---

UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C.
20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF

THE SECURITIES EXCHANGE ACT OF 1934

For the quarter ended June 30, 2008

Commission File Number 000-30095

WESCORP ENERGY INC.(Exact
name of registrant as specified in its charter)

|Delaware                       | 98-0447716         
|------------------------------ | -------------------
|State or other jurisdiction of | (I.R.S. Employer   
|incorporation or organization  | Identification No.)

Suite 770, 435 
4thAvenue South West, Calgary, Alberta
T2P 3A8(Address of principal executive offices) (Zip Code)

(403) 206 - 3990Registrant's telephone number, including area code

**N/A**
  (Former name, former address and former year, if changed since last report)

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

Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer, or a
smaller reporting company. See the definitions of large accelerated filer,
accelerated filer and smaller reporting company in Rule 12b-2 of the
Exchange Act.

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

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

As of August 12, 2008 the Registrant had 77,963,223 shares
outstanding of its $0.0001 par value common stock.

---



CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

- THIS QUARTERLY REPORT ON FORM 10-Q CONTAINS PREDICTIONS, PROJECTIONS AND
    OTHER STATEMENTS ABOUT THE FUTURE THAT ARE INTENDED TO BE FORWARD- LOOKING
    STATEMENTS (COLLECTIVELY, FORWARD-LOOKING STATEMENTS). FORWARD-LOOKING
    STATEMENTS INVOLVE RISKS AND UNCERTAINTIES. A NUMBER OF IMPORTANT FACTORS
    COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE IN THE FORWARD-LOOKING
    STATEMENTS. IN ASSESSING FORWARD-LOOKING STATEMENTS CONTAINED IN THIS QUARTERLY
    REPORT ON FORM 10-Q, READERS ARE URGED TO READ CAREFULLY ALL CAUTIONARY STATEMENTS
     INCLUDING THOSE CONTAINED IN OTHER SECTIONS OF THIS QUARTERLY REPORT
    AND OF OUR ANNUAL REPORT ON FORM 10-KSB FOR 2007. AMONG THOSE RISKS AND UNCERTAINTIES
    ARE THE FOLLOWING RISKS:
- THAT OUR FLOWSTAR DCR TECHNOLOGY MAY NOT REMAIN COMPETITIVE WITHIN OUR CURRENT
    MARKETS OR THAT WE MAY NOT BE ABLE TO GENERATE SUFFICIENT REVENUE FROM THE
    TECHNOLOGY TO BECOME PROFITABLE WITHIN THAT DIVISION;
- WE MAY NOT BE ABLE TO SUCCESSFULLY DELIVER FREE-TRADING SHARES TO COMPLETE
    THE PURCHASE OF THE FLOWSTAR TECHNOLOGY;
- THE ELLYCRACK TECHNOLOGY MAY NOT BE TECHNICALLY EFFECTIVE OR COST EFFECTIVE
    IN THE MARKETS TARGETED BY MANAGEMENT; THAT WE MAY NOT BE ABLE TO ADEQUATLEY
    PROTECT OUR INTELLECTURAL PROPERTY;
- OUR WATER REMEDIATION TECHNOLOGY MAY NOT RECEIVE SUFFICIENT MARKET DEMAND
    OR BE COMMERCIALLY SUCCESSFUL;
- OUR WESCORP NAVIGATOR MAY NOT HAVE ADEQUATE DEMAND OR BE PROFITABLE;
- WE WILL NOT SUCCESSFULLY IDENTIFY OR COMPLETE ANY OTHER SUITABLE ACQUISITIONS;
- OUR PRIMARY CUSTOMERS ARE ENERGY-RELATED, WHICH TEND TO BE CYCLICAL AND
    THEREFORE ANY DOWNTURNS IN THIS CYCLICAL INDUSTRY COULD ADVERSELY AFFECT OPERATIONS;
- THE ENERGY-RELATED INDUSTRY THAT WE SERVICE IS HEAVILY REGULATED (INCLUDING
    CO2RELATED ISSUES) AND THE COSTS ASSOCIATED WITH SUCH REGULATED
    INDUSTRIES INCREASE THE COSTS OF DOING BUSINESS;
- MANAGEMENT IS ADEQUATE TO INTEGRATE ANY BUSINESSES ACQUIRED;
- MANAGEMENT IS ADEQUATE TO CARRY OUT ITS BUSINESS PLAN AND TO MANAGE ITS
    GROWTH EFFECTIVELY AND EFFICIENTLY;
- MANAGEMENT WILL BE ABLE TO EFFECTIVELY DEAL WITH CURRENT AND FUTURE COMPETITIVE
    FORCES IN THE MARKET;
- THERE WILL BE ADEQUATE CAPITAL TO FUND OUR BUSINESS;
- WE MANAGE ANY FOREIGN EXCHANGE RISK ADEQUATELY;
- WE COULD FACE SIGNIFICANT LIABILITIES IN CONNECTION WITH OUR TECHNOLOGY
    AND OPERATIONS THAT, IF INCURRED BEYOND ANY INSURANCE LIMITS, COULD ADVERSELY
    AFFECT OUR BUSINESS AND FINANCIAL CONDITION;
- OUR NEED FOR ADDITIONAL CAPITAL MAY HARM OUR FINANCIAL CONDITION OR LIMIT
    OUR ABILITY TO FUND ACQUISITIONS; AND
- IF ACQUISITIONS ARE COMPLETED, THEY MAY BE UNSUCCESSFUL FOR TECHNICAL, ECONOMIC,
    OR OTHER REASONS.

2

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CURRENCIES

All amounts expressed herein are in U.S. dollars unless
otherwise indicated.

PART I - FINANCIAL INFORMATION

ITEM
1.        FINANCIAL STATEMENTS

|Index                                                                                                                                      |    
|------------------------------------------------------------------------------------------------------------------------------------------ | ---
|                                                                                                                                           |    
|Consolidated
      Balance Sheets at June 30, 2008 (Unaudited) and December 31, 2007                                                       | F-1
|                                                                                                                                           |    
|Consolidated Statements of Operations and Comprehensive
      Income for the three and six months ended June 30, 2008 and 2007 (Unaudited) | F-2
|                                                                                                                                           |    
|Consolidated
      Statement of Stockholders' Equity (Deficit) for the three and six months
      ended June 30, 2008 (Unaudited)          | F-3
|                                                                                                                                           |    
|Consolidated
      Statements of Cash Flows for the three and six months ended June 30, 2008
      and 2007 (Unaudited)                    | F-4
|                                                                                                                                           |    
|Notes
      to the Consolidated Financial Statements (Unaudited)                                                                           | F-5
|                                                                                                                                           |    
|Item
      2. Managements Discussion and Analysis of Financial Condition and Results
      of Operation                                   | 4  
|                                                                                                                                           |    
|Item
      4T. Controls and Procedures                                                                                                     | 18 
|                                                                                                                                           |    
|Part
      II. OTHER INFORMATION                                                                                                           | 18 
|                                                                                                                                           |    
|Item
      6. Exhibits                                                                                                                     | 19 
|                                                                                                                                           |    
|SIGNATURES                                                                                                                                 | 21 
|                                                                                                                                           |    
|EXHIBITS                                                                                                                                   | 22 

3

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WESCORP ENERGY INC. 
  CONSOLIDATED BALANCE SHEETS

|                                                             |   | June 30,    |   |   | December 31, |  
|------------------------------------------------------------ | - | ----------- | - | - | ------------ | -
|                                                             |   | 2008        |   |   | 2007         |  
|                                                             |   | (Unaudited) |   |   |              |  
|ASSETS                                                       |   |             |   |   |              |  
|CURRENT ASSETS                                               |   |             |   |   |              |  
|Cash                                                         | $ | 233,440     |   | $ | 455,872      |  
|Accounts receivable, net of allowance for doubtful           |   |             |   |   |              |  
|accounts of $22,617 and $20,109, respectively                |   | 504,217     |   |   | 700,316      |  
|Inventories                                                  |   | 778,774     |   |   | 754,412      |  
|Short-term investment                                        |   | -           |   |   | 1,472,223    |  
|Prepaid expenses                                             |   | 271,473     |   |   | 274,793      |  
|TOTAL
      CURRENT ASSETS                                   |   | 1,787,904   |   |   | 3,657,616    |  
|                                                             |   |             |   |   |              |  
|EQUIPMENT,
      net                                         |   | 786,598     |   |   | 861,136      |  
|                                                             |   |             |   |   |              |  
|OTHER ASSETS                                                 |   |             |   |   |              |  
|Investments                                                  |   | 567,778     |   |   | 568,425      |  
|Other receivables                                            |   | 82,397      |   |   | 84,940       |  
|TOTAL OTHER ASSETS                                           |   | 650,175     |   |   | 653,365      |  
|                                                             |   |             |   |   |              |  
|TOTAL ASSETS                                                 | $ | 3,224,677   |   | $ | 5,172,117    |  
|                                                             |   |             |   |   |              |  
|LIABILITIES AND STOCKHOLDERS' DEFICIT                        |   |             |   |   |              |  
|CURRENT LIABILITIES                                          |   |             |   |   |              |  
|Accounts payable and accrued liabilities                     | $ | 3,552,373   |   | $ | 2,214,392    |  
|Current portion of notes payable                             |   | 1,406,581   |   |   | 1,086,670    |  
|Agreement payable                                            |   | 312,000     |   |   | 352,000      |  
|Due to related parties                                       |   | 1,101,315   |   |   | 951,370      |  
|Related party note payable                                   |   | 1,924,681   |   |   | 1,924,681    |  
|Debentures payable                                           |   | 858,032     |   |   | 400,700      |  
|TOTAL CURRENT LIABILITIES                                    |   | 9,154,982   |   |   | 6,929,813    |  
|                                                             |   |             |   |   |              |  
|NOTES PAYABLE, net of current
      portion                  |   | 634,902     |   |   | 1,229,212    |  
|                                                             |   |             |   |   |              |  
|CONVERTIBLE DEBENTURES                                       |   | 2,250,000   |   |   | 2,250,000    |  
|                                                             |   |             |   |   |              |  
|STOCKHOLDERS' DEFICIT                                        |   |             |   |   |              |  
|Preferred stock, 50,000,000 shares authorized,
      $0.0001 |   |             |   |   |              |  
|par value; no shares
      issued                            |   |             |   |   |              |  
|Common stock, 250,000,000 shares authorized,
      $0.0001   |   |             |   |   |              |  
|par value; 77,863,223
      and 75,238,223 shares            |   |             |   |   |              |  
|issued
      and outstanding, respectively                   |   | 7,784       |   |   | 7,521        |  
|Additional paid-in capital                                   |   | 33,967,327  |   |   | 32,388,025   |  
|Deferred compensation                                        |   | (66,016     | ) |   | (98,301      | )
|Private placement and subscriptions                          |   | -           |   |   | 1,250,000    |  
|Subscription receivable                                      |   | (22,500     | ) |   | (22,500      | )
|Shares issuable                                              |   | 206,299     |   |   | 221,889      |  
|Accumulated other comprehensive income (loss)                |   | 36,974      |   |   | (104,809     | )
|Accumulated deficit                                          |   | (42,945,075 | ) |   | (38,878,733  | )
|                                                             |   | (8,815,207  | ) |   | (5,236,908   | )
|                                                             |   |             |   |   |              |  
|TOTAL LIABILITIES AND                                        |   |             |   |   |              |  
|STOCKHOLDERS'
      EQUITY                                   | $ | 3,224,677   |   | $ | 5,172,117    |  

