FORM 10-Q

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



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



For the Quarterly Period Ended December
31, 2014

OR

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



For the transition
period from             to             .

Commission file number: 333-178437



West Texas Resources, Inc.

(Exact name of registrant as specified in
its charter)



|Nevada                                                        |  | 99-0365272                         
|------------------------------------------------------------- |  | -----------------------------------
|(State or other jurisdiction ofincorporation or organization) |  | (I.R.S. EmployerIdentification no.)



5729 Lebanon Road, Suite 144

Frisco, Texas  75034

(Address of principal executive offices,
including zip code)



(214) 868-3939

(Registrant’s telephone number, including
area code)



Not Applicable

(Former name, former address and former
fiscal year, if changed since last report)



Indicate by check mark whether the registrant
(1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.  Yes x No o



Indicate by check mark whether the registrant
has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted
and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such
shorter period that the registrant was required to submit and post such files).  Yes x No o



Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company (as defined in Rule 12b-2
of the Act):



|Large accelerated filer o                     |  | Accelerated filer o        
|--------------------------------------------- |  | ---------------------------
|                                              |  |                            
|Non-accelerated filer o                       |  | Smaller reporting company x
|(Do not check if a smaller reporting company) |  |                            



Indicate by check mark whether the registrant
is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes o No x



As of February 17, 2015, there were outstanding
14,415,400 shares of the common stock of West Texas Resources, Inc.

















|        |                                                                                       | Page
|------- | ------------------------------------------------------------------------------------- | ----
|        |                                                                                       |     
|        | PART I — FINANCIAL INFORMATION                                                        |     
|        |                                                                                       |     
|Item 1. | Financial Statements                                                                  |     
|        |                                                                                       |     
|        | Balance Sheets                                                                        | 1   
|        |                                                                                       |     
|        | Statements of Operations                                                              | 2   
|        |                                                                                       |     
|        | Statements of Cash Flows                                                              | 3   
|        |                                                                                       |     
|        | Notes to Financial Statements                                                         | 4   
|        |                                                                                       |     
|Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |     
|        |                                                                                       |     
|        | General                                                                               | 11  
|        |                                                                                       |     
|        | Resultsof Operations                                                                  | 12  
|        |                                                                                       |     
|        | Financial Condition                                                                   | 13  
|        |                                                                                       |     
|Item 3. | Quantitative and Qualitative Disclosures about Market Risk                            | 14  
|        |                                                                                       |     
|Item 4. | Controls and Procedures                                                               | 14  
|        |                                                                                       |     
|        | PART II — OTHER INFORMATION                                                           |     
|Item 6. | Exhibits                                                                              | 15  



















PART I — FINANCIAL INFORMATION

Item 1.	Financial Statements





West Texas Resources, Inc.





BALANCE SHEETS







|                                                                                                                                                                                     |  | December 31, |            |   | September 30, |  
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | ------------ | ---------- | - | ------------- | -
|                                                                                                                                                                                     |  | 2014         |            |   | 2014          |  
|                                                                                                                                                                                     |  | (Unaudited)  |            |   |               |  
|ASSETS                                                                                                                                                                               |  |              |            |   |               |  
|Current Assets                                                                                                                                                                       |  |              |            |   |               |  
|Cash                                                                                                                                                                                 |  | $            | 45,942     |   |               | $
|Accounts receivable                                                                                                                                                                  |  |              | 40,000     |   |               |  
|Total Current Assets                                                                                                                                                                 |  |              | 85,942     |   |               |  
|                                                                                                                                                                                     |  |              |            |   |               |  
|Oil and gas properties, net, using successful effort accounting                                                                                                                      |  |              | 865,810    |   |               |  
|                                                                                                                                                                                     |  |              |            |   |               |  
|TOTAL ASSETS                                                                                                                                                                         |  | $            | 951,752    |   |               | $
|                                                                                                                                                                                     |  |              |            |   |               |  
|LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                                                                 |  |              |            |   |               |  
|                                                                                                                                                                                     |  |              |            |   |               |  
|Current Liabilities                                                                                                                                                                  |  |              |            |   |               |  
|Accrued expenses                                                                                                                                                                     |  | $            | 143,377    |   |               | $
|Payroll liabilities                                                                                                                                                                  |  |              | 2,938      |   |               |  
|Investment payable                                                                                                                                                                   |  |              | 13,600     |   |               |  
|Asset retirement obligation                                                                                                                                                          |  |              | 10,000     |   |               |  
|Shareholder advances                                                                                                                                                                 |  |              | 35,000     |   |               |  
|Interest payable                                                                                                                                                                     |  |              | 19,303     |   |               |  
|Notes payable - related parties, net of discount                                                                                                                                     |  |              | 180,989    |   |               |  
|Other payable                                                                                                                                                                        |  |              | 35,369     |   |               |  
|Total Current Liabilities                                                                                                                                                            |  |              | 440,576    |   |               |  
|                                                                                                                                                                                     |  |              |            |   |               |  
|Commitments and Contingencies                                                                                                                                                        |  |              | –          |   |               |  
|                                                                                                                                                                                     |  |              |            |   |               |  
|Shareholders' Equity                                                                                                                                                                 |  |              |            |   |               |  
|Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued and
    outstanding                                                                                |  |              | –          |   |               |  
|Common stock, $0.001 par value; 200,000,000 shares authorized; 14,415,400 and 14,415,400
    shares issued and outstanding at December 31, 2014 and September 30, 2014, respectively |  |              | 14,415     |   |               |  
|Additional paid-in capital                                                                                                                                                           |  |              | 1,875,955  |   |               |  
|Accumulated deficit                                                                                                                                                                  |  |              | (1,379,194 | ) |               |  
|Total Shareholders' Equity                                                                                                                                                           |  |              | 511,176    |   |               |  
|                                                                                                                                                                                     |  |              |            |   |               |  
|TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                                                           |  | $            | 951,752    |   |               | $





See accompanying notes to these financial statements







1









West Texas Resources, Inc.





