U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

                                   (Mark One)

        |X| QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
                              EXCHANGE ACT OF 1934

               For the quarterly period ended: September 30, 2006

                                       OR

       |_| TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

                        For the transition period from to


                             MAJESTIC OIL & GAS INC.
            ---------------------------------------------------------
                 (Name of small business issuer in its charter)

                                   20-3955577
                                -----------------
                     (I.R.S. employer identification number)



P.O Box 488 Cut Bank, Montana                              59427
--------------------------------------------------------------------------------
(Address of principal executive offices)                (Zip code)

Issuer's telephone number: 406-873-5580

                      SEC File Number: File No. 333-127813

Check  whether  the  issuer:  (1)  filed  all  reports  required  to be filed by
Section13  or 15(d) of the  Exchange  Act during the past 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
|_|

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

                      APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of common
equity,  as of the latest  practicable  date:  6,240,000  shares of common stock
outstanding as of November 17, 2006.


   Transitional Small Business Disclosure Format (check one): Yes |_| No |X|


<PAGE>




                                TABLE OF CONTENTS
                                -----------------

PART I - Financial Information.................................................4
Item 1. Financial Statements...................................................4
Item 2.  Management's Discussion and Analysis of
Financial Condition and Results of Operations..................................4
Item 3. Controls and Procedures................................................9
PART II - OTHER INFORMATION...................................................10
Item 1.  Legal Proceedings....................................................10
Item 2. Changes in Securities.................................................10
Item 3. Defaults upon Senior Securities.......................................10
Item 4. Submission of Matters to a Vote of Security Holders...................10
Item 5. Other Information.....................................................10
Item 6. Exhibits..............................................................10


                                       2
<PAGE>

PART I - Financial Information

Item 1. Financial Statements

The accompanying unaudited financial statements have been prepared in accordance
with generally accepted  accounting  principles for interim financial  reporting
and  pursuant  to the rules  and  regulations  of the  Securities  and  Exchange
Commission  ("Commission").  While these statements reflect all normal recurring
adjustments  which  are,  in the  opinion  of  management,  necessary  for  fair
presentation  of the results of the interim  period,  they do not include all of
the  information  and  footnotes  required  by  generally  accepted   accounting
principles for complete financial statements. For further information,  refer to
the financial statements and footnotes thereto,  contained in the Majestic Oil &
Gas's latest registration statement filed with the Commission on Form SB-2/A.


             MAJESTIC OIL & GAS, INC. (A Development Stage Company)
                      CONDENSED CONSOLIDATED BALANCE SHEETS


                                                      September 30
                                                          2006       December 31
                                                        UNAUDITED       2005
                                                        ---------     ---------

ASSETS
   Cash and cash equivalents                            $ 186,231     $ 162,732
   Trade receivables                                        6,711        32,709
                                                        ---------     ---------

            Total Current Assets                          192,942       195,441
                                                        ---------     ---------



PROPERTY AND EQUIPMENT
   Oil and gas properties, using the full
   cost method of accounting:
          Properties being amortized                      192,187       192,187
   Less accumulated depletion,
   amortization and impairment                            (49,000)      (34,000)
                                                        ---------     ---------

          Net Property and Equipment                      143,187       158,187
                                                        ---------     ---------

          Total Assets                                  $ 336,129     $ 353,628
                                                        =========     =========



LIABILITIES AND STOCKHOLDERS' EQUITY

     Accounts payable                                   $  13,378     $   9,669


    Common stock, no par value-
        Authorized Shares - 100,000,000
         Issued & Outstanding:  6,240,000 shares        $ 624,000     $ 624,000
    (Deficit) accumulated during
       the development stage                             (301,249)     (280,041)
                                                        ---------     ---------

                                                        $ 336,129     $ 353,628
                                                        =========     =========

                                       3
<PAGE>



             MAJESTIC OIL & GAS, INC. (A Development Stage Company)
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


