----

----

| þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d   ) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|-----------------------------------------------------------------------------------------------------------|

| o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|------------------------------------------------------------------------------------------|

| Nevada                                                         |   | 86-0884116                           |
|----------------------------------------------------------------|--------|--------------------------------------|
| (State or other Jurisdiction of incorporation or organization) |   | (I.R.S. Employer Identification No.) |

| 440 Louisiana, Suite 1400Houston, Texas 77002 |
|-----------------------------------------------|
| (Address of principal executive offices)      |

| (504) 599-5684                                             |
|------------------------------------------------------------|
| (Registrant’s telephone number, including area code) |

| Large accelerated filer     | o |                                          | Accelerated filer         | o      |
|-----------------------------|---|-----------------------------------------------|---------------------------|--------|
| Non-accelerated filer  | o | (do not check if a smaller reporting company) | Smaller reporting company | þ |

----

----

----

| PART I – FINANCIAL INFORMATION |                                                                                              |   |   |
|--------------------------------------|---------------------------------------------------------------------------------------------------|--------|--------|
|                                 |                                                                                              |   |   |   |
| Item 1                               | Financial Statements                                                                              |   |   | 3 |   |
|                                 |                                                                                              |   |   |   |   |
| Item 2                               | Management’s Discussion And Analysis Of Financial Condition And Results Of Operations  |   |   | 17 |   |
|                                 |                                                                                              |   |   |   |   |
| Item 3                               | Quantitive And Qualitative Disclosures About Market Risk                                          |   |   | 19 |   |
|                                 |                                                                                              |   |   |   |   |
| Item 4                               | Controls and Procedures                                                                           |   |   | 20 |   |
|                                 |                                                                                              |   |   |   |
| PART II – OTHER INFORMATION    |                                                                                              |   |   |   |
|                                 |                                                                                              |   |   |   |
| Item 1                               | Legal Proceedings                                                                                 |   |   | 21 |   |
|                                 |                                                                                              |   |   |   |   |
| Item 1A                              | Risk Factors                                                                                      |   |   | 22 |   |
|                                 |                                                                                              |   |   |   |   |
| Item 2                               | Unregistered Sales of Equity Securities                                                           |   |   | 22 |   |
|                                 |                                                                                              |   |   |   |   |
| Item 3                               | Defaults Upon Senior Securities                                                                   |   |   | 22 |   |
|                                 |                                                                                              |   |   |   |   |
| Item 4                               | (Removed and Reserved)                                                                            |   |   | 22 |   |
|                                 |                                                                                              |   |   |   |   |
| Item 5                               | Other Information                                                                                 |   |   | 22 |   |
|                                 |                                                                                              |   |   |   |   |
| Item 6                               | Exhibits                                                                                          |   |   | 23 |   |
|                                 |                                                                                              |   |   |   |   |
|                                 |                                                                                              |   |   |   |
| SIGNATURES                           |                                                                                              |   | 24     |   |

----

|                                                                                                                                         |   | September 30,2010(Unaudited) |    |   | December 31, 2009 (Audited) |   |
|----------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|---------|--------|---------------------------------------|--------|
|                                                                                                                                         |   |                              |    |   |                                  |   |
| ASSETS                                                                                                                                       |   |                              |    |   |                                  |   |
|                                                                                                                                         |   |                              |    |   |                                  |   |
| Cash and equivalents                                                                                                                         |   | $                                 | 684     |   |                                  | $      | - |   |
| Oil and gas accounts receivable                                                                                                              |   |                              | 1,295   |   |                                  |   | - |   |
| Total current assets                                                                                                                         |   |                              | 1,979   |   |                                  |   | - |   |
|                                                                                                                                         |   |                              |    |   |                                  |   |   |   |
| Oil and gas properties - proved (successful efforts method)                                                                             |   |                              | 152,549 |   |                                  |   | - |   |
| Less: accumulated amortization                                                                                                               |   |                              | (125    | )      |                                  |   | - |   |
| Net oil and gas properties                                                                                                                   |   |                              | 152,424 |   |                                  |   | - |   |
|                                                                                                                                         |   |                              |    |   |                                  |   |   |   |
| Other property, plant and equipment, net of accumulated depreciation of $29 and $0 at September 30, 2010 and December 31, 2009, respectively |   |                              | 1,730   |   |                                  |   | - |   |
|                                                                                                                                         |   |                              |    |   |                                  |   |   |   |
| Prepaid expenses and other                                                                                                                   |   |                              | 26,253  |   |                                  |   | 6,678 |   |
|                                                                                                                                         |   |                              |    |   |                                  |   |   |   |
| TOTAL ASSETS                                                                                                                                 |   | $                                 | 182,386 |   |                                  | $      | 6,678 |   |

