----

----

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

----

| PART  I  - | FINANCIAL  INFORMATION                                            | F-1    |
|--------------------------------|-----------------------------------------------------------------------------|--------|
|                           |                                                                        |   |
| Item  1  - | Financial  Statements                                             | F-1    |
|                           |                                                                        |   |
| Item  2  - | Management's  Discussion      and Analysis or Plan of Operations  | 4      |
|                           |                                                                        |   |
| Item  3  - | Controls      and Procedures                                                | 6      |
|                           |                                                                        |   |
|                           |                                                                        |   |
| PART      II  -      | OTHER      INFORMATION                                                      | 7      |
|                           |                                                                        |   |
| Item      2 –            | Unregistered      Sales of Equity  Securities and Use of Proceeds | 7      |
|                           |                                                                        |   |
| Item  6  - | Exhibits                                                                    | 8      |
|                           |                                                                        |   |
| SIGNATURES                     | 9                                                                           |

----

----

----

|                                                                               | Page   |
|------------------------------------------------------------------------------------|--------|
|                                                                               |   |
| Unaudited      Consolidated Financial Statements:                                  |   |
|                                                                               |   |
|   Unaudited      Consolidated Balance Sheets as of                       |   |
|     September      30, 2008 and December 31, 2007              | F-3    |
|                                                                               |   |
|   Unaudited      Consolidated Statements of Operations                   |   |
|     for      the Three Months and Nine Months Ended            |   |
|     September      30, 2008 and 2007                           | F-4    |
|                                                                               |   |
|   Unaudited      Consolidated Statements of Stockholders'                |   |
|     Deficit      for the Nine Months Ended September 30, 2008  | F-5    |
|                                                                               |   |
|   Unaudited      Consolidated Statements of Cash Flows                   |   |
|     for      the Nine Months Ended September 30, 2008 and 2007 | F-6    |
|                                                                               |   |
| Notes      to Unaudited Consolidated Financial Statements                          | F-7    |
|                                                                               |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                       |   | September      30, |          |   | December      31, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|---------------|--------|-------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                       |   | 2008               |          |   | 2007              |   |
|      ASSETS                                                                                                                                                                                                                                                                                                                                                       |   |               |          |   |              |   |
|                                                                                                                                                                                                                                                                                                                                                                                       |   |               |          |   |              |   |
| Current      assets:                                                                                                                                                                                                                                                                                                                                                                       |   |               |          |   |              |   |
|   Cash                                                                                                                                                                                                                                                                                                                                                                           |   | $                  | 1,980         |   |              | $      | 2,718 |   |
|   Accounts      receivable                                                                                                                                                                                                                                                                                                                                                       |   |               | 1,844         |   |              |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                       |   |               |          |   |              |   |   |   |
| Property      and equipment:                                                                                                                                                                                                                                                                                                                                                               |   |               |          |   |              |   |   |   |
|   Oil      and gas properties (successful efforts method                                                                                                                                                                                                                                                                                                                         |   |               |          |   |              |   |   |   |
| net      of accumulated depletion of $143,979 and $138,642)                                                                                                                                                                                                                                                                                                                                |   |               | 12,884        |   |              |   | 40,478 |   |
| Unproven      oil and gas properties (successful efforts method)                                                                                                                                                                                                                                                                                                                           |   |               |  183,585 |   |              |   |  171,462 |   |
| Total      property and equipment                                                                                                                                                                                                                                                                                                                                                          |   |               | 196,469       |   |              |   | 211,940 |   |
|                                                                                                                                                                                                                                                                                                                                                                                       |   |               |          |   |              |   |   |   |
|       Total      assets                                                                                                                                                                                                                                                                                                                                      |   | $                  | 200,293       |   |              | $      | 214,658 |   |
