----

----

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

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

| Colorado                                                                                    | 84-0846389                                                        |
|---------------------------------------------------------------------------------------------|-------------------------------------------------------------------|
| (State                or other jurisdiction ofincorporation                or organization) | (IRS                EmployerIdentification                Number) |

| Title                Of Each Class                  | Name                Of Each Exchange On Which                Registered |
|-----------------------------------------------------|-------------------------------------------------------------------------|
| Common                Stock, no par value per share | OTCBB                                                                   |
|                                                     |

----

----

|                                         |                                                                                                                                                          | Page |
|----------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|------|
| PART                I.                       |
| Item                1.                       | Description                of Business                                                                                                                        | 1    |
| Item                2.                       | Description                of Property                                                                                                                        | 9    |
| Item                3.                       | Legal                Proceedings                                                                                                                              | 9    |
| Item                4.                       | Submission                of Matters to a Vote of Security Holders                                                                                            | 9    |
| PART                II.                      |
| Item                5.                       | Market                for Common Equity and Related Stockholder Matters and Small Business                IssuerPurchases                of Equity Securities | 10   |
| Item                6.                       | Management’s                Discussion and Analysis or Plan of Operations                                                                               | 12   |
| Item                7.                       | Financial                Statements                                                                                                                           | 22   |
| Item                8.                       | Changes                in and Disagreements with Accountants on Accounting and Financial                Disclosure                                            | 45   |
| Item                8A.                      | Controls                and Procedures                                                                                                                        | 45   |
| Item                8B.                      | Other                Information                                                                                                                              | 46   |
| PART                III.                     |
| Item                9.                       | Directors,                Executive Officers, Promoters and Control Person; Compliance                withSection                16(a) of the Exchange Act    | 47   |
| Item                10.                      | Executive                Compensation                                                                                                                         | 49   |
| Item                11.                      | Security                Ownership of Beneficial Owners and Management and Related Stockholder                Matters                                          | 51   |
| Item                12.                      | Certain                Relationships and Related Transactions                                                                                                 | 53   |
| Item                13.                      | Exhibits                                                                                                                                                      | 53   |
| Item                14.                      | Principal                Accountant Fees and Services                                                                                                         | 56   |
| Signatures                and Certifications | 57                                                                                                                                                            |
| Exhibits                                     |                                                                                                                                                          |

----

PART      I

Item      1

----

----

| · | changes                in global supply and demand for oil and natural                gas; |
|--------|--------------------------------------------------------------------------------------------|

| · | the                actions of the Organization of Petroleum Exporting Countries, or                OPEC; |
|--------|----------------------------------------------------------------------------------------------------------|

| · | the                price and quantity of imports of foreign oil and natural                gas; |
|--------|-------------------------------------------------------------------------------------------------|

| · | acts                of war or terrorism; |
|--------|------------------------------------------|

| · | political                conditions and events, including embargoes, affecting oil-producing                activity; |
|--------|-----------------------------------------------------------------------------------------------------------------------|

| · | the                level of global oil and natural gas exploration and production                activity; |
|--------|------------------------------------------------------------------------------------------------------------|

----

| · | the                level of global oil and natural gas                inventories; |
|--------|------------------------------------------------------------------------------------|

| · | weather                conditions; |
|--------|------------------------------------|

| · | technological                advances affecting energy consumption;                and |
|--------|----------------------------------------------------------------------------------------|

| · | the                price and availability of alternative                fuels. |
|--------|--------------------------------------------------------------------------------|

----

----

|        | • | actual                or anticipated quarterly variations in our operating                results;     |
|--------|---------|--------------------------------------------------------------------------------------------------------|
|        | • | conditions                generally affecting the oil and gas industry;                                |
|   | • | the                success of our business and operating strategy; and                                 |
|   | • | the                operating and stock price performance of other comparable                companies. |

----

| · | the                possibility that our inability to act as an operator may limit our                ability                to bid on and acquire desirable leasehold                interests; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | the                possibility that quality operators may not be available to us as                and when                needed; |
|--------|------------------------------------------------------------------------------------------------------------------------------------|

| · | our                inability to control the amount and timing of costs and expenses                of                exploration, development and production;                and |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | the                risk that we may not be able to properly control the timing and quality                of                work conducted with respect to our                projects. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | the                breach of our obligations under the oil and gas leases by which we                hold                our prospects and the potential loss of those leasehold                interests; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | loss                of reputation in the oil and gas                community; |
|--------|--------------------------------------------------------------------------------|

| · | a                general slow down in our operations and decline in revenue;                and |
|--------|-------------------------------------------------------------------------------------------------|

| · | decline                in market price of our common                shares. |
|--------|-----------------------------------------------------------------------------|

----

----

Item      2

Item      3

Item      4

----

PART      II

Item      5

|                                         | High   |   | Low    |
|----------------------------------------------|--------|--------|--------|
| Year                Ended September 30, 2007 |   |   |   |
| First                quarter                 | $      | 0.75   |   | $ | 0.49 |
| Second                quarter                |   | 0.85   |   |   | 0.44 |
| Third                quarter                 |   | 0.52   |   |   | 0.18 |
| Fourth                quarter                |   | 0.23   |   |   | 0.06 |
| Year                Ended September 30, 2006 |   |   |   |   |   |
| First                quarter                 | $      | 3.74   |   | $ | 1.04 |
| Second                quarter                |   | 2.22   |   |   | 1.26 |
| Third                quarter                 |   | 1.75   |   |   | 0.25 |
| Fourth                quarter                |   | 1.15   |   |   | 0.40 |

|   |  |
|--------|--|

| Recent                Sales of Unregistered Securities |
|--------------------------------------------------------|

----

|                                                                       |   |           | Conversion                Price |   | Common                Shares Issuable |
|-----------------------------------------------------------------------|---|-----------|---------------------------------|---|---------------------------------------|
| Series                  A Convertible Preferred Stock                 |   | 280,000   |                                 | $ | 1.270                                 |  | 220,472 |
| Class                  A Warrants                                     |   | 381,890   |                                 |   | 1.340                                 |  | 381,890 |
| Class                  B Warrants                                     |   | 381,890   |                                 |   | 1.490                                 |  | 381,890 |
| Class                  E Warrants                                     |   | 752,072   |                                 |   | 1.186                                 |  | 752,072 |
| Note                  Warrants issued to holders of Convertible Notes |   | 2,374,101 |                                 |   | 0.100                                 |  | 2,374,101 |
| Note                  Warrants issued to advisors in November 2006    |   | 189,928   |                                 |   | 0.590                                 |  | 189,928 |
| Convertible                  Notes                                    | $ | 1,643,050 |                                 |   | 0.100                                 |  | 16,430,500 |
| Total                  shares issuable and weighted average price     |   |           |                                 | $ | 0.191                                 |  | 20,510,381 |

| Issuer                Purchases of Equity Securities. |
|-------------------------------------------------------|

----

Item      6

----

----

----

| Percentage                of Sales:                   |   | 2007    |   | 2006    |   |
|-------------------------------------------------------|--------|---------|--------|---------|--------|
|                                                  |   |    |   |    |   |
| Revenues                                              |   | 100.0   | %      | 100.0   | %      |
| Costs                and expenses:                    |   |    |   |    |   |
| Salaries,                wages and benefits           |   | 109.4   |   | 62.3    |   |
| Subcontractor                costs                    |   | — |   | 12.1    |   |
| Lease                  operating expenses             |   | 7.2     |   | — |   |
| Impairment                  of oil and gas properties |   | 342.1   |   | — |   |
| Other                general and administrative       |   | 132.4   |   | 28.7    |   |
| Depreciation                and amortization          |   | 20.0    |   | 1.5     |   |
| Loss                from operations                   |   | (511.1  | )      | (4.6    | )      |
| Other                expense, net                     |   | (262.6  | )      | (3.1    | )      |
| Loss                before income taxes               |   | (773.7  | )      | (7.7    | )      |
| Income                taxes                           |   | — |   | — |   |
| Net                loss                               |   | (773.7  | )%     | (7.7    | )%     |

