---

**UNITED STATES
  SECURITIES AND EXCHANGE COMMISSION**
  Washington, D.C. 20549

FORM 10-QSB

x Quarterly Report
  pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 
  For the quarterly period ended May 31, 2005.

 ̈ Transition Report
  pursuant to 13 or 15(d) of the Securities Exchange Act of 1934 
  For the transition period ________ to ________

Commission File Number 333-115637

Cascade Energy Inc.
  (Exact name of small Business Issuer as specified in its charter)

|Nevada                          | 41-2122221                       
|------------------------------- | ---------------------------------
|(State or other jurisdiction of | (IRS Employer Identification No.)
|incorporation or organization)  |                                  

|**13405 Folsom Blvd, Suite 820**         |                     
|---------------------------------------- | --------------------
|**Folsom, CA**                           | **95630**           
|(Address of principal executive offices) | (Postal or Zip Code)

Issuer’s telephone number, including area code: **(916)
  608-9700**

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

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

State the number of shares outstanding of each of the issuer’s
  classes of common stock, as of the latest practicable date: 72,800,000 Shares
  of $0.001 par value Common Stock issued and outstanding as of May 31, 2005.

---

PART 1 – FINANCIAL INFORMATION

Item 1. Financial Statements

The accompanying unaudited financial statements have been
  prepared in accordance with the instructions to Form 10-QSB and Item 310 (b)
  of Regulation S-B, and, therefore, do not include all information and footnotes
  necessary for a complete presentation of financial position, results of operations,
  cash flows, and stockholders’ equity in conformity with generally accepted
  accounting principles. In the opinion of management, all adjustments considered
  necessary for a fair presentation of the results of operations and financial
  position have been included and all such adjustments are of a normal recurring
  nature. Operating results for the three months ended May 31, 2005 are not necessarily
  indicative of the results that can be expected for the year ending February
  28, 2006.

2

---

CASCADE ENERGY, INC.

INTERIM CONSOLIDATED FINANCIAL STATEMENTS

May 31, 2005

(Stated in US Dollars)

(Unaudited)



3

---

CASCADE ENERGY, INC. 
  INTERIM CONSOLIDATED BALANCE SHEETS May 31, 2005 and February 28, 2005
  (Stated in US Dollars)
  (Unaudited)

|                                                              |   | May 31,  |   |   | February 28, |  
|------------------------------------------------------------- | - | -------- | - | - | ------------ | -
|ASSETS                                                        |   | 2005     |   |   | 2005         |  
|                                                             
|Current                                                       |   |          |   |   |              |  
|Cash                                                          | $ | 1,092    |   | $ | -            |  
|Accounts receivable (net of allowance of $18,793)             |   | 18,385   |   |   | 10,568       |  
|Inventory                                                     |   | 15,801   |   |   | 6,809        |  
|                                                             
|                                                              | $ | 35,278   |   | $ | 17,377       |  
|                                                             
|LIABILITIES                                                   |   |          |   |   |              |  
|                                                             
|Current                                                       |   |          |   |   |              |  
|Bank overdraft                                                | $ | -        |   | $ | 9,453        |  
|Accounts payable and accrued liabilities – Note 4             |   | 149,957  |   |   | 128,003      |  
|Due to related parties – Note 4                               |   | 79,612   |   |   | 70,449       |  
|Loans payable                                                 |   | 18,670   |   |   | 16,810       |  
|                                                             
|                                                              |   | 248,239  |   |   | 224,715      |  
|                                                             
|STOCKHOLDERS’ DEFICIENCY                                      |   |          |   |   |              |  
|                                                             
|Capital stock                                                 |   |          |   |   |              |  
|Common stock, $0.001 par value, 200,000,000 shares authorized |   |          |   |   |              |  
|Preferred stock, $0.001 par value, 5,000,000 shares           |   |          |   |   |              |  
|authorized                                                    |   |          |   |   |              |  
|72,800,000 common shares issued and outstanding               |   | 9,100    |   |   | 9,100        |  
|Additional paid-in capital                                    |   | 49,000   |   |   | 49,000       |  
|Accumulated other comprehensive loss                          |   | (7,556   | ) |   | (10,673      | )
|Accumulated deficit                                           |   | (263,505 | ) |   | (254,765     | )
|                                                             
|                                                              |   | (212,961 | ) |   | (207,338     | )
|                                                             
|                                                              | $ | 35,278   |   | $ | 17,377       |  