|                                                                                                                                                                                                                                                                                                                                                                                       |   |               |          |   |              |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                       |   |               |          |   |              |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ DEFICIT                                                                                                                                                                                                                                                                                                                                                |   |               |          |   |              |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                       |   |               |          |   |              |   |   |   |
| Current      liabilities:                                                                                                                                                                                                                                                                                                                                                                  |   |               |          |   |              |   |   |   |
|   Accounts      payable                                                                                                                                                                                                                                                                                                                                                          |   | $                  | 15,830        |   |              | $      | 21,535 |   |
|   Accrued      interest payable to related parties                                                                                                                                                                                                                                                                                                                               |   |               | 58,983        |   |              |   | 126,730 |   |
|   Notes      payable - other                                                                                                                                                                                                                                                                                                                                                     |   |               | 15,507        |   |              |   | 15,507 |   |
|   Notes      payable to related parties                                                                                                                                                                                                                                                                                                                                          |   |               | 671,271       |   |              |   | 528,041 |   |
|   Stock      Payable                                                           |   |               | 100,310       |   |              |   | 21,680 |   |
|                                                                                                                                                                                                                                                                                                                                                                                       |   |               |          |   |              |   |   |   |
|     Total      current liabilities                                                                                                                                                                                                                                                                                                                                     |   |               | 861,901       |   |              |   | 713,493 |   |
|                                                                                                                                                                                                                                                                                                                                                                                       |   |               |          |   |              |   |   |   |
| Long-term      debt to related parties                                                                                                                                                                                                                                                                                                                                                     |   |               | -             |   |              |   | 5,000 |   |
| Asset      retirement obligations                                                                                                                                                                                                                                                                                                                                                          |   |               | 8,193         |   |              |   | 8,193 |   |
|                                                                                                                                                                                                                                                                                                                                                                                       |   |               |          |   |              |   |   |   |
|     Total      liabilities                                                                                                                                                                                                                                                                                                                                             |   |               | 870,094       |   |              |   | 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;                                                                                                                                                                                                                                                                                                             |   |               |          |   |              |   |   |   |
|     365,499,544      and 306,339,544 shares issued and outstanding at                                                                                                                                                                                                                                                                                                  |   |               |          |   |              |   |   |   |
|     September      30, 2008 and December 31, 2007, respectively                                                                                                                                                                                                                                                                                                        |   |               | 365,499       |   |              |   | 306,340 |   |
|   Additional      paid-in capital                                                                                                                                                                                                                                                                                                                                                |   |               | 18,521,904    |   |              |   | 18,373,829 |   |
|   Accumulated      deficit                                                                                                                                                                                                                                                                                                                                                       |   |               | (19,557,204   | )      |              |   | (19,192,197 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                       |   |               |          |   |              |   |   |   |
|     Total      stockholders' deficit                                                                                                                                                                                                                                                                                                                                   |   |               | (669,801      | )      |              |   | (512,028 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                       |   |               |          |   |              |   |   |   |
|       Total      liabilities and stockholders' deficit                                                                                                                                                                                                                                                                                                       |   | $                  | 200,293       |   |              | $      | 214,658 |   |