----

----

|                                                | Fiscal                Year Ending September                30 |
|-----------------------------------------------------|---------------------------------------------------------------|
|                                                | 2008                                                          |   | 2009 |   | 2010 |   | 2011 |   | 2012 |   | Thereafter |   | Total |
| Operating                leases                     |  $                                                       | 47 |   | 49 |   | 46 |   | 47 |   | 12 |   | — |   | $ | 201 |
| Capital                lease obligations            |                                                          | 14 |   | — |   | — |   | — |   | — |   | — |   |   | 14 |
| Senior                secured convertible notes     |                                                          | 1,746 |   | — |   | — |   | — |   | — |   | — |   |   | 1,746 |
| Interest                payments on preferred stock |                                                          | 15 |   | — |   | — |   | — |   | — |   | — |   |   | 15 |
| Total                                               |  $                                                       | 1,822 |   | 49 |   | 46 |   | 47 |   | 12 |   | — |   | $ | 1,976 |

|                                                    | September                30,2007 |    | September                30,2006 |   |
|---------------------------------------------------------|----------------------------------|---------|----------------------------------|--------|
| Long-Term                Debt                           |                             |    |                             |   |
| Senior                secured convertible notes         | $                                | 1,643   |                             | $      | 1,957 |   |
| Other                debt and capital lease obligations |                             | 13      |                             |   | 29 |   |
|                                                    |                             | 1,656   |                             |   | 1,986 |   |
| Less                current portion                     |                             | (1,656  | )                                |   | (1,973 | ) |
|                                                    | $                                | — |                             | $      | 13 |   |

----

----

----

----

----

Item      7

----

----

|   | (In                thousands) |
|--------|-------------------------------|

| Assets                                                                                                                                                   | 2007   |    |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|
| Current                  assets:                                                                                                                         |   |    |
| Cash                  and cash equivalents                                                                                                               | $      | 426     |   |
| Accounts                  receivable, net of allowance for doubtful accounts of $0                                                                       |   | 100     |   |
| Prepaid                  expenses and other                                                                                                              |   | 19      |   |
| Total                  current assets                                                                                                                    |   | 545     |   |
| Oil                  and natural gas properties and equipment; full cost method of                  accounting                                           |   |    |   |
| Proved                  properties                                                                                                                       |   | 677     |   |
| Unproved                  properties                                                                                                                     |   | 25      |   |
| Less                  accumulated depletion                                                                                                              |   | (97     | ) |
| Net                  oil and natural gas properties and equipment                                                                                        |   | 605     |   |
| Equipment                  and leasehold improvements, at cost:                                                                                          |   |    |   |
| Equipment                                                                                                                                                |   | 198     |   |
| Furniture                  and fixtures                                                                                                                  |   | 36      |   |
| Leasehold                  improvements                                                                                                                  |   | 8       |   |
|                                                                                                                                                     |   | 242     |   |
| Less                  accumulated depreciation and amortization                                                                                          |   | (216    | ) |
| Equipment                  and leasehold improvements, net                                                                                               |   | 26      |   |
| Total                  assets                                                                                                                            | $      | 1,176   |   |
| Liabilities                  and Stockholders’ Equity                                                                                              |   |    |   |
| Current                  liabilities:                                                                                                                    |   |    |   |
| Senior                  secured convertible not, net of discount                                                                                         | $      | 1,643   |   |
| Current                  portion of capital lease obligations                                                                                            |   | 13      |   |
| Accounts                  payable – Trade                                                                                                          |   | 216     |   |
| Accrued                  liabilities                                                                                                                     |   | 152     |   |
| Due                  to insurer                                                                                                                          |   | 100     |   |
| Accrued                  payroll and related benefits                                                                                                    |   | 144     |   |
| Total                  current liabilities                                                                                                               |   | 2,268   |   |
| Long-term                  liabilities:                                                                                                                  |   |    |   |
| Asset                  retirement obligations                                                                                                            |   | 6       |   |
| Total                  liabilities                                                                                                                       |   | 2,274   |   |
| Commitments                  and contingencies                                                                                                           |   |    |   |
| Stockholders’                  deficit:                                                                                                            |   |    |   |
| Convertible                  preferred stock, no par value; authorized 2,500 shares; 280 shares                  issued                  and outstanding |   | 261     |   |
| Common                  stock, no par value; authorized 100,000 shares; 3,789 issued and                  outstanding                                    |   | 37,261  |   |
| Accumulated                  deficit                                                                                                                     |   | (38,620 | ) |
| Total                  stockholders’ deficit                                                                                                       |   | (1,098  | ) |
| Total                  liabilities and stockholders’ deficit                                                                                       | $      | 1,176   |   |
|                                                                                                                                                     |   |    |   |

|   | See                accompanying notes to consolidated financial statements. |
|--------|-----------------------------------------------------------------------------|

----

|                                                                       | 2007   |    |   | 2006   |   |
|----------------------------------------------------------------------------|--------|---------|--------|--------|--------|
|                                                                       |   |    |   |   |   |
| Revenues                                                                   |   |    |   |   |   |
| GIS                services                                                | $      | 398     |   |   | $      | 4,313 |   |
| Oil                and gas                                                 |   | 188     |   |   |   | 7 |   |
| Total                revenues                                              |   | 586     |   |   |   | 4,320 |   |
|                                                                       |   |    |   |   |   |   |   |
| Costs                and expenses:                                         |   |    |   |   |   |   |   |
| Salaries,                wages and benefits                                |   | 641     |   |   |   | 2,694 |   |
| Subcontractor                costs                                         |   | — |   |   |   | 522 |   |
| Other                general and administrative                            |   | 776     |   |   |   | 1,237 |   |
| Lease                operating expenses                                    |   | 42      |   |   |   | 3 |   |
| Impairment                of oil and gas properties                        |   | 2,005   |   |   |   | — |   |
| Depreciation,                depletion and amortization                    |   | 117     |   |   |   | 63 |   |
| Total                operating costs                                       |   | 3,581   |   |   |   | 4,519 |   |
| Loss                from operations                                        |   | (2,995  | )      |   |   | (199 | ) |
| Other                income (expense):                                     |   |    |   |   |   |   |   |
| Interest                expense, net                                       |   | (1,324  | )      |   |   | (177 | ) |
| Gain                (loss) on sale of assets                               |   | (30     | )      |   |   | 39 |   |
| Gain                on extinguishment of debt                              |   | — |   |   |   | 61 |   |
| Other                expense, net                                          |   | (185    | )      |   |   | (59 | ) |
| Total                other expense, net                                    |   | (1,539  | )      |   |   | (136 | ) |
| Loss                before income taxes                                    |   | (4,534  | )      |   |   | (335 | ) |
| Provision                for income taxes                                  |   | — |   |   |   | — |   |
| Net                loss                                                    |   | (4,534  | )      |   |   | (335 | ) |
| Deemed                dividend associated with beneficial                  |   |    |   |   |   |   |   |
| conversion                feature of preferred stock                       |   | — |   |   |   | (30 | ) |
| Dividends                on preferred stock                                |   | (20     | )      |   |   | (18 | ) |
| Net                loss available to common stockholders                   | $      | (4,554  | )      |   | $      | (383 | ) |
|                                                                       |   |    |   |   |   |   |   |
| Basic                and diluted net loss per common share                 | $      | (1.20   | )      |   | $      | (0.10 | ) |
| Preferred                stock dividends per common share                  |   | (0.01   | )      |   |   | (0.01 | ) |
| Basic                and diluted net loss available to common shareholders | $      | (1.21   | )      |   | $      | (0.11 | ) |
|                                                                       |   |    |   |   |   |   |   |
| Weighted                average common shares:                             |   |    |   |   |   |   |   |
| Basic                                                                      |   | 3,785   |   |   |   | 3,383 |   |
| Diluted                                                                    |   | 3,785   |   |   |   | 3,383 |   |

|   | See                accompanying notes to consolidated financial statements. |
|--------|-----------------------------------------------------------------------------|