<TABLE>
<CAPTION>

                                         Three Months       Three Months      Nine Months      Nine Months       Inception
                                            Ended              Ended            Ended            Ended       (April 16, 2002)
                                        September 30,       September 30,    September 30,    September 30,   To September 30,
                                            2006                2005            2006              2005             2006
                                          UNAUDITED          UNAUDITED        UNAUDITED         UNAUDITED        UNAUDITED
                                          -----------       -----------      -----------       -----------      -----------

<S>                                       <C>               <C>              <C>               <C>              <C>
REVENUE                                   $    12,751       $    31,337      $    40,283       $    99,316      $   246,963
                                          -----------       -----------      -----------       -----------      -----------
EXPENSES
   Administrative staff                         1,653             1,565            4,987             4,894           13,406
   Organization expenses                           --                --               --                --          301,115
   Taxes & royalties                            6,125            10,127            9,418            27,401           67,688
   Well operating fees                          3,264               855            3,764             2,565            8,808
   Legal, accounting and filing fees            5,721             1,628           23,293             2,128           62,733
   Consulting                                      --                --               --                --           28,000
   Engineering                                     --                --               --                --            1,500
   Travel                                          --               844               --               844            3,543
   Depletion and amortization                   5,000             5,000           15,000            15,000           49,000
   Transfer Agent Fees                            450               600            1,350             1,200            6,733
   Bank Charges                                    --                --               --                --              358
   Field expenses                               1,858               200            2,687               200            3,348
   Office Expenses                                 98                45              373               412            1,005
   Phone and utilities                            198               348              619               712            1,905
   Currency exchange (gain) loss                   --                --               --                --              (86)
                                          -----------       -----------      -----------       -----------      -----------
                                               24,367            21,211           61,491            55,355          549,056
                                          -----------       -----------      -----------       -----------      -----------
NET INCOME (LOSS)                         $   (11,616)           10,126      $   (21,208)           43,961      $  (302,093)
                                          ===========       ===========      ===========       ===========      ===========


EARNINGS PER SHARE

   Net Income, basic and diluted          $     (0.00)      $      0.00      $     (0.00)      $      0.01
                                          ===========       ===========      ===========       ===========
   Weighted average number of shares
       outstanding                          6,240,000         6,240,000        6,240,000         6,240,000
   Diluted potential shares -
       stock warrants                              --                --               --                --
                                          -----------       -----------      -----------       -----------
   Adjusted weighted average shares         6,240,000         6,240,000        6,240,000         6,240,000
                                          ===========       ===========      ===========       ===========
</TABLE>

                                       4
<PAGE>

             MAJESTIC OIL & GAS, INC. (A Development Stage Company)
            CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY


<TABLE>
<CAPTION>

                                                                              (Deficit)
                                                                             Accumulated
                                                      Common Stock             During
                                                ------------------------     Development
                                                 Shares         Amount          Stage           Total
                                                ---------      ---------      ---------       ---------
<S>                                             <C>              <C>          <C>               <C>
BEGINNING BALANCE, INCEPTION
    (APRIL 16, 2002) TO
    DECEMBER 31, 2003                                  --      $      --      $      --       $      --
         Common stock issued                    4,205,000        420,500             --         420,500
         Net loss                                      --             --       (360,144)       (360,144)
                                                ---------      ---------      ---------       ---------

BALANCE, DECEMBER 31, 2003                      4,205,000        420,500       (360,144)         60,356
         Common stock issued                    2,035,000        203,500             --         203,500
         Net income                                    --             --         13,722          13,722
                                                ---------      ---------      ---------       ---------

BALANCE, DECEMBER 31, 2004                      6,240,000        624,000       (346,422)        277,578
         Common stock issued                           --             --             --              --
         Net income                                    --             --         66,381          66,381
                                                ---------      ---------      ---------       ---------