----

|                                                          |   |                    |        |   |                   |   |        |       |   |   |        |   |
|---------------------------------------------------------------|--------|-------------------------|-------------|--------|------------------------|--------|-------------|------------|--------|--------|-------------|--------|
|                                                          |   | Three Months      Ended |        |   | Nine Months      Ended |   |
|                                                          |   | September 30,           |        |   | September 30,          |   |
|                                                          |   | 2008                    |        |   | 2007                   |   |        | 2008  |   |   | 2007        |   |
|                                                          |   |                    |        |   |                   |   |        |       |   |   |        |   |
| Revenue                                                       |   | $                       | 4,945       |   |                   | $      | 10,490      |       |   | $      | 26,805      |   |   | $ | 43,540 |   |
|                                                          |   |                    |        |   |                   |   |        |       |   |   |        |   |   |   |   |   |
| Costs      and expenses:                                      |   |                    |        |   |                   |   |        |       |   |   |        |   |   |   |   |   |
|   Lease      operating expenses                     |   |                    | 1,626       |   |                   |   | 4,685       |       |   |   | 9,313       |   |   |   | 15,749 |   |
|   Production      taxes                             |   |                    | 415         |   |                   |   | 617         |       |   |   | 1,693       |   |   |   | 2,424 |   |
|   Selling,      general and administrative          |   |                    | 58,120      |   |                   |   | 28,955      |       |   |   | 274,047     |   |   |   | 276,610 |   |
|   Impairment                                        |   |                    | 0           |   |                   |   | 15,737      |       |   |   | 42,696      |   |   |   | 15,737 |   |
|   Depreciation,      depletion and amortization     |   |                    | 745         |   |                   |   | 11,085      |       |   |   | 5,337       |   |   |   | 33,077 |   |
|                                                          |   |                    |        |   |                   |   |        |       |   |   |        |   |   |   |   |   |
|                                                          |   |                    |        |   |                   |   |        |       |   |   |        |   |   |   |   |   |
|     Total      costs and expenses         |   |                    | 60,906      |   |                   |   | 61,079      |       |   |   | 333,086     |   |   |   |  343,597 |   |
|                                                          |   |                    |        |   |                   |   |        |       |   |   |        |   |   |   |   |   |
|     Loss      from operations             |   |                    | (55,961     | )      |                   |   | (50,589     | )          |   |   | (306,281    | )      |   |   | (300,057 | ) |
|                                                          |   |                    |        |   |                   |   |        |       |   |   |        |   |   |   |   |   |
| Other      income and (expenses):                             |   |                    |        |   |                   |   |        |       |   |   |        |   |   |   |   |   |
|   Other      income                                 |   |                    | 257         |   |                   |   | -           |       |   |   | 257         |   |   |   | - |   |
|   Interest      expense                             |   |                    | (19,804     | )      |                   |   | (15,971     | )          |   |   | (58,983     | )      |   |   | (47,486 | ) |
|                                                          |   |                    |        |   |                   |   |        |       |   |   |        |   |   |   |   |   |
|         Net      loss |   | $                       | (75,508     | )      |                   | $      | (66,560     | )          |   | $      | (365,007    | )      |   | $ | (347,543 | ) |
|                                                          |   |                    |        |   |                   |   |        |       |   |   |        |   |   |   |   |   |
| Basic      and diluted net loss per common share              |   | $                       | (0.00       | )      |                   | $      | (0.00       | )          |   | $      | (0.00       | )      |   | $ | (0.00 | ) |
|                                                          |   |                    |        |   |                   |   |        |       |   |   |        |   |   |   |   |   |
| Weighted      average common shares                           |   |                    | 362,192,411 |   |                   |   | 304,674,756 |       |   |   | 337,033,267 |   |   |   | 296,167,327 |   |
|                                                          |   |                    |        |   |                   |   |        |       |   |   |        |   |   |   |   |   |

----

|                                                             |   | Common      Stock |        |   | AdditionalPaid-In |   |    | Accumulated |   |   | Stockholders’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 |   |              | 49,160,000  |   |              |   | 49,159  |        |   |   | 126,075                   |   |   |   | - |   |   |   | 175,234 |   |
| Common      stock issued for property Acquisition                |   |              | 10,000,000  |   |              |   | 10,000  |        |   |   | 22,000                    |   |   |   |   |   |   |   | 32,000 |   |
|                                                             |   |              |        |   |              |   |    |        |   |   |                      |   |   |   |   |   |   |   |   |   |
| Net      loss                                                    |   |              | -           |   |              |   | -       |        |   |   | -                         |   |   |   | (365,007 | ) |   |   | (365,007 | ) |
|                                                             |   |              |        |   |              |   |    |        |   |   |                      |   |   |   |   |   |   |   |   |   |
| Balance      at September 30, 2008                               |   |              | 365,499,544 |   |              | $      | 365,499 |        |   | $      | 18,521,904                |   |   | $ | (19,557,204 | ) |   | $ | (669,801 | ) |

