June 16, 2004 (incorporated by reference from our
      Quarterly Report on Form 10-QSB filed on November 22, 2004).                                                        
|3.4     | Certificate of Amendment filed with the Secretary of
      State of Nevada on August 6, 2004 (incorporated by reference from our
      Quarterly Report on Form 10-QSB filed on November 22, 2004).                                                       
|3.5     | Certificate of Change filed with the Secretary of State
      of Nevada on December 8, 2009 (incorporated by reference from our Current
      Report on Form 8-K filed on January 29, 2010).                                                              
|3.6     | Certificate of Amendment filed with the Secretary of
      State of Nevada on August 6, 2010 (incorporated by reference from our
      Current Report on Form 8-K filed on August 9, 2010).                                                               
|3.7     | Certificate of Change filed with the Secretary of State
      of Nevada on February 25, 2011 (incorporated by reference from our Current
      Report on Form 8-K filed on March 9, 2011).                                                                
|(4)     | Instruments defining rights of security holders,
      including indentures                                                                                                                                                                               
|4.1     | 2004 Stock Option Plan (incorporated by reference from
      our Form S-8, filed on October 8, 2004).                                                                                                                                                     
|4.2     | Amended 2004 Stock Option Plan (incorporated by reference
      from our Current Report filed on Form 8- K filed on January 23, 2008)                                                                                                                     
|(10)    | Material Contracts                                                                                                                                                                                                                                        
|10.1    | Participation Agreement with Merganser Limited
      (incorporated by reference from our Current Report on Form 8-K filed on
      November 10, 2005).                                                                                                    
|10.2    | Joint Participating Agreement with Chamberlain
      Exploration Development and Research Stratigraphic Corporation dba Cedar
      Strat Corporation (incorporated by reference from our Current Report on
      Form 8- K filed on February 21, 2006).**
|10.3    | Amended Management Consulting Agreement dated February
      28, 2006 and made effective February 1, 2006 with Donald Sharpe
      (incorporated by reference from our Current Report on Form 8-K filed on
      March 10, 2006).                         
|10.4    | Farmout and Option Agreement with Suncor dated March 7,
      2006 (incorporated by reference from our Current Report on Form 8-K filed
      on March 17, 2006).**                                                                                       
|10.5    | Management Agreement with Freestone Energy LLC dated May
      1, 2006 (incorporated by reference from our Current Report on Form 8-K
      filed on May 2, 2006).                                                                                        
|10.6    | Stock Option Agreement with Larry Kellison dated May 1,
      2006 (incorporated by reference from our Current Report on Form 8-K filed
      on May 2, 2006).                                                                                            

21

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|Exhibit | Description                                                                                                                                                                                                                                              
|------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Number  |                                                                                                                                                                                                                                                          
|10.7    | Amended Management Consulting Agreement dated December
      21, 2006 and made effective January 1, 2007 with D. Sharpe Management Inc.
      (incorporated by reference from our Current Report on Form 8-K filed on
      December 22, 2006).          
|10.8    | Form of Stock Option Agreement with Donald Sharpe, John
      Martin and Larry Kellison (incorporated by reference from our Current
      Report on Form 8-K filed on December 22, 2006).                                                                
|10.9    | Form of Stock Option Agreement with Paul Mitchell, Kim
      Lloyd and Olga Bespalaja (incorporated by reference from our Current
      Report on Form 8-K filed on December 22, 2006).                                                                  
|10.10   | Participation Agreement dated February 14, 2007 with
      Suncor Energy Inc., Grand Banks Energy Corporation and Dejour Energy
      (Alberta) Ltd. (incorporated by reference from our Current Report on Form
      8-K filed on February 23, 2007).   
|10.11   | Amended Management Consulting Agreement dated December
      21, 2006 and made effective January 1, 2007 with Freestone Energy LLC
      (incorporated by reference from our Current Report on Form 8-K filed on
      February 23, 2007).               
|10.12   | Form of Stock Option Agreement with Ralph Stensaker
      (incorporated by reference from our Current Report on Form 8-K filed on
      December 22, 2006).                                                                                              
|10.13   | Amended Management Consulting Agreement dated December
      21, 2007 and made effective January 1, 2008 with D. Sharpe Management Inc.
      (incorporated by reference from our Current Report on Form 8-K filed on
      December 28, 2007).          
|10.14   | Amended Management Consulting Agreement dated December
      21, 2007 and made effective January 1, 2008 with Larry Kellison.
      (incorporated by reference from our Current Report on Form 8-K filed on
      December 28, 2007).                    
|10.15   | Form of Note and Warrant Amendment Agreement dated
      January 17, 2008 (incorporated by reference from our Current Report on
      Form 8-K filed on January 23, 2008).                                                                               
|10.16   | Form of Stock Option Agreement with Donald Sharpe, John
      Martin, Ralph Stensaker, Larry Kellison, Kim Lloyd, Olga Bespalaja and
      Paul Mitchell (incorporated by reference from our Current Report on Form
      8-K filed on January 23, 2008).
|10.17   | Note and Warrant Amendment Agreement dated February 8,
      2008 with RAB Special Situations (Master) Fund Limited (incorporated by
      reference from our Current Report on Form 8-K filed on February 14, 2008).                                    
|10.18   | Form of Note and Warrant Amendment Agreement dated April
      2, 2008 (incorporated by reference from our Current Report on Form 8-K
      filed on April 4, 2008).                                                                                     
|10.19   | Executive Employment Agreement between our company and
      Larry Kellison executed July 18, 2008 and dated effective January 1, 2008
      (incorporated by reference from our Current Report on Form 8-K filed on
      July 22, 2008).               
|10.20   | First Amendment of Agent Operator Agreement 2008
      (incorporated by reference from our Quarterly Report on Form 10-Q filed on
      August 14, 2009).                                                                                                
|10.21   | Fourth Amendment of Drilling and Development Agreement
      (incorporated by reference from our Quarterly Report on Form 10-Q filed on
      August 14, 2009).                                                                                          
|10.22   | Letter Agreement with En Cana Oil and Gas (USA) Inc
      (incorporated by reference from our Quarterly Report on Form 10-Q filed on
      August 14, 2009).                                                                                             
|10.23   | Loan Agreement between Eden Energy Corp. and D Sharpe
      Management Inc., dated effective October 2, 2009 (incorporated by
      reference from our Quarterly Report on Form 10-Q filed on October 16,
      2009).                                   