BALANCE, DECEMBER 31, 2005                      6,240,000        624,000       (280,041)        343,959

         Common stock issued                           --             --             --              --
         Net loss for the six months
           ended June 30, 2006 (UNAUDITED)             --             --        (21,208)        (21,208)
                                                ---------      ---------      ---------       ---------

BALANCE, SEPTEMBER 30, 2006                     6,240,000      $ 624,000      $(301,249)      $ 322,751
                                                =========      =========      =========       =========
</TABLE>

                                       5
<PAGE>

             MAJESTIC OIL & GAS, INC. (A Development Stage Company)
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>

                                                                                      Inception
                                                      Nine Months     Nine Months  (April 16, 2002)
                                                        Ended           Ended          Through
                                                     September 30,   September 30, To September 30,
                                                         2006            2005           2006
                                                       UNAUDITED       UNAUDITED      UNAUDITED
                                                      -----------     -----------    -----------
<S>                                                   <C>             <C>            <C>
OPERATING ACTIVITIES
   Net income (loss)                                  $   (21,208)    $    43,961    $  (301,249)
   Changes and credits to net income (loss)
      not affecting cash
         Depletion and amortization                        15,000          15,000         49,000
         Organizational expenses paid with
            stock                                              --              --        300,000
         Legal fees paid with stock                            --              --         25,000
         Changes in assets and liabilities
            Trade receivables                              25,998          11,440         (6,711)
            Production taxes and royalties payable          3,709          19,365         13,378
            Other                                              --              --             --
                                                      -----------     -----------    -----------

NET CASH FROM (USED FOR)
   OPERATING ACTIVITIES                                    23,499          89,766         79,418
                                                      -----------     -----------    -----------

INVESTING ACTIVITIES
   Additions to property and equipment                         --              --        (32,187)
                                                      -----------     -----------    -----------

NET CASH USED FOR INVESTING
   ACTIVITIES                                                  --              --        (32,187)
                                                      -----------     -----------    -----------

FINANCING ACTIVITIES
   Proceeds from issuance of stock                             --              --        139,000
                                                      -----------     -----------    -----------

NET CASH USED FROM FINANCING
   ACTIVITIES                                                  --              --        139,000
                                                      -----------     -----------    -----------

NET CHANGE IN CASH AND CASH
   EQUIVALENTS                                             23,499          89,766        186,231

CASH AND CASH EQUIVALENTS AT
   BEGINNING OF PERIOD                                    162,732          53,663             --
                                                      -----------     -----------    -----------

CASH AND CASH EQUIVALENTS AT
   END OF PERIOD                                      $   186,231     $   143,429    $   186,231
                                                      ===========     ===========    ===========
</TABLE>

                                       6
<PAGE>

             MAJESTIC OIL & GAS, INC. (A Development Stage Company)
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


Notes to Unaudited September 30, 2006 Financial Statements:

Note 1 - Business Activity and Significant Accounting Policies

Principle Business Activity
Majestic Oil & Gas, Inc.  (Company) is a development  stage  enterprise  and its
operations  consist of oil and natural gas  development  and  production  in the
Rocky  Mountain  region.  The  financial  statements  and notes to the financial
statements  are  the  representation  of  the  Company's   management,   who  is
responsible for their integrity and objectivity.  The accounting  polices of the
Company are in accordance  with  generally  accepted  accounting  principles and
conform to the standards  applicable to  development  stage  enterprises.  These
interim  financial  statements  include all necessary  adjustments  which in the
opinion of management  are  necessary in order to make the financial  statements
not misleading.

Going Concern
The  Company  is in the  development  stage and has  incurred  losses  since its
inception that have resulted in an accumulated deficit.  Also, management of the
Company  believes  it  will  require  additional  financing  that it has not yet
secured in order to emerge  from the  development  stage.  These  factors  raise
substantial  doubt about the Company's  ability to continue as a going  concern.
Management  intends to vigorously pursue financing either from creditors or from
a future stock  offering.  However,  such financing may not occur, or if it does
occur, may not raise sufficient funds to emerge from the development stage.

