| Nevada                                                                            |   |   |   | 20-8428738                           |
|-----------------------------------------------------------------------------------|--------|--------|--------|--------------------------------------|
| (State or other jurisdiction of incorporation          or           organization) |   |   |   | (IRS Employer Identification Number) |
|                                                                                   |   |        |   |                                      |
| 3880 Hulen St., Ste 500, Fort Worth,          TX | 76107      |
|--------------------------------------------------|------------|
| (Address of principal executive offices))        | (Zip Code) |

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|                                                                                                                                                         | **Page No.** |
|---------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|
| **PART III**                                                                                                                                            |              |
| Item 9. Directors, Executive      Officers, Promoters, Control persons and Corporate Governance; Compliance      with Section 16(a) of the Exchange Act | 1            |
| Item 10. Executive Compensation                                                                                                                         | 4            |
| Item 11. Security Ownership      of Certain Beneficial Owners and Management and Related Stockholder Matters                                            | 7            |
| Item 12. Certain Relationships      and Related Transactions and Director Independence                                                                  | 10           |
| Item 13. Exhibits                                                                                                                                       | 10           |
| Item 14. Principal Accountant      Fees and Services                                                                                                    | 12           |
|                                                                                                                                                    |         |
| **GLOSSARY**                                                                                                                                            |         |
|                                                                                                                                                    |         |
| **SIGNATURES**                                                                                                                                          | 13           |
| Certification by the President and CEO Pursuant      to Section 302                                                                                     |         |
| Certification by the CFO Pursuant to Section      302                                                                                                   |         |
| Certification by the President and CEO Pursuant      to Section 906                                                                                     |         |
| Certification by the CFO Pursuant to Section      906                                                                                                   |         |

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| **M.O. Rife III**            Age 69             Director since 2007                                                                                | Mr. Rife joined our board of directors in February      2007, and has served as our Chairman of the Board since February 2007. Mr.      Rife also serves on our Audit Committee as its chairman and as a member      of our Compensation Committee. From 1997 to 2005, Mr. Rife served as Chairman      of Board of Matrix Energy Services Corp., a publicly traded oil and gas      exploration company. Mr. Rife has been in the oil and gas industry for 50      years and has been involved in the drilling, completion and operation of      over 3,500 wells throughout the mid-continent Region including Louisiana,      Oklahoma, and New Mexico. Mr. Rife attended Texas Christian University.                                                                                                                                                                                          |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| **Mark S. Zouvas**            Age 45            President and Chief Executive Officer            Director since 2007 | Mr. Zouvas joined our board of      directors in February 2007, and has served as our Chief Executive Officer      since February 2007. He also serves as a member of our Audit Committee.      Mr. Zouvas served as the Chief Financial Officer and on the board of directors      of Matrix Energy Services Corp., a publicly traded oil and gas exploration      firm, from 1998 to 2005 From 1995 to 1997, Mr. Zouvas served as the Chief      Financial Officer for a professional services division in a major commodities      company. Mr. Zouvas was a staff auditor at Price Waterhouse where he performed      services for clients in the banking and real estate industries. Early in      his career, Mr. Zouvas was a licensed broker and an accountant in the state      of California. Mr. Zouvas received his Bachelor of Arts from the University      of California Berkeley. |
|                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| **Scott Allen**            Age 42            Chief Financial Officer            Director since 2008                  | Mr. Allen joined our board of      directors in June 2008, and has served as our Chief Financial Officer since      February 2007. Since 2002, Mr. Allen has owned and operated Scott Allen      CPA, LLC. Mr. Allen is a certified public accountant. He began his career      with KPMG Peat Marwick in Midland, Texas. Mr. Allen has more than 18 years      of oil and gas industry experience. Mr. Allen received a Bachelor of Science      in accounting from Montana State University and a Master in Business Administration      degree from Texas Christian University.                                                                                                                                                                                                                                                                                                                |

