----

----

| COLORADO                                                                            | 76-0635938                             |
|-------------------------------------------------------------------------------------|----------------------------------------|
| (State      or other jurisdiction of                                                | (IRS      Employer Identification No.) |
|         incorporation      or organization) |                                   |

----

| PART  I  -  FINANCIAL  INFORMATION                                     |   |
|----------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                           |   |
| Item  1  -  Financial  Statements                                      | F-1    |
|                                                                                                           |   |
| Item  2  -      Management's  Discussion and Analysis or Plan of      Operations | 4      |
|                                                                                                           |   |
| Item  3  -  Controls      and Procedures                                         | 7      |
|                                                                                                           |   |
|                                                                                                           |   |
| PART      II  -  OTHER INFORMATION                                                         |   |
|                                                                                                           |   |
| Item      2 – Unregistered Sales of Equity  Securities and Use of      Proceeds           | 7      |
|                                                                                                           |   |
| Item  6  -  Exhibits                                                             | 7      |
|                                                                                                           |   |
| SIGNATURES                                                                                                     | 8      |

----

----

|                                                                         |   |
|------------------------------------------------------------------------------|--------|
|                                                                         | Page   |
|                                                                         |   |
| Unaudited      Consolidated Financial Statements:                            |   |
|                                                                         |   |
|   Unaudited      Consolidated Balance Sheets as of                 |   |
|     June      30, 2008 and December 31, 2007             | F-2    |
|                                                                         |   |
|   Unaudited      Consolidated Statements of Operations             |   |
|     for      the three months and six months ended       |   |
|     June      30, 2008 and 2007                          | F-3    |
|                                                                         |   |
|   Unaudited      Consolidated Statements of Stockholders'          |   |
|     Deficit      for the six months ended June 30, 2008  | F-4    |
|                                                                         |   |
|   Unaudited      Consolidated Statements of Cash Flows             |   |
|     for      the six months ended June 30, 2008 and 2007 | F-5    |
|                                                                         |   |
| Notes      to Unaudited Consolidated Financial Statements                    | F-6    |

----

|                                                                                      |   | June      30, |           |   | December      31, |   |
|-------------------------------------------------------------------------------------------|--------|---------------|----------------|--------|-------------------|--------|
|                                                                                      |   | 2008          |           |   | 2007              |   |
|      ASSETS                                                      |   |          |           |   |                   |   |
|                                                                                      |   |          |           |   |              |   |
| Current      assets:                                                                      |   |          |           |   |              |   |
|   Cash                                                                          |   | $             | 1,472          |   |              | $      | 2,718 |   |
|   Accounts      receivable                                                      |   |          | 3,902          |   |              |   |   |   |
|                                                                                      |   |          |           |   |              |   |   |   |
| Property      and equipment:                                                              |   |          |           |   |              |   |   |   |
|   Oil      and gas properties (successful efforts method                        |   |          |           |   |              |   |   |   |
| net      of accumulated depletion of $143,234 and $138,642)                               |   |          | 1,649          |   |              |   | 40,478 |   |
| Unproven      oil and gas properties (successful efforts method)                          |   |          |  195,565  |   |              |   |  171,462 |   |
| Total      property and equipment                                                         |   |          | 197,214        |   |              |   | 211,940 |   |
|                                                                                      |   |          |           |   |              |   |   |   |
|       Total      assets                                     |   | $             | 202,588        |   |              | $      | 214,658 |   |
|                                                                                      |   |          |           |   |              |   |   |   |
|                                                                                      |   |          |           |   |              |   |   |   |
| LIABILITIES AND      STOCKHOLDERS’ DEFICIT                                          |   |          |           |   |              |   |   |   |
|                                                                                      |   |          |           |   |              |   |   |   |
| Current      liabilities:                                                                 |   |          |           |   |              |   |   |   |
|   Accounts      payable                                                         |   | $             | 20,581         |   |              | $      | 21,535 |   |
|   Accrued      interest payable to related parties                              |   |          | 39,179         |   |              |   | 126,730 |   |
|   Notes      payable - other                                                    |   |          | 15,507         |   |              |   | 15,507 |   |
|   Notes      payable to related parties                                         |   |          | 671,271        |   |              |   | 528,041 |   |
|   Stock      payable                                                            |   |          | 70,310         |   |              |   |  21,680 |   |
|                                                                                      |   |          |           |   |              |   |   |   |
|                                                                                      |   |          |           |   |              |   |   |   |
|     Total      current liabilities                                    |   |          | 816,848        |   |              |   | 713,493 |   |
|                                                                                      |   |          |           |   |              |   |   |   |
| Long-term      debt to related parties                                                    |   |          | -              |   |              |   | 5,000 |   |
| Asset      retirement obligations                                                         |   |          | 8,193          |   |              |   | 8,193 |   |
|                                                                                      |   |          |           |   |              |   |   |   |
|     Total      liabilities                                            |   | $             | 825,041        |   |              |   | 726,686 |   |
|                                                                                      |   |          |           |   |              |   |   |   |
|                                                                                      |   |          |           |   |              |   |   |   |
| Stockholders'      deficit:                                                               |   |          |           |   |              |   |   |   |
|   Preferred      stock: $.001 par value; 10,000,000 shares authorized,          |   |          |           |   |              |   |   |   |
|     none      issued and outstanding                                  |   |          | -              |   |              |   | - |   |
| Common      stock: $.001 par value; 500,000,000 shares authorized;                        |   |          |           |   |              |   |   |   |
|     355,279,544      and 306,339,544 shares issued and outstanding at |   |          |           |   |              |   |   |   |
|     June      30, 2008 and December 31, 2007, respectively            |   |          | 355,280        |   |              |   | 306,340 |   |
|   Additional      paid-in capital                                               |   |          | 18,503,963     |   |              |   | 18,373,829 |   |
|   Accumulated      deficit                                                      |   |          | (19,481,696    | )      |              |   | (19,192,197 | ) |
|                                                                                      |   |          |           |   |              |   |   |   |
|     Total      stockholders' deficit                                  |   |          |  (622,453 | )      |              |   | (512,028 | ) |
|                                                                                      |   |          |           |   |              |   |   |   |
|       Total      liabilities and stockholders' deficit      |   | $             | 202,588        |   |              | $      | 214,658 |   |