----

|                                                                                                                                                                   |   | September 30,2010(Unaudited) |       |   | December 31,2009(Audited) |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|------------|--------|--------------------------------|--------|
|                                                                                                                                                                   |   |                              |       |   |                           |   |
| LIABILITIES                                                                                                                                                            |   |                              |       |   |                           |   |
|                                                                                                                                                                   |   |                              |       |   |                           |   |
| Accounts payable and accrued liabilities                                                                                                                               |   | $                                 | 358,484    |   |                           | $      | 360,020 |   |
| Notes and accrued interest to related parties                                                                                                                          |   |                              | 347,989    |   |                           |   | 201,641 |   |
| Notes and accrued interest payable                                                                                                                                     |   |                              | 381,728    |   |                           |   | 162,501 |   |
| Total current liabilities                                                                                                                                              |   |                              | 1,088,201  |   |                           |   | 724,162 |   |
|                                                                                                                                                                   |   |                              |       |   |                           |   |   |   |
| TOTAL LIABILITIES                                                                                                                                                      |   |                              | 1,088,201  |   |                           |   | 724,162 |   |
|                                                                                                                                                                   |   |                              |       |   |                           |   |   |   |
| STOCKHOLDERS' DEFICIT                                                                                                                                                  |   |                              |       |   |                           |   |   |   |
|                                                                                                                                                                   |   |                              |       |   |                           |   |   |   |
| Preferred stock - par value $0.001, 50 million shares authorized, none issued or outstanding at September 30, 2010 or December 31, 2009.                               |   |                              | -          |   |                           |   | - |   |
| Common stock – par value $0.001, 500 million shares authorized.  496,605,424 shares issued and outstanding at September 30, 2010 and December 31, 2009 |   |                              | 496,605    |   |                           |   | 496,605 |   |
| Additional paid in capital                                                                                                                                             |   |                              | 524,444    |   |                           |   | 475,688 |   |
| Common stock payable                                                                                                                                                   |   |                              | 204,000    |   |                           |   | - |   |
| Accumulated loss - pre exploration stage                                                                                                                               |   |                              | (644,829   | )      |                           |   | (644,829 | ) |
| Accumulated loss - exploration stage                                                                                                                                   |   |                              | (1,486,035 | )      |                           |   | (1,044,948 | ) |
|                                                                                                                                                                   |   |                              |       |   |                           |   |   |   |
| Total stockholders' deficit                                                                                                                                            |   |                              | (905,815   | )      |                           |   | (717,484 | ) |
|                                                                                                                                                                   |   |                              |       |   |                           |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT                                                                                                                            |   | $                                 | 182,386    |   |                           | $      | 6,678 |   |

