**Table of Contents**

| x      | Quarterly report pursuant to Section 13 or      15(d) of the Securities Exchange Act of 1934  |
|--------|-----------------------------------------------------------------------------------------------|
|   |                                                                                          |
|   | For the quarterly period ended September 30,      2010                                        |
|   |                                                                                          |
| o      | Transition report pursuant to Section 13 or      15(d) of the Securities Exchange Act of 1934 |
|   |                                                                                          |
|   | For the transition period from ______________to      ______________.                          |
|   |                                                                                          |
|   |                                                                                          |

| **Nevada**                                                               |   |   |   | **20-8428738**                       |
|--------------------------------------------------------------------------|--------|--------|--------|--------------------------------------|
| (State or other jurisdiction           of incorporation or organization) |   |   |   | (I.R.S. Employer Identification No.) |

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

----

|                                     Class                                     | Outstanding at November 30, 2010 |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                             |
| Common Stock, par value $0.001 per          share                                                                                                                                                                                                                                                                                                                                                                                                     | 80,743,912                       |

----

|   |   | Page |
|--------|--------|------|

|                            | ITEM 1-- FINANCIAL STATEMENTS                                                                       |   1 |
|---------------------------------|-----------------------------------------------------------------------------------------------------|---------------|
|                            |                                                                                                |          |
|                            | ITEM 2-- MANAGEMENT'S DISCUSSION      AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |   8 |
|                            |                                                                                                |          |
|                            | ITEM 3-- QUANTITATIVE AND QUALITATIVE      DISCLOSURES ABOUT MARKET RISK                            | 14            |
|                            |                                                                                                |          |
|                            | ITEM 4T-- CONTROLS AND PROCEDURES                                                                   | 14            |
|                            |                                                                                                |          |
|                            |                                                                                                |          |
| **PART II - OTHER INFORMATION** |                                                                                                |
|                            |                                                                                                |          |
|                            | ITEM 1-- LEGAL PROCEEDINGS                                                                          | 15            |
|                            |                                                                                                |          |
|                            | ITEM 1A-- RISK FACTORS                                                                              | 15            |
|                            |                                                                                                |          |
|                            | ITEM 2-- UNREGISTERED SALES      OF EQUITY SECURITIES AND USE OF PROCEEDS                           | 15            |
|                            |                                                                                                |          |
|                            | ITEM 3-- DEFAULTS UPON SENIOR      SECURITIES                                                       | 15            |
|                            |                                                                                                |          |
|                            | ITEM 4--(REMOVED AND RESERVED)                                                                      | 15            |
|                            |                                                                                                |          |
|                            | ITEM 5-- OTHER INFORMATION                                                                          | 15            |
|                            |                                                                                                |          |
|                            | ITEM 6-- EXHIBITS                                                                                   | 15            |
|                            |                                                                                                |          |
|                            | SIGNATURES                                                                                          | 16            |