Cash Equivalents

The Company considers all highly liquid investments purchased with a maturity of
three months or less to be cash equivalents.

Trade Receivables

The  Company is subject to credit  risk  associated  with the  purchases  of its
produced  natural  gas.  Exposure  to this  risk is  controlled  through  credit
approvals and  monitoring  procedures.  Collateral is not required.  The Company
believes  all  trade   receivables   currently   outstanding  are   collectible,
accordingly, no allowance for doubtful accounts has been established.

Oil & Gas Properties

The  Company  utilizes  the  full  cost  method  of  accounting  for oil and gas
properties. Accordingly, all costs associated with the acquisition,  exploration
and  development  of  oil  and  gas  reserves   (including  costs  of  abandoned
leaseholds,  delay lease rentals,  dry hole costs,  geological  and  geophysical
costs, certain internal costs associated directly with acquisition, drilling and
well equipment  inventory,  exploration  and development  activities,  estimated
dismantlement and abandonment  costs,  site restoration and  environmental  exit
costs, etc.) are capitalized.

All  capitalized  costs  of oil and gas  properties,  net of  estimated  salvage
values,  plus  the  estimated  future  costs to  develop  proved  reserves,  are
amortized on the  unit-of-production  method using estimates of proved reserves.
Investments  in  unproved  properties  and major  development  projects  are not
amortized until proved  reserves  associated with the projects can be determined
or until impairment  occurs.  If the results of an assessment  indicate that the
properties  are  impaired,  the  amount  of  the  impairment  is  added  to  the
capitalized costs to be amortized.

                                       7
<PAGE>

In  addition,  the  capitalized  costs are  subject  to a "ceiling  test"  which
basically  limits such costs to the aggregate of the "estimated  present value,"
discounted  at a 10-percent  interest  rate,  of future net revenues from proved
reserves, based on current economic and operating conditions,  plus the lower of
cost or fair market value of unproved properties.

Gains or losses are not recognized upon the sale or other disposition of oil and
gas properties, except in extraordinary transactions.

Revenue Recognition
Revenue from the sale of oil and gas  production is recognized  when  deliveries
occur.

Note 2 - Organization and Development of the Company

The  Company  was formed on April 16,  2002 as a  corporation.  The Company is a
development  stage  enterprise and it is management's  intention that operations
will ultimately consist of oil and natural gas development and production in the
Rocky  Mountain  region.   The   accompanying   financial   statements   reflect
organizational  activities  and limited oil and gas  development  and production
activities  and  they  are not  necessarily  indicative  of what  the  financial
statements  will reflect once the intended  operations  of the Company are fully
underway.

The Company has  registered  with the  Securities  and Exchange  Commission  and
intends  to trade its  outstanding  shares of stock on the OTC  Bulletin  Board.
Approval of the Company's  registration  statement has occurred,  but trading of
its  outstanding  shares of stock on the OTC Bulletin Board has not yet occurred
and there is no  guarantee  that the shares will be quoted and traded on the OTC
Bulletin Board or any other public exchange.