----

|                                                                                                                                                                                    | ConvertiblePreferred                Stock |    |   | Common                Stock |   |    | Accumulated |   |    | Total                Stockholders’ |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------|---------|--------|-----------------------------|--------|---------|-------------|--------|---------|------------------------------------------|--------|
|                                                                                                                                                                                    | Shares                                    |    |   | Amount                      |   |    | Shares      |   |    | Amount                                   |   |   | Deficit |   |   | Equity |   |
| Balances                at September 30, 2005                                                                                                                                           |                                      | — |   |                        | $      | — |        |   | 2,869   |                                     |   | $ | 35,312 |   |   | $ | (33,683 | ) |   | $ | 1,629 |   |
| Common                stock issued in exchange for redeemable preferred stock                                                                                                           |                                      | — |   |                        |   | — |        |   | 318     |                                     |   |   | 300 |   |   |   | — |   |   |   | 300 |   |
| Common                stock issued pursuant to consulting agreement for equity transactions,                net                of issuance costs for convertible preferred stock of $88 |                                      | — |   |                        |   | — |        |   | 75      |                                     |   |   | — |   |   |   | — |   |   |   | — |   |
| Common                stock issued for legal services rendered, net of issuance costs for                convertible preferred stock of $15                                             |                                      | — |   |                        |   | — |        |   | 10      |                                     |   |   | — |   |   |   | — |   |   |   | — |   |
| Common                stock issued for the purchase of equipment and oil and gas working                interests, net of issuance costs of $9                                          |                                      | — |   |                        |   | — |        |   | 129     |                                     |   |   | 191 |   |   |   | — |   |   |   | 191 |   |
| Issuance                of convertible preferred stock and warrants, net of issuance costs                of                $64                                                         |                                      | 760     |   |                        |   | 678     |        |   | — |                                     |   |   | 18 |   |   |   | — |   |   |   | 696 |   |
| Issuance                of Class E warrants, net of issuance costs of $7                                                                                                                |                                      | — |   |                        |   | — |        |   | — |                                     |   |   | 73 |   |   |   | — |   |   |   | 73 |   |
| Common                stock issued for the conversion of preferred stock                                                                                                                |                                      | (480    | )      |                        |   | (447    | )           |   | 378     |                                     |   |   | 447 |   |   |   | — |   |   |   | — |   |
| Deemed                dividend associated with beneficial conversion feature of preferred                stock                                                                          |                                      | — |   |                        |   | 30      |        |   | — |                                     |   |   | — |   |   |   | (30 | ) |   |   | — |   |
| Dividends                on convertible preferred stock                                                                                                                                 |                                      | — |   |                        |   | — |        |   | — |                                     |   |   | — |   |   |   | (18 | ) |   |   | (18 | ) |
| Net                loss                                                                                                                                                                 |                                      | — |   |                        |   | — |        |   | — |                                     |   |   | — |   |   |   | (335 | ) |   |   | (335 | ) |
| Balances                at September 30, 2006                                                                                                                                           |                                      | 280     |   |                        |   | 261     |        |   | 3,779   |                                     |   |   | 36,341 |   |   |   | (34,066 | ) |   | $ | 2,536 |   |
| Amortization                of stock-based compensation                                                                                                                                 |                                      | — |   |                        |   | — |        |   | — |                                     |   |   | 17 |   |   |   | — |   |   |   | 17 |   |
| Registration                costs for Class E Warrants and Senior Notes                                                                                                                 |                                      | — |   |                        |   | — |        |   | — |                                     |   |   | (38 | ) |   |   | — |   |   |   | (38 | ) |
| Warrants                issued pursuant to Convertible Notes                                                                                                                            |                                      | — |   |                        |   | — |        |   | — |                                     |   |   | 628 |   |   |   | — |   |   |   | 628 |   |
| Beneficial                conversion feature of  Convertible Notes                                                                                                            |                                      | — |   |                        |   | — |        |   | — |                                     |   |   | 308 |   |   |   | — |   |   |   | 308 |   |
| Partial                conversion of Convertible Note, net of discount and preferred financing                costs                                                                     |                                      | — |   |                        |   | — |        |   | 10      |                                     |   |   | 5 |   |   |   | — |   |   |   | 5 |   |
| Dividends                on preferred stock                                                                                                                                             |                                      | — |   |                        |   | — |        |   | — |                                     |   |   | — |   |   |   | (20 | ) |   |   | (20 | ) |
| Net                loss                                                                                                                                                                 |                                      | — |   |                        |   | — |        |   | — |                                     |   |   | — |   |   |   | (4,534 | ) |   |   | (4,534 | ) |
| Balances                at September 30, 2007                                                                                                                                           |                                      | 280     |   |                        | $      | 261     |        |   | 3,789   |                                     |   | $ | 37,261 |   |   | $ | (38,620 | ) |   | $ | (1,098 | ) |

|   | See                accompanying notes to consolidated financial statements. |
|--------|-----------------------------------------------------------------------------|