SEE ACCOMPANYING NOTES

4

---

CASCADE ENERGY, INC. 
  INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
  for the three months ended May 31, 2005 and 2004 
  (Stated in US Dollars)
  (Unaudited)

|                                                     |   | Three months ended |  
|---------------------------------------------------- | - | ------------------ | -
|                                                     |   | May 31,            |  
|                                                     |   | 2005               |  
|                                                    
|Sales                                                | $ | 50,062             |  
|                                                    
|Cost of sales                                        |   | 40,198             |  
|                                                    
|Gross profit                                         |   | 9,864              |  
|                                                    
|Expenses                                             |   |                    |  
|Accounting and audit fees                            |   | 4,579              |  
|Advertising                                          |   | 6,225              |  
|Auto expenses                                        |   | 1,423              |  
|Bad debts (recovery)                                 |   | (11,393            | )
|Bank charges and interest                            |   | 1,187              |  
|Consulting fees – Note 4                             |   | 10,927             |  
|Filing and listing fees                              |   | 772                |  
|Investor relations                                   |   | -                  |  
|Legal fees                                           |   | 146                |  
|Office and general                                   |   | 1,205              |  
|Rent – Note 4                                        |   | 1,277              |  
|Salaries and benefits                                |   | 176                |  
|Telephone                                            |   | 1,495              |  
|Transfer agent fees                                  |   | 585                |  
|Travel                                               |   | -                  |  
|                                                    
|                                                     |   | 18,604             |  
|                                                    
|Loss before other item                               |   | (8,740             | )
|                                                    
|Other item                                           |   |                    |  
|Foreign exchange loss                                |   | -                  |  
|                                                    
|Net loss for the period                              | $ | (8,740             | )
|                                                    
|Basic and diluted loss per share                     | $ | (0.00              | )
|                                                    
|Weighted average number of common shares outstanding |   | 72,800,000         |  

SEE ACCOMPANYING NOTES

5

---

CASCADE ENERGY, INC. 
  INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
  for the three months ended May 31, 2005 and 2004 
  (Stated in US Dollars)
  (Unaudited)

|                                        |   | Three months ended |  
|--------------------------------------- | - | ------------------ | -
|                                        |   | May 31,            |  
|                                        |   | 2005               |  
|                                       
|Net loss for the period                 | $ | (8,740             | )
|                                       
|Other comprehensive income              |   |                    |  
|Foreign currency translation adjustment |   | 3,117              |  
|                                       
|Comprehensive loss                      | $ | (5,623             | )

SEE ACCOMPANYING NOTES

6

---

CASCADE ENERGY, INC. 
  INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS 
  for the three months ended May 31, 2005 and 2004
  (Stated in US Dollars)
  (Unaudited)