                                       8
<PAGE>

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


                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS


FORWARD LOOKING STATEMENTS

The following  discussion and analysis is provided to increase the understanding
of, and should be read in  conjunction  with,  the  Financial  Statements of the
Company and Notes thereto included elsewhere in this Report.  Historical results
and percentage relationships among any amounts in these financial statements are
not necessarily indicative of trends in operating results for any future period.
The  statements,  which  are not  historical  facts  contained  in this  Report,
including  this  Plan of  Operations,  and  Notes to the  Financial  Statements,
constitute  "forward-looking  statements"  within  the  meaning  of the  Private
Securities Litigation Reform Act of 1995. Such statements are based on currently
available operating,  financial and competitive information,  and are subject to
various risks and uncertainties.  Future events and the Company's actual results
may  differ  materially  from the  results  reflected  in these  forward-looking
statements.  Factors  that might cause such a  difference  include,  but are not
limited  to,  dependence  on existing  and future key  strategic  and  strategic
end-user  customers,  limited ability to establish new strategic  relationships,
ability to sustain and manage  growth,  variability  of operating  results,  the
Company's  expansion and  development of new service lines,  marketing and other
business   development   initiatives,   the  commencement  of  new  engagements,
competition  in the industry,  general  economic  conditions,  dependence on key
personnel,  the ability to attract,  hire and retain  personnel  who possess the
technical  skills and experience  necessary to meet the service  requirements of
its  clients,  the  potential  liability  with  respect to actions  taken by its
existing and past employees,  risks  associated with  international  sales,  and
other risks described herein and in the Company's other SEC filings.

                                       9
<PAGE>

The safe harbors of  forward-looking  statements  provided by Section 21E of the
Exchange Act are unavailable to issuers of penny stock. As we issued  securities
at a price below $5.00 per share, our shares are considered penny stock and such
safe harbors set forth under the Reform Act are unavailable to us.

The following  discussion  of our financial  condition and results of operations
should be read in  conjunction  with the Financial  Statements  and Notes to the
Condensed Consolidated Financial Statements appearing elsewhere in this report.

OVERVIEW

Majestic Oil & Gas, Inc is engaged in the exploration,  development, acquisition
and  operation  of gas  properties.  Because  gas  exploration  and  development
requires  significant  capital and because our assets and resources are limited,
we participate  in the gas industry  through the purchase of interests in either
producing wells or gas exploration and development and production projects.

Majestic  Oil & Gas,  Inc. is a  development  stage  company,  and as such it is
difficult  for us to forecast  our revenues or earnings  accurately.  We believe
that future  period-to-period  comparisons  of our operating  results may not be
meaningful and should not be relied upon as an indication of future  performance
as we have and will have no backlog of orders.  Our operating  results in one or
more future quarters may fall below investor  expectations  which,  assuming our
common stock trades on a recognized  market,  would almost  certainly  cause the
future  trading  price of our  common  stock to  decline.  You  should  read the
following  discussion  together  with  the  condensed   consolidated   financial
statements and their accompanying notes, included elsewhere in the report.

Based upon our  Management's  experience  in the industry and on recent  events,
including  increasing global demand for energy and energy  disruptions caused by
natural  disasters,  we  believe  the trend in oil and gas  prices  will  remain
relatively stable or decrease  slightly,  but over the long-term are more likely
to  increase.  We expect to  continue  to  generate  positive  net  income  from
operations in the future,  although our revenue and expenses will increase as we
expand our drilling and ownership activities.

                                       10
<PAGE>

RESULTS OF OPERATIONS


Three months ended September 30, 2006 vs. Three months ended September 30, 2005

---------------------- --------------------------  --------------------------
                          Three months ended         Three months ended
                          September 30, 2006         September 30, 2005
---------------------- --------------------------  --------------------------
Revenue                          $12,851                  $31,337
- -------------------- --------------------------  --------------------------
Expenses                         $24,367                  $21,211
- -------------------- --------------------------  --------------------------
Net Income (Loss)               ($11,617)                 $10,216
- -------------------- --------------------------  --------------------------

Gross  Revenues for Third Quarter 2006 of $12,851  decreased by $18,486 from the
$31,337 in Gross  Revenues  reported for the Third Quarter 2005.  The reason for
the major decrease in the revenues  between these two periods is a direct result
of the decrease in the price received for our natural gas production  along with
a significant  decrease in production volumes, as shown in the chart below. (MCF
= a thousand cubic feet of natural gas)