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

F-1

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WESCORP ENERGY INC.CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME 
  (Unaudited)

|                                                                        |   | Three Months Ended June 30, |   |   | Six Months Ended June 30, |  
|----------------------------------------------------------------------- | - | --------------------------- | - | - | ------------------------- | -
|                                                                        |   | 2008                        |   |   | 2007                      |  
|                                                                        |   |                             |   |   |                           |  
|REVENUES                                                                | $ | 753,544                     |   | $ | 493,622                   |  
|                                                                        |   |                             |   |   |                           |  
|COST OF SALES                                                           |   | 400,525                     |   |   | 300,873                   |  
|                                                                        |   |                             |   |   |                           |  
|GROSS PROFIT                                                            |   | 353,019                     |   |   | 192,749                   |  
|                                                                        |   |                             |   |   |                           |  
|EXPENSES                                                                |   |                             |   |   |                           |  
|Wages and benefits                                                      |   | 655,713                     |   |   | 435,942                   |  
|Wages stock
      based                                                 |   | 143,000                     |   |   | 37,200                    |  
|Consulting                                                              |   | 105,101                     |   |   | 318,206                   |  
|Research
      and development                                          |   | 480,089                     |   |   | 98,394                    |  
|Amortization of technology                                              |   | -                           |   |   | 129,161                   |  
|Office                                                                  |   | 175,475                     |   |   | 120,787                   |  
|Advertising and investor
      relations                                |   | 73,119                      |   |   | 132,335                   |  
|Travel                                                                  |   | 100,767                     |   |   | 95,634                    |  
|Legal and accounting                                                    |   | 174,832                     |   |   | 75,639                    |  
|Insurance                                                               |   | 33,924                      |   |   | 31,120                    |  
|Depreciation and amortization                                           |   | 73,288                      |   |   | 23,666                    |  
|Interest,
      finance and bank charges                                |   | 271,721                     |   |   | 62,286                    |  
|Directors fees                                                          |   | 18,434                      |   |   | 22,244                    |  
|Interest
      accreted on financial instruments                        |   | 147,305                     |   |   | -                         |  
|TOTAL OPERATING EXPENSES                                                |   | 2,452,768                   |   |   | 1,582,614                 |  
|                                                                        |   |                             |   |   |                           |  
|LOSS FROM OPERATIONS                                                    |   | (2,099,749                  | ) |   | (1,389,865                | )
|                                                                        |   |                             |   |   |                           |  
|OTHER INCOME (EXPENSE)                                                  |   |                             |   |   |                           |  
|Penalty for
      late delivery of shares                               |   | (272,790                    | ) |   | (121,808                  | )
|Registration rights payment                                             |   | -                           |   |   | (424,839                  | )
|Foreign currency
      translation gain (loss)                          |   | 16,200                      |   |   | (17,194                   | )
|Interest and other income                                               |   | 22,229                      |   |   | 5,791                     |  
|Gain on disposal
      of investment                                    |   | -                           |   |   | -                         |  
|Gain on disposition of assets                                           |   | -                           |   |   | -                         |  
|TOTAL OTHER EXPENSE                                                     |   | (234,361                    | ) |   | (558,050                  | )
|                                                                        |   |                             |   |   |                           |  
|NET LOSS                                                                | $ | (2,334,110                  | ) | $ | (1,947,915                | )
|                                                                        |   |                             |   |   |                           |  
|OTHER COMPREHENSIVE INCOME (LOSS)                                       |   |                             |   |   |                           |  
|Foreign currency translation
      gain (loss)                          |   | (5,401                      | ) |   | 203,016                   |  
|Unrealized
      gain on adjustment of agreement payable to fair market |   |                             |   |   |                           |  
|value                                                                   |   | 24,000                      |   |   | -                         |  
|Unrealized
      loss on available-for-sale investments                 |   | -                           |   |   | (259,204                  | )
|                                                                        |   | 18,599                      |   |   | (56,188                   | )
|                                                                        |   |                             |   |   |                           |  
|COMPREHENSIVE LOSS                                                      | $ | (2,315,511                  | ) | $ | (2,004,103                | )
|                                                                        |   |                             |   |   |                           |  
|BASIC AND DILUTED NET LOSS PER SHARE                                    | $ | (0.03                       | ) | $ | (0.04                     | )
|                                                                        |   |                             |   |   |                           |  
|WEIGHTED AVERAGE NUMBER COMMON SHARES                                   |   |                             |   |   |                           |  
|OUTSTANDING
      - BASIC AND DILUTED                                   |   | 77,863,223                  |   |   | 54,048,270                |  

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

F-2

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WESCORPENERGYINC.CONSOLIDATEDSTATEMENTSOFSTOCKHOLDERS'EQUITY

Funds
      
      
      
      
      
      Accumulated
      
      
      TotalCommon
        Stock
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      Received
      
      
      
      
      
      Other
      
      
      Stockholders'Number
      
      
      
      
      
      Additional
      
      
      Deferred
      
      
      Shares
      
      
      Subscription
      
      
      for Private
      
      
      Accumulated
      
      
      Comprehensive
      
      
      Equityof
        Shares
      
      
      Amount
      
      
      Paid-in Capital
      
      
      Compensation
      
      
      Issuable
      
      
      Receivable
      
      
      Placements
      
      
      Deficit
      
      
      Income (Loss)
      
      
      (Deficit)Balance, December 31, 2007
      
      75,238,223
      
      $
      7,521
      
      $
      32,388,025
      
      $
      (98,301
      )
      $
      221,889
      
      $
      (22,500
      )
      $
      1,250,000
      
      $
      (38,878,733
      )
      $
      (104,809
      )
      $
      (5,236,908
      )Common stock issued for private
        placement at $0.50 per unit
      
      2,500,000
      
      
      250
      
      
      1,249,750
      
      
      -
      
      
      -
      
      
      -
      
      
      (1,250,000
      )
      
      -
      
      
      -
      
      
      -Fair value of
        common stock issued for financing fees
      
      125,000
      
      
      13
      
      
      62,487
      
      
      -
      
      
      (62,500
      )
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -Amortization of deferred share
        compensation
      
      -
      
      
      -
      
      
      -
      
      
      32,285
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      32,285Foreign currency
        translation gain
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      101,783
      
      
      101,783Unrealized gain on adjustment
        of agreement payable to fairmarket
        value
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      40,000
      
      
      40,000Stock-based compensation
      
      -
      
      
      -
      
      
      157,600
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      157,600Proceeds received
        from exercise of warrants prior to issuance
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      46,910
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      46,910Fair value of warrants attached
        to debt issued in January 2008
      
      -
      
      
      -
      
      
      12,500
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      12,500Fair value of
        warrants attached to debt issued in May 2008
      
      -
      
      
      -
      
      
      96,965
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      96,965Net loss
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      (4,066,342
      )
      
      -
      
      
      (4,066,342
      )Balance, June 30, 2008 (Unaudited)
      
      77,863,223
      
      $
      7,784
      
      $
      33,967,327
      
      $
      (66,016
      )
      $
      206,299
      
      $
      (22,500
      )
      $
      -
      
      $
      (42,945,075
      )
      $
      36,974
      
      $
      (8,815,207
      )


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

F-3

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WESCORP ENERGY INC. 
  CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)

|                                                                          |   | Six Months Ended June 30, |  
|------------------------------------------------------------------------- | - | ------------------------- | -
|                                                                          |   | 2008                      |  
|CASH FLOWS FROM OPERATING ACTIVITIES:                                     |   |                           |  
|Net loss                                                                  | $ | (4,066,342                | )
|Adjustments to reconcile net loss                                         |   |                           |  
|to net cash used in operating activities:                                 |   |                           |  
|Depreciation
      and amortization                                       |   | 145,606                   |  
|Amortization
      of technology                                          |   | -                         |  
|Stock-based
      compensation                                            |   | 157,600                   |  
|Fair value
      of common stock issued to pay penalty for late filing of |   |                           |  
|registration
      statement                                              |   | -                         |  
|Fair value
      of common stock and warrants issued for services         |   | -                         |  
|Interest
      accreted on financial instruments                          |   | 297,922                   |  
|Gain on disposition
      of assets                                       |   | (925                      | )
|Gain
      on disposal of investment                                      |   | (37,838                   | )
|Amortization
      of deferred share compensation                         |   | 32,285                    |  
|Changes
      in operating assets and liabilities:                        |   |                           |  
|Restricted
      cash                                                     |   | -                         |  
|Accounts receivable                                                       |   | 196,099                   |  
|Inventories                                                               |   | (24,362                   | )
|Prepaid expenses                                                          |   | 3,320                     |  
|Accounts
      payable and accrued liabilities                            |   | 1,437,981                 |  
|Net
      cash from (used in) investing activities                        |   | (1,858,654                | )
|CASH FLOWS FROM INVESTING ACTIVITIES:                                     |   |                           |  
|Decrease
      (increase) in short-term investment                        |   | 1,472,223                 |  
|Purchase of
      equipment                                               |   | (89,065                   | )
|Proceeds
      from disposition of investment                             |   | 38,485                    |  
|Proceeds from
      disposition of assets                                 |   | 18,925                    |  
|Cash
      invested in other receivables                                  |   | -                         |  
|Net cash used
      in investing activities                               |   | 1,440,568                 |  
|CASH FLOWS FROM FINANCING ACTIVITIES:                                     |   |                           |  
|Payments on
      notes payable                                           |   | (1,391,342                | )
|Proceeds
      from notes payable                                         |   | 915,157                   |  
|Proceeds from
      debentures payable                                    |   | 460,000                   |  
|Increase
      in amounts due to related parties                          |   | 149,945                   |  
|Proceeds received
      from exercise of warrants prior to issuing shares |   | 46,910                    |  
|Proceeds
      from subscriptions receivable                              |   | -                         |  
|Proceeds from
      issuance of common stock                              |   | -                         |  
|Private
      placement issuance costs                                    |   | -                         |  
|Net cash provided
      by financing activities                           |   | 180,670                   |  
|Effect of exchange rates                                                  |   | 14,984                    |  
|Net increase (decrease) in cash                                           |   | (222,432                  | )
|Cash, beginning of period                                                 |   | 455,872                   |  
|Cash, end of period                                                       | $ | 233,440                   |  
|SUPPLEMENTAL CASH FLOW DISCLOSURES:                                       |   |                           |  
|Cash paid for:                                                            |   |                           |  
|Interest                                                                  | $ | 125,041                   |  
|Income taxes                                                              | $ | -                         |  

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

F-4

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|WESCORP ENERGY INC.                                 
|----------------------------------------------------
|CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|(Unaudited)                                         
|June 30, 2008                                       

NOTE 1  BASIS OF PRESENTATION

These unaudited interim consolidated financial statements may
  not include all information and footnotes required by US GAAP for complete financial
  statement disclosure. However, except as disclosed herein, there have been no
  material changes in the information contained in the notes to the audited consolidated
  financial statements for the year ended December 31, 2007, included in the Companys
  Form 10-KSB and filed with the Securities and Exchange Commission. These unaudited
  interim consolidated financial statements should be read in conjunction with
  the audited financial statements included in the Form 10-KSB. In the opinion
  of management, all adjustments considered necessary for fair presentation and
  consisting solely of normal recurring adjustments have been made. Operating
  results for the six months ended June 30, 2008 are not necessarily indicative
  of the results that may be expected for the year ending December 31, 2008.

