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  **U.S. SECURITIES AND EXCHANGE COMMISSION****Washington, D.C. 20549****FORM 10-QSB**(Mark One)   þ **QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE ACT OF 1934****For the quarterly period ended September 30, 2007**   o **TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE ACT OF 1934****For the transition period from                      to                     ****Commission file number 000-50929****Ignis Petroleum Group, Inc.** (Exact name of small business issuer as specified in its charter)Nevada (State or other jurisdiction of incorporation or organization)16-1728419 (IRS Employer Identification No.)7160 Dallas Parkway, Suite 380, Plano, Texas 75024 (Address of principal executive offices)972-526-5250 (Issuer’s telephone number)Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of theExchange Act during the past 12 months (or for such shorter period that the registrant was requiredto file such reports), and (2) has been subject to such filing requirements for the past 90 days.Yes þ No oIndicate by check mark whether the registrant is a shell company (as defined in rule 12 b-2 of theExchange Act).Yes o No þState the number of shares outstanding of each of the issuer’s classes of common equity, as of thelatest practicable date. As of November 5, 2007, the registrant had issued and outstanding57,171,982 shares of common stock.  
 

 
       Page No.PART I — FINANCIAL INFORMATION         Item 1. Financial Statements         Condensed Consolidated Balance Sheet at September 30, 2007 (unaudited)  1      Condensed Consolidated Statement of Operations for the Three Months EndedSeptember 30, 2007 and 2006 (unaudited)  2      Condensed Consolidated Statement of Cash Flows for the Three Months endedSeptember 30, 2007 and 2006 (unaudited)  3      Selected Notes to the Condensed Consolidated Financial Statements (unaudited)  4      Item 2. Management’s Discussion and Analysis or Plan of Operation  9      Item 3. Controls and Procedures  15      PART II — OTHER INFORMATION         Item 2. Unregistered sale of equity securities and use of proceeds  16      Item 3. Default Upon Senior Securities  16      Item 6. Exhibits  17      SIGNATURES  18  Certification by CEO Pursuant to Section 302 Certification by CFO Pursuant to Section 302 Certification by CEO Pursuant to Section 906 Certification by CFO Pursuant to Section 906 i 
 

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**PART I – FINANCIAL INFORMATION*****Item 1. Financial Statements.***Ignis Petroleum Group, Inc. and SubsidiaryCondensed Consolidated Balance Sheet (unaudited)       September 30, 2007 **ASSETS**    Current assets:    Cash and cash equivalents $248,049 Accounts receivable  211,489 Prepaid expenses and other current assets  45,543     Total current assets  505,081          Property and equipment:    Oil and Gas Properties, net (successful efforts method)  253,867          Other assets  577,413          Total assets $1,336,361          **LIABILITIES AND STOCKHOLDERS’ DEFICIT**         Current liabilities:    Accounts payable and accrued expenses $494,018 Accrued interest  658,454 Current portion of asset retirement obligation  34,176 Current portion of long-term debt  4,787,000 Current portion of debt discount  (4,785,131)Current portion of derivative liability  229,642 Current portion of contingent liability  1,600,000     Total current liabilities  3,018,159          Long-term liabilities:    Long-term debt  1,000,000 Asset Retirement Obligation  18,205     Total long-term liabilities  1,018,205          **COMMITMENTSAND CONTINGENCIES** (NOTE 10)         Stockholders’ deficit:    Preferredstock, $0.001 par value, 5,000,000 shares authorized, none issued and outstanding   — Common stock, $0.001 par value, 300,000,000 shares authorized 57,081,982 issued andoutstanding, net of 18,250,000 shares held in escrow  57,082 Additional paid-in capital  12,732,764 Accumulated deficit  (15,489,849)    Total stockholders’ deficit  (2,700,003)         **TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT** $1,336,361     The accompanying notes are anintegral part of these condensed consolidated financial statements1

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Ignis Petroleum Group, Inc. and SubsidiaryCondensed Consolidated Statement of Operationsfor the Three Months Ended September 30, 2007 and 2006 (unaudited)           For the   Three Months Ended   September 30,       Restated   2007  2006 Oil and natural gas sales $295,564  $487,121 Management fees  45,000   —        Total revenue  340,564   487,121                 Operating expenses:        Lease operating expense  30,745   4,579 Production and ad valorem taxes  14,549   27,170 Depreciation, depletion and amortization  69,122   372,783 Accretion of asset retirement obligation  3,783   — Exploration expenses, including dry holes  —   219 General and administrative expenses  727,043   483,015        Total operating expenses  845,242   887,766                 Loss from operations  (504,678)  (400,645)         Other income (expense)        Gain from valuation of derivative liability  130,201   2,111,426 Interest expense  (173,632)  (259,866)Gain on sale of oil and gas property  60,000   —           16,569   1,851,560                 Net income (loss) $(488,109) $1,450,915                 Basic income (loss) per common share:        Net income (loss) per common share $(0.01) $0.03                 Weighted average number of common shares outstanding  53,664,206   49,537,232                 Diluted net income (loss) per common share:        Net income (loss) per common share $(0.01) $0.03                 Diluted weighted average number of common shares outstanding  53,664,206   57,566,136        The accompanying notes are anintegral part of these condensed consolidated financial statements2

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Ignis Petroleum Group, Inc. and SubsidiaryConsolidated Statements of Cash Flows for theThree Months ended September 30, 2007 and 2006 (unaudited)           September30,  September30,  2007  2006     Restated Cash flow from operating activities        Net income (loss) $(488,109) $1,450,915          Depreciation and depletion  69,122   372,783 Amortization of debt cost  71,529   67,099 Stock issued for compensation and services  39,484   93,481 Amortization of discount of debentures  1,323   4 Accretion of assest retirement obligation expense  3,783   — Gain of derivative financial instrument  (130,201)  (2,111,426)Change in current assets and liabilities:        Accounts receivable  (49,178)  (156,482)Prepaid expenses and other current assets  20,062   (132,444)Accounts payable and accrued expenses  334,299   74,471                 Cash used in operating activities  (127,886)  (341,599)                Cash flow from investing activities        Purchase of oil and gas properties  —   (37,276)Sale of oil and natural gas property  60,000   —                 Cash provided by/(used) investing activities  60,000   (37,276)                Cash flow from financing activities        Proceeds from note payable  —   500,000                 Cash provided by financing activities  —   500,000                 Net increase(decrease) in cash  (67,886)  121,125          Cash at beginning of period  315,935   872,572                 Cash at end of period $248,049  $993,697                 Supplemental non-cash financing transactions:        Conversion of debenture into equity $103,000  $—        The accompanying notes are anintegral part of these condensed consolidated financial statements3

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**IGNIS PETROLEUM GROUP, INC. AND SUBSIDIARY****SELECTED NOTES TOCONDENSED CONSOLIDATED FINANCIAL STATEMENTS**