------------------- ----------------- ------------ ---------------- ------------
                        Share of       Price Per      Share of       Price Per
                       Production         MCF        Production         MCF
Ludwig State 36-1       Volumes                        Volumes
------------------- ----------------- ------------ ---------------- ------------
                                2006                           2005
------------------- ------------------------------ -----------------------------
July 2006                399.30          3.20          774.68          4.65
------------------- ----------------- ------------ ---------------- ------------
August 2006              402.60          3.33          722.91          4.85
------------------- ----------------- ------------ ---------------- ------------
September 2006           380.33          3.35          630.51          6.60
------------------- ----------------- ------------ ---------------- ------------

------------------- ----------------- ------------ ---------------- ------------
                        Share of       Price Per      Share of       Price Per
                       Production         MCF        Production         MCF
Boucher 27-1            Volumes                        Volumes
------------------- ----------------- ------------ ---------------- ------------
                                2006                           2005
------------------- ------------------------------ -----------------------------
July 2006                370.84          3.20          790.35          4.65
------------------- ----------------- ------------ ---------------- ------------
August 2006              352.48          3.33          778.80          4.85
------------------- ----------------- ------------ ---------------- ------------
September 2006           341.14          3.35          704.96          6.60
------------------- ----------------- ------------ ---------------- ------------

Majestic Oil & Gas  Operations,  Inc's Net Share of the production  volumes from
the Ludwig  State #36-1 and Boucher  #27-1 wells for 3rd Quarter 2006 were 2,247
MCF compared to 4,402 MCF for 3rd Quarter 2005.

This  production  decrease is due to the  gathering  system in the Lake  Frances
Field reaching its maximum capacity.  The Operator of the Lake Frances Gathering
System has applied and received a new air quality  permit for a new  compressor,
which will be installed in the Lake Frances Field the week of November 21, 2006.
This will increase the capacity of the gathering  system and should result in an
increase in production  from the wells in which Majestic Oil & Gas, Inc holds an
interest.

                                       11
<PAGE>

Our expenses  increased  slightly by $3,156 from the $21,211  reported for Third
Quarter 2005 compared to the $24,367  reported for the Third Quarter 2006. There
was a decrease in the expense for taxes and royalties of $4,002 from the $10,127
reported  for the Third  Quarter  2005  compared to the $6,125  reported for the
Third Quarter 2006 due to decreased production. This is offset by an increase in
legal and accounting  expenses of $4,093 from the $1,628  reported for the Third
Quarter 2005  compared to the $5,721  reported for the Third Quarter 2006 due to
expenses associated with our becoming a public company.

The Company showed a Net Loss of $11,616 for the Third Quarter and a Net Loss of
$21,208 for the nine months ended  September 30, 2006.  This compares to the Net
Income of $10,126  realized for the Third Quarter 2005 and Net Income of $43,961
for the nine months ended September 30, 2005. The variance between these periods
is directly related to the decrease in revenues and volumes during 2006.

Nine months ended September 30, 2006 vs. Nine months ended September 30, 2005

---------------------- -------------------------- --------------------------
                          Nine months ended           Nine months ended
                          September 30, 2006          September 30, 2005
---------------------- -------------------------- --------------------------
Revenue                        $40,283                     $99,316
- -------------------- -------------------------- --------------------------
Expenses                       $61,491                     $55,355
- -------------------- -------------------------- --------------------------
Net Income (Loss)             ($21,208)                    $43,961
- -------------------- -------------------------- --------------------------

Revenues for the nine months ended  September 30, 2006 were $40,823  compared to
$99,316 for the nine months ended  September 30, 2005.  The reason for the major
decrease in the  revenues  between  these two periods is a direct  result of the
decrease  in the price  received  for our natural  gas  production  along with a
significant  decrease in production  volumes,  as shown in the chart below. (MCF
stands for the price per thousand cubic feet of natural gas)