NOTE 2  NOTES PAYABLE

During the six months ended June 30, 2008, the Company received
  $859,328 in exchange for notes payable which bear interest at 10%, are unsecured
  and due on demand. In addition, during the six months ended June 30, 2008 the
  Company received $55,829 in exchange for a note payable which does not bear
  any interest, is unsecured and is due on demand which relates to the working
  capital adjustment pursuant to the acquisition of assets from FEP on December
  17, 2007.

NOTE 3  CONTINGENCY

On April 1, 2007, the Company was not able to deliver free-trading
  shares called for under Tranche 2, Stage Three, and thus the Company is required
  to pay the former Vasjar shareholders an additional 80,000 Wescorp common shares
  of the Company, compounded monthly, for each month that the shares are not delivered
  and will incur a charge to operations for the fair value of these common shares.
  The aggregate penalty shares under this stage resulted in a charge to operations
  of $513,304 for the six months ended June 30, 2008 ($739,480 for the six months
  ended June 30, 2007), based on the fair value of the shares. Through August
  2008, the Company had recorded an aggregate charge to operations of $1,427,174
  to issue an additional 3,243,576 common shares as the free-trading shares associated
  with Stage Three have not been issued.

If any of the common shares of the Company to be issued to the
  former Vasjar shareholders have not been delivered for a period of 182 days
  after the applicable due date, the former Vasjar shareholders may at their option
  terminate the share purchase agreements. The former Vasjar shareholders did
  not exercise these rights, and they received all of the penalty shares that
  accrued until this obligation had been met under both Stage One and Stage Two.
  The Company is currently negotiating with the former Vasjar shareholders with
  respect to its failure to satisfy the obligations that have arisen with respect
  to Stage Three. In addition, the Company pledged to the former Vasjar shareholders
  all the Vasjar shares as security to guarantee Wescorps performance under
  the share purchase agreements.

The balance of the fair value of the 800,000 shares relating
  to Tranche 2, Stage Three is $316,000 and has been included in current liabilities.

F-5

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ITEM 2.
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATION.

The following discussion and analysis should be read in
conjunction with the consolidated financial statements and related notes
included elsewhere in this Report on Form 10-Q. This discussion contains
forward-looking statements reflecting our current expectations and estimates and
assumptions concerning events and financial trends that may affect our future
operating results or financial position. Actual results and the timing of events
may differ materially from those contained in these forward-looking statements
due to a number of factors, including those discussed in the Cautionary Note
Regarding Forward-Looking Statements set forth above.

Wescorp Energy Inc. is referred to herein as we, us, our,
Wescorp, the Company or our Company.

Overview

We are an oil and gas operations solution and engineering
company committed to acquiring, developing and commercializing technologies that
are designed to improve the management, environmental and economic performance
of field operations for oil and gas producers and to provide solutions to help
them overcome the tough operational challenges they face. To this end, our
primary business strategy is to acquire, fund and develop new systems and
technologies in our field through investments in companies or products for which
early stage product development has been completed, and to provide consulting
services with respect to these systems and technologies. We prefer investments
for which we can control the intellectual property of technologies that have
emerged from research and initial development and are essentially market-ready.
We also acquire companies with one or more technology products being developed
that can benefit from the financial, technical and business development
experience of our management to bring those products to market in a meaningful
manner after they have been fully developed. Among other strategies, we may
attempt to license or form third-party commercial partnerships based on these
acquired technologies.

In short, our goal is to generate enhanced capital appreciation
for our shareholders by continuing to acquire, develop, and commercialize timely
effective product solutions or strategic investment opportunities for
energy-related applications that generate real returns with above-average cash
flow and margins. To this end, we currently have investments in five projects,
including: (i) our subsidiary, Flowstar; (ii)
our joint venture with Ellycrack; (iii) our Wescorp Navigator; (iv) our
subsidiary Total Fluid Solutions Inc. (Total Fluid); and (v) our subsidiary
Raider Chemical Corporation (Raider).

Company Background

In 2004 and 2005, the Company recorded its first operating
revenue from the acquired operating businesses of Flowstar Technologies Inc.
(Flowstar), Flowray and their affiliated companies. Flowstar produces advanced
natural gas and gas liquids measurement devices based on a proprietary Digital
Chart Recorder (DCR) and advanced turbine measurement technology. Flowstar
DCR-based devices are self-contained, energy-efficient flow computers with
turndown ratios of 40:1 or more for more precise flow measurements and volume
calculations that are installed directly to the well-head. Currently, these
products carry a one-year warranty and have no right of return. There is no
price protection plan in place.

On September 11, 2007, we effectively completed an Agreement
  and Plan of Merger (the Merger Agreement) with Strategic Decisions
  Sciences USA Inc. (SDS) and Scott Shemwell, who was the sole shareholder
  of SDS and who is our current Chief Operating Officer. The transaction was structured
  as a merger of SDS into Wescorp in accordance with the applicable provisions
  of the Delaware General Corporation Law (the Merger), with Wescorp
  remaining as the surviving entity following the Merger. The technology developed
  by SDS is operating as Wescorp Navigator, a division of Wescorp. It is a Houston-based
  engineering business focused on providing process-driven consulting services
  to help oil and gas operators improve the management, economics and environmental
  performance of field operations. As part of our acquisition of SDS, we acquired
  its NAVIGATOR Process Management Solution, a collaborative solution that manages
  the interactions of people, processes and equipment in complex oil and gas field
  operations. We believe that the Wescorp NAVIGATOR offers powerful, integrated,
  field operations capability that we intend to use to drive the development,
  commercialization and management of our client offerings. We also intend to
  make the Wescorp NAVIGATOR available to our clients to manage field complexities,
  especially in the areas of oil and gas flow measurement and metering, environmental
  remediation and compliance, enhanced oil recovery, unconventional oil and gas
  production, and field intelligence, including radio frequency identification
  (RFID) tagging and implementation.

4

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On December 18, 2007, Wescorp Technologies Ltd, our
wholly-owned subsidiary, executed and closed an Asset Purchase Agreement with
FEP Services, Inc. (FEP), pursuant to which Wescorp Technologies acquired
certain rights to three different water remediation technologies and assets that
we used to create two new business units - Total Fluid Solutions Inc. (Total
Fluid) and Raider Chemical Corporation (Raider). (The rights owned by Total
Fluid Solutions, Inc. are for North America.) The three technologies address
remediating three separate contaminates in oilfield water as the result of the
exploration for, and production of, oil and gas, in particular, solids and
hydrocarbon:

| | a. | Total Fluid  Our wholly-owned subsidiary, Total Fluid
      Solutions, uses a proprietary, environmentally friendly, patented aeration
      process to remove hydrocarbons and solids from oilfield water,. This
      process reduces the hydrocarbon content from the conventional 5,000 to
      30,000 parts per million range to less than 50 parts per
million.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |    | We intend to use this technology independently or in
      conjunction with other water remediation technologies in order to address
      the critical water issues facing the oil and gas industry today.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |    | Currently our Total Fluid field testing unit is in full
        production at our industry sponsored production facilities, involving
        120 oil and gas wells. So far this quarter, we have maintained over 90%
        uptime, with minimal interruptions. Our operational data has provided
        valuable data to our industry sponsors, allowing them to in turn to recommend
        technical improvements to our equipment, resulting in savings in operating
        costs. Since the beginning of Q2, we have demonstrated our unit to over
        50 investors, clients, industry experts, and government officials. We
        believe that all indications are that our technology is sound and that
        the market opportunity is vast. We continue to work with the University
        of Calgary and the Canadian Environmental Technology Advancement Corporation
        on proving scalability and validating the technology’s use in other
        areas of applications.                                             
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |    | We have filed a provisional process patent application
      for additional technology which we have developed in this area. We also
      own all of the intellectual property rights for a solids-oil separation
      technology that is not patented, but is held as a trade secret. With these
      technologies, we hope to be able to remediate two of the main contaminates
      (solids, hydrocarbon) in oilfield water as the result of exploration for,
      and production of, oil and gas. The technology to remove solids from the
      oilfield water uses a proprietary, environmentally friendly, chemical
      process to separate drilling solids from the water and hydrocarbon
      mixtures, which are found in the water as a result of drilling the wells.
      The solids are cleaned to a standard that allows them to be used in
      construction. The third technology, to remove salt from the oilfield
      water, uses a low-energy process of flash distillation to separate the
      salts from the water.
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | b. | Raider  Our wholly-owned subsidiary, Raider Chemical
        Corporation, designs and manufactures specialized chemicals used in the
        cementing and stimulation services area, within the oil and gas industry.
        Raider is currently making sales in Canada and is also evaluating expanding
        into the US.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

Our sources of revenue now include (a) continued revenues from
  our subsidiary, Flowstar; and (b) revenues from our subsidiary, Raider (which
  also did not exist in the second quarter of 2007). We also have had an initial
  contract for a study by our Wescorp Navigator division, and we are working to
  develop additional revenue from this division.

Results for 2007 and the first six months of 2008 were not as
  strong as anticipated due to the downturn in Canadian gas drilling and exploration.
  Performance for Flowstar during the first half of 2008 was below average. Wescorp
  Navigator is a new business with strong potential for the future, but it may
  take some time for the sales to ramp up. The Raider division has shown encouraging
  sales considering the drilling market has been slow. Management hopes to complete
  the field testing of the Total Fluid unit in the third quarter. We have signed
  our first sales order for one unit to be installed prior to year-end with options
  for up to an additional two hundred and fifty-five units over the next five
  years. Until then, there will be no revenue from the Total Fluid operations.
  Overall, the Company as a whole has yet to reach profitability and during the
  second quarter ended June 30, 2008, we experienced negative cash flows. If we
  continue to experience negative cash flows, then we will have to continue to
  fund our operations by the issuance of new equity and/or the assumption of debt.
  There can be no assurances that we will be successful in these regards, which
  would significantly affect our ability to execute our business plan.

5

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Although we are optimistic regarding our future operations based on our projected sales for the last two quarters of 2008, cash will be required to fund the manufacture of sufficient inventory, to finance the build up of trade accounts receivable,
and to fund the startup of our water remediation technologies. Consequently, forecasting our total cash requirement is difficult at this time due to the contingent nature of the timing and volume of sales we expect over that same period. In the near
future, we intend to raise additional capital by selling new equity, or incurring short-term debt, to finance the following:

- The continued expansion of Flowstar operations within our current markets and into the United States;
- The continuing development, pilot plant fabrication and field-testing of the Ellycrack technology (see below);
- The business development and expansion of the newly acquired water remediation technologies (Total Fluid and Raider), as well as Wescorp Navigator;
- The potential acquisition of possible new technologies and businesses related to our existing strategic business units, with the intent that they would add value to our overall business almost immediately upon closing; and
- Any negative cash flow resulting from operations.

