----

----

| 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.) |

| 201 St. Charles Ave., Suite 2558New Orleans, LA 70170 |
|-------------------------------------------------------|
| (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  |   |   | 18 |   |
|                                 |                                                                                              |   |   |   |   |
| Item 3 -                             | Quantitive And Qualitative Disclosures About Market Risk                                     |   |   | 19 |   |
|                                 |                                                                                              |   |   |   |   |
| Item 4 –                       | Controls and Procedures                                                                      |   |   | 19 |   |
|                                 |                                                                                              |   |   |   |   |
| PART II – OTHER INFORMATION    |                                                                                              |   |   |   |
|                                 |                                                                                              |   |   |   |   |
| Item 1 –                       | Legal Proceedings                                                                                 |   |   | 19 |   |
|                                 |                                                                                              |   |   |   |   |
| Item 1A –                      | Risk Factors                                                                                 |   |   | 20 |   |
|                                 |                                                                                              |   |   |   |   |
| Item 2 -                             | Unregistered Sales of Equity Securities                                                           |   |   | 20 |   |
|                                 |                                                                                              |   |   |   |   |
| Item 3 –                       | Defaults Upon Senior Securities                                                              |   |   | 20 |   |
|                                 |                                                                                              |   |   |   |   |
| Item 4 -                             | (Removed and Reserved)                                                                            |   |   | 20 |   |
|                                 |                                                                                              |   |   |   |   |
| Item 5 –                       | Other Information                                                                                 |   |   | 20 |   |
|                                 |                                                                                              |   |   |   |   |
| Item 6 –                       | Exhibits                                                                                     |   |   | 21 |   |
|                                 |                                                                                              |   |   |   |   |
| SIGNATURES                           |                                                                                              |   | 22     |   |

----

|                                                                             |   | March 31, 2011 (Unaudited) |      |   | December 31, 2010 (Audited) |   |
|----------------------------------------------------------------------------------|--------|----------------------------|-----------|--------|-----------------------------|--------|
|                                                                             |   |                       |      |   |                        |   |
| ASSETS                                                                           |   |                       |      |   |                        |   |
|                                                                             |   |                       |      |   |                        |   |
| Cash and equivalents                                                             |   | $                          | -         |   |                        | $      | 148 |   |
| Oil and gas accounts receivable                                                  |   |                       | -         |   |                        |   | - |   |
| Total current assets                                                             |   |                       | -         |   |                        |   | 148 |   |
|                                                                             |   |                       |      |   |                        |   |   |   |
| Oil and gas properties (unproved), net (successful efforts method of accounting) |   |                       | 252,424   |   |                        |   | 252,424 |   |
|                                                                             |   |                       |      |   |                        |   |   |   |
| Other property, plant and equipment, net                                         |   |                       | 106,381   |   |                        |   | 1,759 |   |
| Prepaid expenses and other                                                       |   |                       | 50,000    |   |                        |   | - |   |
| TOTAL ASSETS                                                                     |   | $                          | 408,805   |   |                        | $      | 254,331 |   |
|                                                                             |   |                       |      |   |                        |   |   |   |
| LIABILITIES                                                                      |   |                       |      |   |                        |   |   |   |
|                                                                             |   |                       |      |   |                        |   |   |   |
| Accounts payable and accrued liabilities                                         |   | $                          | 373,561   |   |                        | $      | 469,775 |   |
| Notes and accrued interest to related parties                                    |   |                       | 378,724   |   |                        |   | 481,646 |   |
| Notes and accrued interest payable                                               |   |                       | 537,728   |   |                        |   | 534,278 |   |
| Total current liabilities                                                        |   |                       | 1,290,013 |   |                        |   | 1,485,699 |   |
|                                                                             |   |                       |      |   |                        |   |   |   |
| TOTAL LIABILITIES                                                                |   | $                          | 1,290,013 |   |                        | $      | 1,485,699 |   |