----

|                                                            |   |                    |        |   |                  |   |        |       |   |   |        |   |
|-----------------------------------------------------------------|--------|-------------------------|-------------|--------|-----------------------|--------|-------------|------------|--------|--------|-------------|--------|
|                                                            |   | Three Months      Ended |        |   | Six Months      Ended |   |
|                                                            |   | June 30,                |        |   | June 30,              |   |
|                                                            |   | 2008                    |        |   | 2007                  |   |        | 2008  |   |   | 2007        |   |
|                                                            |   |                    |        |   |                  |   |        |       |   |   |        |   |
| Oil      and gas revenue                                        |   | $                       | 14,292      |   |                  | $      | 13,214      |       |   | $      | 21,860      |   |   | $ | 33,049 |   |
|                                                            |   |                    |        |   |                  |   |        |       |   |   |        |   |   |   |   |   |
| Costs      and expenses:                                        |   |                    |        |   |                  |   |        |       |   |   |        |   |   |   |   |   |
|   Lease      operating expenses                       |   |                    | 5,024       |   |                  |   | 3,868       |       |   |   | 7,687       |   |   |   | 11,063 |   |
|   Production      taxes                               |   |                    | 813         |   |                  |   | 769         |       |   |   | 1,279       |   |   |   | 1,807 |   |
|   Dry      hole costs                                 |   |                    | -           |   |                  |   | -           |       |   |   | -           |   |   |   | 282 |   |
|   Depreciation,      depletion and amortization       |   |                    | 1,004       |   |                  |   | 9,752       |       |   |   | 4,592       |   |   |   | 21,992 |   |
|   Impairment                                          |   |                    | 42,696      |   |                  |   | -           |       |   |   | 42,696      |   |   |   | - |   |
|   Selling,      general and administrative, including |   |                    |        |   |                  |   |        |       |   |   |        |   |   |   |   |   |
|    Stock      based compensation                 |   |                    | 119,451     |   |                  |   | 110,061     |       |   |   | 215,927     |   |   |   | 247,655 |   |
|                                                            |   |                    |        |   |                  |   |        |       |   |   |        |   |   |   |   |   |
|                                                            |   |                    |        |   |                  |   |        |       |   |   |        |   |   |   |   |   |
|     Total      costs and expenses           |   |                    | 168,988     |   |                  |   | 124,450     |       |   |   | 272,181     |   |   |   | 282,517 |   |
|                                                            |   |                    |        |   |                  |   |        |       |   |   |        |   |   |   |   |   |
|     Loss      from operations               |   |                    | (154,696    | )      |                  |   | (111,236    | )          |   |   | (250,321    | )      |   |   | (249,468 | ) |
|                                                            |   |                    |        |   |                  |   |        |       |   |   |        |   |   |   |   |   |
| Other      income and (expenses):                               |   |                    |        |   |                  |   |        |       |   |   |        |   |   |   |   |   |
|   Other      income                                   |   |                    | -           |   |                  |   | -           |       |   |   | -           |   |   |   | - |   |
|   Interest      expense                               |   |                    | (19,590     | )      |                  |   | (14,651     | )          |   |   | (39,178     | )      |   |   | (31,514 | ) |
|                                                            |   |                    |        |   |                  |   |        |       |   |   |        |   |   |   |   |   |
|         Net      loss   |   | $                       | (174,286    | )      |                  | $      | (125,887    | )          |   | $      | (289,499    | )      |   | $ | (280,982 | ) |
|                                                            |   |                    |        |   |                  |   |        |       |   |   |        |   |   |   |   |   |
| Basic      and diluted net loss per common share                |   | $                       | (0.00       | )      |                  | $      | (0.00       | )          |   | $      | (0.00       | )      |   | $ | (0.00 | ) |
|                                                            |   |                    |        |   |                  |   |        |       |   |   |        |   |   |   |   |   |
| Weighted      average common shares                             |   |                    | 337,638,006 |   |                  |   | 297,289,915 |       |   |   | 327,100,643 |   |   |   | 291,843,109 |   |