----

|                                                                 |   | Nine months endedSeptember 30, |        |   | Three months endedSeptember 30, |   |        | From Re Entry to the Development Stage (7/1/09) to 09/30/10 |   |
|----------------------------------------------------------------------|--------|-------------------------------------|-------------|--------|--------------------------------------|--------|-------------|-------------------------------------------------------------|--------|
|                                                                 |   | 2010 (Unaudited)                    |        |   | 2009 (Unaudited)                     |   |        | 2010 (Unaudited)                                            |   |   | 2009 (Unaudited) |   |   | (Unaudited) |   |
|                                                                 |   |                                |        |   |                                 |   |        |                                                        |   |   |   |   |   |   |   |
| REVENUES                                                             |   |                                |        |   |                                 |   |        |                                                        |   |   |   |   |   |   |   |
| Sales of oil                                                         |   | $                                   | 1,570       |   |                                 | $      | 423         |                                                        |   | $ | 1,570 |   |   | $ | - |   |   | $ | 1,570 |   |
|                                                                 |   |                                |        |   |                                 |   |        |                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Total revenues                                                       |   |                                | 1,570       |   |                                 |   | 423         |                                                        |   |   | 1,570 |   |   |   | - |   |   |   | 1,570 |   |
|                                                                 |   |                                |        |   |                                 |   |        |                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| EXPENSES                                                             |   |                                |        |   |                                 |   |        |                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|  Royalties                                                      |   |                                | 275         |   |                                 |   |        |                                                        |   |   |   |   |   |   | - |   |   |   | 275 |   |
|  Lease operating expenses                                       |   |                                | 343,031     |   |                                 |   | 27,813      |                                                        |   |   | 330,806 |   |   |   |   |   |   |   | 358,214 |   |
|  Transportation costs                                           |   |                                | -           |   |                                 |   | 455         |                                                        |   |   | - |   |   |   |   |   |   |   | (354 | ) |
|  Production taxes                                               |   |                                | -           |   |                                 |   | 14          |                                                        |   |   | - |   |   |   |   |   |   |   | (352 | ) |
|  Impairment of oil and gas properties                           |   |                                | -           |   |                                 |   | 218,984     |                                                        |   |   | - |   |   |   | 218,984 |   |   |   | 411,412 |   |
|  General and administrative                                     |   |                                | 381,133     |   |                                 |   | 277,823     |                                                        |   |   | 149,857 |   |   |   | 175,042 |   |   |   | 993,636 |   |
|  Depreciation, depletion and amortization                       |   |                                | 154         |   |                                 |   | 1,520       |                                                        |   |   | 154 |   |   |   |   |   |   |   | 154 |   |
|  Accretion of asset retirement obligation                       |   |                                | -           |   |                                 |   | 898         |                                                        |   |   | - |   |   |   |   |   |   |   | - |   |
|  Interest expense                                               |   |                                | 10,037      |   |                                 |   | 20,324      |                                                        |   |   | 3,624 |   |   |   | 3,123 |   |   |   | 16,593 |   |
|                                                                 |   |                                |        |   |                                 |   |        |                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|  Total expenses                                                 |   |                                | 734,630     |   |                                 |   | 547,831     |                                                        |   |   | 484,441 |   |   |   | 397,149 |   |   |   | 1,779,578 |   |
|                                                                 |   |                                |        |   |                                 |   |        |                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|  Operating income / (loss)                                      |   |                                | (733,060    | )      |                                 |   | (547,408    | )                                                           |   |   | (482,871 | ) |   |   | (397,149 | ) |   |   | (1,778,008 | ) |
|                                                                 |   |                                |        |   |                                 |   |        |                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER INCOME AND EXPENSE ITEMS                                       |   |                                |        |   |                                 |   |        |                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|  Gains / (losses) on dispositions of properties                 |   |                                | 291,973     |   |                                 |   | -           |                                                        |   |   | - |   |   |   | - |   |   |   | 291,973 |   |
|                                                                 |   |                                |        |   |                                 |   |        |                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|  NET LOSS                                                       |   | $                                   | (441,087    | )      |                                 | $      | (547,408    | )                                                           |   | $ | (482,871 | ) |   | $ | (397,149 | ) |   | $ | (1,486,035 | ) |
|                                                                 |   |                                |        |   |                                 |   |        |                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net loss per common shares - basic and diluted                 |   | $                                   | -           |   |                                 | $      | -           |                                                        |   | $ | - |   |   | $ | - |   |   |   |   |   |
|  Weighted average common shares outstanding - basic and diluted |   |                                | 496,605,424 |   |                                 |   | 463,017,866 |                                                        |   |   | 496,605,424 |   |   |   | 468,741,591 |   |   |   |   |   |