----

|                                                                                                                                                                                        |   | March 31, 2011 (Unaudited) |       |   | December 31, 2010 (Audited) |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------|------------|--------|-----------------------------|--------|
|                                                                                                                                                                                        |   |                       |       |   |                        |   |
| STOCKHOLDERS' DEFICIT                                                                                                                                                                       |   |                       |       |   |                        |   |
|                                                                                                                                                                                        |   |                       |       |   |                        |   |
| Preferred stock - par value $0.001, 50 million shares authorized, none issued or outstanding at March 31, 2011                                                                              |   | $                          | -          |   |                        | $      |   |   |
| Common stock – par value $0.001, 750 million shares authorized. 573,149,907 and 496,605,424 shares issued and outstanding at March 31, 2011 and December 31, 2010, respectively. |   |                       | 573,150    |   |                        |   | 496,605 |   |
| Additional paid in capital                                                                                                                                                                  |   |                       | 1,250,823  |   |                        |   | 527,483 |   |
| Common stock payable                                                                                                                                                                        |   |                       | -          |   |                        |   | 204,000 |   |
| Accumulated loss - pre exploration stage                                                                                                                                                    |   |                       | (644,829   | )      |                        |   | (644,829 | ) |
| Accumulated loss - exploration stage                                                                                                                                                        |   |                       | (2,060,352 | )      |                        |   | (1,814,627 | ) |
|                                                                                                                                                                                        |   |                       |       |   |                        |   |   |   |
| Total stockholders' deficit                                                                                                                                                                 |   |                       | (881,208   | )      |                        |   | (1,231,368 | ) |
|                                                                                                                                                                                        |   |                       |       |   |                        |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT                                                                                                                                                 |   | $                          | 408,805    |   |                        | $      | 254,331 |   |

----

|                                                                 |   |                         |        |   |                     |   |        |  From Re Entry to the |   |
|----------------------------------------------------------------------|--------|------------------------------|-------------|--------|--------------------------|--------|-------------|----------------------------|--------|
|                                                                 |   | Three Months Ended March 31, |        |   |   Development Stage |   |
|                                                                 |   | 2011 (Unaudited)             |        |   | 2010 (Unaudited)         |   |        | (7/1/09) to 03/31/11       |   |
|                                                                 |   |                         |        |   |                     |   |        |                       |   |
| Sales of oil                                                         |   | $                            | -           |   |                     | $      | -           |                       |   | $ | 1,570 |   |
|                                                                 |   |                         |        |   |                     |   |        |                       |   |   |   |   |
| Total revenues                                                       |   |                         | -           |   |                     |   | -           |                       |   |   | 1,570 |   |
|                                                                 |   |                         |        |   |                     |   |        |                       |   |   |   |   |
|                                                                 |   |                         |        |   |                     |   |        |                       |   |   |   |   |
|  Royalties                                                      |   |                         | -           |   |                     |   | -           |                       |   |   | 1,122 |   |
|  Lease operating expenses                                       |   |                         | 106,715     |   |                     |   | -           |                       |   |   | 582,035 |   |
|  Transportation costs                                           |   |                         | -           |   |                     |   | -           |                       |   |   | (354 | ) |
|  Production taxes                                               |   |                         | -           |   |                     |   | -           |                       |   |   | (352 | ) |
|  Impairment of oil and gas properties                           |   |                         | -           |   |                     |   | -           |                       |   |   | 411,412 |   |
|  General and administrative                                     |   |                         | 142,548     |   |                     |   | 131,589     |                       |   |   | 1,314,349 |   |
|  Depreciation, depletion and amortization                       |   |                         | 2,346       |   |                     |   | -           |                       |   |   | 2,471 |   |
|  Interest expense                                               |   |                         | 11,403      |   |                     |   | 3,123       |                       |   |   | 60,499 |   |
|                                                                 |   |                         |        |   |                     |   |        |                       |   |   |   |   |
|  Total expenses                                                 |   |                         | 263,012     |   |                     |   | 134,712     |                       |   |   | 2,371,182 |   |
|                                                                 |   |                         |        |   |                     |   |        |                       |   |   |   |   |
|  Operating income / (loss)                                      |   |                         | (263,012    | )      |                     |   | (134,712    | )                          |   |   | (2,369,612 | ) |
|                                                                 |   |                         |        |   |                     |   |        |                       |   |   |   |   |
|                                                                 |   |                         |        |   |                     |   |        |                       |   |   |   |   |
|  Gains / (losses) on dispositions of properties                 |   |                         | -           |   |                     |   | -           |                       |   |   | 291,973 |   |
|  Gains / (losses) on retirement of debt                         |   |                         | 17,287      |   |                     |   | -           |                       |   |   | 17,287 |   |
|                                                                 |   |                         |        |   |                     |   |        |                       |   |   |   |   |
|  NET LOSS                                                       |   | $                            | (247,725    | )      |                     | $      | (134,712    | )                          |   | $ | (2,060,352 | ) |
|                                                                 |   |                         |        |   |                     |   |        |                       |   |   |   |   |
|  Net loss per common shares - basic and diluted                 |   | $                            | -           |   |                     | $      | -           |                       |   |   |   |   |
|  Weighted average common shares outstanding - basic and diluted |   |                         | 515,356,400 |   |                     |   | 496,605,424 |                       |   |   |   |   |