----

|                                                                                         |   | 2008   |         |   | 2007  |   |
|----------------------------------------------------------------------------------------------|--------|--------|--------------|--------|------------|--------|
|                                                                                         |   |   |         |   |       |   |
|                                                                                         |   |   |         |   |       |   |
| Cash      flows from operating activities:                                                   |   |   |         |   |       |   |
|   Net      loss                                                                    |   | $      | (365,007     | )      |       | $      | (347,543 | ) |
|   Adjustments      to reconcile net loss to net cash                               |   |   |         |   |       |   |   |   |
|     used      in operating activities                                    |   |   | 352,769      |   |       |   | 318,119 |   |
|                                                                                         |   |   |         |   |       |   |   |   |
|       Net      cash used in operating activities               |   |   | (12,238      | )      |       |   | (29,424 | ) |
|                                                                                         |   |   |         |   |       |   |   |   |
| Cash      flows from investing activities:                                                   |   |   |         |   |       |   |   |   |
|   Capital      and exploratory expenditures                                        |   |   | -            |   |       |   | (17,082 | ) |
|                                                                                         |   |   |         |   |       |   |   |   |
| Cash      flows from financing activities:                                                   |   |   |         |   |       |   |   |   |
|   Repayment      of debt                                                           |   |   |         |   |       |   | (6,981 | ) |
|   Borrowings      on debt                                                          |   |   |  11,500 |   |       |   | - |   |
|                                                                                         |   |   |         |   |       |   |   |   |
|       Net      cash provided by (used in) financing activities |   |   | 11,500       |   |       |   | (6,981 | ) |
|                                                                                         |   |   |         |   |       |   |   |   |
| Net      increase/(decrease) in cash and cash equivalents                                    |   |   | (738         | )      |       |   | (53,487 | ) |
|                                                                                         |   |   |         |   |       |   |   |   |
| Cash      and cash equivalents at beginning of period                                        |   |   | 2,718        |   |       |   | 53,690 |   |
|                                                                                         |   |   |         |   |       |   |   |   |
| Cash      and cash equivalents at end of period                                              |   | $      | 1,980        |   |       | $      | 203 |   |
|                                                                                         |   |   |         |   |       |   |   |   |
| Supplemental      Disclosures                                                                |   |   |         |   |       |   |   |   |
|    Cash      paid for interest                                                |   | $      | -            |   |       | $      | - |   |
|    Cash      paid for income taxes                                            |   |   |         |   |       |   |   |   |
| Non      Cash Disclosures                                                                    |   |   |         |   |       |   |   |   |
|     Reclass      of accrued interest into principal                      |   |   | 126,730      |   |       |   |  |   |
|     Reclass      from longterm to short-term debt                        |   |   | 5,000        |   |       |   |  |   |
|     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       |   |       |   |  |   |

----

| 1. | Basis      of Presentation |
|----|----------------------------|

| 2. | Going Concern Considerations |
|----|------------------------------|

| · | 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.                                                                   |
|   |                                                                                                                                                                                             |

| 3. | Stockholders’      Equity |
|----|---------------------------------|

| · | 48,500,000      shares of common stock were issued to employees and      consultants.  Compensation expense of $173,100 was recorded      based on market value on date of issuance. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | 300,000      shares of restricted common stock were issued to an independent director      for services provided valued at $970.                                                               |
| · | 360,000      shares of restricted common stock were issued to our Chief Financial      Officer valued for services provided at $1,164.                                                         |
| · | 10,000,000      shares of common stock were issued for a property acquisition valued at      $32,000.                                                                                          |

----

| 4. | Related Party Transactions |
|----|----------------------------|

| Notes      payable to related parties consist of the following at September 30,      2008: |   |   |    |
|--------------------------------------------------------------------------------------------|--------|--------|---------|
|                                                                                       |   |   |    |
| Notes      payable to Mary Pollock, daughter of the chief executive                        |   |   |    |
|   officer.      This note bears interest of 12% per year and                     |   |   |    |
|   is      due in a one time payment of principal and interest on      December   |   |   |    |
|   31,      2008.  These notes are not collateralized.                  |   | $      | 146,691 |   |
|                                                                                       |   |   |    |   |
| Notes      payable to Mary Pollack, 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.                                                                            |   | $      | 11,500  |   |
|                                                                                       |   |   |    |   |
| 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 one time 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 |   |
|                                                                                       |   |   |    |   |

----

| -      | 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 identify attractive oil and gas projects and secure adequate,      timely outside financing and investment in order to increase revenue by      buying existing production. |
|   |                                                                                                                                                                                            |
| -      | Our      ability to increase profitability and sustain a cash flow level that will      ensure support for continuingoperations.                                                                |

----

----

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

----

| § | 48,500,000      shares of common stock were issued to employees and      consultants.  Compensation expense of $173,100 was recorded      based on market value on date of issuance.  |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| § | 300,000      shares of restricted common stock were issued to an independent director      valued at $970.                                                                                      |
| § | 360,000      shares of restricted common stock were issued to our Chief Financial      Officer valued at $1,164.                                                                                |
| § | 10,000,000      shares of common stock were issued for a property acquisition valued at      $32,000.                                                                                                |

----

|      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:      November 14, 2008 |
|-------------------------------------------------------------------|------------------------------|
|      Charles      B.  Pollock, |                         |
|      Chairman      of the Board and      |                         |
|      Chief      Executive Officer        |                         |
|                                                              |                         |
|                                                              |                         |
| By: /s/ Scott Duncan                                              |                         |
| Scott      Duncan                                                 |                         |
| Chief      Financial Officer and                                  |                         |
| Principal      Financial Officer                                  |                         |

----