----

|                                                      |   | Common Stock |        |   | Additional Paid In |   |    | Common Stock |   |   | PreExploration Stage |   |   | Exploration Stage |   |   |   |   |
|-----------------------------------------------------------|--------|--------------|-------------|--------|--------------------|--------|---------|--------------|--------|--------|----------------------|--------|--------|-------------------|--------|--------|--------|--------|
|                                                      |   | Shares       |        |   | Amount             |   |    | Capital      |   |   |  Payable        |   |   |  Losses      |   |   | Losses |   |   | Total |   |
|                                                      |   |         |        |   |               |   |    |         |   |   |                 |   |   |              |   |   |   |   |   |   |   |
| Balances, December 31, 2007                               |   |         | 460,061,553 |   |               | $      | 460,062 |         |   | $      | (304,208             | )      |   | $                 | -      |   |   | $      | - |   |   | $ | (246,073 | ) |   | $ | (90,219 | ) |
|                                                      |   |         |        |   |               |   |    |         |   |   |                 |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest imputed on related party note payable            |   |         |        |   |               |   |    |         |   |   | 5,240                |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   | 5,240 |   |
| Expenses paid on behalf of the Company by a related party |   |         |        |   |               |   |    |         |   |   | 169,648              |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   | 169,648 |   |
| Debt acquired in reverse merger                           |   |         |        |   |               |   |    |         |   |   | (500,000             | )      |   |              |   |   |   |   |   |   |   |   |   |   |   |   | (500,000 | ) |
| Net loss, year ended 12/31/08                             |   |         |        |   |               |   |    |         |   |   |                 |   |   |              |   |   |   |   |   |   |   |   | (241,514 | ) |   |   | (241,514 | ) |
|                                                      |   |         |        |   |               |   |    |         |   |   |                 |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances, December 31, 2008                               |   |         | 460,061,553 |   |               | $      | 460,062 |         |   | $      | (629,320             | )      |   |              | -      |   |   | $      | - |   |   | $ | (487,587 | ) |   | $ | (656,845 | ) |