UNAUDITED STATEMENTS OF OPERATIONS







|                                                                       |  | For the Three Months Ended
    
December 31, |           
|---------------------------------------------------------------------- |  | -------------------------------------------- | ----------
|                                                                       |  | 2014                                         |           
|Revenues                                                               |  |                                              |           
|Oil and gas sales                                                      |  | $                                            | 64,339    
|                                                                       |  |                                              |           
|General and administrative expenses                                    |  |                                              | 128,121   
|Operating Loss                                                         |  |                                              | (63,782   
|                                                                       |  |                                              |           
|Other income (expenses)                                                |  |                                              |           
|Interest expense                                                       |  |                                              | (4,393    
|Amortization of debt discount                                          |  |                                              | (63,610   
|Other income                                                           |  |                                              | 30,000    
|Loss Before Income Taxes                                               |  |                                              | (101,785  
|                                                                       |  |                                              |           
|Tax provision                                                          |  |                                              | –         
|Net Loss                                                               |  | $                                            | (101,785  
|                                                                       |  |                                              |           
|Loss per share                                                         |  |                                              |           
|Basic and diluted weighted average number of common shares outstanding |  |                                              | 14,415,400
|                                                                       |  |                                              |           
|Basic and diluted net loss per share                                   |  | $                                            | (0.01     







See accompanying notes to these financial statements















2











West Texas Resources, Inc.





UNAUDITED STATEMENTS OF CASH FLOWS







|                                                                         |  | For the Three Months Ended
December 31, |         
|------------------------------------------------------------------------ |  | --------------------------------------- | --------
|                                                                         |  | 2014                                    |         
|                                                                         |  |                                         |         
|Cash flows from operating activities                                     |  |                                         |         
|Net loss                                                                 |  | $                                       | (101,785
|Adjustments to reconcile net loss to net cash from operating activities: |  |                                         |         
|Amortization and depletion                                               |  |                                         | 83,610  
|Changes in operating assets and liabilities:                             |  |                                         |         
|Accounts receivable                                                      |  |                                         | 5,055   
|Payroll liabilities                                                      |  |                                         | (561    
|Other payable - Bank of America                                          |  |                                         | (3,000  
|Interest payable                                                         |  |                                         | –       
|Accrued expenses                                                         |  |                                         | (15,878 
|                                                                         |  |                                         |         
|Net cash used in operating activities                                    |  |                                         | (32,559 
|                                                                         |  |                                         |         
|Cash flows from investing activities                                     |  |                                         |         
|                                                                         |  |                                         |         
|Net cash provided by (used in) investing activities                      |  |                                         | –       
|                                                                         |  |                                         |         
|Cash flows from financing activities                                     |  |                                         |         
|Proceeds from sale of common stock                                       |  |                                         | –       
|Repayment on note payable                                                |  |                                         | (66,005 
|Shareholder Advances                                                     |  |                                         | –       
|                                                                         |  |                                         |         
|Net cash provided by financing activities                                |  |                                         | (66,005 
|                                                                         |  |                                         |         
|Net increase (decrease) in cash                                          |  |                                         | (98,564 
|                                                                         |  |                                         |         
|Cash, beginning of period                                                |  |                                         | 144,506 
|                                                                         |  |                                         |         
|Cash, end of period                                                      |  | $                                       | 45,942  
|                                                                         |  |                                         |         
|Supplemental cash flow disclosure:                                       |  |                                         |         
|Interest paid                                                            |  | $                                       | 4,393   
|Income taxes paid                                                        |  | $                                       | –       







See accompanying notes to these financial statements









3







WEST TEXAS RESOURCES, INC.



NOTES TO FINANCIAL STATEMENTS (UNAUDITED)



December 31, 2014 and 2013





|1. | Organization and Summary of Significant Accounting Policies
|-- | -----------------------------------------------------------



Organization and business



West Texas Resources, Inc. ( the “Company”)
was incorporated under the laws of Nevada on December 9, 2010 under the name Texas Resources Energy, Inc., a Texas corporation.
On June 30, 2011, the Company changed its name to West Texas Resources, Inc. (the “Company”). The Company intends to
engage in the acquisition, exploration and development of oil and gas properties in North America. From its inception, the Company
has devoted its activities to developing a business plan, raising capital and acquiring operating assets.



Basis of presentation



The accompanying unaudited financial statements
have been prepared in accordance with accounting principles generally accepted in the United States (U.S.) for interim financial
information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X promulgated by the Securities and
Exchange Commission (“SEC”) and reflect all adjustments, consisting of normal recurring adjustments and other adjustments,
which management believes are necessary to fairly present the financial position, results of operations and cash flows of the Company,
for the respective periods presented. The results of operations for an interim period are not necessarily indicative of the results
that may be expected for any other interim period or the year as a whole. The accompanying unaudited financial statements should
be read in conjunction with the financial statements and notes for the year ended September 30, 2014.



Going concern



The accompanying financial statements have
been prepared in conformity with accounting principles generally accepted in the United States (GAAP) that contemplate continuation
of the Company as a going concern. The Company has not earned any significant revenues since inception. During the quarter ended
December 31, 2014 and 2013, the Company incurred a net loss of $101,785 and $237,019, respectively, In addition, the Company had
an accumulative deficit of $1,379,194 and $1,277,409, as of December 31, 2014 and September 30, 2014, respectively. These factors
raise substantial doubt about the Company’s ability to continue as a going concern.



The Company will require up to $1
million of additional capital in order to fund its proposed operations over the next 12 months. Management plans to continue
to seek sources of financing on favorable terms; however, there are no assurances that any such financing can be obtained on
favorable terms, if at all. Management expects to monitor and control the Company’s operating costs until cash is
available through financing or operating activities. There are no assurances that the Company will be successful in achieving
these plans. The Company anticipates that losses will continue until such time, if ever, as the Company is able to
generate sufficient revenues to support its operations.