----

|                                                      |   |         |        |   |  Additional |   |    |  Common  |   |   | Pre-Develop. |   |   |                 |   |   |   |   |
|-----------------------------------------------------------|--------|--------------|-------------|--------|------------------|--------|---------|---------------|--------|--------|--------------|--------|--------|----------------------|--------|--------|--------|--------|
|                                                      |   | Common Stock |        |   |  Paid In    |   |    |  Stock   |   |   |   Stage |   |   |  Develop. 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 | ) |

----

|                                                       |   |         |        |   | Additional    |   |    | Common      |   |   | Pre-Develop. |   |   |           |   |   |   |   |
|------------------------------------------------------------|--------|--------------|-------------|--------|---------------|--------|---------|-------------|--------|--------|--------------|--------|--------|----------------|--------|--------|--------|--------|
|                                                       |   | Common Stock |        |   |  Paid In |   |    |  Stock |   |   |  Stage  |   |   | Develop. 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 | ) |

----

|                                           |   |         |        |   |  Additional |   |    |  Common |   |   | Pre-Develop. |   |   |                 |     |   |   |   |
|------------------------------------------------|--------|--------------|-------------|--------|------------------|--------|---------|--------------|--------|--------|--------------|--------|--------|----------------------|----------|--------|--------|--------|
|                                           |   | Common Stock |        |   |  Paid In    |   |    |  Stock  |   |   |   Stage |   |   |  Develop. Stage |     |   |   |   |
|                                           |   | Shares       |        |   | Amount           |   |    | Capital      |   |   | Payable      |   |   | Losses               |     |   | Losses |   |   | Total |   |
|                                           |   |         |        |   |             |   |    |         |   |   |         |   |   |                 |     |   |   |   |   |   |   |
| Expenses paid by a related party               |   |         | -           |   |             |   | -       |         |   |   | 1,155        |   |   |                 | -        |   |   |   |   |   |   |   |   |   | 1,155 |   |
| Interest imputed on notes payable              |   |         | -           |   |             |   | -       |         |   |   | 7,812        |   |   |                 | -        |   |   |   |   |   |   |   |   |   | 7,812 |   |
| Vesting of deferred compensation               |   |         | -           |   |             |   | -       |         |   |   | 42,828       |   |   |                 | -        |   |   |   |   |   |   |   |   |   | 42,828 |   |
| Stock payable to consultant                    |   |         | -           |   |             |   | -       |         |   |   | -            |   |   |                 | 204,000  |   |   |   |   |   |   |   |   |   | 204,000 |   |
| Net loss, for year ended 12/31/10              |   |         | -           |   |             |   | -       |         |   |   | -            |   |   |                 | -        |   |   |   |   |   |   | (769,679 | ) |   |   | (769,679 | ) |
|                                           |   |         |        |   |             |   |    |         |   |   |         |   |   |                 |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances, December 31, 2010                    |   |         | 496,605,424 |   |             |   | 496,605 |         |   |   | 527,483      |   |   |                 | 204,000  |   |   |   | (644,829 | ) |   |   | (1,814,627 | ) |   |   | (1,231,368 | ) |
|                                           |   |         |        |   |             |   |    |         |   |   |         |   |   |                 |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest imputed on notes payable              |   |         |        |   |             |   |    |         |   |   | 1,953        |   |   |                 | -        |   |   |   |   |   |   |   |   |   |   |   | 1,953 |   |
| Purchase of equipment                          |   |         | 8,500,000   |   |             |   | 8,500   |         |   |   | 63,750       |   |   |                 | -        |   |   |   |   |   |   |   |   |   |   |   | 72,250 |   |
| Stock issued for services                      |   |         | 31,847,874  |   |             |   | 31,848  |         |   |   | 314,384      |   |   |                 | (204,000 | )      |   |   |   |   |   |   |   |   |   |   | 142,232 |   |
| Stock issued for director and officer services |   |         | 11,900,000  |   |             |   | 11,900  |         |   |   | 124,800      |   |   |                 | -        |   |   |   |   |   |   |   |   |   |   |   | 136,700 |   |
| Retirement of debt                             |   |         | 14,000,000  |   |             |   | 14,000  |         |   |   | 168,000      |   |   |                 | -        |   |   |   |   |   |   |   |   |   |   |   | 182,000 |   |
| Stock issued for cash                          |   |         | 10,296,609  |   |             |   | 10,297  |         |   |   | 50,453       |   |   |                 | -        |   |   |   |   |   |   |   |   |   |   |   | 60,750 |   |
|                                           |   |         |        |   |             |   |    |         |   |   |         |   |   |                 |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                       |   |         |        |   |             |   |    |         |   |   |         |   |   |                 |     |   |   |   |   |   |   |   | (245,725 | ) |   |   | (245,725 | ) |
| Balances, March 31, 2011                       |   |         | 573,149,907 |   |             | $      | 573,150 |         |   | $      | 1,250,823    |   |   | $                    | -        |   |   | $      | (644,829 | ) |   | $ | (2,060,352 | ) |   | $ | (881,208 | ) |