----

|                                                       |   | Common Stock |        |   |  Additional Paid In |   |    |  Common Stock |   |   |  Pre-Develop. Stage |   |   |  Development Stage |    |   |   |     |
|------------------------------------------------------------|--------|--------------|-------------|--------|--------------------------|--------|---------|--------------------|--------|--------|--------------------------|--------|--------|-------------------------|---------|--------|--------|----------|
|                                                       |   | Shares       |        |   | Amount                   |   |    | Capital            |   |   | Payable                  |   |   |  Losses            |    |   | Losses |     |   | Total |   |
|                                                       |   |         |        |   |                     |   |    |               |   |   |                     |   |   |                    |    |   |   |     |   |   |   |
| Cashless exercise of options                               |   |         | 49,148      |   |                     |   | 49      |               |   |   | (49                      | )      |   |                    |    |   |   |     |   |   |   |   |   | - |   |
| Cash provided by a related party                           |   |         |        |   |                     |   |    |               |   |   | 104,000                  |   |   |                    |    |   |   |     |   |   |   |   |   | 104,000 |   |
| Expenses paid on behalf of the Company by a related party: |   |         |        |   |                     |   |    |               |   |   |                     |   |   |                    |    |   |   |     |   |   |   |   |   |   |   |
|    Paid in cash                             |   |         |        |   |                     |   |    |               |   |   | 61,822                   |   |   |                    |    |   |   |     |   |   |   |   |   | 61,822 |   |
|    Paid in stock                            |   |         |        |   |                     |   |    |               |   |   | 162,695                  |   |   |                    |    |   |   |     |   |   |   |   |   | 162,695 |   |
|                                                       |   |         |        |   |                     |   |    |               |   |   |                     |   |   |                    |    |   |   |     |   |   |   |   |   |   |   |
| Interest imputed on notes payable                          |   |         |        |   |                     |   |    |               |   |   | 10,090                   |   |   |                    |    |   |   |     |   |   |   |   |   | 10,090 |   |
| Acquisitions of oil and gas properties                     |   |         | 7,000,000   |   |                     |   | 7,000   |               |   |   | 168,000                  |   |   |                    |    |   |   |     |   |   |   |   |   | 175,000 |   |
| Stock for services                                         |   |         | 4,000,000   |   |                     |   | 4,000   |               |   |   | 48,400                   |   |   |                    |    |   |   |     |   |   |   |   |   | 52,400 |   |
| Sale of stock for cash                                     |   |         | 3,000,000   |   |                     |   | 3,000   |               |   |   | 36,000                   |   |   |                    |    |   |   |     |   |   |   |   |   | 39,000 |   |
| Officer and director compensation                          |   |         | 7,886,776   |   |                     |   | 7,886   |               |   |   | 316,831                  |   |   |                    |    |   |   |     |   |   |   |   |   | 324,717 |   |
| Retirement of debt                                         |   |         | 14,607,947  |   |                     |   | 14,608  |               |   |   | 197,219                  |   |   |                    |    |   |   |     |   |   |   |   |   | 211,827 |   |
| Net loss, year ended 12/31/09                              |   |         |        |   |                     |   |    |               |   |   |                     |   |   |                    |    |   |   | (644,829 | ) |   |   | (557,361 | ) |   |   | (1,202,190 | ) |
|                                                       |   |         |        |   |                     |   |    |               |   |   |                     |   |   |                    |    |   |   |     |   |   |   |   |   |   |   | - |   |
| Balances, December 31, 2009                                |   |         | 496,605,424 |   |                     | $      | 496,605 |               |   | $      | 475,688                  |   |   |                    | -       |   |   | $        | (644,829 | ) |   | $ | (1,044,948 | ) |   | $ | (717,484 | ) |
|                                                       |   |         |        |   |                     |   |    |               |   |   |                     |   |   |                    |    |   |   |     |   |   |   |   |   |   |   |   |   |   |
| Expenses paid by a related party                           |   |         |        |   |                     |   |    |               |   |   | 1,155                    |   |   |                    |    |   |   |     |   |   |   |   |   |   |   |   | 1,155 |   |
| Interest imputed on notes payable                          |   |         |        |   |                     |   |    |               |   |   | 5,859                    |   |   |                    |    |   |   |     |   |   |   |   |   |   |   |   | 5,859 |   |
| Vesting of deferred compensation                           |   |         |        |   |                     |   |    |               |   |   | 41,742                   |   |   |                    |    |   |   |     |   |   |   |   |   |   |   |   | 41,742 |   |
| Stock payable to consultant                                |   |         |        |   |                     |   |    |               |   |   |                     |   |   |                    | 204,000 |   |   |     |   |   |   |   |   |   |   |   | 204,000 |   |
| Net loss, nine months ended 9/30/10                        |   |         |        |   |                     |   |    |               |   |   |                     |   |   |                    |    |   |   |     |   |   |   |   | (441,087 | ) |   |   | (441,087 | ) |
|                                                       |   |         |        |   |                     |   |    |               |   |   |                     |   |   |                    |    |   |   |     |   |   |   |   |   |   |   |   |   |   |
| Balances, September 30, 2010                               |   |         | 496,605,424 |   |                     | $      | 496,605 |               |   | $      | 524,444                  |   |   | $                       | 204,000 |   |   | $        | (644,829 | ) |   | $ | (1,486,035 | ) |   | $ | (905,815 | ) |