|                                                    |   | Three months ended |  
|--------------------------------------------------- | - | ------------------ | -
|                                                    |   | May 31,            |  
|                                                    |   | 2005               |  
|                                                   
|Operating Activities                                |   |                    |  
|Net loss for the period                             | $ | (8,740             | )
|Change in non-cash working capital items related to |   |                    |  
|operations:                                         |   |                    |  
|Accounts receivable                                 |   | (7,817             | )
|Inventory                                           |   | (8,992             | )
|Prepaid expenses and deposits                       |   | -                  |  
|Accounts payable and accrued liabilities            |   | 21,954             |  
|                                                   
|Cash flows used in operating activities             |   | (3,595             | )
|                                                   
|Financing Activities                                |   |                    |  
|Decrease in bank overdraft                          |   | (9,453             | )
|Increase in due to related parties                  |   | 9,163              |  
|Increase in loans payable                           |   | 1,860              |  
|                                                   
|Cash flows provided by financing activities         |   | 1,570              |  
|                                                   
|Effect of foreign exchange rate changes on cash     |   | 3,117              |  
|                                                   
|Increase (decrease) in cash during the period       |   | 1,092              |  
|                                                   
|Cash, beginning of the period                       |   | -                  |  
|                                                   
|Cash, end of the period                             | $ | 1,092              |  
|                                                   
|Supplemental disclosure of cash flow information    |   |                    |  
|Cash paid for:                                      |   |                    |  
|Interest                                            | $ | -                  |  
|                                                   
|Income taxes                                        | $ | -                  |  

SEE ACCOMPANYING NOTES

7

---

CASCADE ENERGY, INC. 
  INTERIM CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY
  (DEFICIENCY)
  for the period December 23, 2003 (Date of Inception) to May 31, 2005
  (Stated in US Dollars)
  (Unaudited)

|                           |              |  |   |           |  |   |               |  |   | Accumulated |   |   |          |   |   |          |  
|-------------------------- | ------------ |  | - | --------- |  | - | ------------- |  | - | ----------- | - | - | -------- | - | - | -------- | -
|                           |              |  |   |           |  |   | Additional    |  |   | Other       |   |   |          |   |   |          |  
|                           | Common Stock |  |   | Paid-in   |  |   | Comprehensive |  |   |             |   |   |          |  
|                           | Number*      |  |   | Par Value |  |   | Capital       |  |   | Loss        |   |   | Deficit  |   |   | Total    |  
|                           |              |  |   |           |  |   |               |  |   |             |   |   |          |   |   |          |  
|Issuance of common stock   |              |  |   |           |  |   |               |  |   |             |   |   |          |   |   |          |  
|for cash  – at $0.001      | 40,800,000   |  | $ | 5,100     |  | $ | -             |  | $ | -           |   | $ | -        |   | $ | 5,100    |  
|                           |              |  |   |           |  |   |               |  |   |             |   |   |          |   |   |          |  
|Issuance  of  common       |              |  |   |           |  |   |               |  |   |             |   |   |          |   |   |          |  
|stock for  acquisition of  |              |  |   |           |  |   |               |  |   |             |   |   |          |   |   |          |  
|Power Grow System Ltd. –at |              |  |   |           |  |   |               |  |   |             |   |   |          |   |   |          |  
|$0.001                     | 24,000,000   |  |   | 3,000     |  |   | -             |  |   | -           |   |   | -        |   |   | 3,000    |  
|                           |              |  |   |           |  |   |               |  |   |             |   |   |          |   |   |          |  
|Issuance of common stock   |              |  |   |           |  |   |               |  |   |             |   |   |          |   |   |          |  
|for cash  – at $0.05       | 8,000,000    |  |   | 1,000     |  |   | 49,000        |  |   | -           |   |   | -        |   |   | 50,000   |  
|                           |              |  |   |           |  |   |               |  |   |             |   |   |          |   |   |          |  
|Net loss for the period    | -            |  |   | -         |  |   | -             |  |   | -           |   |   | (10,441  | ) |   | (10,441  | )
|                           |              |  |   |           |  |   |               |  |   |             |   |   |          |   |   |          |  
|Balance, February 29, 2004 | 72,800,000   |  |   | 9,100     |  |   | 49,000        |  |   | -           |   |   | (10,441  | ) |   | 47,659   |  
|                           |              |  |   |           |  |   |               |  |   |             |   |   |          |   |   |          |  
|Other comprehensive        |              |  |   |           |  |   |               |  |   |             |   |   |          |   |   |          |  
|loss for the year          | -            |  |   | -         |  |   | -             |  |   | (10,673     | ) |   | -        |   |   | (10,673  | )
|                           |              |  |   |           |  |   |               |  |   |             |   |   |          |   |   |          |  
|Net loss for the year      | -            |  |   | -         |  |   | -             |  |   | -           |   |   | (244,324 | ) |   | (244,324 | )
|                           |              |  |   |           |  |   |               |  |   |             |   |   |          |   |   |          |  
|Balance, February 28, 2005 | 72,800,000   |  |   | 9,100     |  |   | 49,000        |  |   | (10,673     | ) |   | (254,765 | ) |   | (207,338 | )
|                           |              |  |   |           |  |   |               |  |   |             |   |   |          |   |   |          |  
|Other comprehensive        |              |  |   |           |  |   |               |  |   |             |   |   |          |   |   |          |  
|income for the period      | -            |  |   | -         |  |   | -             |  |   | 3,117       |   |   | -        |   |   | 3,117    |  
|                           |              |  |   |           |  |   |               |  |   |             |   |   |          |   |   |          |  
|Net loss for the period    | -            |  |   | -         |  |   | -             |  |   | -           |   |   | (8,740   | ) |   | (8,740   | )
|                           |              |  |   |           |  |   |               |  |   |             |   |   |          |   |   |          |  
|Balance, May 31, 2005      | 72,800,000   |  | $ | 9,100     |  | $ | 49,000        |  | $ | (7,556      | ) | $ | (263,505 | ) | $ | (212,961 | )