Oil and gas properties



The Company uses the successful efforts
method of accounting for oil and gas producing activities. Costs to acquire mineral interests in oil and gas properties, to drill
and equip exploratory wells that find proved reserves, to drill and equip development wells and related asset retirement costs
are capitalized. Costs to drill exploratory wells that do not find proved reserves, geological and geophysical costs, and costs
of carrying and retaining unproved properties are expensed.



Unproved oil and gas properties that are
individually significant are periodically assessed for impairment of value, and a loss is recognized at the time of impairment
by providing an impairment allowance. Other unproved properties are amortized based on the Company's experience of successful drilling
and average holding period. Capitalized costs of producing oil and gas properties, after considering estimated residual salvage
values, are depreciated and depleted by the unit-of-production method.







4





WEST TEXAS RESOURCES, INC.



NOTES TO FINANCIAL STATEMENTS (UNAUDITED)



December 31, 2014 and 2013



On the sale or retirement of a complete
unit of a proved property, the cost and related accumulated depreciation, depletion, and amortization are eliminated from the property
accounts, and the resultant gain or loss is recognized. On the retirement or sale of a partial unit of proved property, the cost
is charged to accumulated depreciation, depletion, and amortization with a resulting gain or loss recognized in income. On
the sale of an entire interest in an unproved property for cash or cash equivalent, gain or loss on the sale is recognized, taking
into consideration the amount of any recorded impairment if the property had been assessed individually. If a partial interest
in an unproved property is sold, the amount received is treated as a reduction of the cost of the interest retained.



Impairment of long-lived assets



The Company accounts for the impairment
and disposition of long-lived assets in accordance with ASC 360-10-35,Impairment or Disposal of Long-Lived Assets. In accordance
with ASC 360-10-35, long-lived assets are reviewed for events of changes in circumstances, which indicate that their carrying value
may not be recoverable. During the quarter ended December 31, 2014, we did not identify any impairment on the Company’s investments
or assets.



Asset retirement obligations



ASC 410-20,Asset Retirement Obligations,
clarifies that a legal obligation to perform an asset retirement activity in which the timing and/or method of settlement are conditional
on a future event that may or may not be within the control of the entity. The obligation to perform the asset retirement activity
is unconditional even though uncertainty exists about the timing and/or method of settlement. ASC 410-20 requires a liability to
be recognized for the fair value of a conditional asset retirement obligation if the fair value of the liability can be reasonably
estimated.



Except for the Eastland County investment,
the asset retirement obligations for the other properties are recognized by the operators of these properties and deducted against
the revenue interest of the Company.



Cash, cash equivalents, and other cash
flow statement supplemental information



The Company considers all liquid investments
with an original maturity of three months or less that are readily convertible into cash to be cash equivalents. The
Company places its cash equivalents with high credit quality financial institutions. Accounts at these institutions
are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. The Company performs ongoing evaluations of
these institutions to limit its concentration of risk exposure. Management believes this risk is not significant due
to the financial strength of the financial institutions utilized by the Company.



Furniture, fixtures and equipment



Furniture, fixtures and equipment are carried
at cost depreciated using the straight-line method over their estimated useful lives. Gain or loss on retirement or sale or other
disposition of these assets is included in income in the period of disposition.



Use of estimates



The preparation of financial statements
in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain
reported amounts and disclosures.  Accordingly, actual results could differ from those estimates.





5





WEST TEXAS RESOURCES, INC.



NOTES TO FINANCIAL STATEMENTS (UNAUDITED)



December 31, 2014 and 2013



Income taxes



The Company reports certain expenses differently
for financial and tax reporting purposes and, accordingly, provides for the related deferred taxes. Income taxes are
accounted for under the liability method in accordance with ASC 740,Income Taxes.



Management has considered its tax positions
and believes that all of the positions taken by the Company in its Federal and State tax returns are more likely than not to be
sustained upon examination. The Company is subject to examination by U.S. Federal and State tax authorities from 2011 to the present,
generally for three years after they are filed.



The Company did not file its income tax
returns for fiscal year 2012 and 2013. The Company believes that it should not have any material impact on the financials because
the Company did not have any tax liabilities due to net loss incurred for these years.



Basic and diluted net income (loss)
per share



Basic net income (loss) per share is based
upon the weighted average number of common shares outstanding.  Diluted net income (loss) per share is based on the assumption
that all dilutive convertible shares and stock options were converted or exercised.  Dilution is computed by applying
the treasury stock method. Under this method, options and warrants are assumed to be exercised at the beginning of the
period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average
market price during the period.  For quarter ended December 31, 2014 and 2013, all common stock equivalents were anti-dilutive.



Stock-based payments



Compensation costs for all share-based
awards are measured based on the grant date fair value and are recognized over the vesting period. The Company has no awards with
market or performance conditions. Excess tax benefits will be recognized as an addition to additional paid-in-capital.



Fair value of financial instruments



The accounting standards regarding fair
value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the
fair value of financial instruments held by the Company. The Company considers the carrying amount of cash and other current assets
and liabilities to approximate their fair values because of the short period of time between the origination of such instruments
and their expected realization.



The Company has also adopted ASC 820-10
which defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances
disclosure requirements for fair value measures. The three levels are defined as follows:



| | · | Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets
or liabilities in active markets.
| | - | ---------------------------------------------------------------------------------------------------------------------------------

| | · | Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities
in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially
the full term of the financial instruments.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Level 3 inputs to the valuation methodology are unobservable and significant to the fair value.
| | - | -----------------------------------------------------------------------------------------------



As of December 31, 2014 and September 30,
2014, the Company did not identify any assets or liabilities that are required to be presented on the balance sheet at fair
value in accordance with ASC 820-10.



