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| Utah                        |   | 3773 Cherry Creek Drive North, Suite      1025Denver, Colorado |   | 80209         |
|-----------------------------|--------|----------------------------------------------------------------|--------|---------------|
| State      of Incorporation |   | Address      of principal executive offices                    |   | Zip      Code |

| (303) 383-1555                                                |   | 87-0233535                                 |
|---------------------------------------------------------------|--------|--------------------------------------------|
| Registrant’s      telephone number, including area code |   | I.R.S.      Employer Identification Number |

| $0.10 Par Value          |   | None                                          |
|--------------------------|--------|-----------------------------------------------|
| Title      of each class |   | Name      of each exchange on whichregistered |

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|                                                    |                                                                                                          | PageNumber       |
|---------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|------------------|
|                                                    |                                                                                                          |             |
| PART      I.  UNAUDITED FINANCIAL INFORMATION |                                                                                                          |
|                                                    |                                                                                                          |             |
|                                                    | Item      1. Unaudited Financial Statements                                                                   | 3 –      8 |
|                                                    |                                                                                                          |             |
|                                                    | Item      2. Management’s Discussion and Analysis of Financial Condition and Results      of Operations | 9                |
|                                                    |                                                                                                          |             |
|                                                    | Item      3. Quantitative and Qualitative Disclosures About Market    Risk                                    | 10               |
|                                                    |                                                                                                          |             |
|                                                    | Item      4. Controls and Procedures                                                                          | 10               |
|                                                    |                                                                                                          |             |
| PART      II.  OTHER INFORMATION              |                                                                                                          |
|                                                    |                                                                                                          |             |
|                                                    | Item      6. Exhibits and Reports on Form 8-K                                                                 | 11               |
|                                                    |                                                                                                          |             |
|                                                    |           Signatures                                        | 11               |
|                                                    |                                                                                                          |             |
|                                                    |           Certifications                                    | Attached         |

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|                                                                                                                                                         |   | December 31,2007 |     |   | March 31,2008 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|----------|--------|---------------|--------|
|                                                                                                                                                         |   |             |     |   |          |   |
| ASSETS                                                                                                                                                       |   |             |     |   |          |   |
|                                                                                                                                                         |   |             |     |   |          |   |
| Current      assets                                                                                                                                          |   |             |     |   |          |   |
|    Cash      and cash equivalents                                                                                                             |   | $                | 408,634  |   |          | $      | 360,984 |   |
|    Accounts      receivable                                                                                                                   |   |             | 86,730   |   |          |   | 68,174 |   |
|                                                                                                                                                         |   |             | 495,364  |   |          |   | 429,158 |   |
|                                                                                                                                                         |   |             |     |   |          |   |   |   |
| Total      assets                                                                                                                                            |   | $                | 495,364  |   |          | $      | 429,158 |   |
|                                                                                                                                                         |   |             |     |   |          |   |   |   |
| LIABILITIES      AND STOCKHOLDERS’ EQUITY                                                                                                              |   |             |     |   |          |   |   |   |
|                                                                                                                                                         |   |             |     |   |          |   |   |   |
| Current      liabilities                                                                                                                                     |   |             |     |   |          |   |   |   |
|    Accounts      payable                                                                                                                      |   | $                | 7,159    |   |          | $      | 15,500 |   |
|    Current      portion of ARO liability                                                                                                      |   |             | --       |   |          |   | -- |   |
|    Accrued      liabilities                                                                                                                   |   |             | 70,667   |   |          |   | 68,612 |   |
|                                                                                                                                                         |   |             | 77,826   |   |          |   | 84,112 |   |
|                                                                                                                                                         |   |             |     |   |          |   |   |   |
| Stockholders’      equity:                                                                                                                             |   |             |     |   |          |   |   |   |
|    Class      A Preferred stock, no par value,            10,000,000 shares authorized, none issued             |   |             | --       |   |          |   | -- |   |
|         Common stock, $.10 par value; 50,000,000 shares authorized,            620,643 shares issued and outstanding |   |             | 62,064   |   |          |   | 62,064 |   |
|    Capital      in excess of par value                                                                                                        |   |             | 439,615  |   |          |   | 439,615 |   |
|         Treasury stock, at cost, 69,399 in 2007 and 98,644 shares in      2008                                                                     |   |             | (107,794 | )      |          |   | (147,604 | ) |
|         Retained earnings (deficit)                                                                                                                |   |             | 23,653   |   |          |   | (9,029 | ) |
|                                                                                                                                                         |   |             | 417,538  |   |          |   | 345,046 |   |
| Total      liabilities and stockholders’ equity                                                                                                        |   | $                | 495,364  |   |          | $      | 429,158 |   |