Our current and future opportunities for success depend to a great extent on the continued employment of and performance by senior management and key personnel. As we continue to grow, the demands and skill sets of our senior management will change.
As needed, new executives will be hired with the skill sets and experience required to enhance those areas which require specialized expertise.

Past Acquisitions

Flowstar and Flowray Terms of Acquisition of Flowstar and Flowray

On March 31, 2004, we, through our Alberta subsidiary 1049265 Alberta Ltd., acquired 100% of the outstanding shares of Flowstar and Flowray for cash payments to the selling shareholders totaling approximately $414,074 (CAD $550,000) pursuant
to the share purchase and subscription agreement dated June 9, 2003, as amended effective January 14, 2004.

Related Agreements to Acquire 100% of Vasjar Trading Ltd.

We also entered into share purchase agreements dated effective January 14, 2004 pursuant to which we acquired 100% of the outstanding shares of Vasjar Trading Ltd. (Vasjar). Vasjar in turn owns 100% of the outstanding shares of Quadra, a
Barbados corporation. Pursuant to an agreement dated effective as of August 30, 2003, Flowray had transferred to Quadra all of its intellectual property rights, including rights to the technology related to the DCR 900 system, in consideration of a
promissory note in the principal amount of CAD $604,500 without interest. Flowstar and Flowray were legally amalgamated on December 31, 2004 into one company that continued under the name Flowstar Technologies Inc.

In consideration of the purchase of all the outstanding shares of Vasjar from its two shareholder entities (that each owned 50% of Vasjars outstanding shares), Wescorp issued shares (and will issue additional shares), all of which are required
to be registered for resale upon delivery, to each of the two shareholders of Vasjar in equal amounts as follows:

- Tranche 1: an aggregate of 2,400,000 shares of common stock of the
    Company (1,200,000 shares to each of the two shareholders) on April 28, 2004;
    and

6

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- Tranche 2: an aggregate of 2,080,000 additional shares of common
  stock of the Company (1,040,000 additional shares to each of the two
  shareholders) to be issued in stages as follows:

Stage One. On or before April 1, 2005,
the Company was required to issue 480,000 additional shares based on sales
achieved in the 2004 calendar year (240,000 shares to each shareholder).

Stage Two. On or before April 1, 2006,
the Company was required to issue 800,000 additional shares based on sales
achieved in the 2005 calendar year (400,000 shares to each shareholder).

Stage Three. On or before April 1,
2007, Wescorp was required to issue 800,000 additional shares based on sales
achieved in the 2006 calendar year (400,000 shares to each shareholder).

We were not able to deliver free-trading shares on April 1,
2005, and under the Vasjar purchase agreements we were required to pay an
additional 48,000 Wescorp shares for each month that the shares were not
delivered, covering the months April through September 2005. In September 2005,
a third party acquired the interests of the former Vasjar shareholders in
connection with the share delivery requirements of Tranche 2, Stage One. As a
result, we owed shares under Tranche 2, Stage One to the third party.

On November 22, 2006, we entered into a letter agreement with
the third party (the Third Party Letter Agreement), pursuant to which we
agreed to pay the third party 1,000,000 shares of our common stock to fulfill
the Tranche 2, Stage One debt requirements that the third party acquired from
the former Vasjar shareholders. These shares were delivered to, and accepted by,
the third party on November 22, 2006.

On April 1, 2006, we were not able to deliver free-trading
shares called for under Tranche 2, Stage Two, and thus we were required to pay
the former Vasjar shareholders an additional 80,000 Wescorp common shares for
each month that the shares were not delivered. In February 2007, the third party
acquired the interests of the former Vasjar shareholders in connection with the
share delivery requirements of Tranche 2, Stage Two. As a result, the Company
owed the shares under Tranche 2, Stage Two to a third party. By December 18,
2007, Wescorp issued 3,654,750 common shares to the third party.

If any of the Wescorp shares to be issued to the former Vasjar
shareholders have not been delivered for a period of 182 days after the
applicable due date, the former Vasjar shareholders may at their option
terminate the share purchase agreements, without notice or prior opportunity to
cure. The former Vasjar shareholders did not exercise these rights, and they
sold to a third party their rights, including their rights to receive shares
and/or penalty shares from the Company under both Stage One and Stage Two. We
have also received a written waiver from the third party waiving and canceling
any termination rights that the third party may have as a result of his purchase
of certain rights under the Vasjar purchase agreements. In addition, we pledged
to the former Vasjar shareholders all the Vasjar shares as security to guarantee
Wescorps performance under the share purchase agreements.

Although the Registration Statement covering the shares became
  effective in January 2008, as of May 7, 2008, we had not delivered the Vasjar
  shares because we were involved in discussions with the former Vasjar shareholders
  concerning the possibility of reaching a mutually acceptable agreement regarding
  the number of free-trading shares for the Company to deliver under Tranche 2,
  Stage Three. Under the terms of the agreement, without taking into account the
  Companys position that the number of shares owed should be reduced, the
  former Vasjar shareholders would be entitled to an additional 80,000 Wescorp
  common shares for each month that the shares are not delivered. Because we were
  unable to deliver these shares, plus the penalty shares, by October 1, 2007,
  the former Vasjar shareholders currently have the right to terminate their respective
  share purchase agreements with us. If they do so, we would no longer own Vasjar
  or its subsidiary, Quadra, including the intellectual property rights owned
  by Quadra.

With the completion of the acquisition of Vasjar, Wescorp owns,
  subject to Vasjars right to terminate the acquisition agreement, all the
  proprietary technology originally owned by Flowray (which was subsequently amalgamated
  with Flowstar) related to the DCR 900 system and other products. As at December
  31, 2007, management determined that future economic benefits of the Companys
  DCR technology were negligible. Therefore the balance of the value of the technology
  was fully impaired, resulting in an impairment loss on the Companys DCR
  technology in the amount of $2,177,970 as at December 31, 2007.

7

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Flowstar Sales Activities

In the second quarter 2008, total sales were up approximately
  15% from second quarter 2007. Flowstar was awarded a project and secured a letter
  of intent signed by an Alberta energy producer to provide metering, communications
  and a web hosting solution utilizing IFMWorks for an estimated value of $800,000
  for 2008. Equipment for the first phase of this project was ordered at the end
  of Q2, 2008, with installation to commence at the start of Q3, 2008.

The Coal Bed Methane (CBM) well completion was
  virtually unchanged from Q2, 2007 to Q2, 2008, with completions for all gas
  wells seeing a drop of 22%. This likely points to a long-term trend of decreasing
  conventional gas well production with more emphasis on unconventional sources
  like CBM, tight gas and shale gas. Commodity prices have remained firm in the
  first half of 2008 and are higher than the same period of 2007.

Investment in Ellycrack AS

Pursuant to a letter of intent dated February 10, 2004, Ellycrack AS (Ellycrack), of Florø, Norway, had granted Wescorp, or its subsidiary, options to acquire three separate exclusive territorial licenses in Canada, the United
States and Mexico to make, use, copy, develop and exploit Ellycracks technology and intellectual property and to design, manufacture, market and sell products or systems derived from or utilizing Ellycracks technology or sublicense
others to do the same in each territory.

However, on September 28, 2004, Ellycrack and the Company signed the MOU to form a 50% / 50% Joint Venture to make, use, copy, develop and exploit Ellycrack's technology and intellectual property and to design, manufacture, market and sell products
or systems derived from or utilizing Ellycrack's technology or sublicense others to do the same on a world-wide basis.

The MOU also provides for cancellation of the options to purchase licenses in Canada, the United States and Mexico and the institution of an obligation to build and operate a pilot plant in Canada to determine the overall economics of the technology
and, subject to the viability of these economics, to market the technology on a worldwide basis. For further details see our Current Report on Form 8-K filed with the SEC on September 28, 2004.

In addition to our interest in Ellycrack through the MOU described above, the Company owns an aggregate of 724,000 shares of Ellycrack representing approximately 13% of Ellycrack's outstanding shares.

Ellycrack has developed what is believed to be a cost effective technology in which heavy oil can be upgraded to lighter more commercially saleable oil via a low-energy mechanical cracking process which can be located
directly in a field environment. By upgrading heavy oil in the field, oil companies can eliminate on-site storage tanks as well as the cost associated with transporting heavy oil great distances to centralized upgraders. As such, heavy oil can be transported directly to a refinery.

Since Wescorps business relationship with Ellycrack A/S started, Ellycrack has reported improved results in experiments with its test rig These experiments have been conducted by the prestigious Norwegian research center SINTEF.
Demonstration tests for several major oil companies were done at Wescorps expense. This has resulted in current negotiations by Ellycrack with two major companies, to conduct further testing in Canada at their expense.

In accordance with the MOU with Ellycrack, Wescorp and Ellycrack undertook plans to develop a pilot plant. During the third quarter of 2005 we made various improvements to core technology within the Ellycrack process in order to optimize it for the
pilot plant and subsequent commercial applications. As a result of those improvements, we scheduled tests for several major energy producers who requested a demonstration of the Ellycrack process for possible consideration within their field
operations as a commercial application. Those improvements and tests were very successful, resulting in a significant increase in the process upper limit of API upgrading. In the first quarter of 2006, a major engineering firm completed the
design for a 50 to 200 barrel a day pilot plant utilizing the Ellycrack technology.

We have moved the VISCOSITOR test rig from a research
  center at Trondheim, Norway to Canada. This has been done in order to develop
  the technology under world class Canadian heavy oil expertise for the commercialization
  effort. The aim is to automate the test rig as an approximately 20-50 BOPD pilot
  plant, and prove out longer term operation before seeking markets
  for the technology.

8

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Since arriving in Canada, the test rig was reassembled and modified
  at a fabrication shop in Manitoba to meet Canadian Electrical Code and other
  standards. Then the unit was moved to a Canadian research center where it is
  currently undergoing installation. Upon completion of installation, it will
  be subjected to a staged test program. First, the unit will be operated to duplicate
  conditions in Norway in order to validate proper operation. Next, a test program
  to gather data and improve process operations will begin.

Acquisition and Business of Strategic Decision Sciences USA
Inc.

On September 11, 2007, we acquired SDS, a Houston-based
engineering firm focused on providing process-driven consulting and services to
help oil and gas operators improve the management, economics, and environmental
performance of field operations. As part of our acquisition of SDS, we acquired
its NAVIGATOR Process Management Solution, a collaborative solution that manages
the interactions of people, processes, and equipment in complex oil and gas
field operations. We believe that the Wescorp NAVIGATOR offers powerful,
integrated, field operations capability that we intend to use to drive the
development, commercialization, and management of our client offerings. We also
intend to make the Wescorp NAVIGATOR available to our clients to manage field
complexities, especially in the areas of oil and gas flow measurement and
metering, environmental remediation and compliance, enhanced oil recovery,
unconventional oil and gas production, and field intelligence, including radio
frequency identification (RFID) tagging and implementation.