----

**Table of Contents**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                    | **September 30, 2010         (unaudited)** |        | **March 31, 2010** |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------|-------------|--------------------|--------|
| **ASSETS**                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                       |             |               |   |  |   |
| Current Assets:                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                       |        |               |   |   |   |
|          Cash                                                                                                                                                                                                                                                                                                                                                                                              | $                                          | 235,602     |               | $      | 277,307 |   |
|          Accounts      Receivable:                                                                                                                                                                                                                                                                                                                                                                         |                                       |        |               |   |   |   |
|                   Oil      & Gas - Related Party                                                                                                                                                                                                                                                                                                              |                                       | 489,939     |               |   | 639,738 |   |
|                   Related      Party                                                                                                                                                                                                                                                                                                                          |                                       | 848,656     |               |   | 561,169 |   |
|                   Other                                                                                                                                                                                                                                                                                                                                       |                                       | 447         |               |   | - |   |
|          Inventory                                                                                                                                                                                                                                                                                                                                                                                         |                                       | 118,715     |               |   | 130,886 |   |
|          Other      Current Assets                                                                                                                                                                                                                                                                                                                                                                         |                                       | -           |               |   | 248,759 |   |
|          Total      Current Assets                                                                                                                                                                                                                                                                                                                                                                         |                                       | 1,693,359   |               |   | 1,857,859 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                       |             |               |   |  |   |
| Notes      Receivable                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                       | 212,773     |               |   | 213,619 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                       |             |               |   |  |   |
| Oil      and Gas Properties - successful efforts method                                                                                                                                                                                                                                                                                                                                                                                                 |                                       | 26,842,132  |               |   | 26,847,329 |   |
|          Less      Accumulated Depletion and Depreciation                                                                                                                                                                                                                                                                                                                                                  |                                       | (10,283,771 | )                  |   | (9,034,348 | ) |
|                   Oil      & Gas Properties (net)                                                                                                                                                                                                                                                                                                             |                                       | 16,558,361  |               |   | 17,812,981 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                       |             |               |   |  |   |
| Other      Depreciable Assets:                                                                                                                                                                                                                                                                                                                                                                                                                          |                                       | 2,028,487   |               |   | 2,028,487 |   |
|          Less      Accumulated Depreciation                                                                                                                                                                                                                                                                                                                                                                |                                       | (522,381    | )                  |   | (427,013 | ) |
|                   Other      Depreciable Assets (net)                                                                                                                                                                                                                                                                                                         |                                       | 1,506,106   |               |   | 1,601,474 |   |
| Total Assets                                                                                                                                                                                                                                                                                                                                                                                                                                            | $                                          | 19,970,599  |               | $      | 21,485,933 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                       |        |               |   |   |   |
| **LIABILITIES**                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                       |        |               |   |   |   |
| Current      Liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                               |                                       |        |               |   |   |   |
|          Accounts      Payable                                                                                                                                                                                                                                                                                                                                                                             | $                                          | 408,662     |               | $      | 278,233 |   |
|          Revenue      Payable                                                                                                                                                                                                                                                                                                                                                                              |                                       | 17,104      |               |   | 20,912 |   |
|          Payable      to Related Parties                                                                                                                                                                                                                                                                                                                                                                   |                                       | 148,550     |               |   | 148,550 |   |
|               Other Current Liabilities                                                                                                                                                                                                                                                                                                                                                                         |                                       | -           |               |   | 93,923 |   |
|          Accrued      Expenses                                                                                                                                                                                                                                                                                                                                                                             |                                       | 433,467     |               |   | 140,390 |   |
|          Accrued      Expenses - Related Party                                                                                                                                                                                                                                                                                                                                                             |                                       | 131,861     |               |   | 88,458 |   |
|          Current      Portion of Long-Term Debt                                                                                                                                                                                                                                                                                                                                                            |                                       | 10,447,407  |               |   | 10,283,339 |   |
|                   Total      Current Liabilities                                                                                                                                                                                                                                                                                                              |                                       | 11,587,051  |               |   | 11,053,805 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                       |        |               |   |  |   |
|          Notes      Payable - Related Parties                                                                                                                                                                                                                                                                                                                                                              |                                       | 3,518,924   |               |   | 3,518,924 |   |
|                   Total      Long-Term Debt                                                                                                                                                                                                                                                                                                                   |                                       | 3,518,924   |               |   | 3,518,924 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                       |        |               |   |   |   |
|          Asset      Retirement Obligation                                                                                                                                                                                                                                                                                                                                                                  |                                       | 345,055     |               |   | 324,773 |   |
|          Deferred      Tax Liability                                                                                                                                                                                                                                                                                                                                                                       |                                       | -           |               |   | 639,034 |   |
|                   Total      Liabilities                                                                                                                                                                                                                                                                                                                      |                                       | 15,451,030  |               |   | 15,536,536 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                       |        |               |   |   |   |
| **Stockholders'      Equity**                                                                                                                                                                                                                                                                                                                                                                                                                           |                                       |        |               |   |   |   |
|          Common      Stock, $.001 par,200,000,000 shares authorized and                         80,743,912      shares outstanding on September 30, 2010                         and      March 31, 2010, respectively |                                       | 80,743      |               |   | 80,743 |   |
|          Additional      Paid-In-Capital                                                                                                                                                                                                                                                                                                                                                                   |                                       | 11,499,103  |               |   | 11,460,893 |   |
|          Treasury      Stock, at cost                                                                                                                                                                                                                                                                                                                                                                      |                                       | (12,240     | )                  |   | (12,240 | ) |
|          Retained      Deficit                                                                                                                                                                                                                                                                                                                                                                             |                                       | (7,048,037  | )                  |   | (5,579,999 | ) |
|                   Total      Stockholders' Equity                                                                                                                                                                                                                                                                                                             |                                       | 4,519,569   |               |   | 5,949,397 |   |
|                   Total      Liabilities & Stockholders' Equity                                                                                                                                                                                                                                                                                               | $                                          | 19,970,599  |               | $      | 21,485,933 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                       |        |               |   |   |   |