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| **Jean-Baptiste Heinzer**            Age 39            Director since 2007                                                              | Mr. Heinzer joined our board of      directors in 2007. In 2002, Mr. Heinzer co-founded Equitys, a project management      and corporate finance company and served as the President of Equitys until      2006. Mr. Heinzer began his career working at Caterpillar from 1994 to 1999.      Jean-Baptiste graduated from the University of Lausanne business school,      and received a post graduate degree in Corporate Finance from the University      of Geneva.                                                                                                                                                                                                                |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| **Alan Rae**            Age 50            Director since 2007                                                                           | Mr. Rae joined our board of directors      in 2007. In 2003, Mr. Rae founded O2Diesel Corp. (AMEX - OTD), a fuel development      company, and served as the Chief Executive Officer of O2Diesel from 2003      to 2008. Mr. Rae has over twenty-five years of diverse commercial experience,      in the automotive, financial and service industries as a consultant, business      owner and manager.                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| **Brett Bennett**            Age 42             Vice President of Administration                                                        | Mr. Bennett has served as our      Vice President of Administration since February 2007. Mr. Bennett also served      on our board of directors from February 2007 to October 2007, when he resigned      from the board of directors. Mr. Bennett joined Rife Energy Operating, Inc.      in June of 2004 as Communications Officer serving various capacities including      investor relations and regulatory reporting. He is the 4th generation of      the Bennett family involved in the oil and gas industry. Prior to joining      Rife Energy, Mr. Bennett built a successful employee benefits/corporate      retirement solutions business in the Dallas/Ft. Worth market. |
|                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| **Vern Wilson**            Age 71             Vice President of Operations                                                              | Mr. Wilson has served as our Vice      President of Operations since November 1, 2007. Mr. Wilson began consulting      on our Corsicana surfactant polymer flood project in March 2007. He has      over 30 years of petroleum engineering experience including drilling, completion,      production facility design, reservoir engineering and enhanced oil recovery.      Mr. Wilson has a bachelor of science in petroleum engineering from the University      of Oklahoma.                                                                                                                                                                                                      |
|                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| **Joe Bill Bennett**            Age 61             Former Chief Operating Officer            and Director | Mr. Bennett served as our Chief      Operating Officer and as a member of our board of directors from October      2007 to June 2008, when he resigned from both positions.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |

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| **Name and Principal      Position** | **Year** | **Salary        ($)** | **Bonus        ($)** | **Stock         Awards        ($)** | **Option         Awards        ($)** | **All         Other         Compen        -sation         ($)** | **Total         ($)** |
|--------------------------------------|----------|-----------------------|----------------------|-------------------------------------|--------------------------------------|-----------------------------------------------------------------|-----------------------|
|                                 |     |                  |                 |                                |                                 |                                                            |                  |
| Mark S. Zouvas,                      | 2008     | 120,000               | --                   | --                                  | --                                   | --                                                              | 120,000               |
| Chief Executive Officer              | 2007     | 20,000                | --                   | --                                  | --                                   | --                                                              | 20,000                |
|                                 |          |                       |                      |                                     |                                      |                                                                 |                       |
| Scott D. Allen,                      | 2008     | 84,000                | 249,525              | --                                  | --                                   | 4,000                                                           | 337,525               |
| Chief Financial Officer              | 2007     | 15,000                | --                   | --                                  | --                                   | --                                                              | 15,000                |
|                                 |          |                       |                      |                                     |                                      |                                                                 |                       |
| Joe Bill Bennett,                    | 2008     | 66,000                | --                   | --                                  | --                                   | --                                                              | 66,000                |
| Former Chief Operating Officer       | 2007     | --                    | --                   | --                                  | --                                   | --                                                              | --                    |
|                                 |          |                       |                      |                                     |                                      |                                                                 |                       |
| Brett Bennett,                       | 2008     | 84,000                | --                   | 332,691                             | --                                   | 16,000                                                          | 432,691               |
| Vice President of Administration     | 2007     | 13,500                | --                   | --                                  | --                                   | --                                                              | 13,500                |
|                                 |          |                       |                      |                                     |                                      |                                                                 |                       |
| Vern Wilson,                         | 2008     | 60,000                | --                   | --                                  | --                                   | --                                                              | 60,000                |
| Vice President of Operations         | 2007     | --                    | --                   | --                                  | --                                   | --                                                              | --                    |