----

|                                                                                    |   | Nine Months Ended September 30, |     |   | From Re Entry to the Exploration Stage (7/1/09) to |   |
|-----------------------------------------------------------------------------------------|--------|--------------------------------------|----------|--------|----------------------------------------------------|--------|
|                                                                                    |   | 2010 (Unaudited)                     |     |   | 2009 (Unaudited)                                   |   |   | 9/30/10 (Unaudited) |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                                    |   |                                 |     |   |                                               |   |   |   |   |
|   Net loss                                                                    |   |                                 | (441,087 | )      |                                               |   | (547,408 | ) |   |   | (1,486,035 | ) |
|                                                                                    |   |                                 |     |   |                                               |   |   |   |   |   |   |   |
|   Adjustments to reconcile net loss to net cash used in operating activities: |   |                                 |     |   |                                               |   |   |   |   |   |   |   |
|   Depreciation, depletion and amortization                                    |   |                                 | 154      |   |                                               |   | 1,520 |   |   |   | 154 |   |
|   Gain on sales of oil and gas interests                                      |   |                                 | (291,973 | )      |                                               |   | - |   |   |   | (291,973 | ) |
|   Impairment of oil and gas assets                                            |   |                                 | -        |   |                                               |   | 218,984 |   |   |   | 411,412 |   |
|   Amortization of discount on related-party note                              |   |                                 | -        |   |                                               |   | 7,266 |   |   |   | - |   |
|   Accretion of asset retirement obligation                                    |   |                                 | -        |   |                                               |   | 898 |   |   |   | - |   |
|   Stock based compensation                                                    |   |                                 | 245,742  |   |                                               |   | 115,928 |   |   |   | 622,859 |   |
|   Interest imputed on related-party notes                                     |   |                                 | 5,859    |   |                                               |   | 8,137 |   |   |   | 9,765 |   |
|                                                                                    |   |                                 |     |   |                                               |   |   |   |   |   |   |   |
|   Changes in operating assets and liabilities:                                |   |                                 |     |   |                                               |   |   |   |   |   |   |   |
|   Accounts receivable                                                         |   |                                 | (1,295   | )      |                                               |   | 7,206 |   |   |   | (1,295 | ) |
|   Accounts payable and accrued liabilities                                    |   |                                 | 3,464    |   |                                               |   | 5,493 |   |   |   | 23,152 |   |
|   Officer and director liabilities                                            |   |                                 | 171,518  |   |                                               |   | - |   |   |   | 341,910 |   |
|   Interest payable                                                            |   |                                 | 5,878    |   |                                               |   | 3,403 |   |   |   | 8,218 |   |
|   Prepaid expenses                                                            |   |                                 | (19,575  | )      |                                               |   | (7,454 | ) |   |   | (26,253 | ) |
|                                                                                    |   |                                 |     |   |                                               |   |   |   |   |   |   |   |
|   Net cash used in operating activities                                       |   |                                 | (321,315 | )      |                                               |   | (186,027 | ) |   |   | (388,086 | ) |
|                                                                                    |   |                                 |     |   |                                               |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                                    |   |                                 |     |   |                                               |   |   |   |   |
|   Acquisitions of oil and gas properties                                      |   |                                 | (135,475 | )      |                                               |   | - |   |   |   | (135,475 | ) |
|   Development of oil and gas properties                                       |   |                                 | (40,101  | )      |                                               |   | - |   |   |   | (40,101 | ) |
|   Purchases of other fixed assets                                             |   |                                 | (1,759   | )      |                                               |   | - |   |   |   | (1,759 | ) |
|   Proceeds from sales of oil and gas properties                               |   |                                 | 445,000  |   |                                               |   | - |   |   |   | 445,000 |   |
|                                                                                    |   |                                 |     |   |                                               |   |   |   |   |   |   |   |
|   Net cash provided by  investing activities                        |   |                                 | 267,665  |   |                                               |   | - |   |   |   | 269,424 |   |