SDS focuses on the operations level and is committed to
assisting its clients to achieve operational excellence. SDSs capabilities
include:

|• | Research          
|- | ------------------
|  | •                 
|  | •                 
|  | •                 
|• | Assessment        
|  | •                 
|  | •                 
|  | •                 
|  | •                 
|• | Management Science
|  | •                 
|  | •                 
|  | •                 

A number of applications for SDSs solutions exist, such as:

- Supply Chain & Asset Management
- Optimization of Field Operations
- Customer Acquisition Processes
- Corporate Governance & Planning
- Risk Assessment & Portfolio Management
- Information Technology ROI Assessment
- Merger & Acquisition Gaming
- Human Resource Planning
- Negotiation Management

NAVIGATOR Process Management Solution continues to be attractive
  to a variety of clients including petroleum operators and service providers.
  Working with a marine service partner, Wescorp has successfully tested an RFID
  tag attached to subsurface equipment at approximately 4,000 meters of water
  in the Gulf of Mexico. The purpose of this test was to assure that the tag was
  still attached and that it could be read when retrieved to the surface 
  the test was a critical success and Wescorp has several major players interested
  in deploying this technology to better manage remote maritime assets.

9

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The Company has completed the first phase of the NAVIGATOR
  project with a Canadian heavy oil company, as previously announced March 5,
  2008, and expects the project to begin full implementation during the 3rd
  quarter 2008.

The Company continues to develop its NAVIGATOR sales strategy,
  primarily in the Houston, TX market including the marine service segment, energy
  service companies as well as petroleum operators. NAVIGATOR is still early in
  its life cycle, but a lot of interest has been generated by the industry. This
  is evidenced by the fact that several industry media outlets have published
  byline articles about NAVIGATOR by Wescorp executives and a presentation was
  made at the Society of Petroleum Engineers sponsored 2008 Digital Energy Conference
  on May 21, 2008 in Houston, Texas.

While the Company believes that NAVIGATOR provides customers
  a great deal of value, initial sales have been slower than expected. The Company
  believes that this is largely because its target purchasers, operations executives,
  are very busy and Wescorp sales representatives find it difficult to get on
  the calendar of senior management. However, the Company has several proposals
  outstanding that have been requested by its customers and expects additional
  sales to commence in the 3rd quarter.

Acquisition of Intellectual Property and Other Assets from FEP Services Inc.; Business of Total Fluid Solutions and Raider Chemical Corporation

On December 18, 2007, the Company effectively completed an
  agreement to purchase intellectual property and other assets from FEP. Different
  portions of this intellectual property and these other assets were transferred
  to our newly formed wholly-owned subsidiaries, Total Fluid Solutions and Raider
  Chemical Corporation, respectively, as described below. Under the terms of the
  purchase agreement, our wholly-owned subsidiary, Wescorp Technologies, assumed
  liabilities of approximately CAD $240,000 and delivered to FEP: (i) a two-year
  promissory note in the face amount of CAD $2,665,000; (ii) 13,900,000 restricted
  shares of common stock of Wescorp Energy; and (iii) 470,143 shares of common
  stock of Oilsands at an agreed value of $2,192,277. Also in connection with
  the Asset Purchase Agreement, Wescorp Technologies entered into a license agreement
  with a third party and consulting agreements for each of Messrs. Bowhay and
  McCaw to provide various consulting services to Wescorp.

Total Fluid Solutions

The technology of our wholly-owned subsidiary, Total Fluid
  Solutions, removes hydrocarbons and solids from the oilfield water, using a
  proprietary, environmentally friendly, patented aeration process. This process
  is reduces the hydrocarbon content from the conventional 5,000 to 30,000 parts
  per million range to less than 50 parts per million.

We intend to use this technology independently or in conjunction with each other water remediation technologies in order to address the critical water issues facing the oil and gas industry today.

We have filed a provisional process patent application for additional technology which we have developed in this area. We also own all of the intellectual property rights for a solids-oil separation technology that is not patented, but is held as a
trade secret. With these technologies, we hope to be able to remediate two of the main contaminates (solids, hydrocarbon) in oilfield water as the result of exploration for, and production of, oil and gas. The technology to remove solids from the
oilfield water uses a proprietary, environmentally friendly, chemical process to separate drilling solids from the water and hydrocarbon mixtures, which are found in the water as a result of drilling the wells. The solids are cleaned to a standard
that allows them to be used in construction. The third technology, to remove salt from the oilfield water, uses a low-energy process of flash distillation to separate the salts from the water.

*Raider Chemical Corporation*

Our wholly-owned subsidiary, Raider Chemical Corporation,
  designs and manufactures specialized chemicals used in the cementing and stimulation
  services area, within the oil and gas industry. Raider is currently making sales
  in Canada and is also evaluating expanding into the US.

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Results from Operations  2008 Compared to 2007

Three Months Ended June 30, 2008 Compared to Three Months Ended June 30, 2007

Revenues

Revenues during the quarter ended June 30, 2008 were $753,544, compared to $493,622 for the quarter ended June 30, 2007, an increase of $259,922, or 52.7% . Most of the increase in revenue is the result of the operations of our
wholly-owned subsidiary Raider which was formed after we acquired assets from FEP on December 18, 2007. Revenues attributable to our wholly-owned subsidiary Flowstar were $621,880 while revenues of Raider contributed $131,664.
Flowstars revenue in the second quarter of 2008 increased by $128,258 compared to the results for the second quarter of 2007. The increase in revenue for Flowstar is primarily the result of our major customers having robust drilling
completion programs, having brought to market new products that enhance the communications capabilities of our DCR product line, and utilization of existing client relationships to attract new customers. Problems continue to be caused by reductions
in well licensing, drilling activities, and capital spending which still plague the Canadian natural gas industry. Based on information published by the Canadian Association of Petroleum Producers, well licensing is down 14% and well completions are
down 22% for gas wells in the second quarter of 2008 when compared to the same period for 2007.

Sales coverage for the Flowstar DCR systems this quarter have been improved through increased exposure to the upstream measurement community. During this period of time, these efforts were successful in increased market awareness of the Flowstar
products. We believe that these efforts will lead to increases in revenues in the future. Flowstar has been focusing its sales efforts by identifying applications and markets where the DCR system has advantages over competing products in order to
increase its market share in the Canadian natural gas flow measurement market. In addition, plans are underway to further expand the existing product line being offered by Flowstar, and to find new market niches for our existing products.

The strengthening of the Canadian dollar for the quarter ended June 30, 2008 from the exchange rate for the quarter ended June 30, 2007 has also contributed to the increase in revenue. The exchange rate has improved approximately 12.5% period to
period. As practically all the revenue generated is in Canadian dollars, this improvement in the exchange rate has had a significant impact.

Cost of Sales

As a percentage of revenues, cost of sales for the quarter
  ended June 30, 2008 decreased to 53.2% versus 61.0% for the quarter ended June
  30, 2007. Most of this decrease can be attributed to the improvement in the
  exchange rate of the Canadian dollar. As a significant portion of the products
  sold by Flowstar are purchased in U.S. dollars, the improvement in the exchange
  rate mentioned above results in a corresponding decrease in cost of sales. This
  decrease was partially offset by high discounts given to customers in the second
  quarter of 2007 in an attempt to stimulate sales due to the depressed market
  conditions for the sale of the Flowstar products. These improvements in Flowstar
  margins more than offset the slightly lower margins achieved in the sale of
  product by Raider versus those margins that are realized on the sale of Flowstar
  products.

Expenses

Operating expenses for the quarter ended June 30, 2008 were
  $2,452,768 versus $1,582,614 for the quarter ended June 30, 2007, an increase
  of $870,154. The largest increases in our operating expenses were in research
  and development, wages and benefits, interest accreted on financial instruments,
  research and development acquired, advertising and investor relations, office,
  and interest, finance and bank charges as explained below.

Costs for research and development, increased in the quarter
  ended June 30, 2008 to $480,089 compared to the $98,394 incurred in the quarter
  ended June 30, 2007. Most of this increase can be attributed to additional expenses
  incurred to develop the water remediation technology of Total Fluid in the amount
  of $365,157. Added costs of modifying the VISCOSITOR to be a 20 to 50 barrel-per-day
  pilot plant incurred in the second quarter of 2008 were approximately $16,500
  greater than what was incurred for the same period in 2007. This increase is
  mostly due to a reduction in grants received to partially offset these costs.
  Approximately $25,600 in grant funding was received in the second quarter of
  2008 while approximately $31,900 in grant money was received in the second quarter
  of 2007.

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Wages and benefits for the second quarter of 2008 includes
  amounts paid to individuals who formerly provided consulting services to Wescorp
  in the second quarter of 2007 that have since became employees. The hiring of
  these individuals as well as other persons who were not previously consultants
  was necessary in order to provide adequate staffing for the new businesses formed
  after the acquisition of assets from FEP. Effective September 1, 2007, we entered
  into new employment contracts with Mr. Douglas Biles, President and Chief Executive
  Officer, and Mr. Scott Shemwell, Chief Operating Officer. We also provided merit
  increases in order to retain key employees. Due to these changes, wages and
  benefits increased to $655,713 during the quarter ended June 30, 2008 versus
  $435,942 during the quarter ended June 30, 2007, an increase of $219,771.

To account for the issuance of the Company’s $400,000
  non-convertible debentures that include attached warrants in the fourth quarter
  of the year ended December 31, 2007, a beneficial conversion feature of $100,000
  was recorded as a debt discount and was amortized over the life of the debenture.
  An additional $109,465 was recorded as a debt discount related to debentures
  issued in 2008. As a result $120,360 in interest accretion related to the debt
  discount was charged to operations in the six months ended June 30, 2008. In
  December 2007, an unsecured note (“FEP Note”), bearing interest
  at a rate of 0.0%, in the amount of approximately $2,696,980 (CAD $2,665,000)
  was issued. The fair value of this note was computed as $2,183,635 using an
  imputed interest rate of 18.0% which was assumed to represent the incremental
  borrowing rate of the Company. This resulted in $513,345 being recorded as a
  debt discount which will be amortized over the life of the note. During the
  quarter ended June 30, 2008, amortization of $147,305 related to the debt discount
  was recorded. No costs for the accretion of interest related to financial instruments
  was incurred in the quarter ended June 30, 2007 as there were no financial instruments
  that required amortization of debt discounts outstanding during that period.

During the quarter ended June 30, 2008, 514,103 options to
  purchase common shares pursuant to employment agreements for executive officers
  were issued. In the same period for 2007, 119,565 options to purchase common
  shares pursuant to employment agreements for executive officers were issued.
  Thus, the Company had an increase of $105,800 in stock-based wages during the
  three months ended June 30, 2008 to $143,000 compared to the $37,200 incurred
  during the three months ended June 30, 2007.

We incurred interest, finance and bank charges of $271,721
  for the quarter ended June 30, 2008 compared to $62,286 incurred during the
  quarter ended June 30, 2007. This increase of $209,435 is a direct result of
  new debt, in the form of a debenture in the amount of $2,250,000 incurred on
  June 7, 2007, $859,328 incurred in the six months ended June 30, 2008, and approximately
  $848,837 in debentures incurred from December, 2007 to June, 2008. As the $2,250,000
  debenture was the only portion of the increased debt that existed in the quarter
  ended June 30, 2007, only $14,178 in interest was incurred on these balances
  during the quarter ended June 30, 2007. In addition, we incurred financing fees
  of $40,000 in the quarter ended June 30, 2008 while financing fees of only $20,000
  were incurred in the quarter ended June 30, 2007. In addition, during the quarter
  ended June 30, 2008, a payment on the FEP Note in the amount of approximately
  $1,475,000 (CAD $1,502,458) resulted in additional interest of $108,963 being
  recorded during the period.