----

----

|                                                             | **Option Awards**                                                                                              |                                        | **Stock Awards**                         |
|-------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------|---------------------------------------------|------------------------------------------|
| **Name**                                                    | **Number of         Securities         Underlying         Unexercised        Options         Exercisable (#)** | **Option        Exercise        Price ($)** | **Option        Expiration        Date** | **Number        of        Shares         That Have        Not        Vested** | **Market        Value of        Shares         That Have        Not        Vested** |
| Mark S. Zouvas,       Chief Executive Officer               | --                                                                                                             | --                                          | --                                       | -- | -- |
|                                                        |                                                                                                           |                                        |                                     |   |   |
| Scott D. Allen,       Chief Financial Officer               | --                                                                                                             | --                                          | --                                       | 150,000(1) | $93,000 |
|                                                        |                                                                                                           |                                        |                                     |   |   |
| Joe Bill Bennett,            Former Chief Operating Officer | --                                                                                                             | --                                          | --                                       | -- | -- |
|                                                        |                                                                                                           |                                        |                                     |   |   |
| Brett Bennett,      Vice President of Administration        | --                                                                                                             | --                                          | --                                       | 200,000(2) | $124,000 |
|                                                        |                                                                                                           |                                        |                                     |   |   |
| Vern Wilson,      Vice President of Operations              | --                                                                                                             | --                                          | --                                       | -- | -- |

| (1)    |   | Mr. Allen was granted restricted stock awards      equal to 300,000 shares. These shares were granted on April 1, 2007 and      vest over a two-year period with 50% of the award having vested on March      31, 2008 and the remaining 50% vesting on March 31, 2009.    |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                       |
| (2)    |   | Mr. Bennett was granted a restricted stock      award equal to 400,000 shares. These shares were granted on April 1, 2007      and vest over a two-year period with 50% of the award having vested on March      31, 2008 and the remaining 50% vesting on March 31, 2009. |

----

|   | **Name             ** | **Fees Earned or         Paid in Cash ($)** | **Option Awards         ($)** | **Total ($)** |   |
|--------|-----------------------------------------------------------------------------------|---------------------------------------------|-------------------------------|---------------|--------|
|   |                                                                                   |                                        |                          |          |   |
|   | M.O. Rife III                                                                     | --                                          | --                            | --            |   |
|   |                                                                              |                                        |                          |          |   |
|   | Mark S. Zouvas                                                                    | --                                          | --                            | --            |   |
|   |                                                                              |                                        |                          |          |   |
|   | Alan Rae                                                                          | 13,000                                      | 19,692                        | 32,692        |   |
|   |                                                                              |                                        |                          |          |   |
|   | Jean-Baptiste Heinzer                                                             | 13,000                                      | 19,692                        | 32,692        |   |
|   |                                                                              |                                        |                          |          |   |
|   | Joe Bill Bennett                                                                  | --                                          | --                            | --            |   |
|   |                                                                              |                                        |                          |          |   |
|   | Brett Bennett                                                                     | --                                          | --                            | --            |   |

----

| **Plan      Category**                                              |   | **(a) Number of         securities to be        issued upon         exercise of         outstanding         options** |        | **(b) Weighted         average exercise         price of         outstanding         options** |        | **(c) Number of         securities         remaining         available for         future issuance         under equity         compensation        plans (excluding         securities reflected         in column (a))** |
|---------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                |   |                                                                                                                  |   |                                                                                           |   |                                                                                                                                                                                                                       |
| **Equity compensation plans approved      by security holders**     |   |                                                                                                                  |
|                                                                |   |                                                                                                                  |   |                                                                                           |   |                                                                                                                                                                                                                       |
| None                                                                |   | --                                                                                                                    |   | --                                                                                             |   | --                                                                                                                                                                                                                         |
|                                                                |   |                                                                                                                  |   |                                                                                           |   |                                                                                                                                                                                                                       |
| **Equity compensation plans not      approved by security holders** |   |                                                                                                                  |
|                                                                |   |                                                                                                                  |   |                                                                                           |   |                                                                                                                                                                                                                       |
| Options Issued to Directors                                         |   | 100,000                                                                                                               |   | $1.11                                                                                          |   | --                                                                                                                                                                                                                         |
|                                                                |   |                                                                                                                  |   |                                                                                           |   |                                                                                                                                                                                                                       |
| **Total**                                                           |   | 100,000                                                                                                               |   | $1.11                                                                                          |   | --                                                                                                                                                                                                                         |