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|                                                   |   | Nine Months Ended September 30, |    |   | From Re Entry to the Exploration Stage (7/1/09) to |   |
|--------------------------------------------------------|--------|---------------------------------|---------|--------|----------------------------------------------------|--------|
|                                                   |   | 2010 (Unaudited)                |    |   | 2009 (Unaudited)                                   |   |   | 9/30/10 (Unaudited) |   |
|                                                   |   |                            |    |   |                                               |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                   |   |                            |    |   |                                               |   |   |   |   |
| Expenses paid by related parties-cash                  |   |                            | 129,130 |   |                                               |   | 85,015 |   |   |   | 131,405 |   |
| Borrowings from related parties                        |   |                            | (69,796 | )      |                                               |   | 8,500 |   |   |   | (61,096 | ) |
| Principal payments on notes payable                    |   |                            | (5,000  | )      |                                               |   | - |   |   |   | (5,000 | ) |
| Principal payments on related-party notes payable      |   |                            | -       |   |                                               |   | (1,982 | ) |   |   | - |   |
| Common stock issued for cash                           |   |                            | -       |   |                                               |   | - |   |   |   | 39,000 |   |
| Cash contributed by related parties                    |   |                            | -       |   |                                               |   | 94,000 |   |   |   | 14,000 |   |
|                                                   |   |                            |    |   |                                               |   |   |   |   |   |   |   |
| Net cash provided by financing activities              |   |                            | 54,334  |   |                                               |   | 185,533 |   |   |   | 118,309 |   |
|                                                   |   |                            |    |   |                                               |   |   |   |   |   |   |   |
| Net increase / (decrease) in cash and cash equivalents |   |                            | 684     |   |                                               |   | (494 | ) |   |   | (2,112 | ) |
| Cash and cash equivalents, beginning of period         |   |                            | -       |   |                                               |   | 971 |   |   |   | 2,796 |   |
| Cash and cash equivalents, end of period               |   | $                               | 684     |   |                                               | $      | 477 |   |   | $ | 684 |   |
|                                                   |   |                            |    |   |                                               |   |   |   |   |   |   |   |
| SUPPLEMENTAL CASH FLOW INFORMATION                     |   |                            |    |   |                                               |   |   |   |   |   |   |   |
| Cash paid for interest                                 |   | $                               | -       |   |                                               | $      | 1,472 |   |   | $ | - |   |
| Cash paid for income taxes                             |   |                            | -       |   |                                               |   | - |   |   |   | - |   |
| Shares issued for retirement of debt                   |   |                            | -       |   |                                               |   | - |   |   |   | 211,827 |   |
| Shares issued to acquire oil and gas properties        |   |                            | -       |   |                                               |   | - |   |   |   | 175,000 |   |

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----

| Level                                                                            |   | Amount |    |
|----------------------------------------------------------------------------------|--------|--------|---------|
| Level 1:                                                                         |   | $      | -       |   |
| Level 2: Notes payable and accrued interest to related parties and third parties |   |   | 215,717 |   |
| Level 3: Notes payable, long term and short term, net of discount                |   |   | 514,000 |   |
| Totals                                                                           |   | $      | 729,717 |   |

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| Notes and Interest Payable                                      |   |   |    |
|-----------------------------------------------------------------|--------|--------|---------|
| Notes and interest payable to previous officers and directors   |   |   | 166,011 |   |
| Liability relating to Crockett County leases                    |   |   | 85,049  |   |
| Notes and interest payable related to our Tennessee acquisition |   |   | 130,668 |   |
| Total notes and interest payable                                |   | $      | 381,728 |   |
|                                                            |   |   |    |   |
| Notes and Interest Payable to Related Parties                   |   |   |    |   |
| Advances from affiliates                                        |   |   | 38,755  |   |
| Accrued compensation to officers and directors                  |   |   | 309,234 |   |
| Total related party notes and interest payable                  |   | $      | 347,989 |   |