Certain reclassifications have been made
to the prior year financial statements in order for them to be in conformity with the current year presentation.





6







WEST TEXAS RESOURCES, INC.



NOTES TO FINANCIAL STATEMENTS (UNAUDITED)



December 31, 2014 and 2013



Recent accounting pronouncements



The Company did not identify any recent
accounting pronouncements with material impact on the Company’s financial condition or results of operations.



|2. | Oil and Gas Properties
|-- | ----------------------



Port Hudson Field, Baton Rouge Parish,
Louisiana



Effective April 1, 2013, the Company acquired
a 7.24625% working interest in the oil and gas leases, wells and attendant production in the Port Hudson field, Baton Rouge Parish,
Louisiana, for a total consideration of $702,900. The Company’s working interest is subject to certain overriding royalty
interests, subject to which it has a 5.65158% net revenue interest in the Port Hudson Field.



On April 5, 2014, we entered into an agreement
with EnTek Partners, LLC for the sale of 44.1% of our working interest in the Port Hudson field for the total consideration of
$290,000, less any payments received by us for production from the Port Hudson field occurring after January 1, 2014. Pursuant
to our agreement with EnTek Partners, we sold to EnTek an undivided 3.1956% of 8/8th working interest (2.4926% net revenue
interest) out of the working interests in the Port Hudson field owned by us. The transactions under the Entek Partners agreement
closed on April 16, 2014, with an effective date of January 1, 2014. After giving effect to the sale, we continue to hold a 4.0506%
working interest (3.1595% net revenue interest) in Port Hudson field. During the year ended September 30, 2014, the Company recorded
a loss on sale of the working interest of $19,983.



Pursuant to the same agreement, EnTek Partners
has also agreed to provide to the Company $275,000 in non-recourse financing to pay for its share of a dual recompletion in the
D-1 well at West Cam 225 property in exchange for its agreement to provide EnTek Partners with 75% of the net profits derived by
the Company from the West Cam 225 property until such time as EnTek Partners has recouped 100% of the recompletion costs advanced
on the Company’s behalf and 50% of the net profits thereafter.



During the year ended September 30, 2014,
upon the sale of the 44.1% interest to EnTek, we recorded accrual of revenue interest payable to EnTek against the revenue we received
for the period from effective date of the sale to June 30, 2014. As of September 30, 2014, the outstanding payable amount was $30,000.
During the quarter ended December 31, 2014, we confirmed with EnTek that EnTek’s revenue interest was fully paid so we reversed
the overaccrual of $30,000 and recorded as other income.



West Cam 225, Louisiana



On August 16, 2013, the Company entered
into an agreement with Enovation Resources, LLC to purchase a 10.0167% working interest (7.2120% net revenue interest) in an offshore
oil and gas field, known as West Cam 225, located in the shallow waters of the Gulf of Mexico near Cameron, Louisiana. The Company’s
purchase price for the working interest is $50,000. In addition to the purchase price, the Company paid $230,459 as advance for
costs for development.



Sunshine Prospect, Landry Parish, Louisiana



On August 1, 2014, the Company entered
into an agreement with Restech Resources, LLC to purchase a 15% (14.25% net revenue interest) in an oil and gas prospect located
in Landry Parish, Louisiana. The working interest concerns 248 gross acres and net acres in the Sunshine Prospect. Our purchase
price for the working interest was $76,500.







7





WEST TEXAS RESOURCES, INC.



NOTES TO FINANCIAL STATEMENTS (UNAUDITED)



December 31, 2014 and 2013



Birnie Field,Motley County, Texas



On September 17, 2014, the Company
entered into an agreement with Escopeta Oil and Gas Corporation to purchase a 10% working interest (7.5% net revenue
interest) in a natural gas prospect located in the Birnie field in Motley County, Texas. The working interest concerns 5,760
leased acres in the Palo Duro Basin prospect. Our purchase price for the working interest was $70,000. In 2014, the operator
drilled an initial well on the prospect, however the drilling was unsuccessful and resulted in a dry hole. The operator
agreed to provide us, for no additional consideration, a 1% working interest in the Stansell field prospect described below.





Stansell Field, Floyd County, Texas



We hold a 1% working interest in an oil
prospect located in Floyd County, Texas. The working interest comprises 15,000 leased acres in the southern section of the Palo
Duro basin. The initial project will be the re-entry of the Stansell #1-A well, an existing wellbore that was drilled in 2006.
The original drilling encountered oil shows in three separate reservoirs and the operator intends to re-enter and recomplete the
Stansell #1-A using current fracture stimulation technology. We have a carried 1% working interest in the Stansell #1-A
well through the tanks. The operator plans to commence the re-entry of the Stansell #1-A well in December 2014.



Wolfcamp Field, Hale County, Texas



In June and July 2014, we acquired non-operating
leases covering approximately 1,070 gross mineral acre leases in the Wolfcamp field located in Hale County, Texas. The leases
were acquired for cash payments of $45,484. The leases have a primary term of five years with the Company option to extend the
term for another five years. The leased properties constitute the surface acreage comprising a natural gas prospect, for
which we hold 50% of the working interest and 40% net revenue interest. The leased properties are subject to a 20% royalty
interest held by the owners and a third party. We are currently evaluating the Company options for the exploitation of the leased
properties, including the Company sale of the leases or the Company farm-out of the leases to a natural gas operator.



As of December 31, 2014 and September 30,
2014, total oil and gas properties amounted to $865,810 and $885,810, net of accumulated depletion.



|3. | Notes Payable – Related Parties
|-- | -------------------------------



On August 14, 2013, the Company
entered into a loan agreement with a shareholder, Gary Bryant, pursuant to which Mr. Bryant loaned the Company $417,762, the
proceeds of which were used to partially finance the acquisition of the Port Hudson interest described in Note 2 above. The
loan bears interest on the unpaid principal amount at the rate of 8% per annum. All principal and interest are payable over a
four year period, commencing November 1, 2013, at the amortized rate of $10,198 per month. The Company’s obligations
under the loan are secured by our working interest in the Port Hudson field.