----

|                                                                                        |   |                       |     |   |                    |   |     |  From Re Entry to the |   |
|---------------------------------------------------------------------------------------------|--------|----------------------------|----------|--------|-------------------------|--------|----------|----------------------------|--------|
|                                                                                        |   | Three Months Ended Mar 31, |     |   |  Development Stage |   |
|                                                                                        |   | 2011                       |     |   | 2010                    |   |     | (7/1/09) to 3/31/11        |   |
|                                                                                        |   |                       |     |   |                    |   |     |                       |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                                        |   |                       |     |   |                    |   |     |                       |   |
| Net loss                                                                                    |   | $                          | (245,725 | )      |                    | $      | (134,712 | )                          |   | $ | (2,060,352 | ) |
|                                                                                        |   |                       |     |   |                    |   |     |                       |   |   |   |   |
| Adjustments to reconcile net loss to net cash provided by / (used in) operating activities: |   |                       |     |   |                    |   |     |                       |   |   |   |   |
| Depreciation, depletion and amortization                                                    |   |                       | 2,346    |   |                    |   | -        |                       |   |   | 2,471 |   |
| Gain on sales of oil and gas interests                                                      |   |                       | -        |   |                    |   | -        |                       |   |   | (291,973 | ) |
| Gain on retirement of debt                                                                  |   |                       | (17,287  | )      |                    |   | -        |                       |   |   | (17,287 | ) |
| Impairment of oil and gas assets                                                            |   |                       | -        |   |                    |   | -        |                       |   |   | 411,412 |   |
| Amortization of discount on production note                                                 |   |                       | 5,313    |   |                    |   | -        |                       |   |   | 26,567 |   |
| Accretion of asset retirement obligation                                                    |   |                       | -        |   |                    |   | -        |                       |   |   | - |   |
| Stock based compensation                                                                    |   |                       | 42,200   |   |                    |   | 18,414   |                       |   |   | 666,145 |   |
| Interest imputed on related-party notes                                                     |   |                       | 1,953    |   |                    |   | 1,953    |                       |   |   | 13,671 |   |
|                                                                                        |   |                       |     |   |                    |   |     |                       |   |   |   |   |
| Changes in operating assets and liabilities:                                                |   |                       |     |   |                    |   |     |                       |   |   |   |   |
| Accounts payable and accrued liabilities                                                    |   |                       | (24,874  | )      |                    |   | 15,820   |                       |   |   | 169,772 |   |
| Officer and director liabilities                                                            |   |                       | 30,000   |   |                    |   | 79,031   |                       |   |   | 458,364 |   |
| Interest payable                                                                            |   |                       | (1,863   | )      |                    |   | 1,169    |                       |   |   | 15,651 |   |
| Prepaid expenses                                                                            |   |                       | (50,000  | )      |                    |   | -        |                       |   |   | (50,000 | ) |
|                                                                                        |   |                       |     |   |                    |   |     |                       |   |   |   |   |
| Net cash provided by / (used in) operating activities                                       |   |                       | (257,937 | )      |                    |   | (18,325  | )                          |   |   | (655,559 | ) |