* The common stock issued has been retroactively restated
  to reflect a forward split of 8 new shares for 1 old share effective on April
  28, 2005.

SEE ACCOMPANYING NOTES

8

---

CASCADE ENERGY, INC. 
  NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
  May 31, 2005
  (Stated in US Dollars)
  (Unaudited)

|Note 1 | Interim Financial Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|      
|       | While the information presented
        in the accompanying three months to May 31, 2005 financial  statements
        is unaudited, it includes all adjustments which are, in the opinion of
        management,  necessary to present fairly the financial position,
        result of operations and cash flows for the  interim period presented
        in accordance with the accounting principles generally accepted in the 
        United States of America. In the opinion of management, all adjustments
        considered necessary  for a fair presentation of the results of operations
        and financial position have been included and  all such adjustments
        are of a normal recurring nature.
|      
|       | Operating results for the
        quarter ended May 31, 2005 are not necessarily indicative of the results
        that can be expected for the year ending February 28, 2006.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|      
|Note 2 | Principles of Consolidation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|      
|       | These consolidated financial
        statements include the accounts of the Company and its wholly- owned subsidiary,
        Power Grow System Ltd. All inter-company transactions and account balances
        have been eliminated.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|      
|Note 3 | Mineral Properties– Note 5                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|      
|       | By an assignment agreement
        dated May 6, 2005, the Company acquired a 33.075% working interest in
        certain mineral leases situated in Tehama County, California, referred
        to as the Coyote Creek Prospect. As consideration for this assignment,
        the Company assumed complete responsibility for the performance of all
        obligations of the assignor with respect to the farm-out agreement in
        which the assignor purchased its 67.5% working interest in the Coyote
        Creek Prospect. These obligations include approximately $686,250 in
        geologic, geophysical, administration, land fee, dry hole drilling cost
        and completion costs.                  
|      
|       | On May 19, 2005, the Company
        executed a farm-in agreement to acquire a 49% working interest in the
        Empress Project, located in eastern Alberta, Canada. The project consists
        of 3 sections of Crown P&NG rights. Under the terms of the Farm-in
        Agreement, the Company will earn the 49% working interest in each of three
        sections of the project by drilling, casing and completing one exploratory
        gas well in each section.                                                                                                                                                                                                                                              
|      
|Note 4 | Related Party Transactions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|      
|       | During the three months
        ended May 31, 2005, the Company incurred consulting fees of $10,927
        (2004 - $12,995) charged by companies with directors in common with
        the Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|      
|       | During the three months
        ended May 31, 2005, the Company incurred rent of $1,277 (2004 - $Nil)
        charged by a company with a director in common.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