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| Expiry Date |   | Average Strike Price |   |   | No. of Options or Warrants |   |
|-------------|--------|----------------------|--------|--------|----------------------------|--------|
| 06/22/12    |   |                 | 0.08   |   |                       |   | 124,492 |   |
| 06/22/13    |   |                 | 0.08   |   |                       |   | 138,435 |   |
| 06/22/14    |   |                 | 0.08   |   |                       |   | 124,492 |   |
| 06/22/15    |   |                 | 0.08   |   |                       |   | 2,300,000 |   |
| Total       |   |                 |   |   |                       |   | 2,687,419 |   |

----

| Exhibit No. |   | Description of Exhibit                                                                                                                                                                           |
|-------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |   |                                                                                                                                                                                             |
| 3.1         |   | Articles of Incorporation, as filed August 1, 1997 (included as Exhibit 3.1 to the Form 10-SB12G filed November 10, 1999, and incorporated herein by reference).                                 |
|        |   |                                                                                                                                                                                             |
| 3.2         |   | Bylaws (included as Exhibit 3.2 to the Form 10-SB12G filed November 10, 1999, and incorporated herein by reference).                                                                             |
|        |   |                                                                                                                                                                                             |
| 3.3         |   | Articles of Amendment to the Articles of Incorporation, as filed August 23, 1997 (included as Exhibit 3.3 to the Form 10-SB12G filed November 10, 1999, and incorporated herein by reference).   |
|        |   |                                                                                                                                                                                             |
| 3.4         |   | Articles of Amendment to the Articles of Incorporation, as filed November 20, 1998 (included as Exhibit 3.4 to the Form 10-SB12G filed November 10, 1999, and incorporated herein by reference). |
|        |   |                                                                                                                                                                                             |
| 3.5         |   | Articles of Amendment to the Articles of Incorporation, as filed May 16, 2003 (included as Exhibit 3.5 to the Form 10-SB12G filed November 10, 1999, and incorporated herein by reference).      |
|        |   |                                                                                                                                                                                             |
| 4.1         |   | 2003 Stock Benefit Plan, dated July, 1, 2003 (included as Exhibit 4.1 to the Form S-8 filed July 23, 2003, and incorporated herein by  reference).                                     |
|        |   |                                                                                                                                                                                             |
| 4.2         |   | Form of Class A Warrant (included as Exhibit 4 to the Form 8-K filed March 15, 2005, and incorporated herein by reference).                                                                      |
|        |   |                                                                                                                                                                                             |
| 4.3         |   | Form of Class B Warrant (included as Exhibit 4 to the Form 8-K filed March 15, 2005, and incorporated herein by reference).                                                                      |
|        |   |                                                                                                                                                                                             |
| 4.4         |   | Form of Class C Warrant (included as Exhibit 4 to the Form 8-K filed March 15, 2005, and incorporated herein by reference).                                                                      |
|        |   |                                                                                                                                                                                             |
| 4.5         |   | Subscription Agreement between the Company and various subscribers  (included as Exhibit 10.1 to the Form SB-2/A filed September 14, 2005, and incorporated herein by reference).      |
|        |   |                                                                                                                                                                                             |
| 4.6         |   | Subscription Agreement between the Company and various subscribers (included as Exhibit 4 to the Form 8-K filed March 15, 2005, and incorporated herein by reference).                           |
|        |   |                                                                                                                                                                                             |
| 14.1        |   | Corporate Code of Ethics (included as Exhibit 14 to From 10-KSB filed March 16, 2004, and incorporated herein by reference).                                                                     |
|        |   |                                                                                                                                                                                             |
| 2.1         |   | Subsidiaries of the registrant (filed herewith).                                                                                                                                                 |
|        |   |                                                                                                                                                                                             |
| 31.1        |   | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).                                                                             |
|        |   |                                                                                                                                                                                             |
| 32.1        |   | Certification of Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                               |

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|                    | Treaty Energy Corporation |                    |
|-------------------------|---------------------------|-------------------------|
|                    |                      |                    |   |
| Date: November 15, 2010 | By:                       | /s/ Andrew V. Reid |   |
|                    |                      | Andrew V. Reid          |   |
|                    |                      | Chief Executive Officer |   |