On September 6, 2013, the Company entered
into another loan agreement with Mr. Gary Bryant, pursuant to which Mr. Bryant loaned the Company $130,000, the proceeds of which
were used to partially finance the Company’s payment of its allocable expenses associated with its working interest in the
West Cam 225 field, described in Note 2 above. The loan bears interest on the unpaid principal amount at the rate of 6% per annum.
All principal and interest are payable on February 6, 2016 and are convertible into shares of the Company’s common stock,
at the option of the holder, at the rate of $0.50 per share. The Company’s obligations under the loan are secured by its
working interest in the Port Hudson field. The Company also entered into an amendment to its loan agreement with Mr. Bryant dated
August 14, 2013, in the original principal amount of $417,762, to provide that all principal and interest under that loan agreement
are convertible into shares of the Company’s common stock, at the option of the holder, at the rate of $0.50 per share.







8





WEST TEXAS RESOURCES, INC.



NOTES TO FINANCIAL STATEMENTS (UNAUDITED)



December 31, 2014 and 2013



On September 6, 2013, the Company entered
into a second loan agreement with a company controlled by one of the shareholders pursuant to which the lender loaned the Company
$100,000. The proceeds of which were used to partially finance the Company’s payment of its allocable expenses associated
with its working interest in the West Cam 225 field, described in Note 2 above. The loan carried interest on the unpaid principal
amount at the rate of 6% per annum. The Company’s obligations under the loan were secured by the Company’s working
interest in the West Cam 225 field. In connection with the loan, the Company granted the lender a warrant to purchase 200,000 shares
of the Company’s common stock, at an exercise price of $0.50 per share, over a two year period expiring on September 5, 2015.
This note was fully paid off in April 2014.



The Company determined that the fair value
of the above conversion options and the warrants using the Black – Scholes model with the variables listed below:



| | · | Volatility: 160%
| | - | ----------------

| | · | Risk free rate of return: 0.01% to 0.875%
| | - | -----------------------------------------

| | · | Expected term: 0.25 to 4 years
| | - | ------------------------------



On September 16, 2014, the Company entered
into a Note purchase agreement with Lake Oswego Oil Company, LLC, an Oregon limited liability company controlled by one of the
shareholders, pursuant to which the Company sold a secured promissory note in the principal amount of $50,000, for a purchase price
of $50,000. Interest accrues on the unpaid principal balance of the note at the rate of six percent per annum. This note was fully
paid off in the quarter ended December 31, 2014. As an inducement to the note holder to enter into this agreement, the Company
also granted the note holder a warrant to purchase 100,000 shares of the Company’s common stock, and exercisable at $0.50
per share over a two year period expiring on September 16, 2019.



The Company determined that the fair value
of the warrants using Black – Scholes model with the variable listed below:



| | · | Volatility: 340%
| | - | ----------------

| | · | Risk free rate of return: 1.688%
| | - | --------------------------------

| | · | Expected term: 2 years
| | - | ----------------------



In connection with the issuance of the
above notes, the Company recorded a note discount of $50,000 and $647,762 for the years ended September 30, 2014 and 2013, respectively,
which are to be amortized over the lives of the notes. For the quarter ended December 31, 2014 and 2013, the Company recorded amortization
of note discount of $63,610 and $162,777 as amortization of debt discount.



|4. | Shareholder Advances
|-- | --------------------



During the year ended September 30, 2014
and 2013, a shareholder advanced a total amount of $20,000 and $21,000, respectively, as advances to the Company to support its
daily operations. These advances are due on demand and do not bear any interest. In the fiscal year 2013, $41,000 of shareholder
advances were converted into 82,000 shares of the Company’s common stock. As of December 31, 2014 and September 30, 2014,
the total outstanding amount due to the shareholder was $35,000 and $35,000, respectively.







9





WEST TEXAS RESOURCES, INC.



NOTES TO FINANCIAL STATEMENTS (UNAUDITED)



December 31, 2014 and 2013



|5. | Shareholders’ Equity
|-- | --------------------



The Company is authorized to issue 200,000,000
shares of common stock, par value of $0.001, and 10,000,000 shares of preferred stock, par value of $0.001.



During the year ended September 30, 2014,
the Company entered into various subscription agreements with accredited investors to sell 336,000 shares of the Company’s
common stock at $0.50 per share. The total amount of $168,000 was received upon signing of the subscription agreements.

As of December 31, 2014 and September 30,
2014, the Company had 14,415,400 and 14,415,400 shares of common stock issued and outstanding and had not issued any of its preferred
stock.



On September 15, 2011, the Company adopted
the West Texas Resources, Inc. 2011 Stock Incentive Plan (the “Plan”) providing for the grant of non-qualified stock
options and incentive stock options to purchase its common stock and for grant of restricted and unrestricted grants. The Company
has reserved 3,000,000 shares of its common stock under the Plan. All officers, directors, employees and consultants to the Company
are eligible to participate under the Plan. The purpose of the Plan is to provide eligible participants with an opportunity to
acquire an ownership interest in the Company.



In 2011, the Company granted options to
certain consultants to purchase 400,000 shares of the Company’s common stock. The options vest immediately and expire on
September 15, 2016. The fair value of each share-based award was estimated using the Black-Scholes option pricing model or a lattice
model. The fair value of these options, determined to be $65,402, was included in general and administrative expenses for the year
ended September 30, 2011.