9

---

|Note 4 | Related Party Transactions– (cont’d)                                                                                                                                                                                                                                                               
|------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|      
|       | These charges were measured by the exchange
        amount which is the amount agreed upon by the  transacting parties.                                                                                                                                                                            
|      
|       | By an agreement dated January 1, 2003,
        the Company entered into a sales and marketing  agency agreement
        with a company with a director in common with the Company for  $3,333
        per month. This agreement terminates on January 30, 2006.                                    
|      
|       | Included in accounts payable at May 31,
        2005 is $7,222 (February 28, 2005 - $6,577) owing to  directors
        of the Company and to companies with directors in common.                                                                                                                  
|      
|       | The amounts due to related parties represent
        advances and unpaid charges due to directors of the  Company or to
        companies with directors in common with the Company and such advances
        are  unsecured, non-interest bearing and have no specific terms of
        repayment.
|      
|Note 5 | Subsequent Events                                                                                                                                                                                                                                                                                  

| | i)  | On June 30, 2005, the Company executed a farm-in
        agreement to acquire a 21% working interest in the Acadia Prospect, located
        in eastern Alberta, 160 miles east of Calgary, Alberta. The prospect consists
        of 3 sections of Crown P&NG rights. Under the terms of the Farm-in
        Agreement, the Company will earn the 21% working interest in one section
        of the project by drilling, casing and completing one exploratory gas
        well in the section.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | ii) | The Company has indicated its intention to enter
        into an option to acquire a 10% interest in five coal exploration licences,
        the Strand Fiord Coal Project, to explore and develop certain coal properties
        located on Axel Hieberg Island in the Canadian Arctic. To exercise the
        option, the Company shall:                                                                                                                                                     
|

| |  | - pay $75,000 on or before July 15, 2005,                     
| |  | --------------------------------------------------------------
| |  | - issue 1,000,000 common shares on or before July 15, 2005 and
| |  | - advance $119,503 (Cdn$150,000) no later than July 15, 2005. 
|

| | The agreement is subject to a 3% net profit interest.
| | -----------------------------------------------------

| | iii) | On June 15, 2005, the Company executed three secured
        convertible debentures for a total of $3,000,000. The debentures bear
        interest at 5% per annum and the principle and interest is convertible,
        at the holders’ discretion, into shares of common stock of the Company
        at $0.50 per share. The debentures are due and payable in full on
        or before June 15, 2006. $350,000 has been advanced directly to the
        Coyote Creek Prospect (Note 3).
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | iv)  | Subsequent to May 31, 2005, the Company indicated
        its intention to dispose of its wholly owned subsidiary, Power Grow Systems
        Ltd. The Company is negotiating this disposition and has proposed to cancel
        24,000,000 common shares in this regard. These shares were held by the
        directors of Power Grow System Ltd.                                                                                                                                           

10

---

Item 2. Plan of Operation

Acquisition of Power Grow System Ltd.

We were incorporated on December 23, 2003 under the laws of
  the State of Nevada for the purpose of identifying and securing business opportunities
  in the hydroponics plant growing equipment manufacturing industry.

Pursuant to an agreement dated February 2, 2004 and completed
  on February 29, 2004, we acquired 100% of the issued and outstanding shares
  of Power Grow System Ltd., a private British Columbia company. Pursuant to this
  agreement, Power Grow System Ltd. became our wholly owned subsidiary. In consideration
  of the transfer of all of the outstanding shares of Power Grow System Ltd.,
  we issued a total of 3,000,000 shares of our common stock to the two Power Grow
  shareholders of which 1,500,000 were issued to Mr. Bleuler and 1,500,000 to
  Mr. Brusatore. These shares are subject to Rule 144 trading restrictions. In
  connection with the agreement, Mr. Bleuler was appointed to our Board of Directors.
  Both Mr. Bleuler and Mr. Brusatore remained directors of our subsidiary. We
  also agreed to lend, without any fixed terms of repayment, the sum of $6,000
  to Power Grow System Ltd. in order to cover the costs associated with obligations
  incurred relating to the closing of the agreement. We commenced merged operation
  with our wholly owned subsidiary on February 29, 2004.