----

|                          | **Name of        Beneficial Owner**                                |   | **Amount and Nature of        Beneficial Ownership** |   | **Percent of        Class** |
|-------------------------------|--------------------------------------------------------------------|--------|------------------------------------------------------|--------|-----------------------------|
| *5% or Greater Stockholders:* |                                                               |   |                                                 |   |
|                          | JMT Resources Ltd.(1)                                              |   | 15,822,750(1)                                        |   | 19.7%                       |
|                          |                                                               |   |                                                      |   |                             |
|                          | Benco Operating, Inc.(2)                                           |   | 16,041, 750(2)                                       |   | 20.0%                       |
|                          |                                                               |   |                                                      |   |                             |
|                          | REO Energy Ltd.(2)                                                 |   | 22,855, 500(2)                                       |   | 28.5%                       |
|                          |                                                               |   |                                                      |   |                             |
|                          | SG Private Banking (Suisse)      SA(3)                             |   | 8,000,000                                            |   | 10.0%                       |
|                          |                                                               |   |                                                 |   |                        |
| *Directors and Officers*      |                                                               |   |                                                 |   |
|                          | Mark S. Zouvas(1)                                                  |   | 15,822,750(1)                                        |   | 19.7%                       |
|                          |                                                               |   |                                                      |   |                             |
|                          | M.O. Rife III(2)                                                   |   | 38,897,250(2)                                        |   | 48.5%                       |
|                          |                                                               |   |                                                      |   |                             |
|                          | Scott D. Allen                                                     |   | 150,000 (5)                                          |   | *                           |
|                          |                                                               |   |                                                      |   |                             |
|                          | Alan Rae                                                           |   | 16,667 (4)                                           |   | *                           |
|                          |                                                               |   |                                                      |   |                             |
|                          | Jean-Baptiste Heinzer                                              |   | 16,667 (4)                                           |   | *                           |
|                          |                                                               |   |                                                      |   |                             |
|                          | Joe Bill Bennett                                                   |   | --                                                   |   | *                           |
|                          |                                                               |   |                                                      |   |                             |
|                          | Brett Bennett                                                      |   | 200,000 (5)                                          |   | *                           |
|                          |                                                               |   |                                                      |   |                             |
|                          | Directors      and executive officers       as a group (7 persons) |   | 55,103,334                                           |   | 68.7%                       |

| (1)    |   | Mr. Zouvas is a Managing Partner of JMT Resources      Ltd. and has voting power and dispositive power with respect to the shares.      He also has an ownership interest in the partnership.                                                                                                                                                                                                                                                                                                                                                        |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (2)    |   | Mr. Rife is a Managing Partner of REO Energy      Ltd. and has voting power and dispositive power with respect to the 22,855,500      shares held of record by REO Energy Ltd.. He also has an ownership interest      in the partnership. Pursuant to a contractual arrangement between Benco      Operating and Mr. Rife, Mr. Rife has voting and dispositive power with respect      to the 16,041,750 shares held of record by Benco Operating. Mr. Rife disclaims      beneficial ownership with respect to the shares held by Benco Operating. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (3)    |   | Alexandrie Orloff is the deputy Vice President      of SG Private Bank and has voting power and dispositive power with respect      to the shares.                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (4)    |   | These shares represent the number of options      exercisable pursuant to options granted in connection with service on our      board. The options were granted in July 2007, and one-third vested on March      31, 2008, one-third will vest on March 31, 2009, and one-third will vest      on March 31, 2010, at a strike price of $1.11.                                                                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (5)    |   | These shares represent the number of vested      shares issued under employment agreements dated April 1, 2007.                                                                                                                                                                                                                                                                                                                                                                                                                                      |