----

|                                                                                                                    |   | 2007   |    |   | 2006   |   |
|-------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                                                                                    |   |   |    |   |   |   |
| Cash                flows from operating activities:                                                                    |   |   |    |   |   |   |
| Net                loss                                                                                                 |   | $      | (4,534  | )      |   | $      | (335 | ) |
| Adjustments                to reconcile net loss to net cash provided by (used in) operating                activities: |   |   |    |   |   |   |   |   |
| Depreciation,                depletion and amortization                                                                 |   |   | 117     |   |   |   | 63 |   |
| Amortization                of stock-based compensation expenses                                                        |   |   | 17      |   |   |   | — |   |
| Accretion                of interest expense on convertible note                                                        |   |   | 978     |   |   |   | 37 |   |
| Amortization                of deferred financing costs                                                                 |   |   | 316     |   |   |   | 115 |   |
| Accretion                of interest expense on preferred stock                                                         |   |   | — |   |   |   | 52 |   |
| Gain                on extinguishment of debt                                                                           |   |   | — |   |   |   | (61 | ) |
| Loss                (gain) on disposal of assets                                                                        |   |   | 30      |   |   |   | (39 | ) |
| Impairment                of oil and gas properties                                                                     |   |   | 2,005   |   |   |   | — |   |
| Changes                in operating assets and liabilities:                                                             |   |   |    |   |   |   |   |   |
| Accounts                receivable, net                                                                                 |   |   | 1,222   |   |   |   | 207 |   |
| Revenue                earned in excess of billings, net                                                                |   |   | 49      |   |   |   | 1,542 |   |
| Prepaid                expenses and other                                                                               |   |   | 74      |   |   |   | (12 | ) |
| Billings                in excess of revenue earned                                                                     |   |   | (99     | )      |   |   | (326 | ) |
| Accounts                payable and other accrued liabilities                                                           |   |   | 164     |   |   |   | (641 | ) |
| Accrued                payroll and related benefits                                                                     |   |   | 11      |   |   |   | (555 | ) |
| Net                cash provided by in operating activities                                                             |   |   | 350     |   |   |   | 47 |   |
| Cash                flows from investing activities:                                                                    |   |   |    |   |   |   |   |   |
| Purchase                of equipment                                                                                    |   |   | (20     | )      |   |   | — |   |
| Investment                in oil and gas properties                                                                     |   |   | (951    | )      |   |   | (1,819 | ) |
| Cash                proceeds from sale of assets                                                                        |   |   | 278     |   |   |   | 112 |   |
| Net                cash used in investing activities                                                                    |   |   | (693    | )      |   |   | (1,707 | ) |
| Cash                flows from financing activities:                                                                    |   |   |    |   |   |   |   |   |
| Principal                payments on long-term debt                                                                     |   |   | (16     | )      |   |   | (28 | ) |
| Issuance                of convertible preferred stock and warrants                                                     |   |   | — |   |   |   | 760 |   |
| Dividends                paid on preferred stock                                                                        |   |   | — |   |   |   | (8 | ) |
| Principal                payment on convertible note                                                                    |   |   | (2,000  | )      |   |   | — |   |
| Issuance                of convertible note, net of expenses                                                            |   |   | 1,466   |   |   |   | 1,751 |   |
| Fees                associated with issuance of common and preferred stock                                              |   |   | — |   |   |   | (80 | ) |
| Fees                associated with registration of warrants                                                            |   |   | (38     | )      |   |   | — |   |
| Net                cash provided by (used in) financing activities                                                      |   |   | (588    | )      |   |   | 2,395 |   |
| Net                increase (decrease) in cash                                                                          |   |   | (931    | )      |   |   | 735 |   |
| Cash                and cash equivalents at beginning of year                                                           |   |   | 1,357   |   |   |   | 622 |   |
| Cash                and cash equivalents at end of year                                                                 |   | $      | 426     |   |   | $      | 1,357 |   |
|                                                                                                                    |   |   |    |   |   |   |   |   |
| Supplemental                disclosures of cash flow information:                                                       |   |   |    |   |   |   |   |   |
| Cash                paid for interest                                                                                   |   | $      | 161     |   |   | $      | — |   |
| Equipment                acquired under capital leases                                                                  |   | $      | — |   |   | $      | 11 |   |
| Non-cash                financing activities                                                                            |   |   |    |   |   |   |   |   |
| Issuance                of common stock in exchange for redeemable preferred stock                                      |   | $      | — |   |   | $      | 300 |   |
| Issuance                of common stock in exchange for convertible preferred                stock                      |   | $      | — |   |   | $      | 447 |   |
| Issuance                of common stock for equipment and oil and gas working                interests                  |   | $      | — |   |   | $      | 200 |   |
| Issuance                of common stock for consulting and legal services                                               |   | $      | — |   |   | $      | 103 |   |
| Accretion                of interest on preferred stock                                                                 |   | $      | — |   |   | $      | 52 |   |
| Deemed                dividend associated with beneficial conversion feature of preferred                stock          |   | $      | — |   |   | $      | 30 |   |
| Accrual                of dividends on convertible preferred stock                                                      |   | $      | 20      |   |   | $      | 10 |   |
| Warrants                issued related to convertible debt                                                              |   | $      | 628     |   |   | $      | — |   |
| Beneficial                conversion feature of convertible debt                                                        |   | $      | 308     |   |   | $      | — |   |
| Partial                conversion of convertible note                                                                   |   | $      | 5       |   |   | $      | — |   |

|   | See                accompanying notes to                consolidated financial statements. |
|--------|--------------------------------------------------------------------------------------------|

----

|   | AND                SUBSIDIARIES |
|--------|---------------------------------|

|   | Notes                to Consolidated Financial Statements |
|--------|-----------------------------------------------------------|

| (1) | Summary                of Significant Accounting Policies |
|-----|-----------------------------------------------------------|

|   | (a) | Business                and Basis of Financial Statement Presentation |
|--------|-----|-----------------------------------------------------------------------|

|   | (b) | Statement                of Cash Flows |
|--------|-----|----------------------------------------|

|   | (c) | Equipment                and Leasehold Improvements |
|--------|-----|-----------------------------------------------------|

|   | (d) | Allowance                for Doubtful Accounts |
|--------|-----|------------------------------------------------|

|   | (e) | Revenue                and Cost Recognition |
|--------|-----|---------------------------------------------|

----

|   | (f) | Oil                and                Natural Gas Properties. |
|--------|-----|---------------------------------------------------------------|

----

|   | (g) | Asset                Retirement Obligations |
|--------|-----|---------------------------------------------|

|   | (h) | Income                Taxes |
|--------|-----|-----------------------------|

----

|   | (i) | Impairment                of Long-Lived Assets Other Than Goodwill |
|--------|-----|--------------------------------------------------------------------|

|   | (j) | Stock-Based                Compensation |
|--------|-----|-----------------------------------------|

----

|                                          | Year  Ended                September 30, 2006 |
|------------------------------------------|---------------------------------------------------------|
| Dividend                  yield          | 0%                                                      |
| Anticipated                  volatility  | 92                  - 124%                              |
| Risk-free                  interest rate | 4.0                  -6.0%                              |
| Expected                  lives          | 2–                  3.5 years                     |

|                                                                                                   |   | Year                  Ended September 30, 2006           |    |
|--------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------|---------|
|                                                                                                   |   | (in                  thousands except per share earnings |    |
| Net                  loss available to common shareholders as reported                                 |   | $                                                        | (383    | ) |
| Add:                  Stock-based employee compensation included in reported net                  loss |   |                                                     | — |   |
| Less:                  Pro forma option expense                                                        |   |                                                     | (73     | ) |
| Pro                  forma net loss                                                                    |   | $                                                        | (456    | ) |
|                                                                                                   |   |                                                     |    |   |
| Basic                  net loss per share, as reported                                                 |   | $                                                        | (0.11   | ) |
| Less:                  Pro forma option expense                                                        |   |                                                     | (0.02   | ) |
| Pro                  forma basic net loss per share                                                    |   | $                                                        | (0.13   | ) |
|                                                                                                   |   |                                                     |    |   |
| Diluted                  net loss per share, as reported                                               |   | $                                                        | (0.11   | ) |
| Less:                  Pro forma option expense                                                        |   |                                                     | (0.02   | ) |
| Pro                  forma diluted net loss per share                                                  |   | $                                                        | (0.13   | ) |

|   | (k) | Earnings                (Loss) Per Share |
|--------|-----|------------------------------------------|

----

|   | (l) | Financial                Instruments |
|--------|-----|--------------------------------------|

| (m) | Concentration                of Credit Risk |
|-----|---------------------------------------------|

|   | (n) | Operating                Cycle |
|--------|-----|--------------------------------|

| (2) | Going                Concern |
|-----|------------------------------|

----

| (3) | Oil                and natural gas properties and equipment |
|-----|-------------------------------------------------------------|

----

| (4) | Debt |
|-----|------|

|                                                    |   | 2007   |    |   | 2006   |   |
|---------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Long-Term                Debt                           |   |   |    |   |   |   |
| Other                debt and capital lease obligations |   | $      | 13      |   |   | $      | 29 |   |
| Senior                secured convertible notes         |   |   | 1,643   |   |   |   | 1,957 |   |
|                                                    |   |   | 1,656   |   |   |   | 1,986 |   |
| Less                current portion                     |   |   | (1,656  | )      |   |   | (1,973 | ) |
|                                                    |   | $      | — |   |   | $      | 13 |   |

----

----

| (6) | ConvertiblePreferred                Stock |
|-----|-------------------------------------------|