----

**Table of Contents**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | **Three          Months Ended**             |   |   |   | **Six          Months Ended**                  |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------|--------|--------|--------|------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | **September          30, 2010 (unaudited)** |   |   |   | **September          30, 2009****(unaudited)** |   |   |   | **September 30, 2010****(unaudited)** |   |   |   | **September 30, 2009****(unaudited)** |   |
| **Revenues**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                             |   |   |   |                                           |   |   |   |   |   |   |   |   |   |
|          Oil        & Gas Sales                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | $      | 796,972                                     |   |   | $      | 556,141                                        |   |   | $ | 1,670,161 |   |   | $ | 1,174,212 |   |
|          Sale        of Leases                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | -                                           |   |   |   | 137,677                                        |   |   |   | - |   |   |   | 137,677 |   |
|          Other        Income                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | (18,120                                     | )      |   |   | 90,119                                         |   |   |   | 72,793 |   |   |   | 173,582 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 778,852                                     |   |   |   | 783,937                                        |   |   |   | 1,742,954 |   |   |   | 1,485,471 |   |
| **Costs        and Expenses**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                             |   |   |   |                                                |   |   |   |  |   |   |   |  |   |
|          Oil        & Gas Lease Operating Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 385,849                                     |   |   |   | 515,195                                        |   |   |   | 781,854 |   |   |   | 1,043,398 |   |
|          Workover        Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 13,680                                      |   |   |   | 43,998                                         |   |   |   | 13,680 |   |   |   | 43,998 |   |
|          Severance        & Ad Valorem Taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 48,109                                      |   |   |   | 31,129                                         |   |   |   | 100,691 |   |   |   | 65,195 |   |
|          Geologic        & Geophysical                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | 21,975                                      |   |   |   | -                                              |   |   |   | 38,494 |   |   |   | - |   |
|          Plugging        and Abandonments                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 9,030                                       |   |   |   | -                                              |   |   |   | 17,787 |   |   |   | - |   |
|          Depletion        & Depreciation                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 707,090                                     |   |   |   | 684,361                                        |   |   |   | 1,508,860 |   |   |   | 1,395,927 |   |
|          ARO        Accretion                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 10,141                                      |   |   |   | 11,031                                         |   |   |   | 20,282 |   |   |   | 21,781 |   |
|         General        & Administrative:                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                             |   |   |   |                                                |   |   |   |   |   |   |   |   |   |
|                   Salaries        & Benefits                                                                                                                                                                                                                                                                                                                                                                                                       |   | 279,851                                     |   |   |   | 201,935                                        |   |   |   | 432,937 |   |   |   | 403,495 |   |
|                   Legal        & Professional                                                                                                                                                                                                                                                                                                                                                                                                      |   | 159,728                                     |   |   |   | 648,979                                        |   |   |   | 343,841 |   |   |   | 776,830 |   |
|                   Other        General & Administrative                                                                                                                                                                                                                                                                                                                                                                                            |   | 76,165                                      |   |   |   | 126,406                                        |   |   |   | 155,870 |   |   |   | 272,371 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                             |   |   |   |                                                |   |   |   |   |   |   |   |   |   |
|          Interest,        net of capitalized interest of $0 and                  $132,375 for the        three months ended 9/30/10                 and 9/30/09, respectively        and $0 and $254,273                 for the six months        ended 9/30/10 and                  9/30/09, respectively |   | 419,955                                     |   |   |   | -                                              |   |   |   | 419,955 |   |   |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 2,131,573                                   |   |   |   | 2,263,034                                      |   |   |   | 3,834,251 |   |   |   | 4,022,995 |   |
| Other        Income (Expense)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                             |   |   |   |                                                |   |   |   |  |   |   |   |  |   |
|          Interest        Income                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 10                                          |   |   |   | 13,934                                         |   |   |   | 20 |   |   |   | 27,904 |   |
|          Hedging        Gain (Loss)                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | (34,493                                     | )      |   |   | (103,643                                       | )      |   |   | (15,800 | ) |   |   | (103,643 | ) |
| Income        (Loss) from continuing operations        before income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | (1,387,204                                  | )      |   |   | (1,568,806                                     | )      |   |   | (2,107,077 | ) |   |   | (2,613,263 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                             |   |   |   |                                                |   |   |   |  |   |   |   |  |   |
| Income        Tax Benefit (Expense)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | 393,765                                     |   |   |   | 351,944                                        |   |   |   | 639,034 |   |   |   | 691,988 |   |
| Net        Income (Loss)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $      | (993,439                                    | )      |   | $      | (1,216,862                                     | )      |   | $ | (1,468,043 | ) |   | $ | (1,921,275 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                        |   |   |   |                                           |   |   |   |   |   |   |   |   |   |
| **Basic        & Diluted Loss per Common Share**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | $      | (0.01                                       | )      |   | $      | (0.02                                          | )      |   | $ | (0.02 | ) |   | $ | (0.02 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                        |   |   |   |                                           |   |   |   |  |   |   |   |  |   |
| **Weighted        Average Common Shares Outstanding**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 80,743,912                                  |   |   |   | 80,998,912                                     |   |   |   | 80,743,912 |   |   |   | 80,722,483 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                        |   |   |   |                                           |   |   |   |   |   |   |   |   |   |