----

|                                                  |   | Three Months Ended Mar 31, |    |   | From Re Entry to the Development Stage  |   |
|-------------------------------------------------------|--------|----------------------------|---------|--------|----------------------------------------------|--------|
|                                                  |   | 2011                       |    |   | 2010                                         |   |   | (7/1/09) to 3/31/11 |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                  |   |                       |    |   |                                         |   |   |   |   |
| Acquisitions of oil and gas properties                |   |                       | -       |   |                                         |   | - |   |   |   | (235,475 | ) |
| Development of oil and gas properties                 |   |                       | -       |   |                                         |   | - |   |   |   | (40,101 | ) |
| Purchases of other fixed assets                       |   |                       | (34,718 | )      |                                         |   | - |   |   |   | (36,477 | ) |
| Proceeds from sales of oil and gas properties         |   |                       | -       |   |                                         |   | - |   |   |   | 445,000 |   |
| Net cash provided by / (used in) investing activities |   |                       | (34,718 | )      |                                         |   | - |   |   |   | 132,947 |   |
|                                                  |   |                       |    |   |                                         |   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                  |   |                       |    |   |                                         |   |   |   |   |   |   |   |
| Expenses paid by related parties-cash                 |   |                       | -       |   |                                         |   | 1,155 |   |   |   | 131,405 |   |
| Net borrowings (repayments) to related parties        |   |                       | 231,757 |   |                                         |   | 17,400 |   |   |   | 171,661 |   |
| Proceeds from notes payable                           |   |                       | -       |   |                                         |   |   |   |   |   | 122,000 |   |
| Principal payments on notes payable                   |   |                       | -       |   |                                         |   |   |   |   |   | (5,000 | ) |
| Common stock issued for cash                          |   |                       | 60,750  |   |                                         |   |   |   |   |   | 99,750 |   |
|                                                  |   |                       |    |   |                                         |   |   |   |   |   |   |   |
| Net cash provided by / (used in) financing activities |   |                       | 292,507 |   |                                         |   | 18,555 |   |   |   | 519,816 |   |

----

|                                                          |   | Three Months Ended Mar 31, |    |   | From Re Entry to the Development Stage |   |
|---------------------------------------------------------------|--------|----------------------------|---------|--------|----------------------------------------|--------|
|                                                          |   | 2011                       |    |   | 2010                                   |   |   | (7/1/09) to 3/31/11 |   |
| Net increase / (decrease) in cash and cash equivalents        |   |                       | (148    | )      |                                   |   | 230 |   |   |   | (2,796 | ) |
| Cash and cash equivalents, beginning of period                |   |                       | 148     |   |                                   |   | - |   |   |   | 2,796 |   |
| Cash and cash equivalents, end of period                      |   | $                          | -       |   |                                   | $      | 230 |   |   | $ | - |   |
|                                                          |   |                       |    |   |                                   |   |   |   |   |   |   |   |
| SUPPLEMENTAL CASH FLOW INFORMATION                            |   |                       |    |   |                                   |   |   |   |   |   |   |   |
| Cash paid for interest                                        |   | $                          | 6,000   |   |                                   | $      | - |   |   | $ | 6,000 |   |
| Cash paid for income taxes                                    |   |                       | -       |   |                                   |   | - |   |   |   | - |   |
| Shares issued for retirement of debt                          |   |                       | 622,732 |   |                                   |   | - |   |   |   | 834,559 |   |
| Shares issued to acquire oil and gas properties               |   |                       | -       |   |                                   |   | - |   |   |   | 175,000 |   |
| Acquisition of oil and gas properties with related party debt |   |                       | 19,500  |   |                                   |   | - |   |   |   | 19,500 |   |
| Acquisition of other assets with stock                        |   |                       | 72,250  |   |                                   |   |   |   |   |   | 72,250 |   |

----

----

| Level                                         |   | 03/31/11 |    |   | 12/31/10 |   |
|-----------------------------------------------|--------|----------|---------|--------|----------|--------|
| Level 1:                                      |   | $        | -       |   |     | $      | - |   |
|                                          |   |     |    |   |     |   |   |   |
| Level 2:                                      |   |     | -       |   |     |   | - |   |
|                                          |   |     |    |   |     |   |   |   |
| Level 3:                                      |   |     |    |   |     |   |   |   |
| Notes and accrued interest to related parties |   |     | 378,724 |   |     |   | 481,646 |   |
| Notes and accrued interest                    |   |     | 537,728 |   |     |   | 534,578 |   |