----

| Years                  ending September 30                    | Operating                  leases |   | Capital                  leases |   |
|---------------------------------------------------------------|-----------------------------------|--------|---------------------------------|--------|
| 2008                                                          | $                                 | 47     |                            | $      | 1 |   |
| 2009                                                          |                              | 49     |                            |   | — |   |
| 2010                                                          |                              | 46     |                            |   | — |   |
| 2011                                                          |                              | 47     |                            |   | — |   |
| 2012                                                          |                              | 12     |                            |   | — |   |
|                                                          | $                                 | 237    |                            |   | 14 |   |
| Less                  amount representing interest            |                              |   |                            |   | (1 | ) |
| Present                  value of minimum lease obligations   |                              |   |                            |   | 13 |   |
| Less                  current maturities of lease obligations |                              |   |                            |   | — |   |
|                                                          |                              |   |                            | $      | 13 |   |

| (8) | Income                Taxes |
|-----|-----------------------------|

|                                                                                                                              | 2007   |    | 2006   |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|---------|--------|--------|
| Deferred                tax assets:                                                                                               |   |    |   |   |
| Accrued                liabilities, primarily due to accrued compensated absences for financial                statement purposes | $      | 50      |   | $      | 38 |   |
| Equipment                and leasehold improvements, primarily due to differences in                depreciation                  |   | (8      | )      |   | 103 |   |
| Bad                debt and revenue earned in excess of billing allowances                                                        |   | — |   |   | 40 |   |
| NOL                carryforward                                                                                                   |   | 12,691  |   |   | 9,906 |   |
| Impairment                of deductible goodwill                                                                                  |   | 1,293   |   |   | 1,587 |   |
| Intangible                drilling costs                                                                                          |   | (457    | )      |   | — |   |
| Accrued                marketing incentives                                                                                       |   | — |   |   | 6 |   |
| Other,                net                                                                                                         |   | 30      |   |   | 34 |   |
| Valuation                allowance                                                                                                |   | (13,599 | )      |   | (11,714 | ) |
| Net                deferred tax assets                                                                                            | $      | — |   | $      | — |   |

| (9) | Stockholders’                Equity and Stock Options |
|-----|-------------------------------------------------------------|

----

|                                       | Number                of Options |    |   | Weighted                Average Exercise Price Per                share |
|--------------------------------------------|----------------------------------|---------|--------|-------------------------------------------------------------------------|
| Balance,                October 1, 2005    |                             | 148     |   |                                                                    | $ | 3.84 |
| Granted                                    |                             | 480     |   |                                                                    |   | 1.01 |
| Exercised                                  |                             | — |   |                                                                    |   | — |
| Canceled                                   |                             | (107    | )      |                                                                    |   | 3.05 |
| Balance,                September 30, 2006 |                             | 521     |   |                                                                    | $ | 1.46 |
|                                       |                             |    |   |                                                                    |   |   |
| Granted                                    |                             | 135     |   |                                                                    |   | 0.54 |
| Exercised                                  |                             | — |   |                                                                    |   | — |
| Canceled                                   |                             | (236    | )      |                                                                    |   | 1.48 |
| Balance,                September 30, 2007 |                             | 420     |   |                                                                    | $ | 1.15 |

| Range                ofExercisePrice |                           | Number                Outstanding                atSeptember                30, 2007 |    | Weighted                AverageExercise                Price |   | Weighted                AverageRemainingContractualLife                (years) |   | NumberExercisableat                September 30, 2007 |   | Weighted                AverageExercise                Price |   |
|--------------------------------------|--------------------------------|--------------------------------------------------------------------------------------|---------|--------------------------------------------------------------|--------|--------------------------------------------------------------------------------|--------|-------------------------------------------------------|--------|--------------------------------------------------------------|--------|
| $                                    | 0.00              – 0.75 |                                                                                 | 205,000 |                                                         | $      | 0.63                                                                           |   | 8.81                                                  |   | 141,250                                                      |   | $ | 0.66 |   |
|                                 | 0.76              – 1.50 |                                                                                 | 140,000 |                                                         |   | 1.30                                                                           |   | 8.48                                                  |   | 140,000                                                      |   |   | 1.30 |   |
|                                 | 1.51              – 2.25 |                                                                                 | 20,000  |                                                         |   | 2.11                                                                           |   | 6.93                                                  |   | 20,000                                                       |   |   | 2.11 |   |
|                                 | 2.26              – 3.00 |                                                                                 | 55,000  |                                                         |   | 2.38                                                                           |   | 7.41                                                  |   | 55,000                                                       |   |   | 2.38 |   |
| $                                    | 0.00              – 3.00 |                                                                                 | 420,000 |                                                         | $      | 1.15                                                                           |   | 8.43                                                  |   | 356,250                                                      |   | $ | 1.26 |   |

----

| (10) | Employee                Benefit Plan |
|------|--------------------------------------|

| (11) | Concentrations                of Credit Risk |
|------|----------------------------------------------|

| (12) | Litigation                and Other Contingencies |
|------|---------------------------------------------------|

----

| (13) | Segment                Information |
|------|------------------------------------|

|                                                     | GISServices |    |   | EnergyDivision |   |    | Non-Segment |   |   | Total   |   |
|----------------------------------------------------------|-------------|---------|--------|----------------|--------|---------|-------------|--------|--------|---------|--------|
| 2007                                                     |        |    |   |           |   |    |        |   |   |    |   |
| Operations                                               |        |    |   |           |   |    |        |   |   |    |   |
| Revenues                                                 | $           | 398     |   |           | $      | 188     |        |   | $      | — |   |   | $ | 586 |   |
| Loss                from operations                      |        | (191    | )      |           |   | (2,704  | )           |   |   | (100    | )      |   |   | (2,995 | ) |
| Interest                expense, net                     |        | — |   |           |   | — |        |   |   | (1,324  | )      |   |   | (1,324 | ) |
| Other                                                    |        | — |   |           |   | — |        |   |   | (215    | )      |   |   | (215 | ) |
| Net                loss                                  |        |    |   |           |   |    |        |   |   |    |   |   | $ | (4,534 | ) |
| Assets                                                   |        |    |   |           |   |    |        |   |   |    |   |   |   |   |   |
| Segment                assets                            | $           | 29      |   |           | $      | 683     |        |   | $      | — |   |   | $ | 712 |   |
| Non-segment                assets                        |        | — |   |           |   | — |        |   |   | 495     |   |   |   | 464 |   |
| Consolidated                assets                       |        |    |   |           |   |    |        |   |   |    |   |   | $ | 1,176 |   |
| Capital                expenditures                      | $           | — |   |           | $      | 952     |        |   | $      | 20      |   |   | $ | 972 |   |
| Depreciation,                depletion, and amortization | $           | 15      |   |           | $      | 97      |        |   | $      | 5       |   |   | $ | 117 |   |
|                                                     |        |    |   |           |   |    |        |   |   |    |   |   |   |   |   |
| 2006                                                     |        |    |   |           |   |    |        |   |   |    |   |   |   |   |   |
| Operations                                               |        |    |   |           |   |    |        |   |   |    |   |   |   |   |   |
| Revenues                                                 | $           | 4,313   |   |           | $      | 7       |        |   | $      | — |   |   | $ | 4,320 |   |
| Loss                from operations                      |        | (112    | )      |           |   | (87     | )           |   |   | — |   |   |   | (199 | ) |
| Interest                expense, net                     |        | — |   |           |   | — |        |   |   | (177    | )      |   |   | (177 | ) |
| Other                                                    |        | — |   |           |   | — |        |   |   | 41      |   |   |   | 41 |   |
| Net                loss                                  |        |    |   |           |   |    |        |   |   |    |   |   | $ | (335 | ) |
| Assets                                                   |        |    |   |           |   |    |        |   |   |    |   |   |   |   |   |
| Segment                assets                            | $           | 1,431   |   |           | $      | 2,022   |        |   | $      | — |   |   | $ | 3,453 |   |
| Non-segment                assets                        |        | — |   |           |   | — |        |   |   | 1,584   |   |   |   | 1,584 |   |
| Consolidated                assets                       |        |    |   |           |   |    |        |   |   |    |   |   | $ | 5,037 |   |
| Capital                expenditures                      | $           | — |   |           | $      | 2,022   |        |   | $      | — |   |   | $ | 2,022 |   |
| Depreciation,                depletion, and amortization | $           | 53      |   |           | $      | — |        |   | $      | 10      |   |   | $ | 63 |   |