----

|                                       |   |              |        |    |   |   |        | Additional |   |   |       |   |   | Stockholders’ |        |
|--------------------------------------------|--------|-------------------|-------------|---------|--------|--------|-------------|------------|--------|--------|------------|--------|--------|---------------------|-------------|
|                                       |   | Common      Stock |        | Paid-In |   |   | Accumulated |       |   | Equity |       |
|                                       |   | Shares            |        |    | Amount |   |        | Capital    |   |   | Deficit    |   |   | (Deficit)           |        |
|                                       |   |              |        |    |   |   |        |       |   |   |       |   |   |                |        |
| Balance      at December 31, 2007          |   |              | 306,339,544 |    |   | $      | 306,340     |       |   | $      | 18,373,829 |   |   | $                   | (19,192,197 | ) |   | $ | (512,028 | ) |
|                                       |   |              |        |    |   |   |        |       |   |   |       |   |   |                |        |   |   |   |   |   |
| Common      stock issued to compensate     |   |              |        |    |   |   |        |       |   |   |       |   |   |                |        |   |   |   |   |   |
|   employees      and consultants |   |              | 38,940,000  |    |   |   | 38,940      |       |   |   | 108,134    |   |   |                | -           |   |   |   | 147,074 |   |
|                                       |   |              |        |    |   |   |        |       |   |   |       |   |   |                |        |   |   |   |   |   |
| Common      stock issued for property      |   |              |        |    |   |   |        |       |   |   |       |   |   |                |        |   |   |   |   |   |
|   acquisition                    |   |              | 10,000,000  |    |   |   | 10,000      |       |   |   | 22,000     |   |   |                | -           |   |   |   | 32,000 |   |
|                                       |   |              |        |    |   |   |        |       |   |   |       |   |   |                |        |   |   |   |   |   |
| Net      loss                              |   |              | -      |    |   |   |  -     |       |   |   | -     |   |   |                | (289,499    | ) |   |   | (289,499 | ) |
|                                       |   |              |        |    |   |   |        |       |   |   |       |   |   |                |        |   |   |   |   |   |
| Balance      at June 30, 2008              |   |              | 355,279,544 |    |   | $      | 355,280     |       |   | $      | 18,503,963 |   |   | $                   | (19,481,696 | ) |   | $ | (622,453 | ) |
|                                       |   |              |        |    |   |   |        |       |   |   |       |   |   |                |        |   |   |   |   |   |