                                       12
<PAGE>

------------------------- ---------------- --------- ----------------- ---------
                             Share of      Price         Share of      Price
                            Production     Per MCF      Production     Per MCF
Ludwig State 36-1             Volumes                    Volumes
------------------------- ---------------- --------- ----------------- ---------
                                    2006                        2005
------------------------- -------------------------- ---------------------------
January                       446.33         9.00        1328.80         4.75
------------------------- ---------------- --------- ----------------- ---------
February                      380.33         5.80        1233.10         4.00
------------------------- ---------------- --------- ----------------- ---------
March                         434.36         4.60        1307.08         4.10
------------------------- ---------------- --------- ----------------- ---------
April                         363.00         3.75        1246.30         4.75
------------------------- ---------------- --------- ----------------- ---------
May                           389.81         4.00         903.99         4.85
------------------------- ---------------- --------- ----------------- ---------
June                          374.55         3.15         733.63         4.15
------------------------- ---------------- --------- ----------------- ---------
July                          399.30         3.20         774.68         4.65
------------------------- ---------------- --------- ----------------- ---------
August                        402.60         3.33         722.91         4.85
------------------------- ---------------- --------- ----------------- ---------
September                     380.33         3.35         630.51         6.60
------------------------- ---------------- --------- ----------------- ---------

------------------------- ---------------- --------- ----------------- ---------
                             Share of      Price         Share of      Price
                            Production     Per MCF      Production     Per MCF
Boucher 27-1                  Volumes                    Volumes
------------------------- ---------------- --------- ----------------- ---------
                                    2006                        2005
------------------------- -------------------------- ---------------------------
January                       590.70         9.00        1022.79         4.75
------------------------- ---------------- --------- ----------------- ---------
February                      408.17         5.80         889.14         4.00
------------------------- ---------------- --------- ----------------- ---------
March                         422.19         4.60         961.13         4.10
------------------------- ---------------- --------- ----------------- ---------
April                         327.53         3.75         893.27         4.75
------------------------- ---------------- --------- ----------------- ---------
May                           373.73         4.00         885.23         4.85
------------------------- ---------------- --------- ----------------- ---------
June                          370.63         3.15         678.15         4.15
------------------------- ---------------- --------- ----------------- ---------
July                          370.84         3.20         790.35         4.65
------------------------- ---------------- --------- ----------------- ---------
August                        352.48         3.33         778.80         4.85
------------------------- ---------------- --------- ----------------- ---------
September                     341.14         3.35         704.96         6.60
------------------------- ---------------- --------- ----------------- ---------

Majestic Oil & Gas  Operations,  Inc's Net Share of the production  volumes from
the Ludwig State #36-1 and Boucher  #27-1 wells for nine months ended  September
30,  2006  were  7,128 MCF  compared  to  16,484.82  MCF for nine  months  ended
September 30, 2005.

Our expenses increased slightly by $6,136 from the $55,355 reported for the nine
months ended  September 30, 2005  compared to the $61,491  reported for the nine
months ended  September 30, 2006.  There was a decrease in the expense for taxes
and  royalties  of $17,983  from the $27,401  reported for the nine months ended
September  30, 2005  compared to the $9,418  reported  for the nine months ended
September 30, 2006 due to decreased production. This is offset by an increase in
legal and accounting  expenses of $19,125 from the $2,128  reported for the nine
months ended  September 30, 2005  compared to the $23,293  reported for the nine
months ended  September 30, 2006. The majority of the legal and accounting  fees
are a result of fees paid to EideBailly,  LLP, for the auditing of our financial
statements for the period ending December 31, 2005.

The Company  showed a Net Loss of $11,616 for the three months  ended  September
30, 2006 and a Net Loss of $21,208 for the nine months ended September 30, 2006.
This  compares to the Net Income of $10,126  realized for the three months ended
September 30, 2005 and Net Income of $43,961 for the nine months ended September
30, 2005. The variance between these periods is directly related to the decrease
in revenues and volumes during 2006.