The following assumptions were used in the fair value method
calculation:



| | · | Volatility: 83%
| | - | ---------------

| | · | Risk free rate of return: 1%
| | - | ----------------------------

| | · | Expected term: 5 years
| | - | ----------------------



On March 7, 2014, the Company granted
options to certain consultants to purchase 1,500,000 shares of the Company’s common stock, of which 200,000 options
vested upon the date of grant and the balance of 1,300,000 options expired in October 2014 in connection with the termination
of the consulting arrangement. The 200,000 vested options expire on March 7, 2019. The fair value of the vested options for
200,000 shares, determined to be $116,137, was recorded in general and administrative expenses for the year ended September
30, 2014.



On March 11, 2014, the Company granted
options to its officers to purchase a total of 200,000 shares of the Company’s common stock. The options expire on March
11, 2019 and vest immediately. The fair value of these options, determined to be $116,119 and was included in general and administrative
expenses for the year ended September 30, 2014.



The following assumptions were used in
the fair value method calculation:



| | · | Volatility: 190%
| | - | ----------------

| | · | Risk free rate of return: 1.5%
| | - | ------------------------------

| | · | Expected term: 5 years
| | - | ----------------------



The following information applies to all
options outstanding at December 31, 2014:



| | · | Weighted average exercise price: $0.53
| | - | --------------------------------------

| | · | Options outstanding and exercisable: 800,000
| | - | --------------------------------------------

| | · | Average remaining life: 3.75 years
| | - | ----------------------------------



|6. | Subsequent Event
|-- | ----------------



Events subsequent to December 31, 2014
have been evaluated through the date these financial statements were issued to determine whether they should be disclosed to keep
the financial statements from being misleading. Management found no other subsequent events that should be disclosed.







10







Item 2.	Management’s Discussion and Analysis of
Financial Condition and Results of Operations



Cautionary Statement



The following discussion
and analysis should be read in conjunction with our unaudited financial statements and the related notes thereto contained elsewhere
in this report. The information contained in this quarterly report on Form 10-Q is not a complete description of our business
or the risks associated with an investment in our common stock. We urge you to carefully review and consider the various disclosures
made by us in this report and in our other filings with the Securities and Exchange Commission, or SEC, including our Annual Report
on Form 10-K for the fiscal year ended September 30, 2014 filed with the SEC on January 14, 2015 and our subsequently filed periodic
reports, which discuss our business in greater detail.



In this report we make,
and from time to time we otherwise make, written and oral statements regarding our business and prospects, such as projections
of future performance, statements of management’s plans and objectives, forecasts of market trends, and other matters that
are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Statements containing the words or phrases “will likely result,” “are expected
to,” “will continue,” “is anticipated,” “estimates,” “projects,” “believes,”
“expects,” “anticipates,” “intends,” “target,” “goal,” “plans,”
“objective,” “should” or similar expressions identify forward-looking statements, which may appear in documents,
reports, filings with the SEC, news releases, written or oral presentations made by officers or other representatives made by us
to analysts, stockholders, investors, news organizations and others, and discussions with management and other of our representatives.



Our future results,
including results related to forward-looking statements, involve a number of risks and uncertainties, including those risks included
in the section “Risk Factors” set forth in our Annual Report on Form 10-K for the fiscal year ended September 30, 2014
filed with the SEC on January 14, 2015. No assurance can be given that the results reflected in any forward-looking statements
will be achieved. Any forward-looking statement speaks only as of the date on which such statement is made. Our forward-looking
statements are based upon assumptions that are sometimes based upon estimates, data, communications and other information from
suppliers, government agencies and other sources that may be subject to revision. Except as required by law, we do not undertake
any obligation to update or keep current either (i) any forward-looking statement to reflect events or circumstances arising
after the date of such statement, or (ii) the important factors that could cause our future results to differ materially from
historical results or trends, results anticipated or planned by us, or which are reflected from time to time in any forward-looking
statement.



General



We were formed on December
9, 2010 under the laws of Nevada for the purpose of oil and gas exploration and development in North America. We commenced revenue
producing oil and gas operations effective as of April 1, 2013.



Port Hudson Field



In August 2013, we
acquired a 7.24625% working interest (5.65158% net revenue interest) in the oil and gas leases, wells and attendant production
in the Port Hudson field, Baton Rouge Parish, Louisiana, from Wells Fargo Energy Capital, Inc. for total consideration of $702,900.
Our acquisition of the Port Hudson working interest was effective as of April 1, 2013. Accordingly, we have received revenue from
the Port Hudson working interest commencing on April 1, 2013.



On April 15, 2014,
we entered into an agreement with EnTek Partners, LLC for the sale of 44.1% of our working interest in the Port Hudson field for
the total consideration of $290,000, less any payments received by us for production from the Port Hudson field occurring after
January 1, 2014. Pursuant to our agreement with EnTek Partners, we sold to EnTek an undivided 3.1956% of 8/8ths working interest
(2.4926% net revenue interest) out of the working interests in the Port Hudson field owned by us. The transactions under the EnTek
Partners agreement closed on April 16, 2014, with an effective date of January 1, 2014. After giving effect to the sale, we continue
to hold a 4.0506% working interest (3.1595% net revenue interest) in the Port Hudson field.



The Port Hudson field
has three producing wells that have produced a total of 1.29 million bbls as of December 31, 2014 with estimated total remaining
recoverable proved developed producing reserves of 449,000 bbls (14,186 bbls net to West Texas Resources after giving effect to
the transaction with EnTek Partners), and 26,000 bbls of proven developed behind pipe reserves (821 bbls net to West Texas Resources
after giving effect to the transaction with EnTek Partners) and are currently producing approximately 260 bbls per day. The operator
of the Port Hudson field has no current plans for the further development of the property.