----

|                                                                                         |   |   |         |   |       |   |
|----------------------------------------------------------------------------------------------|--------|--------|--------------|--------|------------|--------|
|                                                                                         |   |   |         |   |       |   |
|                                                                                         |   | 2008   |         |   | 2007  |   |
|                                                                                         |   |   |         |   |       |   |
|                                                                                         |   |   |         |   |       |   |
| Cash      flows from operating activities:                                                   |   |   |         |   |       |   |
|   Net      loss                                                                    |   | $      | (289,499     | )      |       | $      | (280,982 | ) |
|   Adjustments      to reconcile net loss to net cash                               |   |   |         |   |       |   |   |   |
|     used      in operating activities                                    |   |   | 276,753      |   |       |   | 257,359 |   |
|                                                                                         |   |   |         |   |       |   |   |   |
|       Net      cash used in operating activities               |   |   | (12,746      | )      |       |   | (23,623 | ) |
| Cash      flows from investing activities:                                                   |   |   |         |   |       |   |   |   |
|   Capital      and exploratory expenditures                                        |   |   | -            |   |       |   | (17,082 | ) |
|                                                                                         |   |   |         |   |       |   |   |   |
| Cash      flows from financing activities:                                                   |   |   |         |   |       |   |   |   |
|   Repayment      of debt                                                           |   |   |         |   |       |   | (6,981 | ) |
|   Borrowing      of debt                                                           |   |   |  11,500 |   |       | -      |   |
|                                                                                         |   |   |         |   |       |   |   |   |
|       Net      cash provided by (used in) financing activities |   |   | 11,500       |   |       |   | (6,981 | ) |
|                                                                                         |   |   |         |   |       |   |   |   |
| Net      increase/(decrease) in cash and cash equivalents                                    |   |   | (1,246       | )      |       |   | (47,686 | ) |
|                                                                                         |   |   |         |   |       |   |   |   |
| Cash      and cash equivalents at beginning of period                                        |   |   | 2,718        |   |       |   | 53,690 |   |
|                                                                                         |   |   |         |   |       |   |   |   |
| Cash      and cash equivalents at end of period                                              |   | $      | 1,472        |   |       | $      | 6,004 |   |
|                                                                                         |   |   |         |   |       |   |   |   |
| Supplemental      Disclosures                                                                |   |   |         |   |       |   |   |   |
|    Cash      paid for interest                                                |   | $      | -            |   |       | $      | - |   |
|    Cash      paid for income taxes                                            |   |   | -            |   |       |   | - |   |
| Non      Cash Disclosures                                                                    |   |   |         |   |       |   |   |   |
|     Assumptions      of debt associated with Oil & Gas Property      |   |   | -            |   |       |   | 33,961 |   |
|     Seller      Financed purchase of O&G properties                  |   |   | -            |   |       |   | 7,515 |   |
|      Oil      and gas property acquired with common stock issuance  |   |   | 32,000       |   |       |   | - |   |
|                                                                                         |   |   |         |   |       |   |   |   |

----

| · | Pangea’s      ability to obtain adequate sources of outside financing to support near      term operations and to allow the Company to continue forward with current      strategic plans. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                             |
| · | Pangea’s      ability to locate, prove and produce from economically viable oil and gas      reserves.                                                                                     |
|   |                                                                                                                                                                                             |
| · | Pangea’s      ability to ultimately achieve adequate profitability and cash flows to      sustain continuing operations.                                                                   |

| · | 38,500,000      shares of common stock were issued to employees and      consultants.  Compensation expense of $145,600 was recorded      based on market value on date of issuance. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | 200,000      shares of restricted common stock were issued to an independent director      valued at $670.                                                                                     |
| · | 240,000      shares of restricted common stock were issued to our Chief Financial      Officer valued at $804.                                                                                 |
| · | 10,000,000      shares of common stock were issued for a property acquisition valued at      $32,000.                                                                                          |
|   |                                                                                                                                                                                           |
|   |                                                                                                                                                                                           |
|   |                                                                                                                                                                                           |
|   |                                                                                                                                                                                           |