Legal and accounting costs for the three months ended June
  30, 2008 were $174,832, which was an increase of $99,193 compared to the corresponding
  period of 2007. The increase in 2008 is directly related to additional audit
  and legal fees to complete the December 2007 audit. While we incurred lower
  legal fees for compliance with various regulatory filings, and for due diligence
  work undertaken with respect to potential business acquisitions and other contracts,
  these savings were significantly lower than the increases for other professional
  services provided.

Office expenses for the quarter ended June 30, 2008 were $175,475
  compared to $120,787 for the quarter ended June 30, 2007. The increase of $54,688
  is a direct result of the increased rental space occupied to accommodate the
  growth in operations, including the setting up of new offices for Navigator
  in Texas and manufacturing facilities for Raider in Canada. With the growth
  in operations, additional costs for office supplies, telephone and other costs
  have been incurred. The addition of Raider has directly contributed approximately
  $33,300 to office expenses, and Total Fluid has contributed approximately $11,100
  to office expenses.

Depreciation and amortization expense for the quarter ended
  June 30, 2008 was $73,288 versus $23,666 for the quarter ended June 30, 2007,
  an increase of $49,622. This increase was a direct result of the additional
  assets acquired pursuant to the agreement with FEP dated December 18, 2007.
  Additional assets were also acquired to support the increased activities related
  to the Wescorp Navigator division.

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Travel expenses during the quarter ended June 30, 2008 increased
  by $5,133 versus the quarter ended June 30, 2007, a direct result of the increased
  activity in the Ellycrack project and additional marketing of Wescorp, Flowstar,
  and Wescorp Navigator in international markets. The addition of Total Fluid
  has contributed approximately $17,900 to travel costs. The engagement of additional
  employees located in the U.S. has also directly added to these increases in
  cost.

Insurance expense for the quarter ended June 30, 2008 was
  $33,924 compared to $31,120 for the quarter ended June 30, 2007. The increase
  in our premium for our comprehensive insurance due to our higher asset base
  is the primary reason for the $2,804 increase in insurance expense.

The above increases were partially offset by a substantial
  decrease in expenses related to consulting fees. Consulting fees incurred in
  the quarter ended June 30, 2008 in the amount of $105,101 were $213,105 lower
  than the $318,206 incurred in the same period for 2007. This decrease is a direct
  result of having fewer contracts with consultants in the six months ended June
  30, 2008 when compared to the same period in 2007. The consulting contract for
  our Chief Operating Officer, Mr. Scott Shemwell has been replaced with an employment
  agreement effective September 1, 2007. In addition two other contractors became
  employees effective January 1, 2008. The costs associated with the new consulting
  contracts that did not exist in the second quarter of 2007 were for lower amounts
  than those that have terminated since June 30, 2007.

Advertising and investor relations expenses decreased by $59,216
  to $73,119 for the quarter ended June 30, 2008 versus $132,335 reported for
  the quarter ended June 30, 2007. This decrease is a direct result of the cancelling,
  in the second quarter, of an investor relations contract that was entered into
  in the first quarter of 2008. This resulted in a credit of approximately $30,000
  being recorded as a reduction in investor relations fees for the second quarter
  of 2008. Costs that were incurred in the second quarter of 2008 for brand imaging
  and extensive promotion of the Wescorp Navigator and Flowstar product offerings
  were slightly less than those incurred for the same period of 2007.

As the value of the technology that was on the books at June
  30, 2007, was fully impaired at December 31, 2007 no further amortization of
  this asset is required. As a result, amortization of technology has decreased
  by $129,161.

In order to strengthen the Board of Directors, the Company
  decided to compensate outside directors in the form of shares commencing on
  April 1, 2006. During the quarter ended June 30, 2008, the Company incurred
  $18,434 in directors’ fees compared to $22,244 for the same period in
  2007.

Other Income and Expenses

For the quarter ended June 30, 2008, other expenses have decreased
  by $323,689 from the same period in 2007.

We were not able to deliver free-trading shares called for
  under Tranche 2, Stage Three of the agreement to acquire Vasjar, and thus we
  were required to pay the former Vasjar shareholders an additional 80,000 Wescorp
  common shares for each month that the shares are not delivered. This resulted
  in an accrual of $272,790 being recorded for the quarter ended June 30, 2008,
  which reflects the increase in shares needed to be delivered and the closing
  trading price of Wescorp shares as at June 30, 2008. We were not able to deliver
  free-trading shares called for under Stage 3 of the agreement to acquire Vasjar
  at June 30, 2007 and this resulted in an accrual of $121,808 being recorded
  for the quarter ended June 30, 2007.

The foreign currency gain of $16,200 for the quarter ended June 30, 2008 is a direct result of the Canadian dollar being slightly stronger than the U.S. dollar at June 30, 2008 when compared to March 31, 2008. Wescorp had a short-tem investment
of approximately $1,478,400 denominated in Canadian dollars which increased in value as the Canadian dollar strengthened against the U.S. dollar. This short-term investment was redeemed in June of 2008.

Interest income for the three months ended June 30, 2008 is
  directly related to the short-term investment made in June 2007.

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During the six months ended June 30, 2007 the Company incurred a penalty for the late filing of the registration statement pursuant to the terms of the subscription agreements for the private placement that was completed in December of 2006. As a
result, the Company was required to issue additional shares to the investors in the private placement which were valued at $424,839.

Net Loss

The net loss for the quarter ended June 30, 2008 of $2,334,110
  compared to a net loss of $1,947,915 for 2007 is due to the net effect of the
  increase of $870,154 in operating expenses as explained above partially offset
  by the increase in gross profit of $160,270, and by a decrease of $323,689 in
  other expenses.

Six Months Ended June 30, 2008 Compared to Six Months Ended June 30, 2007

Revenues

Revenues during the six months ended June 30, 2008 were $1,679,179, compared to $1,311,604 for the six months ended June 30, 2007, an increase of $367,575, or 28.0% . This increase in revenue is primarily the result of the operations of
our wholly-owned subsidiary Raider which was formed after we acquired assets from FEP on December 18, 2007. Revenues attributable to our wholly-owned subsidiary Flowstar were $1,300,871 while revenues of Raider contributed $378,309. Problems
continue to be caused by reductions in well licensing, drilling activities, and capital spending which still plague the Canadian natural gas industry. Based on information published by the Canadian Association of Petroleum Producers, well licensing
is down 7% and well completions are down 17% for gas wells in the first six months of 2008 when compared to the same period for 2007.

Sales coverage for the Flowstar DCR systems has been improved through increased exposure to the upstream measurement community. During this period of time, these efforts were successful in increased market awareness of the Flowstar products. We
believe that these efforts will lead to increases in revenues in the future. Flowstar has been focusing its sales efforts by identifying applications and markets where the DCR system has advantages over competing products in order to increase its
market share in the Canadian natural gas flow measurement market. In addition, plans are underway to further expand the existing product line being offered by Flowstar, and to find new market niches for our existing products. In 2007 we brought to
market new products that enhance the communications capabilities of our DCR product line. We also intend to utilize existing client relationships to attract new customers.

The strengthening of the Canadian dollar for the six months ended June 30, 2008 from the exchange rate for the six months ended June 30, 2007 has also contributed to the increase in revenue. The exchange rate has improved approximately 8.6% period
to period. As practically all the revenue generated is in Canadian dollars this improvement in the exchange rate has had a significant impact.

Cost of Sales

As a percentage of revenues, cost of sales for the six months
  ended June 30, 2008 decreased to 53.3% versus 55.5% for the six months ended
  June 30, 2007. Most of this decrease can be attributed to the improvement in
  the exchange rate of the Canadian dollar. As a significant portion of the products
  sold by Flowstar are purchased in U.S. dollars the improvement in the exchange
  rate mentioned above results in corresponding decrease in cost of sales. This
  decrease was partially offset by high discounts given to customers in the second
  quarter of 2007 in an attempt to stimulate sales due to the depressed market
  conditions for the sale of the Flowstar products. These decreases in the cost
  of sales were offset by slightly lower margins achieved in the sale of product
  by Raider versus those margins that are realized on the sale of Flowstar products.

Expenses

Operating expenses for the six months ended June 30, 2008
  were $4,384,704 versus $3,073,635 for the six months ended June 30,
  2007, an increase of $1,311,069. The largest increases in our operating
  expenses were in wages and benefits, interest accreted on financial instruments,
  research and development, research and development acquired, advertising and
  investor relations, office, and interest, finance and bank charges as explained
  below.

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In the first six months of 2008, individuals who formerly
  provided consulting services to Wescorp became employees. The hiring of these
  individuals as well as other persons who were not previously consultants was
  necessary in order to provide adequate staffing for the new businesses formed
  after the acquisition of assets from FEP. Effective September 1, 2007, we entered
  into new employment contracts with Mr. Douglas Biles, President and Chief Executive
  Officer, and Mr. Scott Shemwell, Chief Operating Officer. We also provided merit
  increases in order to retain key employees. Due to these changes, wages and
  benefits increased to $1,301,227 during the six months ended June 30, 2008 versus
  $866,320 during the six months ended June 30, 2007, an increase of $434,907.

Costs for research and development, increased in the six months
  ended June 30, 2008 to $523,690 compared to the $266,679 incurred in the six
  months ended June 30, 2007. Most of this increase can be attributed to additional
  expenses incurred to develop the water remediation technology of Total Fluid
  in the amount of $389,598. These costs were partially offset by the receipt
  of a grant in the amount of approximately $148,950 (CAD $150,000) to assist
  in the development of the water remediation technology in Total Fluid into a
  commercial product. No corresponding expenses were incurred in the comparative
  period related to this technology. Added costs of modifying the VISCOSITOR to
  be a 20 to 50 barrel-per-day pilot plant incurred in the first six months of
  2008 were approximately $16,000 greater than what was incurred for the same
  period in 2007. This increase is the result of a reduction in grants received
  to partially offset these costs. Approximately $25,600 in grant funding was
  received in the first six months of 2008 while approximately $44,100 in grant
  money was received in the first six months of 2007.

To account for the issuance of the Company’s $400,000
  non-convertible debentures that include attached warrants in the fourth quarter
  of the year ended December 31, 2007, a beneficial conversion feature of $100,000
  was recorded as a debt discount and was amortized over the life of the debenture.
  An additional $109,465 was recorded as a debt discount related to debentures
  issued in 2008. As a result, $120,360 in interest accretion related to the debt
  discount was charged to operations in the six months ended June 30, 2008. In
  December 2007, an unsecured note (“FEP Note”), bearing interest
  at a rate of 0.0%, in the amount of approximately $2,696,980 (CAD $2,665,000)
  was issued. The fair value of this note was computed as $2,183,635 using an
  imputed interest rate of 18.0% which was assumed to represent the incremental
  borrowing rate of the Company. This resulted in $513,345 being recorded as a
  debt discount which will be amortized over the life of the note. During the
  six months ended June 30, 2008, amortization of $177,562 related to the debt
  discount was recorded. No costs for the accretion of interest related to financial
  instruments was incurred in the six months ended June 30, 2007 as there were
  no financial instruments that required amortization of debt discounts outstanding
  during that period.