----

| (14) | Impact                of Accounting Pronouncements |
|------|----------------------------------------------------|

| (15) | Subsequent                Events |
|------|----------------------------------|

----

| (16) | Supplemental                Oil and Gas Information |
|------|-----------------------------------------------------|

|                                                       | Gas                (MMcf) |    |
|------------------------------------------------------------|---------------------------|---------|
| Total                Proved Reserves                       |                      |    |
| Balance,                October 1, 2006                    |                      | — |   |
| Extensions,                discoveries and other additions |                      | 189.153 |   |
| Production                                                 |                      | (30.247 | ) |
| Balance,                September 30, 2007                 |                      | 158.296 |   |

|                                      | 2007   |   |   | 2006   |
|-------------------------------------------|--------|--------|--------|--------|
| Proved                properties          | $      | 1,960  |   |   | $ | — |
| Unproved                properties        |   | 747    |   |   |   | 2,019 |
| Sales                of properties        |   | (270   | )      |   |   | — |
| Total                capitalized costs    |   | 2,707  |   |   |   | 2,019 |
| Less                impairment allowance  |   | (2005  | )      |   |   | — |
| Less                accumulated depletion |   | (97    | )      |   |   | — |
| Net                capitalized costs      | $      | 605    |   |   | $ | 2,019 |

----

| Costs                Incurred in Oil and Gas Producing Activities |
|-------------------------------------------------------------------|

|                                          | 2007   |    |   | 2006   |
|-----------------------------------------------|--------|---------|--------|--------|
| Property                  acquisition costs   |   |    |   |   |
| Proved                                        | $      | — |   |   | $ | — |
| Unproved                                      |   | 4       |   |   |   | 773 |
| Exploration                  costs            |   | — |   |   |   | — |
| Development                  costs            |   | 946     |   |   |   | 1246 |
| Asset                  retirement obligations |   | 6       |   |   |   | — |
| Total                  costs incurred         | $      | 956     |   |   | $ | 2,019 |

|   | Standardized                Measure of Discounted Future Net Cash Flow |
|--------|------------------------------------------------------------------------|

|                                                           | 2007   |    |
|----------------------------------------------------------------|--------|---------|
| Future                cash in flows at September 30            | $      | 917     |   |
| Future                costs-                                   |   |    |   |
| Production                and development costs                |   | (207    | ) |
| Income                taxes                                    |   | — |   |
| Future                net cash flows                           |   | 710     |   |
| 10%                discount for estimated timing of cash flows |   | (155    | ) |
| Total                costs incurred                            | $      | 555     |   |

Item      8

Item      8A

----

Item      8B.

----

PART      III

| Item                9. Directors, Executive Officers, Promoters and                Control Persons; Compliance with Section 16(a) of the Exchange Act |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| Executive                Officers |
|-----------------------------------|

----

----

Item      10

|                                   |   | Annual                Compensation | Long                TermCompensationAwards |                                       |
|----------------------------------------|--------|------------------------------------|--------------------------------------------|--------------------------------------------|
| Name                andTitle           |   | Salary                             | Bonus                                      | Other                AnnualCompensation(1) | StockOptions(2) | All                OtherCompensation(3) |
| Year                                   | $      | $                                  | $                                          | (#)                                        | $ |
| Lori                A. Jones           | 2007   | 175,000                            | 50,000                                     | —                                    | 65,000 | 3,328 |
| President                and           | 2006   | 175,000                            | —                                    | —                                    | 100,000 | 3,231 |
| Chief                Executive Officer | 2005   | 175,000                            | 60,000                                     | —                                    | 40,000 | 2,054 |
|                                   |   |                               |                                       |                                       |   |   |

| (1) |  Certain              perquisites and other              personal benefits did not exceed the lesser of $50,000 or 10% of the              total              amounts reported in the Salary and Bonus columns in any of the fiscal              years reported, except as indicated.                                                          |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Long                term compensation consists                only of stock options. There were no grants of restricted stock or                payments from other long-term incentive plans, therefore columns                for                “Restricted Stock Awards” and “LTIP Payouts” are                omitted. |

| (3) | Other                compensation includes                employer’s matching contributions to the 401(k) Incentive Savings                Plan. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| Name                         | Number                ofSecuritiesUnderlyingOptionsGranted | Percent                ofTotalOptions                toEmployeesIn                FiscalYear | ExercisePrice($/sh) | ExpirationDate | Potential                RealizableValue(2)                at AssumedAnnual                Rates ofStock                AppreciationforOption                Term |
|------------------------------|------------------------------------------------------------|----------------------------------------------------------------------------------------------|---------------------|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                         |                                                       |                                                                                         |                |           | 5%                ($)                                                                                                                                             | 10%                ($) |
| Lori                A. Jones | 65,000                                                     | 68.0%                                                                                        | 0.53                | 01/03/17       | 21,665                                                                                                                                                            | 63,840 |
|                         |                                                       |                                                                                         |                |           |                                                                                                                                                              |   |

|   | (1) | “Potential                Realizable Value” is                calculated based on the assumption that the price of our Common Stock                will                appreciate at the rates shown. The 5% and 10% assumed rates are mandated                by the rules of the Securities Exchange Commission and do not reflect                our                estimate or projection of future stock prices. Actual gains, if any,                realized upon future exercise of these options will depend on the                actual                performance of our Common Stock and the continued employment of the                Named                Executive Officer through the vesting period of the                option. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                         | Shares acquired           |                     | Number                of Securities UnderlyingUnexercised                Options at Fiscal                Year End | Value                ($) of Unexercised In-the-Money                Options at Fiscal                Year End |
|------------------------------|--------------------------------|--------------------------|--------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|
| Name                         | on                exercise (#) | Value                ($) | Exercisable                                                                                                        | Unexercisable                                                                                                 | Exercisable | Unexercisable |
|                         |                           |                     |                                                                                                               |                                                                                                          |   |   |
| Lori                A. Jones | —                        | —                  | 166,250                                                                                                            | 48,750                                                                                                        | — | — |
|                         |                           |                     |                                                                                                               |                                                                                                          |   |   |

| (1) | The                value of the unexercised                in-the-money options is calculated using the closing bid price of                our                Common Stock on September 28, 2007, at $0.10 per share. Amounts reflected                are based on the assumed value minus the exercise price and do not                indicate actual sales or                proceeds. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Chief                Financial Officer |
|----------------------------------------|

----

Item      11

|                                                                                               | Amount                and Nature                ofBeneficial                Ownership (1) | Percentageof                Class |
|----------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------|-----------------------------------|
| Longview                  Fund, LLP(2)*                                                            | 564,054                                                                                   | 12.27                             | % |
| Alpha                  Capital, AG(3)                                                              | 554,404                                                                                   | 12.69                             | % |
| DKR                  Soundshore Oasis Holding Fund                  Ltd.(4)                  (5)   | 6,221,867                                                                                 | 61.60                             | % |
| Harborview                  Master Fund                  L.P.(6)                  (7)              | 6,291,367                                                                                 | 61.86                             | % |
| Monarch                  Capital Fund                  Ltd.(6)                  (8)                | 6,291,367                                                                                 | 61.86                             | % |
| Edward                  P. Gistaro (9)*                                                            | 55,000                                                                                    | 1.40                              | % |
| Hank                  Cohn (10)*                                                                   | 5,725                                                                                     | 0.15                              | % |
| Lori                  A. Jones (11)                  *                                             | 190,340                                                                                   | 4.69                              | % |
| Thomas                  P. Roddy (9)*                                                              | 55,000                                                                                    | 1.40                              | % |
| Rad                  Weaver (9)*                                                                   | 55,000                                                                                    | 1.40                              | % |
|                                                                                               |                                                                                      |                              |   |
| All                  directors and executive                  officers as a group (5 persons) (12) | 361,065                                                                                   | 8.53                              | % |