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|                                                                                                                                                              |   | 2007             |    |    | 2008   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|---------|---------|--------|--------|
|                                                                                                                                                              |   | As      Restated |    |    |   |   |
|                                                                                                                                                              |   |             |    |    |   |   |
| Revenues                                                                                                                                                          |   |             |    |    |   |   |
|     Oil      and natural gas sales                                                                                                            |   | $                | --      |    |   | $      | -- |   |
|     Other      income (lease payments)                                                                                                        |   |             | --      |    |   |   | -- |   |
|                                                                                                                                                              |   |             | --      |    |   |   | -- |   |
|                                                                                                                                                              |   |             |    |    |   |   |   |   |
| Expenses                                                                                                                                                          |   |             |    |    |   |   |   |   |
|     Lease      operating expense including production taxes                                                                                   |   |             | --      |    |   |   | -- |   |
|     Proposed      drilling program                                                                                                            |   |             | --      |    |   |   | -- |   |
|     General      and administrative                                                                                                           |   |             | 16,743  |    |   |   | 32,122 |   |
|     Overhead      expense, related party                                                                                                      |   |             | 3,000   |    |   |   | 3,000 |   |
|     Accretion      expense                                                                                                                    |   |             | --      |    |   |   | -- |   |
|     Depletion      and depreciation                                                                                                           |   |             | --      |    |   |   | -- |   |
|                                                                                                                                                              |   |             | 19,743  |    |   |   | 35,122 |   |
| (Loss)      from operations                                                                                                                                       |   |             | (19,743 | )       |   |   | (35,122 | ) |
|                                                                                                                                                              |   |             |    |    |   |   |   |   |
| Other      income (expense)                                                                                                                                       |   |             |    |    |   |   |   |   |
|          Interest income                                                                                                                           |   |             | 11,149  |    |   |   | 2,441 |   |
|                                                                                                                                                              |   |             | 11,149  |    |   |   | 2,441 |   |
|                                                                                                                                                              |   |             |    |    |   |   |   |   |
| (Loss)      from continuing operations before income taxes                                                                                                        |   |             | (8,594  | )       |   |   | (32,681 | ) |
|          Provision for income taxes                                                                                                                |   |             | --      |    |   |   | -- |   |
| Income      (loss) from continuing operations                                                                                                                     |   |             | (8,594  | )  |   |   | (32,681 | )  |
|                                                                                                                                                              |   |             |    |    |   |   |   |   |
| Discontinued      operations:                                                                                                                                     |   |             |    |    |   |   |   |   |
|          Income from operations of discontinued component            (including loss on disposal in 2007 of $93,371) |   |             | 84,966  |    |   |   | -- |   |
|          Provision for income taxes                                                                                                                |   |             | 22,000  |    |   |   | -- |   |
| Income      from discontinued operations                                                                                                                          |   |             | 62,966  |    |   |   | -- |   |
|                                                                                                                                                              |   |             |    |    |   |   |   |   |
| Net      income (loss)                                                                                                                                            |   | $                | 54,372  |    |   | $      | (32,681 | ) |
|                                                                                                                                                              |   |             |    |    |   |   |   |   |
| Net      income applicable to preferred B shares                                                                                                                  |   | $                | 50,891  |    |   | $      | -- |   |
|                                                                                                                                                              |   |             |    |    |   |   |   |   |
| Net      income (loss) applicable to common shares                                                                                                                |   | $                | 3,481   |    |   | $      | (32,681 | ) |
|                                                                                                                                                              |   |             |    |    |   |   |   |   |
| Basic      and diluted (loss) from continuing operations                                                                                                          |   | $                | (0.02   | )       |   | $      | (0.06 | ) |
|                                                                                                                                                              |   |             |    |    |   |   |   |   |
| Basic      and diluted income from discontinued operations                                                                                                        |   | $                | 0.84    |    |   | $      | -- |   |
|                                                                                                                                                              |   |             |    |    |   |   |   |   |
| Basic      and diluted net income (loss) per common share                                                                                                         |   | $                | 0.01    |    |   | $      | (0.06 | ) |
|                                                                                                                                                              |   |             |    |    |   |   |   |   |
| Weighted      average per outstanding shares                                                                                                                      |   |             | 551,224 |    |   |   | 521,979 |   |

----

|                                                                                    |   | Common stock |    |   |   |   |   |                              |   |   |           |   |
|-----------------------------------------------------------------------------------------|--------|--------------|---------|--------|--------|--------|--------|-----------------------------------|--------|--------|----------------|--------|
|                                                                                    |   | Shares       |    |   | Amount |   |   | Capital in excess of par    value |   |   | Treasury stock |   |   | Accumulated earnings |   |
|                                                                                    |   |         |    |   |   |   |   |                              |   |   |           |   |   |   |   |
| Balance      at December 31, 2007                                                       |   |         | 620,643 |   |   | $      | 62,064 |                              |   | $      | 439,715        |   |   | $ | (107,794 | ) |   | $ | 23,653 |   |
|                                                                                    |   |         |    |   |   |   |   |                              |   |   |           |   |   |   |   |   |   |   |   |   |
|      Net      income for the three months ended March 31, 2008 |   |         | --      |   |   |   | --     |                              |   |   | --             |   |   |   | -- |   |   |   | (32,681 | ) |
|      Purchase      of treasury stock                           |   |         | --      |   |   |   | --     |                              |   |   | --             |   |   |   | (39,810 | ) |   |   | -- |   |
|                                                                                    |   |         |    |   |   |   |   |                              |   |   |           |   |   |   |   |   |   |   |   |   |
| Balance      at March 31, 2008                                                          |   |         | 620,643 |   |   | $      | 62,064 |                              |   | $      | 155,715        |   |   | $ | (147,604 | ) |   | $ | (9,028 | ) |