----

**Table of Contents**

| ****                                                                                                                                     | **Six        Months Ended**                          |
|------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------|
|                                                                                                                                          | ****September        30, 2010**        (unaudited)** |   | ****September        30, 2009**        (unaudited)** |
| **Operating      Activities:**                                                                                                           |                                                 |   |   |   |   |   |   |
|      Net      (Loss) Income                                                                                     | $                                                    | (1,468,043 | ) |   | $ | (1,921,275 | ) |
|          Adjustments to      reconcile net (loss) income to cash from operating activities: |                                                 |  |   |   |   |  |   |
|           Income      Tax (Benefit) Expense                                            |                                                 | (639,034 | ) |   |   | (691,988 | ) |
|           Depletion,      Depreciation, & Amortization                                 |                                                 | 1,508,860 |   |   |   | 1,395,927 |   |
|           Stock      based compensation                                                |                                                 | 38,210 |   |   |   | 146,171 |   |
|           Non-employee      stock based compensation                                   |                                                 | - |   |   |   | 580,500 |   |
|           ARO      Accretion                                                           |                                                 | 20,282 |   |   |   | 43,274 |   |
|      Changes      in Operating Assets and Liabilities                                                           |                                                 |  |   |   |   |  |   |
|           Changes      in Accrued Liabilities                                          |                                                 | 293,077 |   |   |   | 26,826 |   |
|           Change      in Inventory                                                     |                                                 | 12,172 |   |   |   | 5,069 |   |
|           Change      in Related Party Receivables/Payables                            |                                                 | (244,084 | ) |   |   | 194,691 |   |
|           Changes      in Other Receivables                                            |                                                 | (447 | ) |   |   | (25,794 | ) |
|           Changes      in Hedging Activity                                             |                                                 | 154,836 |   |   |   | 145,925 |   |
|           Changes      in Revenue Payable                                              |                                                 | (3,808 | ) |   |   | - |   |
|           Change      in Revenue Receivables                                           |                                                 | 149,800 |   |   |   | (45,173 | ) |
|           Changes      in Accounts Payable                                             |                                                 | 130,429 |   |   |   | 37,433 |   |
|      Net      Cash provided (used) from operating activities                                                    |                                                 | (47,750 | ) |   |   | (108,414 | ) |
|                                                                                                                                     |                                                 |   |   |   |   |   |   |
| **Investing      Activities:**                                                                                                           |                                                 |   |   |   |   |   |   |
|      Oil      & Gas Drilling, Completing and Leasehold Acquisition Costs                                        |                                                 | 5,199 |   |   |   | (1,062,046 | ) |
|      Change      in Related Party Payable related to drilling                                                   |                                                 | - |   |   |   | - |   |
|      Investment      in Other Depreciable Assets                                                                |                                                 | - |   |   |   | (150,513 | ) |
|      Note      Receivable Collections (Advances)                                                                |                                                 | 846 |   |   |   | - |   |
|      Net      Cash used in investing activities                                                                 |                                                 | 6,045 |   |   |   | (1,212,559 | ) |
|                                                                                                                                     |                                                 |   |   |   |   |   |   |
| **Financing      Activities**                                                                                                            |                                                 |   |   |   |   |   |   |
|      Notes      Payable (Payments) Advances                                                                     |                                                 | - |   |   |   | 1,000,000 |   |
|      Net      Cash provided from financing activities.                                                          |                                                 | - |   |   |   | 1,000,000 |   |
|                                                                                                                                     |                                                 |   |   |   |   |   |   |
| Net      Decrease in cash                                                                                                                |                                                 | (41,705 | ) |   |   | (320,973 | ) |
| Cash      - Beginning of the period                                                                                                      |                                                 | 277,307 |   |   |   | 426,430 |   |
| Cash      - End of the period                                                                                                            | $                                                    | 235,602 |   |   | $ | 105,457 |   |
|                                                                                                                                     |                                                 |   |   |   |   |   |   |