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<PAGE>

LIQUIDITY AND RESOURCE CAPITAL

We are a development stage company. From our inception to September 30, 2006, we
incurred an  accumulated  deficit of $301,249.  This  deficit is  primarily  the
result of $300,000 in expenses  associated  with stock  issuances  during fiscal
year ended  December 31, 2002.  In addition,  as of September  30, 2006,  we had
$186,231 of current  cash  available.  Our cash  resources  of $186,231  are not
sufficient to satisfy our cash requirements over the next 12 months.

We need an additional  minimum of $1,000,000 to finance our planned expansion in
the next 12 months,  which funds will be used for  drilling of  development  gas
wells in the  Lake  Frances  and  Williams  Fields.  We hope to be able to raise
additional  funds from an  offering of our stock in the  future.  However,  this
offering may not occur, or if it occurs, may not raise the required funding.  We
may also consider securing debt financing. We may not raise other equity or debt
financing  sufficient to fund this amount.  If we don't raise or generate  these
funds,  the  implementation  of our short-term  business plan will be delayed or
eliminated.

Our ability to continue as a going  concern is dependent on our ability to raise
funds to implement our planned development;  however we may not be able to raise
sufficient funds to do so. Our independent auditors have indicated that there is
substantial doubt about our ability to continue as a going concern over the next
twelve months. Our poor financial condition could inhibit our ability to achieve
our business plan.

COMMITMENTS AND CONTINGENCIES

On July 1, 2004, the Company  entered into an operating  agreement with Altamont
Oil & Gas,  Inc.,  through which Altamont Oil & Gas, Inc. will operate the wells
in which we have  acquired a working  interest.  Our share of monthly  operating
costs will be deducted from our monthly share of production revenue.

Item 3. Controls and Procedures

An evaluation was carried out under the supervision  and with the  participation
of the Company's  management,  including the Chief Executive Officer ("CEO") and
Chief  Financial  Officer  ("CFO"),   of  the  effectiveness  of  the  Company's
disclosure  controls  and  procedures  as of September  30, 2006.  Based on that
evaluation,  the  CEO and CFO  have  concluded  that  the  Company's  disclosure
controls and procedures are effective to provide reasonable  assurance that: (i)
information  required to be disclosed by the Company in reports that it files or
submits  under  the  Securities   Exchange  Act  of  1934  is  accumulated   and
communicated  to the  Company's  management,  including  the  CEO  and  CFO,  as
appropriate  to allow timely  decisions  regarding  required  disclosure  by the
Company; and (ii) information required to be disclosed by the Company in reports
that it files or submits under the Securities  Exchange Act of 1934 is recorded,
processed,  summarized  and  reported  within  the  time  periods  specified  in
Securities  and Exchange  Commission  rules and forms.  During the quarter ended
September 30, 2006, there were no changes in the Company's internal control over
financial reporting that have materially  affected,  or are reasonably likely to
materially affect, its internal control over financial reporting.

                                       14
<PAGE>

PART II - OTHER INFORMATION

Item 1.  Legal Proceedings

None

Item 2. Changes in Securities

None

Item 3. Defaults upon Senior Securities.

None

Item 4. Submission of Matters to a Vote of Security Holders.

None

Item 5. Other Information.

None

Item 6. Exhibits

Exhibit Number,  Name and/or Identification of Exhibit


1              31           Certification of the Chief Executive Officer and
                            Chief Financial Officer pursuant to Section 302 of
                            the Sarbanes-Oxley Act of 2002 Attached

2              32           Certification of the Chief Executive Officer and
                            Chief Executive Officer and Chief Financial Officer
                            pursuant to U.S.C. Section 1350 as adopted pursuant
                            to Section 906 of the Sarbanes-Oxley Act of 2002

                                       15
<PAGE>



                                   SIGNATURES

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


                                           Majestic Oil & Gas, Inc.



                                           Date: November 20, 2006

                                           /s/ Patrick Montalban
                                           ----------------------------------
                                           Patrick Montalban
                                           Chief Executive Officer and Chief
                                           Financial Officer



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