----

|                                                                                        |   | 2007   |      |   | 2008   |   |
|---------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
|                                                                                        |   |   |      |   |   |   |
| Cash      flows from operating activities:                                                  |   |   |      |   |   |   |
|    Net      income (loss)                                                    |   | $      | 54,372    |   |   | $      | (32,682 | ) |
| Adjustments      to reconcile net income to net cash provided by operating      activities: |   |   |      |   |   |   |   |   |
|     Depletion,      depreciation and accretion                          |   |   | 14,114    |   |   |   | -- |   |
| Changes      in operating assets and liabilities:                                           |   |   |      |   |   |   |   |   |
|     Accounts      receivable                                            |   |   | (12,540   | )      |   |   | 18,556 |   |
|     Accounts      payable                                               |   |   | (410      | )      |   |   | 8,341 |   |
|     Accrued      liabilities                                            |   |   | 2,000     |   |   |   | (2,055 | ) |
| Net      cash provided by operating activities                                              |   |   | 80,054    |   |   |   | (7,840 | ) |
|                                                                                        |   |   |      |   |   |   |   |   |
| Cash      flows from investing activities:                                                  |   |   |      |   |   |   |   |   |
|     Acquisition of property leases      and improvements                |   |   | (22,845   | )      |   |   | -- |   |
| Net      cash provided (used) by investing activities                                       |   |   | (22,845   | )      |   |   | -- |   |
|                                                                                        |   |   |      |   |   |   |   |   |
| Cash      flows from financing activities:                                                  |   |   |      |   |   |   |   |   |
|     Repurchase of treasury      stock                                   |   |   | --        |   |   |   | (39,810 | ) |
| Net      cash (used) by financing activities                                                |   |   | --        |   |   |   | (39,810 | ) |
|                                                                                        |   |   |      |   |   |   |   |   |
| Net      increase in cash and cash equivalents                                              |   |   | 34,691    |   |   |   | (47,650 | ) |
|                                                                                        |   |   |      |   |   |   |   |   |
| Cash      and cash equivalents at beginning of period                                       |   |   | 985,729   |   |   |   | 408,364 |   |
|                                                                                        |   |   |      |   |   |   |   |   |
| Cash      and cash equivalents at end of period                                             |   | $      | 1,020,420 |   |   | $      | 360,984 |   |

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| 1)   | Discontinued      Operations |
|----------------|------------------------------|

| Revenues                                                                  |   |   |    |
|---------------------------------------------------------------------------|--------|--------|---------|
|    Oil and natural gas      sales                          |   | $      | 210,329 |   |
|    Other income (lease      payments)                      |   |   | --      |   |
|                                                                      |   | $      | 210,329 |   |
|                                                                      |   |   |    |   |
| Expenses                                                                  |   |   |    |   |
|    Lease      operating expense including production taxes |   |   | 75,086  |   |
|    General      and administrative                         |   |   | 27,039  |   |
|    Overhead      expense, related party                    |   |   | 9,125   |   |
|    Accretion      expense                                  |   |   | 1,613   |   |
|    Depletion      and depreciation                         |   |   | 12,500  |   |
|                                                                      |   |   | 125,363 |   |
| Income      from discontinued operations                                  |   |   | 84,966  |   |
|                                                                      |   |   |    |   |
| Provision      for income taxes                                           |   |   | 22,000  |   |
|                                                                      |   |   |    |   |
| Net      income from discontinued operations                              |   | $      | 62,966  |   |

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| ITEM      2. | MANAGEMENT’S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS |
|--------------|-------------------------------------------------------------------------------------------------------|

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| (a)   | Exhibits      – The following documents are filed as exhibits to this Quarterly Report      on Form 10-Q: |
|-----------------|-----------------------------------------------------------------------------------------------------------------|

|   | 31.1      Certification of Chief Executive Officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.* |
|--------|---------------------------------------------------------------------------------------------------------------------|

|   |                                                                                                                       |
|--------|----------------------------------------------------------------------------------------------------------------------------|
|   | 31.2      Certification of Acting Chief Financial Officer pursuant to Section 302 of      the Sarbanes-Oxley Act of 2002.* |

|   |                                                                                                                                                                                |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 32.1      Certification of Chief Executive Officer, dated May 12, 2008, pursuant to      18 U.S.C. Section 1350, as adopted to Section 906 of the Sarbanes-Oxley      Act of 2002.* |

|   |                                                                                                                                                                                       |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 32.2      Certification of Acting Chief Financial Officer, dated May 12, 2008,      pursuant to 18 U.S.C. Section 1350, as adopted to Section 906 of the      Sarbanes-Oxley Act of 2002.* |

|   |                                                                                  |
|--------|---------------------------------------------------------------------------------------|
|   | 33.1      8-K dated March 6, 2008, Croff Announces Results of Corporate      Division |

|   | * | Filed      herewit |
|--------|---|--------------------|

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