|   | * | Director |
|--------|---|----------|

|   | (1) | Unless                otherwise indicated, all                persons have sole voting and investment power with respect to their                shares. All amounts shown in this column include shares obtainable                upon                exercise of stock options currently exercisable or exercisable within                60                days of the date of this                table. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Represents                shares issuable upon                exercise of Class E Warrrants. Mr. S. Michael Rudolph holds voting                and                dispositive powers for Longview Fund, L.P.  Mr. Rudolph is the                Chief Financial Officer of Viking Management, LLC, investment manager                for                Longview Fund, L.P. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Includes                12,056 shares held                directly, 157,480 shares of Common Stock issuable upon conversion                of                200,000 shares of Convertible Preferred, 98,425 shares of Common                Stock                issuable upon the exercise of Class A Warrants, 98,425 shares issuable                upon the exercise of Class B Warrants, and 188,018 shares of Common                Stock                issuable upon exercise of Class E Warrants. Mr. Konrad Ackerman holds                voting and dispositive powers for Alpha Capital                AG. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Represents                791,367 shares issuable                upon conversion of senior secured convertible notes and 5,430,500                shares                issuable upon the exercise of Note                Warrants. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | The                investment manager of DKR                Soundshore Oasis Holding Fund Ltd. (“DKR”) is DKR Oasis Management Company                LP. DKR Oasis Management Company LP has the authority to do any and                all                acts on behalf of DKR Soundshore Oasis Holding Fund Ltd., including                voting                any shares held by DKR Soundshore Oasis Holding Fund Ltd. Mr. Seth                Fischer is the managing partner of Oasis Management Holdings LLC,                one of                the general partners of DKR Oasis Management Company LP. Mr. Seth                Fischer has sole voting and investment control over the securities                held by                DKR Soundshore Oasis Holding Fund Ltd. and has ultimate responsibility                for                trading with respect to DKR Soundshore Oasis Holding Fund Ltd.                Mr. Fischer disclaims beneficial ownership of the                shares |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (6) | Represents                791,367 shares issuable                upon conversion of senior secured convertible notes and 5,500,000                shares                issuable upon the exercise of Note                Warrants. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (7) | Harborview                Master Fund L.P.                (“Harborview”) is a master fund in a master-feeder structure whose general                partner is Harborview Advisors LLC. Richard Rosenblum and David Stefansky                are the managers of Harborview Advisors LLC and have voting and investment                control over the shares held by Harborview Master Fund L.P. and ultimate                responsibility for trading with respect to Harborview Master Fund                L.P.                Messrs. Rosenblum and Stefansky disclaim beneficial ownership of                the                shares. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (8) | Monarch                Capital Fund Ltd.                (“Monarch”) is a British Virgin Islands Investment Fund managed by Beacon                Fund Advisors Ltd. (“Manager”) and advised by Monarch Managers Ltd.                (“Advisor”). David Sims and Joseph Frunck, the principals, respectively,                of Manager and Advisor, have voting and investment control with regard                to                Monarch. Neither Mr. Sims nor Mr. Frunck have any beneficial                interest in the shares. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (9) | Includes                55,000 shares of Common                Stock underlying options that are exercisable within 60 days of January                3,                2008. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (10) | Includes                5,725 shares of Common                Stock underlying options that are exercisable within 60 days of January                3,                2008. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (11) | Includes                182,500 shares of Common                Stock underlying options that are exercisable within 60 days of January                3,                2008 |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (12) | Includes                353,225 shares of Common                Stock underlying options that are exercisable within 60 days of January                3,                2008. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Equity                Compensation Plan Information |
|-----------------------------------------------------|

|                                                                      |   | (a)                                                                                                                                                   |   | (b)                                                                                                                      |   | (c)                                                                                                                                                                                                                               |
|---------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Plan                category                                              |   | Number                of securities to be issued                upon exercise ofoutstanding                options,warrants                and rights |   | Weighted-average                exercise price                of outstanding options,                warrants and rights |   | Number                of securitiesremaining                available for future                issuance under equitycompensation                plans(excluding                securitiesreflected                in column (a)) |
| Equity                compensation plans approved by security holders     |   | 415,000                                                                                                                                               |   | $                                                                                                                        | 1.16   |                                                                                                                                                                                                                              | 183,388 |
| Equity                compensation plans not approved by security holders |   | 5,000                                                                                                                                                 |   | $                                                                                                                        | 0.72   |                                                                                                                                                                                                                              | 80,000 |
| Total                                                                     |   | 420,000                                                                                                                                               |   | $                                                                                                                        | 1.15   |                                                                                                                                                                                                                              | 263,388 |
|                                                                      |   |                                                                                                                                                  |   |                                                                                                                     |   |                                                                                                                                                                                                                              |   |