11







West Cam 225 Field



In September 2013,
we acquired a 10.0167% working interest (7.2120% net revenue interest) in an offshore oil and gas field, known as West Cam 225,
located in the shallow waters of the Gulf of Mexico near Cameron, Louisiana, from Enovation Resources, LLC for total consideration
of $50,000. Concurrent with our purchase of the working interest, we also paid the operator $230,459 as our allocable share of
the expenses associated with the West Cam 225 property to build a new incremental flowline connecting the D-1 platform to the Stingray
Pipeline System. Pursuant to our April 15, 2014 agreement with EnTek Partners, LLC, EnTek Partners has also agreed to provide to
us $275,000 in non-recourse financing to pay for our share of a dual recompletion in the D-1 well at the West Cam 225 property
in exchange for our agreement to provide EnTek Partners with 75% of the net profits derived by us from the West Cam 225 property
until such time as EnTek Partners has recouped 100% of the recompletion costs advanced on our behalf and 50% of the net profits
thereafter. The transactions under the EnTek Partners agreement closed on April 16, 2014, with an effective date of January 1,
2014.



As of December 31,
2014, the West Cam 225 field had proven reserves of 8,996 mmcf of gas or 1,499 thousand net equivalent bbls (108,131 boes net to
West Texas Resources after giving effect to the transaction with EnTek Partners) and has two producing wells, the #7 and the D-1,
that were previously shut-in and waiting on a sales pipeline connection. The pipeline was completed and tested in August 2013 and
now the two wells are currently producing at a combined intermittent gross rate of 1.6 mmcfd. As of December 31, 2014, the D-1
well has overproduced its expected recoverable reserves in its original completion in the 6,800’ sand and is currently producing
at a high water cut. The operator presently intends to perform a recompletion on the D-1 well in the second quarter of 2015, at
which time the D-1 well will be recompleted uphole into the 5,900’ sand and the field is expected to produce at a combined
gross rate of 5.5 mmcfd and thereby provide access to 7.93 bcf of gross proved behind pipe reserves.



Wolfcamp Field



In June and July 2014,
we acquired non-operating leases covering approximately 1,070 gross mineral acre leases in the Wolfcamp field located in Hale
County, Texas. The leases were acquired for cash payments of $45,484. The leases have a primary term of five years with our option
to extend the term for another five years. The leased properties constitute the surface acreage comprising a natural gas prospect,
for which we hold 50% of the working interest and 40% net revenue interest. The leased properties are subject to a 20% royalty
interest held by the owners and a third party. We are currently evaluating our options for the exploitation of the leased properties,
including our sale of the leases or our farm-out of the leases to a natural gas operator.



Sunshine Prospect



On August 1, 2014,
we acquired from Restech Resources, LLC to purchase a 15% (14.25% net revenue interest) in a non-operating oil and gas prospect
located in Landry Parish, Louisiana. The working interest concerns 248 gross acres and net acres in the Sunshine Prospect. Our
purchase price for the working interest was $76,500. The operator presently intends to drill an initial well on the Sunshine prospect
on 2015.



Stansell Field



We hold a 1% working
interest in an oil prospect located in Floyd County, Texas. The working interest comprises 15,000 leased acres in the southern
section of the Palo Duro basin. The initial project will be the re-entry of the Stansell #1-A well, an existing wellbore that was
drilled in 2006. The original drilling encountered oil shows in three separate reservoirs and the operator intends to re-enter
and recomplete the Stansell #1-A using current fracture stimulation technology. We have a carried 1% working interest in the Stansell
#1-A well through the tanks. The operator commence the re-entry of the Stansell #1-A well in January 2015.



Results of Operations



We commenced revenue producing oil and gas operations effective as of April 1, 2013. From April 1, 2013 to December 2013, all of our revenue was derived from our working interest in the Port Hudson field. Commencing in January 2014, we have derived revenue from our working interest in the West Cam 225 field. During the three month periods ended December 31, 2014 and 2013, we had $64,339 and $101,559 of revenue, respectively. The decrease in revenue was due to our sale of a portion of our working interest in the Port Hudson field in April 2014 along with the decline in price for oil and natural gas in the second half of the calendar year 2014, offset by our realization of $25,360 of revenue during the three month period ended December 31, 2014 from our working interest in the West Cam 225 field.







12









For the three month period ended December 31, 2014, we had general and administrative expenses of $128,121 compared to general and administrative expenses of $163,899 during the prior year period. The decrease in expenses is attributable to a decrease in consulting and professional fees.



For the three month period ended December 31, 2014, we had other expenses of $68,003compared to other expenses of $174,679 during the prior year period. The decrease in other expenses is primarily to a decrease in interest expense and amortized debt discount in the amount of $106,676 during the period ended December 31, 2014, compared to the prior year period, related to our borrowings conducted during the third and fourth fiscal quarters of 2013. For the three month period ended December 31, 2014, we had other income of $30,000 attributable to a reversal of an over accrued liability relating to our sale of a portion of our working interest in the Port Hudson field, compared to other income of nil during the prior year period. For the three month periods ended December 31, 2014 and 2013, we incurred a net loss of $101,785 and $237,019, respectively. The decrease in our net loss was the result of a decrease in expenses during the periods ended December 31, 2014 compared to the prior year periods.



Subject to our receipt
of additional capital, our plan of operations over the next 12 months is to pursue the acquisition of additional equity interests
in oil and gas properties to be thereafter exploited by us in conjunction with other oil and gas producers. As of the date of this
report, we have no understandings or agreements in place concerning our acquisition of an interest in any other properties.



At the present time,
we have two employees, our chief executive officer and chief financial officer, Stephen Jones and John Kerr, respectively, each
of whom has limited experience in the oil and gas exploration and development business. Subject to our receipt of significant additional
capital, we intend to hire senior management and staff with experience in oil and gas exploration. Until such time, we intend to
pursue an operating strategy that is based on our participation in exploration prospects as a non-operator. Based on that strategy,
our plan of operations over the next 12 months is to pursue the acquisition of oil and natural gas interests in partnership with
other companies with exploration, development and production expertise. We will also pursue alliances with partners in the areas
of geological and geophysical services and prospect generation, evaluation and prospect leasing. Pursuant to this strategy, we
intend to engage and rely on third party geologists and geophysicists, among others, to review the available data concerning each
potential acquisition. In each case, we expect that the operator of the prospect will assemble the appropriate data and conduct
the appropriate studies and that our consultants will conduct an independent review of the operator’s data and studies for
purposes of advising us of the merits of each potential acquisition.