We incurred interest, finance and bank charges of $405,073
  for the six months ended June 30, 2008 compared to $81,423 incurred during the
  six months ended June 30, 2007. This increase of $323,650 is a direct result
  of new debt, in the form of a debenture in the amount of $2,250,000 incurred
  on June 7, 2007, $859,328 incurred in the six months ended June 30, 2008, and
  approximately $848,837 in debentures incurred from December, 2007 to June, 2008.
  As the $2,250,000 debenture was the only portion of the increased debt that
  existed in the six months ended June 30, 2007, only $14,178 in interest was
  incurred on these balances during the six months ended June 30, 2007. In addition,
  we incurred financing fees of $92,196 in the six months ended June 30, 2008
  while financing fees of only $20,000 were incurred in the six months ended June
  30, 2007. In addition, during the six months ended June 30, 2008, a payment
  on the FEP Note in the amount of approximately $1,475,000 (CAD $1,502,458) resulted
  in additional interest of $108,963 being recorded during the period.

Office expenses for the six months ended June 30, 2008 were
  $359,600 compared to $214,395 for the six months ended June 30, 2007. The increase
  of $145,205 is a direct result of the increased rental space occupied to accommodate
  the growth in operations, including the setting up of new offices for Navigator
  in Texas and manufacturing facilities for Raider in Canada. With the growth
  in operations, additional costs for office supplies, telephone and other costs
  have been incurred. The addition of Raider has directly contributed approximately
  $74,300 to office expenses, and Total Fluid has contributed approximately $19,000
  to office expenses.

Advertising and investor relations expenses rose by $127,339
  to $315,225 for the six months ended June 30, 2008 versus $187,886 reported
  for the six months ended June 30, 2007. This increase is a direct result of
  additional costs that were incurred in the first six months of 2008 for brand
  imaging and extensive promotion of the Wescorp Navigator and Flowstar product
  offerings. There was also an increase in the costs for investor relations as
  additional consultants were contracted to provide these services in the six
  months ended June 30, 2008. Only one comparative contract existed in the same
  period in 2007 and that contract was lower in the amount of $4,000 per month.

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Depreciation and amortization expense for the six months ended
  June 30, 2008 was $145,606 versus $46,320 for the six months ended June 30,
  2007, an increase of $99,286. This increase was a direct result of the additional
  assets acquired pursuant to the agreement with FEP dated December 18, 2007.
  Additional assets were also acquired to support the increased activities related
  to the Wescorp Navigator division.

Legal and accounting costs for the six months ended June 30,
  2008 were $266,276, which was an increase of $90,924 compared to the corresponding
  period of 2007. The increase in 2008 is directly related to additional audit
  and legal fees to complete the December 2007 audit. While we incurred lower
  legal fees for compliance with various regulatory filings, and for due diligence
  work undertaken with respect to potential business acquisitions and other contracts,
  these savings were significantly lower than the increases for other professional
  services provided.

Travel expenses during the six months ended June 30, 2008
  increased by $57,782 versus the six months ended June 30, 2007, a direct result
  of the increased activity in the Ellycrack project and additional marketing
  of Wescorp, Flowstar, and Wescorp Navigator in international markets. The addition
  of Total Fluid has contributed approximately $41,900 to travel costs. The hiring
  of additional employees located in the U.S. has also directly added to these
  increases in cost.

During the six months ended June 30, 2008, 573,627 options
  to purchase common shares pursuant to employment agreements for executive officers
  were issued. In the same period for 2007, 494,565 options to purchase common
  shares pursuant to employment agreements for executive officers were issued.
  Thus, the Company had an increase of $20,000 in stock-based wages during the
  six months ended June 30, 2008 to $157,600 compared to the $137,600 incurred
  during the six months ended June 30, 2007.

Insurance expense for the six months ended June 30, 2008 was
  $71,550 compared to $65,305 for the six months ended June 30, 2007. The increase
  in our premium for our comprehensive insurance due to our higher asset base
  is the primary reason for the $6,245 increase in insurance expense.

The above increases were partially offset by a substantial
  decrease in expenses related to consulting fees. Consulting fees incurred in
  the current six month period in the amount of $267,972 were $289,923 lower than
  the $557,895 incurred in the same period for 2007. This decrease is a direct
  result of having fewer contracts with consultants in the six months ended June
  30, 2008 when compared to the same period in 2007. The consulting contract for
  our Chief Operating Officer, Mr. Scott Shemwell, has been replaced with an employment
  agreement effective September 1, 2007. In addition, two other contractors became
  employees effective January 1, 2008. The costs associated with the new consulting
  contracts that did not exist in the first quarter of 2007 were for lower amounts
  than those that have terminated since June 30, 2007.

As the value of the technology that was on the books at June
  30, 2007, was fully impaired at December 31, 2007 no further amortization of
  this asset is required. Accordingly, amortization of technology has decreased
  by $258,323.

In order to strengthen the Board of Directors, the Company
  decided to compensate outside directors in the form of shares commencing on
  April 1, 2006. During the six months ended June 30, the Company incurred $38,776
  in directors’ fees compared to $39,732 for the same period in 2007.

Other Income and Expenses

For the six months ended June 30, 2008, other expenses have
  decreased by $711,976 from the same period in 2007.

We were not able to deliver free-trading shares called for
  under Tranche 2, Stage Three of the agreement to acquire Vasjar, and thus we
  were required to pay the former Vasjar shareholders an additional 80,000 Wescorp
  common shares for each month that the shares are not delivered. This resulted
  in an accrual of $513,304 being recorded for the six months ended June 30, 2008,
  which reflects the increase in shares needed to be delivered and the closing
  trading price of Wescorp shares as at June 30, 2008. The financial statements
  for the same period in 2007 reflect the requirements for late delivery of shares
  as stipulated by Tranche 2, Stage Two of the agreement with the former Vasjar
  shareholders. In February 2007, a third party acquired the interests of the
  former Vasjar shareholders in connection with the share delivery requirements
  of Tranche 2, Stage Two. As a result, the Company owed the shares under Tranche
  2, Stage Two to the third party. As of June 30, 2007, in addition to the 960,000
  penalty shares incurred under the provisions of Tranche 2, Stage Two, Wescorp
  agreed to pay an additional 1,163,800 penalty shares to the third party. These
  shares were valued at a cost of $617,672. In addition, we were not able to deliver
  free-trading shares called for under Stage 3 of the agreement to acquire Vasjar
  at June 30, 2007 and this resulted in an accrual of $121,808 being recorded
  for the six months ended June 30, 2007.

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The foreign currency loss of $38,799 for the six months ended
June 30, 2008 is a direct result of the Canadian dollar being weaker than the
U.S. dollar at June 30, 2008 when compared to December 31, 2007. Wescorp had a
short-tem investment of approximately $1,478,400 denominated in Canadian dollars
which decreased in value as the Canadian dollar weakened against the U.S.
dollar. This short-term investment was redeemed in June of 2008. Some of these
losses are offset as many payables are denominated in Canadian dollars and as
that currency weakens exchange gains result when payables are settled.

The gain on the disposal of investment is the direct result of
disposing of 4.5% of the investment in Tarblaster AS.

Interest income for the six months ended June 30, 2008 is
directly related to the short-term investment made in June 2007.

The gain on the disposal of assets is the direct result of
disposing of assets that were completely depreciated and no longer being
utilized by the Company.

During the six months ended June 30, 2007 the Company incurred
a penalty for the late filing of the registration statement pursuant to the
terms of the subscription agreements for the private placement that was
completed in December of 2006. As a result, the Company was required to issue
additional shares to the investors in the private placement which were valued at
$424,839.

Net Loss

The net loss for the six months ended June 30, 2008 of $4,066,342
  compared to a net loss of $3,668,506 for 2007 is due to the net effect of the
  increase of $1,311,069 in operating expense, partially offset by the increase
  in gross profit of $201,257 and the decrease of $711,976 in other expenses.

Continued Liquidity and Financing of Business Plan

To date, our operations have been funded by a combination of
short-term debt and equity financing. Currently, cash on hand, short-term
investments and collection of trade accounts receivable are our only existing
sources of liquidity. In the event that we do not achieve positive cash flow
from operations in 2008, we will be relying on debt and equity financings to
provide our Company with sufficient capital to continue our development and
operational plans. There can be no assurance that we can continue to grow, which
would have a significant effect on the financial condition of our Company and
our ability to effectively implement our proposed business plans.

Although we do not have any lending arrangements in place with
banking or financial institutions, we intend to seek conventional bank financing
for Flowstar once we redeem or effect the conversion of the outstanding
short-term convertible debenture to equity as noted herein.

We are also currently in the process of arranging financing for
  our 2008 operations and investment plan. As part of our overall investment objectives
  we intend to acquire and develop one or more additional technologies in 2008.
  Our total anticipated funding requirement through the end of 2008 is estimated
  to be approximatelyfive million dollars. We believe that if we are able
  to obtain this financing, of which there is no assurance, our cash balances
  will be sufficient to carry on normal operations for the next twelve months
  plus meet any cash requirements that may be needed for target investments or
  acquisitions. Any sale of additional equity securities, if undertaken, will
  result in dilution to our stockholders. There can be no assurance that additional
  financing, when required, will be available to us on acceptable terms, or at
  all.

We anticipate that the most likely major purchases of capital
  assets in the next 12 months will be the expansion of Flowstar operations into
  the United States, and the potential acquisition of one or more new businesses
  and/or technologies. However, there may be additional purchases of office equipment
  and shop equipment for Flowstar and capital expenditures for Total Fluid and
  Ellycrack. Total Fluid will continue to carry out its research and development
  with respect to making its water remediation technologies commercially viable.
  Also, Flowstar will be conducting research and development in its ongoing program
  to maintain the competitive advantage of its products.

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Off-Balance Sheet Arrangements

We have never entered into any off-balance sheet financing
arrangements and have not formed any special purpose entities. We have not
guaranteed any debt or commitments of other entities or entered into any options
on non-financial assets.

ITEM 4T.      CONTROLS AND
PROCEDURES

An evaluation was carried out under the supervision and with
the participation of our management, including our Principal Financial Officer
and Principal Executive Officer, of the effectiveness of our disclosure controls
and procedures as of the end of the period covered by this report on Form 10-Q.
Disclosure controls and procedures are procedures designed with the objective of
ensuring that information required to be disclosed in our reports filed under
the Securities Exchange Act of 1934, such as this Form 10-Q, is recorded,
processed, summarized and reported, within the time period specified in the
Securities and Exchange Commissions rules and forms, and that such information
is accumulated and is communicated to our management, including our Principal
Executive Officer and Principal Financial Officer, or persons performing similar
functions, as appropriate, to allow timely decisions regarding required
disclosure. Based on that evaluation, our management concluded that, as of June
30, 2008, our disclosure controls and procedures are effective to satisfy the
objectives for which they are intended.

This quarterly report does not include an attestation report of
the Companys registered public accounting firm regarding internal control over
financial reporting. Managements report was not subject to attestation by the
Companys registered public accounting firm pursuant to temporary rules of the
Securities and Exchange Commission that permit the Company to provide only
managements report in this annual report.