22

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|Exhibit | Description                                                                                                                                                                                                                          
|------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Number  |                                                                                                                                                                                                                                      
|10.24   | General Security Agreement between Eden Energy Corp. and
      D Sharpe Management Inc., dated effective October 2, 2009 (incorporated by
      reference from our Quarterly Report on Form 10-Q filed on October 16,
      2009).   
|10.25   | Amending Agreement with D. Sharpe Management Inc. dated
      effective October 14, 2010 (incorporated by reference from our Current
      Report on Form 8-K filed on October 18, 2010).                                            
|10.26   | Amending Agreement with D. Sharpe Management Inc. dated
      effective April 1, 2011 (incorporated by reference from our Current Report
      on Form 8-K filed on April 13, 2011).                                                 
|10.27   | Management and Consulting Agreement with KDC Services
      Inc. dated May 1, 2011 2008 (incorporated by reference from our Current
      Report on Form 8-K filed on April 27, 2011).                                               
|10.28   | 2011 Stock Option Plan (incorporated by reference from our Quarterly Report on Form 10-Q filed on August 15, 2011)                                                                                                                   
|(14)    | Code of Ethics                                                                                                                                                                                                                       
|14.1    | Code of Business Conduct and Ethics (incorporated by
      reference from our Annual Report on Form 10- KSB filed on April 14, 2004).                                                                                                
|21      | Subsidiaries of the Registrant                                                                                                                                                                                                       
|21.1    | Frontier Exploration Ltd., a Nevada corporation
      Southern Frontier Explorations Ltd., a Nevada corporation Eden
      Energy (North) Ltd., an Alberta, Canada corporation Eden Energy
      Colorado LLC, a Colorado corporation
|(31)    | Rule 13a-14(a)/15d-14(a) Certifications                                                                                                                                                                                              
|31.1*   | Section 302 Certification under Sarbanes-Oxley Act of
  2002 of Donald Sharpe                                                                                                                                                        
|(32)    | Section 1350 Certifications                                                                                                                                                                                                          
|32.1*   | Section 906 Certification under Sarbanes-Oxley Act of
      2002 of Donald Sharpe                                                                                                                                                    

* Filed herewith.

**Certain parts of this document have not been disclosed
and have been filed separately with the Secretary, Securities and Exchange
Commission, and are subject to a confidential treatment request pursuant to Rule
24b-2 of the Securities Exchange Act of 1934.

23

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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.

|                       | EDEN ENERGY CORP.            
|---------------------- | -----------------------------
|                       | (Registrant)                 
|                       |                              
|                       |                              
|Dated: August 20, 2012 | /s/
      Donald Sharpe      
|                       | Donald Sharpe                
|                       | President and Director       
|                       | (Principal Executive Officer)

24

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