The business of oil
and gas acquisition, drilling and development is capital intensive and the level of operations attainable by an oil and gas company
is directly linked to and limited by the amount of available capital. Therefore, a principal part of our plan of operations is
to acquire the additional capital required to finance the acquisition of such properties and our share of the development costs.
As explained under “Financial Condition” below, we will seek additional working capital through the sale of our securities
and, subject to the successful deployment of our cash on hand, we will endeavor to obtain additional capital through bank lines
of credit and project financing.



Financial Condition



As of December 31,
2014, we had total assets of $951,752 and capital deficit of $354,634. Our ability to achieve commercial success is
dependent on our ability to obtain additional capital either through the additional sale of our equity or debt securities, bank
lines of credit, project financing or cash generated from oil and gas operations. We seek to obtain additional working capital
through the sale of our securities and, subject to the successful deployment of our cash on hand, we will endeavor to obtain additional
capital through bank lines of credit and project financing. However, we have no agreements or understandings with any third parties
at this time for our receipt of additional working capital and we have a limited history of generating cash from oil and gas operations.
We may not be able to obtain access to capital as and when needed and, if so, the terms of any available financing may not be subject
to commercially reasonable terms.



The report of our independent
registered public accounting firm for the fiscal year ended September 30, 2014 states that due to our losses from operations and
lack of working capital there is substantial doubt about our ability to continue as a going concern.



Off-Balance Sheet Arrangements



We do not have any off-balance sheet financing
arrangements.









13







Item 3.	Quantitative and Qualitative Disclosures about
Market Risks



Not applicable.



Item 4.	Controls and Procedures



(a)Evaluation of Disclosure Controls and Procedures.



Our management, with
the participation of our chief executive officer and chief financial officer, has evaluated the effectiveness of the design and
operation of our disclosure controls and procedures pursuant to Rule 15d-15 of the Securities Exchange Act of 1934. 
Based on this evaluation, our management, including our chief executive officer and chief financial officer, concluded that as
of December 31, 2014 our disclosure controls and procedures were not effective due to existing material weaknesses in our internal
control over financial reporting, as described below.



In connection with
our evaluation of our internal control over financial reporting as of December 31, 2014, and included in our annual report on Form
10-K filed with the SEC on January 14, 2015, we determined that there were control deficiencies that constituted material weaknesses
which are indicative of many small companies with small staff, including:



| | · | Due to our small size, we do not maintain effective internal controls to assure segregation of duties as we have only two employees who are responsible for initiating and approving of transactions, thereby creating the segregation of duties weakness;
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | · | Our board of directors does not have an audit committee or a financial expert to maintain effective oversight of our financial reporting process; and                                                                                                     
| | · | Lack of formal policies or procedures to provide assurance that relevant information is identified, captured, processed, and reported in an appropriate and timely fashion.                                                                               



(b)  Changes in Internal Control Over Financial
Reporting.



There were no changes in our internal control
over financial reporting that occurred during the three-month period ended December 31, 2014 that have materially affected, or
are reasonably likely to materially affect, our internal controls over financial reporting.













14







PART II — OTHER INFORMATION



Item 6.	Exhibits



|ExhibitNo. |  | Description                                                                                                                                                      |  | Method of Filing             
|---------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -----------------------------
|           |  |                                                                                                                                                                  |  |                              
|31.1       |  | Certifications Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                        |  | Filed electronically herewith
|           |  |                                                                                                                                                                  |  |                              
|31.2       |  | Certifications Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                        |  | Filed electronically herewith
|           |  |                                                                                                                                                                  |  |                              
|32.1       |  | Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350). |  | Filed electronically herewith
|           |  |                                                                                                                                                                  |  |                              
|99.1       |  | Temporary Hardship Exemption                                                                                                                                     |  |                              
|           |  |                                                                                                                                                                  |  |                              
|101.INS*   |  | XBRL Instance Document                                                                                                                                           |  | Filed electronically herewith
|           |  |                                                                                                                                                                  |  |                              
|101.SCH*   |  | XBRL Taxonomy Extension Schema Document                                                                                                                          |  | Filed electronically herewith
|           |  |                                                                                                                                                                  |  |                              
|101.CAL*   |  | XBRL Taxonomy Extension Calculation Linkbase Document                                                                                                            |  | Filed electronically herewith
|           |  |                                                                                                                                                                  |  |                              
|101.LAB*   |  | XBRL Taxonomy Extension Label Linkbase Document                                                                                                                  |  | Filed electronically herewith
|           |  |                                                                                                                                                                  |  |                              
|101.PRE*   |  | XBRL Taxonomy Extension Presentation Linkbase Document                                                                                                           |  | Filed electronically herewith
|           |  |                                                                                                                                                                  |  |                              
|101.DEF*   |  | XBRL Taxonomy Extension Definition Linkbase Document                                                                                                             |  | Filed electronically herewith

---





|* | To be furnished by amendment per Temporary Hardship Exemption under Regulation S-T.
|- | -----------------------------------------------------------------------------------











15







.

SIGNATURES



In accordance with the requirements of the
Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



|      |                   | WEST TEXAS RESOURCES, INC.
|----- | ----------------- | --------------------------
|      |                   |                           
|      |                   |                           
|      |                   |                           
|Date: | February 17, 2015 | By:                       
|      |                   |                           
|      |                   |                           
|      |                   |                           
|      |                   |                           
|Date: | February 17, 2015 | By:                       
|      |                   |                           
|      |                   |                           









16