----

----

|                                                          |   | March 31, 2011 |    |   | December 31, 2010 |   |
|---------------------------------------------------------------|--------|----------------|---------|--------|-------------------|--------|
|                                                          |   |           |    |   |              |   |
| Notes and Interest Payable                                    |   |           |    |   |              |   |
| Notes and interest payable to previous officers and directors |   | $              | 168,351 |   |              | $      | 167,178 |   |
| Liability relating to Crockett County lease                   |   |           | 111,616 |   |              |   | 106,303 |   |
| Liabilities relating to our acquisitions in Tennessee         |   |           | 153,670 |   |              |   | 238,797 |   |
| Liabilities relating to our Belize project                    |   |           | 104,091 |   |              |   | - |   |
| Other                                                         |   |           | -       |   |              |   | 22,000 |   |
| Total notes and interest payable                              |   | $              | 537,728 |   |              | $      | 534,278 |   |
|                                                          |   |           |    |   |              |   |   |   |
| Notes and Interest Payable to Related Parties                 |   |           |    |   |              |   |   |   |
| Advances from affiliates                                      |   |           | 372,424 |   |              |   | 164,722 |   |
| Accrued compensation to officers and directors                |   |           | 6,300   |   |              |   | 316,924 |   |
| Total related party notes and interest payable                |   | $              | 378,724 |   |              | $      | 481,646 |   |

----

| ·   | On February 14, 2011, we issued 10,296,609 shares for cash and received $60,750. |
|--------------------|----------------------------------------------------------------------------------|

| ·   | On March 1, 2011, we issued 1 million shares to a consultant.  We valued the shares at the closing price on the date of grant and recorded a charge to general and administrative expense of $8,200. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Also on March 1, 2011, we issued 2,250,000 shares to our previous operator in Tennessee to settle contractual amounts owed by us to him.  We valued the shares at the closing price on the grant date and reduced his liability from $20,000 to $1,550. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On March 3, 2011, we issued 23,500,000 shares to our seismic consultant in Belize.  15 million of these shares were for services rendered in 2010.  We reduced our stock payable to the consultant from $204,000 to zero.  8.5 million of these shares were in payment of an aircraft for use on our Belize project.  These shares were valued at the closing price on the date of grant and we recorded our cost basis in the aircraft at $72,250. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Also on March 3, 2011, we issued 13,597,874 shares to a consultant for work performed during 2009 and 2010.  We valued the shares at the closing price on the grant date, reduced the liability from $94,345 to $23,500 and recorded a loss on retirement of debt in the amount of $69,737. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On March 16, 2011, we issued 4 million shares to a previous director and recorded.  We valued the shares at the closing price on the grant date and charged general and administrative expenses with $34,000. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On March 29, 2010, we issued 14 million shares to our previous CEO and Chairman, Randall Newton, for work performed during 2009 and 2010, and repayment of cash contributions made by him.  We valued the shares at the closing price on the grant date, reduced our liability to him from $269,024 to zero, and recorded a gain on retirement of debt of $87,024. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On March 31, 2011, we issued 7,900,000 shares to our current CEO and Chairman, Andrew Reid in payment for services.  We valued the shares at the closing price on the grant date, and reduced our liability to him from $109,000 to $6,300. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | We paid $24,427 in cash to a major shareholder in repayment of cash contributions previously made. |
|--------------------|----------------------------------------------------------------------------------------------------|

| ·   | We accrued $30,000 in compensation costs to our Chairman and CEO and paid him 7.9 million shares, reducing his balance from $109,000 to $6,300. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We issued 14 million shares to our previous CEO and Chairman, Randall Newton, for work performed during 2009 and 2010, and repayment of cash contributions made by him.  We valued the shares at the closing price on the grant date, reduced our liability to him from $269,024 to zero, and recorded a gain on retirement of debt of $87,024. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We borrowed $312,506 from an entity owned by our Chairman and CEO, Andrew Reid, and repaid $80,750 in cash.  At March 31, 2011, our debt to that entity is $370,723. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | $50,000 was escrowed on March 31, 2011. |
|--------------------|-----------------------------------------|

| ·   | 10 equal monthly payments of $25,000 beginning May 25, 2011. |
|--------------------|--------------------------------------------------------------|

| ·   | 6 million shares of common stock. |
|--------------------|-----------------------------------|

| ·   | 36,000 shares of convertible preferred stock, 12,000 shares each convertible at $0.03, $0.05 and $0.10 per share. |
|--------------------|-------------------------------------------------------------------------------------------------------------------|

----

----

----

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| 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.                                                               |

----

|               | Treaty Energy Corporation |                  |
|--------------------|---------------------------|-----------------------|
|               |                      |                  |   |
| Date: May 16, 2011 | By:                       | /s/ Andrew V. Reid    |   |
|               |                      | Andrew V. Reid        |   |
|               |                      | Chief Executive Offic |   |
|               |                      |                  |   |