Change in Internal Control over Financial Reporting

Our internal control over financial reporting is a process
designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements in accordance with
generally accepted accounting principles in the United States. Because of its
inherent limitations, internal control over financial reporting may not prevent
or detect misstatements. Therefore, even those systems determined to be
effective can provide only reasonable assurance of achieving their control
objectives. In evaluating the effectiveness of our internal control over
financial reporting, our management used the criteria set forth by the Committee
of Sponsoring Organizations of the Treadway Commission (COSO) in Internal
Control - Integrated Framework.

There were no changes in our internal control over financial
reporting identified in connection with the evaluation performed that occurred
during the fiscal quarter covered by this report that has materially affected or
is reasonably likely to materially affect, our internal control over financial
reporting.

PART II - OTHER INFORMATION

ITEM 1.        LEGAL
PROCEEDINGS

None

ITEM
2.        UNREGISTERED SALES OF EQUITY
SECURITIES AND USE OF PROCEEDS

Not applicable.

18

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ITEM 3.        DEFAULTS
  UPON SENIOR SECURITIES

Not applicable.

ITEM
4.        SUBMISSION OF MATTERS TO A
VOTE OF SECURITY HOLDERS

No matters were submitted to a vote of our security holders
during the three months ended June 30, 2008.

ITEM 5.        OTHER
INFORMATION

Not applicable.

ITEM 6.      
 EXHIBITS.

|Exhibit |                                                                                                                                                                                                                                        
|------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Number  | Description                                                                                                                                                                                                                            
|        |                                                                                                                                                                                                                                        
|3.1     | Restated Articles of Incorporation of the Company filed
      February 17, 2004 (Incorporated by reference to the Companys Annual
      Report on Form 10-KSB/A filed with the Commission on May 13, 2004, File
      No. 000- 30095.)
|        |                                                                                                                                                                                                                                        
|3.2     | Bylaws of the Company (Incorporated by reference to the
      Companys Form 10SB12G filed with the Commission on March 24, 2000, File
      No. 000- 30095.)                                                                          
|        |                                                                                                                                                                                                                                        
|4.1     | Form of Common Stock Purchase Warrant dated March 15,
      2005 (Incorporated by reference to the Companys Current Report on Form
      8-K filed with the Commission on March 21, 2005, File No. 000- 30095.)                       
|        |                                                                                                                                                                                                                                        
|4.2     | Certificate for 14% Secured Convertible Debenture dated
      April 28, 2005 (Incorporated by reference to the Companys Current Report
      on Form 8-K filed with the Commission on April 29, 2005, File No. 000-
      30095.)     

19

---

|4.3   | Form of Common
        Stock Purchase dated April 28, 2005 (Incorporated by reference to the
        Companys Current Report on Form 8-K filed with the Commission on
        April 29, 2005, File No. 000-30095.)                                                                                                                        
|----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|      |                                                                                                                                                                                                                                                                                                                                            
|4.4   | Addendum dated
        February 6, 2003 to that certain Loan Agreement dated January 28, 2003
        between the Company and AHC Holdings Ltd. containing Stock Purchase Warrant
        (Incorporated by reference to the Companys Current Report on Form
        8-K filed with the Commission on April 28, 2003, File No. 000- 30095.)
|      |                                                                                                                                                                                                                                                                                                                                            
|4.5   | Form of Warrant
        issued to the United States Resident Purchaser named therein. (Incorporated
        by reference to the Companys Current Report on Form 8-K filed with
        the Commission on December 24, 2006, File No. 000-30095.)                                                                                          
|      |                                                                                                                                                                                                                                                                                                                                            
|4.6   | Form of Warrant
        issued to the Non-United States Resident Purchaser named therein. (Incorporated
        by reference to the Companys Current Report on Form 8-K filed with
        the Commission on December 24, 2006, File No. 000- 30095.)                                                                                     
|      |                                                                                                                                                                                                                                                                                                                                            
|10.1  | Employment Agreement
        between Wescorp Energy Inc. and Douglas Biles (Incorporated by reference
        to the Companys Current Report on Form 8-K filed with the Commission
        on September 21, 2007.)                                                                                                                        
|      |                                                                                                                                                                                                                                                                                                                                            
|10.2  | Employment Agreement
        between Wescorp Energy Inc. and Scott Shemwell (Incorporated by reference
        to the Companys Current Report on Form 8-K filed with the Commission
        on September 21, 2007.)                                                                                                                       
|      |                                                                                                                                                                                                                                                                                                                                            
|10.3  | Consultant Service
        Agreement between Wescorp Energy Inc., and Steve Cowper (Incorporated
        by reference to the Companys Current Report on Form 8-K filed with
        the Commission on September 21, 2007.)                                                                                                                
|      |                                                                                                                                                                                                                                                                                                                                            
|10.4  | Form of Subscription
        Agreement (Incorporated by reference to the Companys Current Report
        on Form 8-K filed with the Commission on September 14, 2007.)                                                                                                                                                                    
|      |                                                                                                                                                                                                                                                                                                                                            
|10.5  | Form of Warrant
        Agreement (Incorporated by reference to the Companys Current Report
        on Form 8-K filed with the Commission on September 14, 2007.)                                                                                                                                                                         
|      |                                                                                                                                                                                                                                                                                                                                            
|10.6  | Agreement of
        Plan of Merger between Wescorp Energy Inc., Strategic Decisions Sciences
        USA Inc. and Scott Shemwell (Incorporated by reference to the Companys
        Current Report on Form 8-K filed with the Commission on September 11,
        2007.)                                                                 
|      |                                                                                                                                                                                                                                                                                                                                            
|31.1* | Certification
        of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley
        Act of 2002                                                                                                                                                                                                                         
|      |                                                                                                                                                                                                                                                                                                                                            
|31.2* | Certification
        of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
        Act of 2002                                                                                                                                                                                                                         
|      |                                                                                                                                                                                                                                                                                                                                            
|32.1* | Certification
        of Chief Executive Officer and Chief Financial Officer pursuant to 18
        U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley
        Act of 2002                                                                                                                                      

*Filed herewith.

20

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SIGNATURES

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

|                      | Wescorp Energy, Inc.               
|--------------------- | -----------------------------------
|                      |                                    
|Date: August 14, 2008 | By: /s/ Douglas Biles              
|                      | Douglas Biles                      
|                      | Chief Executive Officer            
|                      | (Principal Executive Officer)      
|                      |                                    
|Date: August 14, 2008 | By: /s / Terry Mereniuk            
|                      | Terry Mereniuk                     
|                      | Chief Financial Officer            
|                      | (Principal Financial and Accounting
|                      | Officer)                           

21

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EXHIBIT INDEX

|Exhibit |                                                                                                                                                                                                                                                                                                                                            
|------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Number  | Description                                                                                                                                                                                                                                                                                                                                
|        |                                                                                                                                                                                                                                                                                                                                            
|3.1     | Restated Articles
        of Incorporation of the Company filed February 17, 2004 (Incorporated
        by reference to the Companys Annual Report on Form 10-KSB/A filed
        with the Commission on May 13, 2004, File No. 000- 30095.)                                                                                              
|        |                                                                                                                                                                                                                                                                                                                                            
|3.2     | Bylaws of the
        Company (Incorporated by reference to the Companys Form 10SB12G
        filed with the Commission on March 24, 2000, File No. 000- 30095.)                                                                                                                                                                          
|        |                                                                                                                                                                                                                                                                                                                                            
|4.1     | Form of Common
        Stock Purchase Warrant dated March 15, 2005 (Incorporated by reference
        to the Companys Current Report on Form 8-K filed with the Commission
        on March 21, 2005, File No. 000- 30095.)                                                                                                               
|        |                                                                                                                                                                                                                                                                                                                                            
|4.2     | Certificate for
        14% Secured Convertible Debenture dated April 28, 2005 (Incorporated by
        reference to the Companys Current Report on Form 8-K filed with
        the Commission on April 29, 2005, File No. 000- 30095.)                                                                                                   
|        |                                                                                                                                                                                                                                                                                                                                            
|4.3     | Form of Common
        Stock Purchase dated April 28, 2005 (Incorporated by reference to the
        Companys Current Report on Form 8-K filed with the Commission on
        April 29, 2005, File No. 000-30095.)                                                                                                                        
|        |                                                                                                                                                                                                                                                                                                                                            
|4.4     | Addendum dated
        February 6, 2003 to that certain Loan Agreement dated January 28, 2003
        between the Company and AHC Holdings Ltd. containing Stock Purchase Warrant
        (Incorporated by reference to the Companys Current Report on Form
        8-K filed with the Commission on April 28, 2003, File No. 000- 30095.)
|        |                                                                                                                                                                                                                                                                                                                                            
|4.5     | Form of Warrant
        issued to the United States Resident Purchaser named therein. (Incorporated
        by reference to the Companys Current Report on Form 8-K filed with
        the Commission on December 24, 2006, File No. 000-30095.)                                                                                          
|        |                                                                                                                                                                                                                                                                                                                                            
|4.6     | Form of Warrant
        issued to the Non-United States Resident Purchaser named therein. (Incorporated
        by reference to the Companys Current Report on Form 8-K filed with
        the Commission on December 24, 2006, File No. 000-30095.)                                                                                      
|        |                                                                                                                                                                                                                                                                                                                                            
|10.1    | Employment Agreement
        between Wescorp Energy Inc. and Douglas Biles (Incorporated by reference
        to the Companys Current Report on Form 8-K filed with the Commission
        on September 21, 2007.)                                                                                                                        
|        |                                                                                                                                                                                                                                                                                                                                            
|10.2    | Employment Agreement
        between Wescorp Energy Inc. and Scott Shemwell (Incorporated by reference
        to the Companys Current Report on Form 8-K filed with the Commission
        on September 21, 2007.)                                                                                                                       
|        |                                                                                                                                                                                                                                                                                                                                            
|10.3    | Consultant Service
        Agreement between Wescorp Energy Inc., and Steve Cowper (Incorporated
        by reference to the Companys Current Report on Form 8-K filed with
        the Commission on September 21, 2007.)                                                                                                                
|        |                                                                                                                                                                                                                                                                                                                                            
|10.4    | Form of Subscription
        Agreement (Incorporated by reference to the Companys Current Report
        on Form 8-K filed with the Commission on September 14, 2007.)                                                                                                                                                                    
|        |                                                                                                                                                                                                                                                                                                                                            
|10.5    | Form of Warrant
        Agreement (Incorporated by reference to the Companys Current Report
        on Form 8-K filed with the Commission on September 14, 2007.)                                                                                                                                                                         
|        |                                                                                                                                                                                                                                                                                                                                            
|10.6    | Agreement of
        Plan of Merger between Wescorp Energy Inc., Strategic Decisions Sciences
        USA Inc. and Scott Shemwell (Incorporated by reference to the Companys
        Current Report on Form 8-K filed with the Commission on September 11,
        2007.)                                                                 
|        |                                                                                                                                                                                                                                                                                                                                            
|31.1*   | Certification
        of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley
        Act of 2002                                                                                                                                                                                                                         

22

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|31.2* | Certification
        of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
        Act of 2002                                                                                   
|----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|      |                                                                                                                                                                                                      
|32.1* | Certification
        of Chief Executive Officer and Chief Financial Officer pursuant to 18
        U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley
        Act of 2002

*Filed herewith.

23

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