----

| **Number** |   | **Exhibit      Description**                                                                                                                                                                                                                                        |
|------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3(i).1     |   | Articles of Incorporation filed with the Nevada      Secretary of State on November 29, 2004. (Incorporated by reference from      the registrant's registration statement on Form SB-2 filed on September      8, 2005.)                                           |
|       |   |                                                                                                                                                                                                                                                                |
| 3(i).2     |   | Certificate of Change filed with the Nevada      Secretary of State on November 21, 2006. (Incorporated by reference from      the registrant's registration statement on Form 8-K filed on November 30,      2006.)                                                |
|       |   |                                                                                                                                                                                                                                                                |
| 3(i).3     |   | Certificate of Amendment filed with the Nevada      Secretary of State on February 7, 2007. (Incorporated by reference from      the registrant's registration statement on Form SB-2 filed on August 1,      2007.)                                                |
|       |   |                                                                                                                                                                                                                                                                |
| 3(ii).1    |   | Bylaws. (Incorporated by reference from the      registrant's registration statement on Form SB-2 filed on August 1, 2007.)                                                                                                                                         |
|       |   |                                                                                                                                                                                                                                                                |
| 10.1       |   | Purchase and Sale Agreement by and between      the registrant and United Texas Petroleum, Inc. dated December 4, 2007.      (Incorporated by reference from the registrant's current report on Form      8-K filed on December 7, 2007.)                           |
|       |   |                                                                                                                                                                                                                                                                |
| 10.2       |   | Contribution Agreement by and among the registrant,      JMT Resources, Ltd., REO Energy, Ltd., and Benco Operating, Inc. dated February      1, 2007. (Incorporated by reference from the registrant's current report      on Form 8-K filed on February 6, 2007.) |
|       |   |                                                                                                                                                                                                                                                                |
| 10.3       |   | Private Placement Subscription Agreement. (Incorporated      by reference from the registrant's registration statement on Form SB-2 filed      on August 1, 2007.)                                                                                                  |
|       |   |                                                                                                                                                                                                                                                                |
| 10.4       |   | Common Stock Purchase Warrant. (Incorporated      by reference from the registrant's registration statement on Form SB-2 filed      on August 1, 2007.)                                                                                                             |
|       |   |                                                                                                                                                                                                                                                                |
| 10.5       |   | Joint Operating Agreement dated February 1,      2007 by Rife Energy Operating, Inc. and the registrant. (Incorporated by      reference from the registrant's registration statement on Form SB-2 filed      on August 1, 2007.)                                   |
|       |   |                                                                                                                                                                                                                                                                |
| 10.6       |   | Joint Operating Agreement by and between the      registrant and Texas MOR, Inc. dated February 1, 2007. (Incorporated by      reference from the registrant's registration statement on Form SB-2 filed      on August 1, 2007.)                                   |
|       |   |                                                                                                                                                                                                                                                                |
| 10.7       |   | Employee Confidentiality and Property Agreement      by and between the registrant and Scott Allen. (Incorporated by reference      from the registrant's registration statement on Form SB-2 filed on August      1, 2007.)                                        |