----

| Notes      payable to Mary Pollock, daughter of the chief executive                   |   |   |    |
|---------------------------------------------------------------------------------------|--------|--------|---------|
|   officer.      This note bears interest of 12% per year and                |   |   |    |
|   is      due in a onetime payment of principal and interest on    December |   |   |    |
|   31,      2008.  These notes are not collateralized.             |   | $      | 146,691 |   |
|                                                                                  |   |   |    |   |
| Notes      payable to Mary Pollock, daughter of the chief executive                   |   |   | 11,500  |   |
|   officer.      This note bears interest of 12% per year and                |   |   |    |   |
|   is      due in a onetime payment of principal and interest on    December |   |   |    |   |
|   31,      2008.  These notes are not collateralized.             |   |   |    |   |
|                                                                                  |   |   |    |   |
| Notes      payable to Charles Pollock, the Chief Executive Officer and    a           |   |   |    |   |
|   significant      stockholder of the Company. This note bears interest     |   |   |    |   |
|   of      12% per year, and due in onetime payment of principal and         |   |   |    |   |
|   interest      on December 31, 2008. These notes are not collateralized.   |   |   | 400,911 |   |
|                                                                                  |   |   |    |   |
|                                                                                  |   |   |    |   |
| Notes      payable to Mark Weller, the Chief Operating Officer and a                  |   |   |    |   |
|   significant      stockholder of the Company. This note bears interest     |   |   |    |   |
|   of      12% per year, and due in one time payments of principaland        |   |   |    |   |
|   interest      on December 31, 2008. These notes are not collateralized.   |   |   | 107,169 |   |
|                                                                                  |   |   |    |   |
| Notes      payable to Mark Weller due on-demand                                       |   |   | 5,000   |   |
|                                                                                  |   |   |    |   |
|                                                                                  |   | $      | 671,271 |   |
|                                                                                  |   |   |    |   |

| Date      Issued | Name                         | #      of Restricted Common Shares | Fair      Market Value |
|------------------|------------------------------|------------------------------------|------------------------|
| 07-22-08         | Scott      Duncan, CFO       | 120,000                            | 360                    |
| 07-22-08         | Edward      Skaggs, Director | 100,000                            | 300                    |
| 07-01-07         | O&G      Consultant      | 5,000,000                          | 20,000                 |

----

| -      | Our      ability to continue to obtain sources of outside financing to allow the      Company to continue to make strategic investments in new oil and gas well      prospects.                    |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                               |
| -      | Our      ability to locate attractive development prospects, and coordinate with      timely funding that will allow the Company to continue to increase oil and      gas reserves and production. |
|   |                                                                                                                                                                                               |
| -      | Our      ability to increase profitability and sustain a cash flow level that will      ensure support for continuingoperations.                                                                   |

----

----

----

|   | (a) Evaluation      of disclosure controls andprocedures. |
|--------|----------------------------------------------------------------|

|      Exhibit  31.1  -  | Certification      of Chief Executive Officer of Pangea Petroleum Corporation required by      Rule 13a - 14(1)  or Rule 15d - 14(a) of the      Securities  Exchange  Act  of  1934,  as  adopted      pursuant to Section 302 of the      Sarbanes-Oxley  Act  of  2002.                                       |
|---------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                 |
|      Exhibit  31.2  -  | Certification      of Chief Financial Officer of Pangea Petroleum Corporation      required  by  Rule  13a -      14(1)  or Rule 15d - 14(a) of the      Securities  Exchange  Act  of  1934,  as  adopted      pursuant to Section 302 of the      Sarbanes-Oxley  Act  of  2002. |
|                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                 |
|      Exhibit  32.1  -- | Certification      of Chief Executive Officer of Pangea Petroleum Corporation pursuant to      Section 906 of the Sarbanes-Oxley Act of 2002 and Section 1350      of  18  U.S.C. 63.                                                                                                                                                                                                            |
|                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                 |
|      Exhibit  32.2  -- | Certification      of Chief Financial Officer of Pangea Petroleum Corporation pursuant to      Section 906 of the Sarbanes-Oxley Act of 2002 and Section 1350 of 18      U.S.C. 63.                                                                                                                                                                                                                                  |

----

|  By:  /s/ Charles      B.  Pollock                          Date: August      14, 2008     Charles      B.  Pollock,     Chairman      of the Board and     Chief      Executive Officer  By: /s/      Scott DuncanScott      DuncanChief      Financial Officer andPrincipal      Financial Officer |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----