On May 19, 2004, we filed an SB2 Registration Statement with
  The Security and Exchange Commission of the United States (SEC) in order to
  gain a reporting Status in the United States and in order to register our common
  stock. On December 7, 2004, we received the effective status with the SEC becoming
  a fully reporting company in the United States.

We have retained a market maker to sponsor a 15c211 application
  with the National Association of Securities Dealers (NASD) in order to have
  our common shares posted for trading on the NASD Over the Counter Bulletin Board
  (OTC BB) upon approval of this application. The 15c211 application has been
  accepted by NASD and, on January 11, 2004, our common shares were posted for
  trading on the OTC BB with the trading symbol of PTHD. OB.

About Power Grow:

Power Grow System Ltd. was incorporated pursuant to the laws
  of British Columbia on August 20, 2001 for the purpose of designing, manufacturing
  and marketing sophisticated hydroponics plant growing equipment to be marketed
  in Canada and the United States to nurseries, garden centers, specialized hydroponics
  equipment shops, gardeners and home hobbyists who wish to grow their own fresh
  fruits, flowers, herbs and vegetables, year round, faster than conventional
  gardening, organically and free of outdoor pollutants, pests and weeds. Since
  its formation in August 2001, our wholly owned subsidiary has been successfully
  manufacturing and marketing three individual models of the hydroponics plant
  growing equipment.

Presently, we generate revenues from selling our four hydroponics
  equipment models to nurseries, garden centers, specialized hydroponics equipment
  shops and home hobbyists who wish to grow their own fresh fruits, flowers, herbs
  and vegetables year round in a manner that is faster than conventional gardening
  as well as organic and free of outdoor pollutants, pests and weeds. We receive
  $2,195 for each sale of one of our Single 600 Flower System, $2,995
  for each sale of a Single-600 System and $3,995 for each sale of a Dual-600
  System and $1,400 for each of our newly developed F 400 System.

For the three months period ending May 31, 2005, we have manufactured
  and marketed, in the Vancouver metropolitan area and in the United States, an
  average of 9 hydroponics plant growing equipment units per month.

As of May 31, 2005 we had total assets of $35,278, including
  cash of $1,092, accounts receivable of $18,385 and inventory of $15,801.
  The cash and equivalents represent the Company present source of liquidity.

11

---

Our liabilities at May 31, 2005 totaled $248,239 consisting
  of $149,957 in accounts payables, $79,612 due to related parties and
  $18,670 in loans payables.

During the three months period ended May 31, 2005, we generated
  gross revenues of $50,062 and incurred net losses of $8,740 for the
  period.

In view of the losses from operations in our last fiscal year
  and in our first quarter ended May 31, 2005, and our inability to implement
  our Business Plan in the hydroponics plant growing equipment industry, we have
  decided to identify and secure business opportunities in the Oil and Gas energy
  sector and during the three month period ended May 30, 2005 we implemented the
  following corporate developments:

| | a. | On April 21, 2005 Mr.
        Floyd Flaman resigned his positions as Director, Secretary, Treasurer
        and Chief Financial Officer from our board of directors. His decision
        to resign was based on personal and professional considerations and to
        pursue other business opportunities. There were no disagreements or conflicts
        amongst our board of directors and Mr. Flaman relating to operational
        or policy matters during his tenure as our officer and director.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | b. | On April 21, 2005 Mr.
        Robert Hoegler resigned as President and Chief executive officer from
        our board of directors but retained his position as director of the company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|
| | c. | On April 21, 2005 Mr.
        Sam Johal, of Sacramento California was appointed as our director, chief
        executive officer and president of our board of directors and Mr. Chris
        Foster was appointed as our director, chief financial officer and treasurer
        on our board of directors.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|
| |    | Mr. Sam Johalhad
        an educational background in business administration and has acquired
        over 15 years of knowledge and experience in all facets of the complex
        energy and technology sectors. In a variety of capacities, Mr. Johal’s
        experience has included roles in marketing and risk management, project
        finance, international trade, manufacturing, commodity trading and consulting.
        Previously, Mr. Johal served as corporate manager for five years with
        Shell, the world’s third largest energy company. Among his many
        achievements, Mr. Johal brings a long track record of success and expertise
        to his position as President and Director for Pro-Tech. As a seasoned
        entrepreneur, Mr. Johal has demonstrated the drive and energy required
        in providing outstanding service as an independent business consultant
        for a variety of corporations.                                                                                              
|
| |    | Mr. Chris Fosteris
        a seasoned financial professional with a proven track record in accounting,
        financial analysis and administration. Mr. Foster has spent the last four
        years at a venture capital firm as a financial manager facilitating IPO’s
        and conducting financial and administrative management for primarily development
        stage resource companies. Prior to this position, Mr. Foster gained five
        years of public practice experience as an Accountant for a chartered accounting
        firm working with clients in a variety of industries. In addition, Mr.
        Foster previously held a public company management position for more than
        three years and has over 10 years experience as an active investor in
        the public markets.
      Mr. Foster received his professional accounting designation
        from the Certified General Accountants Association in 2003 and holds a
        diploma in Financial Management with a minor in Computing Science Technology.
|
| | d. | On April 28, 2005 we formally
        changed our corporate name to Cascade Energy, Inc. to better reflect the
        change of direction of our business operations. On the same date our share
        capital has been restructured such as every one (1) old common share in
        our capital stock will be converted to eight (8) new common shares in
        our capital stock. The authorized capital stock has been increased to
        200, 000,000 common shares at a par value of $0.001 per share and
        our preferred stock has remained unchanged at 5,000,000 preferred shares
        at a par value of $0.001 per share. Our trading symbol on the Over
        the Counter Bulletin Board, as of May 5, 2005, has changed to CSCE.OB.                                                                                                                                                                                                                                                                                            

12

---

| | e. | On May 6, 2005 we executed a farm-in agreement with
        CALCOR Energy Partners, LLC, an Arizona limited liability company, to
        acquire a 33.075% working interest in the Coyote Creek Project. Under
        the terms of the farm-in agreement, we will earn the 33.075% working interest
        in the project by drilling, casing and completing one exploratory natural
        gas well on the leased acreage. In order to gain our interest in the Coyote
        Creek Project, we have to expand the anticipated cost of drilling which
        will be approximately $350,000 and additionally, subject to positive
        results from drilling, approximately $350,000 for completion of well.
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | f. | On May 19, 2005 we have executed a farm-in agreement
        with 1048136 ALBERTA LTD, a private Alberta company, to acquire a 49%
        gross working interest in the Empress Project, Alberta Canada. Under the
        terms of the farm-in agreement, we will earn a 49% gross working interest
        on the three (3) section project by drilling, casing and completing one
        exploratory gas well on each section.                                                                                                                                                                                                                                                                                   

We have not realized significant revenues from the date of
  our merger with our wholly owned subsidiary to May 31, 2005, and we are presently
  operating at an ongoing deficit. Our ability to continue as an ongoing concern
  is dependent on our ability to generate revenues from expanded operation or
  new operations in the energy sector. As we don’t foresee any likelihood
  of implementing our objectives in the Hydroponics Plant Growing Equipment field,
  we are presently negotiating the disposition of our wholly owned subsidiary
  Power Grow Systems Ltd.

We anticipate that additional funding will be required in
  the form of debt financing or equity financing secured by the sale of our common
  stock to fund the development of our wholly owned subsidiary. There is no assurance
  that we will be able to secure additional sales of our common stock sufficient
  to fund our future development. Presently we do not have any arrangements in
  place with any related or unrelated third parties for future equity or debt
  financing.