----

| 10.8   |   | Employee Confidentiality and Property Agreement      by and between the registrant and Mark S. Zouvas. (Incorporated by reference      from the registrant's registration statement on Form SB-2 filed on August      1, 2007.)        |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                   |
| 10.9   |   | Employee Confidentiality and Property Agreement      by and between the registrant and Brett Bennett. (Incorporated by reference      from the registrant's registration statement on Form SB-2 filed on August      1, 2007.)         |
|   |   |                                                                                                                                                                                                                                   |
| 10.10  |   | Purchase and Sale Agreement by and between      Cimmarron Gathering, LP. and the registrant dated June 6, 2007. (Incorporated      by reference from the registrant's current report on Form 8-K filed on June      7, 2007.)          |
|   |   |                                                                                                                                                                                                                                   |
| 10.11  |   | Purchase and Sale Agreement by and between      the registrant and Vern Wilson Energy, Inc. dated September 28, 2007. (Incorporated      by reference from the registrant's current report on Form 8-K filed on October      4, 2007.) |
|   |   |                                                                                                                                                                                                                                   |
| 10.12  |   | Purchase and Sale Agreement by and between      the registrant and United Texas Petroleum, Inc. dated December 4, 2007.      (Incorporated by reference from the registrant's Form 8-K filed on December      7, 2007.)                |
|   |   |                                                                                                                                                                                                                                   |
| 21.1   |   | List of Subsidiaries of the Registrant. (Incorporated      by reference to the registrant's Form 10-KSB filed on July 15, 2008.)                                                                                                       |
|   |   |                                                                                                                                                                                                                                   |
| 23.1   |   | Consent of Killman, Murrell & Company, P.C.      (Filed as part of the registrant's Form 10-KSB/A filed on July 15, 2008.)                                                                                                             |
|   |   |                                                                                                                                                                                                                                   |
| 23.2   |   | Consent of Forest Garb & Associates. (Filed      as part of the registrant's Form 10-KSB/A filed on July 15, 2008.)                                                                                                                    |
|   |   |                                                                                                                                                                                                                                   |
| 24.1   |   | Power of Attorney. (Incorporated by reference      to the signature page of this Annual Report on Form 10-KSB).                                                                                                                        |
|   |   |                                                                                                                                                                                                                                   |
| 31.1   |   | Certification by the CEO Pursuant to Section      302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                               |
|   |   |                                                                                                                                                                                                                                   |
| 31.2   |   | Certification by the CFO Pursuant to Section      302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                               |
|   |   |                                                                                                                                                                                                                                   |
| 32.1   |   | Certification by the CEO Pursuant to Section      906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                               |
|   |   |                                                                                                                                                                                                                                   |
| 32.2   |   | Certification by the CFO Pursuant to Section      906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                               |
|   |   |                                                                                                                                                                                                                                   |
| 99.1   |   | Estimated Reserves and Future Net Revenue Report      prepared by Forrest A. Garb & Associates, Inc. (Incorporated by reference      to the registrant's Form 10-KSB filed on July 15, 2008.)                                      |

----

|   |                    |   | **2008** |   |   | **2007** |   |
|--------|--------------------|--------|----------|--------|--------|----------|--------|
|   | Audit Fees         | $      | 94,953   |   | $      | 185,185  |   |
|   | Audit-Related Fees | $      | --       |   | $      | --       |   |
|   | Tax Fees           | $      | --       |   | $      | --       |   |
|   | All Other Fees     | $      | --       |   | $      | --       |   |

----

|                |                  | **REOSTAR ENERGY CORPORATION**                                                                                                                                                                                                                                                                                                                                                                                                           |
|---------------------|-----------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                |                  |                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                |                  |                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Date: July 29, 2008 | By:    |     /s/   Mark      S. Zouvas                                                             |
|                |                  |     Mark S. Zouvas           President, Chief Executive Officer and Director                                                                                                                                                                                                                                                                                                                     |

| **SIGNATURE**                                 |   | **TITLE**                                       |   | **DATE**      |
|-----------------------------------------------|--------|-------------------------------------------------|--------|---------------|
|                                          |   |                                            |   |          |
| /s/  Mark S. Zouvas                 |   | President, Chief Executive Officer and Director |   | July 29, 2008 |
|     Mark S. Zouvas        |   | (Principal Executive Officer)                   |   |               |
|                                          |   |                                            |   |               |
| /s/      Scott Allen                          |   | Chief Financial Officer and Director            |   | July 29, 2008 |
|     Scott Allen           |   | (Principal Financial Officer)                   |   |               |
|                                          |   |                                            |   |               |
| /s/      M. O. Rife III                       |   | Chairman of the Board of Directors              |   | July 29, 2008 |
|     M. O. Rife III        |   |                                            |   |               |
|                                          |   |                                            |   |               |
| /s/      Jean-Baptiste Heinzer                |   | Director                                        |   | July 29, 2008 |
|     Jean-Baptiste Heinzer |   |                                            |   |               |
|                                          |   |                                            |   |               |
| /s/      Alan Rae                             |   | Director                                        |   | July 29, 2008 |
|     Alan Rae              |   |                                            |   |          |
|                                          |   |                                            |   |          |

----