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Item      12

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Item      13

|               | 2.0    | Plan                  of acquisition, regarding organization, arrangement, liquidation,                  or                  succession                                                                                                                                                                                                                                                                                           |
|--------------------|-------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|               | 2.1         | Agreement                  and Plan of Merger by and among Analytical Surveys, Inc., Axion                  Acquisition Corp, and Axion International, Inc. dated as of November                  20, 2007                  (incorporated by reference to Exhibit 2.1 to the Company’s Current Report                  on Form 8-K dated November 21, 2007).                                                           |
|               | 3.0    | Articles                  of Incorporation and By-Laws                                                                                                                                                                                                                                                                                                                                                                            |
|               | 3.1    | Articles                  of Incorporation, as amended (incorporated by reference to the                  Company’s                  Registration Statement on Form S-18, (Registration No.                  2-93108-D)).                                                                                                                                                                                                   |
|               | 3.3    | By-Laws                  (incorporated by reference to the Company’s Registration Statement on Form                  S-18 (Registration No. 2-93108-D)).                                                                                                                                                                                                                                                                    |
|               | 3.3    | Amendment                  to By-laws (incorporated by reference to the Company’s Annual Report on                  Form 10-K for the year ended September 30, 1998).                                                                                                                                                                                                                                                       |
|               | 4.0    | Instruments                  defining the rights of Security Holders including                  Indentures                                                                                                                                                                                                                                                                                                                        |
|               | 4.1    | Form                  of Stock Certificate (incorporated by reference to the Company’s                  Registration Statement on Form S-18 (Registration No.                  2-93108-D)).                                                                                                                                                                                                                                 |
|               | 4.2    | Subscription                  Agreement dated May 31, 2006, (incorporated by reference to Exhibit                  A of                  the Company’s Proxy Statement filed June 29, 2006).                                                                                                                                                                                                                                     |
|               | 4.3    | Form                  of Class E Warrant dated May 31, 2006, (incorporated by reference                  to                  Exhibit D of the Company’s Proxy Statement, filed June 29,                  2006).                                                                                                                                                                                                                  |
|               | 4.4    | Securities                  Purchase Agreement dated as of November 24, 2006, among the Company                  and                  the Purchasers named therein, (incorporated by reference to Exhibit                  4.1 to                  the Company’s Current Report on Form 8-K dated November 30,                  2006).                                                                                      |
|               | 4.5         | 13%                  Secured Convertible Debenture due November 24, 2007, issued to                  Monarch                  Capital Fund, (incorporated by reference to Exhibit 4.2 to the                  Company’s                  Current Report on Form 8-K dated November 30,                  2006).                                                                                                              |
|               | 4.6         | 13%                  Secured Convertible Debenture due November 24, 2007, issued to                  Harborview                  Master Fund LP, (incorporated by reference to Exhibit 4.3 to the                  Company’s                  Current Report on Form 8-K dated November 30,                  2006).                                                                                                         |
|               | 4.7         | 13%                  Secured Convertible Debenture due November 24, 2007, issued to                  DKR                  SoundShore Oasis Holding Fund LTD, (incorporated by reference to                  Exhibit                  4.4 to the Company’s Current Report on Form 8-K dated November 30,                  2006).                                                                                             |
|               | 4.8         | Common                  Stock Purchase Warrant dated November 24, 2006, issued to Monarch                  Capital                  Fund (incorporated by reference to Exhibit 4.5 to the Company’s Current                  Report on Form 8-K dated November 30, 2006).                                                                                                                                                   |
|               | 4.9         | Common                  Stock Purchase Warrant dated November 24, 2006, issued to Harborview                  Master Fund LP (incorporated by reference to Exhibit 4.6 to the                  Company’s                  Current Report on Form 8-K dated November 30, 2006).                                                                                                                                                   |
|               | 4.10        | Common                  Stock Purchase Warrant dated November 24, 2006, issued to DKR SoundShore                  Oasis Holding Fund LTD (incorporated by reference to Exhibit 4.7                  to the                  Company’s Current Report on Form 8-K dated November 30,                  2006).                                                                                                                      |
|               | 4.11        | Registration                  Rights Agreement entered into as of November 24, 2006, among the                  Company                  and the Purchasers, (incorporated by reference to Exhibit 4.8 to                  the                  Company’s Current Report on Form 8-K dated November 30,                  2006).                                                                                             |
|               | 4.12        | Amendment                  and Waiver Agreement entered into as of September 30, 2007, among                  the                  Company and the Purchasers of the 13% Secured Convertible Debenture                  due                  November 24, 2007 (incorporated by reference to Exhibit 99.1 to                  the                  Company’s Current Report on Form 8-K dated October 3,                  2007). |
|               | 4.13        | Amendment                  and Waiver Agreement entered into as of December 31, 2007, among                  the                  Company and the Purchasers of the 13% Secured Convertible Debenture                  due                  November 24, 2007 (incorporated by reference to Exhibit 10.1 to                  the                  Company’s Current Report on Form 8-K dated January 4,                  2008).  |
|               | 10.0        | Material                  Contracts                                                                                                                                                                                                                                                                                                                                                                                               |
|     | 10.1        | 1993                  Non-Qualified Stock Option Plan dated December 11, 1992 (incorporated                  by                  reference to the Company’s Proxy Statement dated January 11,                  1993).                                                                                                                                                                                                            |
|     | 10.2        | Analytical                  Surveys, Inc. 1997 Incentive Stock Option Plan, as amended and                  restated                  (incorporated by reference to the Company’s Proxy Statement dated January                  8, 1998).                                                                                                                                                                                       |
|     | 10.3        | Analytical                  Surveys, Inc. Officer and Employee Recruitment Stock Incentive                  Plan and                  Form of Stock Option Agreement (incorporated by reference to the                  Company’s                  Annual Report on Form 10-K/A for the year ended September 30, 2000).                  (1)                                                                                     |
|     | 10.4   | Analytical                  Surveys, Inc. Year 2000 Stock Incentive Plan and form of agreement                  (incorporated by reference to the Company’s Annual Report on Form 10-K/A                  for the year ended September 30, 2000).                                                                                                                                                                           |
|     | 10.5   | Analytical                  Surveys, Inc. Year 2003 Stock Option Plan and form of agreement                  (incorporated by reference to the Company’s Proxy Statement dated July 21,                  2003). (1)                                                                                                                                                                                                         |
|               | 10.6        | Employment                  Agreement dated April 1, 2005, by and between Analytical Surveys,                  Inc. and                  Lori Jones (incorporated by reference to Exhibit 10.8 to the Company’s                  Current Report on Form 8-K dated June 28, 2005).                  (1)                                                                                                                      |
|               | 10.7   | Employment                  Agreement dated June 5, 2005, by and between Analytical Surveys,                  Inc. and                  Brian Morrow (incorporated by reference to Exhibit 10.8 to the                  Company’s                  Current Report on Form 8-K dated June 28, 2005).                  (1)                                                                                                    |
|               | 10.8   | Management                  and Consulting Agreement dated October 7, 2005, by and between                  Analytical                  Surveys, Inc. and Wind Lake Solutions, Inc. (incorporated by reference                  to                  Exhibit 10.8 to the Company’s Current Report on Form 8-K dated October 13,                  2005).                                                                      |
|               | 10.9   | Consulting                  Agreement dated December 7, 2005, by and between Analytical Surveys,                  Inc.                  and Pluris Partners, Inc. (incorporated by reference to Exhibit                  10.8 to                  the Company’s Current Report on Form 8-K dated December 13,                  2005).                                                                                       |
|               | 10.10  | Incentive                  Reward Program for                  fiscal 2006 and 2007 dated August 29, 2006.                  (1)                                                                                                                                                                                                                                                                                                   |
|               | 10.11  |  Letter                  Agreement dated                  September 29, 2006 between Analytical Surveys, Inc. and Louis Dorfman,                  Jr.                  (incorporated by reference to Exhibit 10.8 to the Company’s Current                  Report on Form 8-K dated October 4, 2006) (1).                                                                                                             |
|               | 22.1   | Subsidiaries                  of the Company                                                                                                                                                                                                                                                                                                                                                                                      |
|               | 23.1   | *Consent                  of Malone & Bailey, P.C.                                                                                                                                                                                                                                                                                                                                                                       |
|               | 23.2   | *Consent                  of Pannell Kerr Forster of Texas, P.C.                                                                                                                                                                                                                                                                                                                                                                  |
|               | 24.1        | Power                  of Attorney (included on signature page)                                                                                                                                                                                                                                                                                                                                                                   |
|     | 31.1   | *Section                  302 Certification of Chief Executive Officer                                                                                                                                                                                                                                                                                                                                                            |
|     | 31.2   | *Section                  302 Certification of Principal Financial Officer                                                                                                                                                                                                                                                                                                                                                        |
|               | 32.1   | *Section                  906 Certification of Chief Executive Officer                                                                                                                                                                                                                                                                                                                                                            |
|               | 32.2   | *Section                  906 Certification of Principal Financial                  Officer                                                                                                                                                                                                                                                                                                                                       |

----

It
em      14

|   | (a) | Audit                Fees. |
|--------|-----|----------------------------|

|   | (b) | Audit-Related                Fees. |
|--------|-----|------------------------------------|

|   | (c) | Tax                Fees. |
|--------|-----|--------------------------|

|   | (d) | All                Other Fees. |
|--------|-----|--------------------------------|

|   | (e) | Audit                Committee Pre-Approval Policies. |
|--------|-----|-------------------------------------------------------|

----

SIGNATURES

|                                    |   |                                         |
|-----------------------------------------|--------|----------------------------------------------|
| ANALYTICAL                SURVEYS, INC. |
|                                    |   |
| By:                                     |   | /s/                Lori A. Jones             |
|                                    |   | Lori                A. Jones                 |
|                                    |   | Chief                Executive Officer       |
|                                    |   | (Principal                Executive Officer) |
| Date:                January 14, 2008   |

|                                                                      |   |                                                                                                                                            |   |                            |
|----------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|
| Name                                                                 |   | Title                                                                                                                                           |   | Date                            |
| /s/                Lori A. JonesLori                A. Jones         |        | Chief                Executive Officer(Principal                Executive Officer and Principal Accounting Officer) and                Director |   | January                14, 2008 |
| /s/                R. Thomas RoddyR.                Thomas Roddy     |        | Chairman                of the Board of Directors                                                                                               |   | January                14, 2008 |
| /s/                Hank CohnHank                Cohn                 |        | Director                                                                                                                                        |   | January                14, 2008 |
| /s/                Edward P. GistaroEdward                P. Gistaro |        | Director                                                                                                                                        |   | January                14, 2008 |
| /s/                Rad WeaverRad                Weaver               |        | Director                                                                                                                                        |   | January                14, 2008 |