In addition to the general expenses related to the development,
  manufacturing, marketing and shipping our hydroponics equipment units, We anticipate
  incurring approximately $90,000 for administrative expenses over the next
  12 month period including accounting and audit costs ($40,000) legal fees
  ($10,000), rent and office costs ($15,000) and general administrative
  costs ($25,000).

Forward-Looking Statements

This Form 10-QSB includes -" forward-looking statements" within
  the meaning of the "safe-harbor" provisions of the Private Securities Litigation
  Reform Act of 1995. Such statements are based on management's current expectations
  and are subject to a number of factors and uncertainties that could cause actual
  results to differ materially from those described in the forward-looking statements.

All statements other than historical facts included in this
  Form, including without limitation, statements under "Plan of Operation", regarding
  our financial position, business strategy, and plans and objectives of management,
  are forward-looking statements.

Although we believes that the expectations reflected in such
  forward-looking statements are reasonable, we can give no assurance that such
  expectations will prove to have been correct. Important factors that could cause
  actual results to differ materially from our expectations include, but are not
  limited to, market conditions, competition and the ability to successfully complete
  financing.

PART II - OTHER INFORMATION

Item 1.  Legal Proceedings

13

---

We are not a party to any pending legal proceeding. Management
  is not aware of any threatened litigation, claims or assessments.

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 and Report on Form 8-K

During the quarter ended May 31, 2005 reports were filed on
  Form 8K concerning the following corporate developments:

| | 1. | Assignment of Interest agreement with CALCOR Energy
        Partners, LLC, an Arizona limited liability company, whereby we have purchased
        a 33.075% net Working Interest in certain mineral leases (Coyote Creek)
        located in Tehama County, Ca, comprising sections 14, 15, 16, 22, 23,
        24, 25, 26, 35 and 36 in Township 26 North Range 3 West and sections 1
        and 2 in Township 25 North Range 3 West.                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 2. | Change of our corporate name to Cascade Energy,
        Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | 3. | Completion of a forward split of our capital stock
        whereby each common share in the capital stock of Pro-Tech Holdings Ltd.
        (our former corporate name) issued and outstanding at the end of day of
        May 5, 2005, will be converted, upon surrender, into eight common shares
        in capital stock of Cascade Energy, Inc. The authorized common shares
        in our capital stock will be fixed at 200,000,000 common shares at a par
        value of $0.001 per share. Our authorized preferred stock will remain
        unchanged at 5,000,000 preferred shares at a par value of $0.001 per
        share. The Amendment to the Articles of Incorporation concerning the name
        change and capital stock restructuring became effective on May 5, 2005.We
        are now quoted on the OTC BB with the trading symbol OTC BB: CSCE.
| | 4. | Resignation of Mr. Floyd Flaman has from his position
        as director and officer of our board of Directors and resignation of Mr.
        Robert Hoegler from his position of Chief Executive Officer and President
        of our Board of Directors.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | 5. | Appointment of Mr. Sam Johal, of Sacramento, California,
        to the positions of Director, Chief Executive Officer and president our
        board and appointment of Mr. Chris Foster, of Vancouver, British Columbia
        to the positions of Director, Treasurer and Chief Financial Officer of
        our Board of Directors.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | 6. | Assignment of Interest Agreement with 1048136 ALBERTA
        LTD, a private Alberta company, to acquire a 49% working interest in the
        Empress Project, Alberta Canada. Under the terms of the farm-in agreement,
        we will earn a 49% working interest on the three (3)- section project
        by drilling, casing and completing one exploratory gas well on each section.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

14

---

|Exhibits:
|---------
|         
|31.1     
|         
|31.2     
|         
|32.1     
|         
|32.2     

SIGNATURES

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

Cascade Energy Inc.

/s/ Sam Johal     Sam Johal Director

Date: July 15, 2005.

15

---