----

**Table of Contents**

|                                                                                                                          | **Six        Months Ended**                          |   |
|-------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------|--------|
|                                                                                                                               | ****September        30, 2010        (unaudited)**** |   | **********September        30, 2009****        (unaudited)****** |   |
| ****Supplemental      Disclosure of Cash Flow Information****                                                                 |                                                 |   |   |   |   |   |
|          Cash      paid during period for:                                       |                                                 |   |   |   |   |   |
|                   Interest          | $                                                    | 64,609 |   | $ | 118,709 |   |
|                                                                                                                          |                                                 |   |   |   |   |   |
|                   Income      Taxes | $                                                    | -      |   | $ | - |   |
|                                                                                                                          |                                                 |   |   |   |   |   |
| **Non      Cash Investing and Financing Activities**                                                                          |                                                 |   |   |   |   |   |
|          Stock      Based Compensation                                           | $                                                    | 38,102 |   | $ | 146,171 |   |
|                                                                                                                          |                                                 |   |   |   |   |   |
|          Stock      Based Consulting Fees                                        | $                                                    | -      |   | $ | 580,500 |   |
|                                                                                                                          |                                                 |   |   |   |   |   |

----

**Table of Contents**

----

**Table of Contents**

----

**Table of Contents**

----

**Table of Contents**

----

**Table of Contents**

----

**Table of Contents**

----

**Table of Contents**

----

**Table of Contents**

|                                 | Fiscal        Years Ending March 31, |       |   |   |   |   |   |      |
|--------------------------------------|--------------------------------------|------------|--------|--------|--------|--------|--------|-----------|
|                                 |                                 | 2011       |   |   | 2012   |   |   | 2013      |   |   | Thereafter |   |   | Total |   |
| Office Lease Payments                | $                                    | 74,635     |   | $      | -      |   | $      | -         |   | $ | - |   | $ | 74,635 |   |
| Notes Payable      - Related Parties |                                 | -          |   |   | -      |   |   | 3,518,924 |   |   | - |   |   | 3,518,924 |   |
| Senior      Secured Note Payable     |                                 | 10,800,000 |   |   | -      |   |   | -         |   |   | - |   |   | 10,800,000 |   |
|                                      | $                                    | 10,874,635 |   | $      | -      |   | $      | 3,518,924 |   | $ | - |   | $ | 14,393,559 |   |
|                                 |                                 |       |   |   |   |   |   |      |   |   |   |   |   |   |   |

----

**Table of Contents**

----

**Table of Contents**

----

**Table of Contents**

| EXHIBIT      NUMBER |   | DESCRIPTION                                                                                                                          |
|---------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------|
|                     |   |                                                                                                                                      |
| 31.1                |   | CEO      Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                     |
| 31.2                |   | CFO      Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                     |
| 32.1                |   | CEO      Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to      Section 906 of the Sarbanes-Oxley Act of 2002 |
| 32.2                |   | CFO      Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to      Section 906 of the Sarbanes-Oxley Act of 2002 |

----

**Tableof Contents**

|                  | **REOSTAR      ENERGY CORPORATION**                                                                                                                                                                                                     |
|-----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                  |                                                                                                                                                                                                                                    |
| December__,      2010 |                                                                                                                                                                                                                                    |
|             | By    /s/      Scott D. Allen                                 |
|                  |      Scott      D. Allen, Chief Financial Officer            (Principal Financial Officer and duly authorized      signatory)                                                         |
|                  |                                                                                                                                                                                                                                    |
|                  |                                                                                                                                                                                                                                    |

----

**Table of Contents**

| EXHIBIT      NUMBER |   | DESCRIPTION                                                                                                                          |
|---------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------|
|                     |   |                                                                                                                                      |
| 31.1                |   | CEO      Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                     |
| 31.2                |   | CFO      Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                     |
| 32.1                |   | CEO      Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to      Section 906 of the Sarbanes-Oxley Act of 2002 |
| 32.2                |   | CFO      Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to      Section 906 of the Sarbanes-Oxley Act of 2002 |

----