----

----

**U.S.        SECURITIES AND EXCHANGE COMMISSION**

**FORM        10-QSB**

| (Mark                  One)                                          |   |                                                                                                                                  |   |   |
|----------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
| x                                                                    |   | QUARTERLY                  REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT                  OF                  1934  |
|                                                                 |   |                                                                                                                                  |   |   |
|  For                  the quarterly period ended March 31, 2007 |
|  OR                                                             |
|                                                                 |   |                                                                                                                                  |   |   |
| o                                                                    |   | TRANSITION                  REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT                  OF                  1934 |

|   | **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.) |   |

|   | One                  Legacy Town Center, 7160 Dallas Parkway, Suite 380, Plano, Texas                  75024 |   |
|--------|--------------------------------------------------------------------------------------------------------------|--------|
|   | (Address                  of principal executive offices)                                                    |   |

|   | 972-526-5250                                       |   |
|--------|----------------------------------------------------|--------|
|   | (Issuer’s                  telephone number) |   |

----

----

----

|                                                                                                                                                                      |   | PageNo. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|
| PART                  I - FINANCIAL INFORMATION                                                                                                                           |   |    |
|                                                                                                                                                                      |   |    |
| Item                  1. Financial Statements                                                                                                                             |   |    |
|                                                                                                                                                                      |   |    |
| Condensed                  Consolidated Balance Sheet at March 31, 2007                  (unaudited)                                                                      |   | 3       |
|                                                                                                                                                                      |   |    |
| Condensed                  Consolidated Statement of Operations for the Three                  and Nine Months Ended March 31, 2007 and 2006                  (unaudited) |   | 4       |
|                                                                                                                                                                      |   |    |
| Condensed                  Consolidated Statement of Cash Flows for the Nine                  Months ended March 31, 2007 and 2006 (unaudited)                            |   | 5       |
|                                                                                                                                                                      |   |    |
| Selected                  Notes to the Condensed Consolidated Financial                  Statements (unaudited)                                                           |   | 6       |
|                                                                                                                                                                      |   |    |
| Item                  2. Management's Discussion and Analysis or Plan of                  Operation                                                                       |   | 8       |
|                                                                                                                                                                      |   |    |
| Item                  3. Controls and Procedures                                                                                                                          |   | 13      |
|                                                                                                                                                                      |   |    |
| PART                  II - OTHER INFORMATION                                                                                                                              |   |    |
|                                                                                                                                                                      |   |    |
| Item                  2. Unregistered sale of equity securities and use of                  proceeds                                                                      |   | 13      |
|                                                                                                                                                                      |   |    |
| Item                  6. Exhibits.                                                                                                                                        |   | 14      |
|                                                                                                                                                                      |   |    |
| SIGNATURES                                                                                                                                                                |   | 15      |

----

*Table            of Contents *

**PART        I - FINANCIAL INFORMATION**

***Item        1. Financial Statements.***

nis

| **ASSETS**                                                                                                                                               |   | March                    31, 2007 |         |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|--------------|
| Current                    assets:                                                                                                                       |   |                              |         |
| Cash                    and cash equivalents                                                                                                             |   | $                                 | 582,474      |   |
| Accounts                    receivable                                                                                                                   |   |                              | 141,424      |   |
| Prepaid                    expenses and other current assets                                                                                             |   |                              | 27,304       |   |
| Total                    current assets                                                                                                                  |   |                              | 751,202      |   |
|                                                                                                                                                     |   |                              |              |   |
| Property                    and equipment:                                                                                                               |   |                              |              |   |
| Oil                    and Gas Properties (Successful Efforts Method)                                                                                    |   |                              | 2,593,310    |   |
| Lees:                    Allowance for Impairment                                                                                                        |   |                              | (259,110     | ) |
| Less                    Accumulated DD&A                                                                                                             |   |                              | (1,334,344   | ) |
| Net                    Property and equipment                                                                                                            |   |                              | 999,856      |   |
|                                                                                                                                                     |   |                              |    |   |
| Fixed                    assets and other, net                                                                                                           |   |                              | 484,947      |   |
|                                                                                                                                                     |   |                              |    |   |
| Total                    assets                                                                                                                          |   | $                                 | 2,236,005    |   |
|                                                                                                                                                     |   |                              |              |   |
| **LIABILITIES                    AND STOCKHOLDERS' DEFICIT**                                                                                             |   |                              |              |   |
|                                                                                                                                                     |   |                              |              |   |
| Current                    liabilities:                                                                                                                  |   |                              |              |   |
| Accounts                    payable and accrued expenses                                                                                                 |   | $                                 | 75,290       |   |
| Accrued                    interest                                                                                                                      |   |                              | 1,146,911    |   |
| Total                    current liabilities                                                                                                             |   |                              | 1,222,201    |   |
|                                                                                                                                                     |   |                              |              |   |
| Long-term                    liabilities:                                                                                                                |   |                              |              |   |
| Long-term                    debt                                                                                                                        |   |                              | 4,086,188    |   |
| Derivative                    liability                                                                                                                  |   |                              | 3,332,420    |   |
| Warrant                    liability                                                                                                                     |   |                              | 1,268,095    |   |
| Asset                    Retirement Obligation                                                                                                           |   |                              | 40,724       |   |
| Total                    long-term liabilities                                                                                                           |   |                              | 8,727,427    |   |
|                                                                                                                                                     |   |                              |              |   |
| Commitments                    and contingencies                                                                                                         |   |                              | -            |   |
|                                                                                                                                                     |   |                              |              |   |
| Stockholders'                    deficit:                                                                                                                |   |                              |              |   |
| Preferred                    stock, $0.001 par value, 5,000,000 shares authorized none issued                    and                    outstanding      |   |                              | -            |   |
| Common                    stock, $0.001 par value, 300,000,000 shares authorized 51,894,728                    issued                    and outstanding |   |                              | 51,895       |   |
| Additional                    paid-in capital                                                                                                            |   |                              | 8,091,588    |   |
| Accumulated                    deficit                                                                                                                   |   |                              | (15,857,106  | ) |
| Total                    stockholders' equity (deficit)                                                                                                  |   |                              | (7,713,623   | ) |
|                                                                                                                                                     |   |                              |              |   |
| **TOTAL                    LIABILITIES AND STOCKHOLDERS' DEFICIT**                                                                                       |   | $                                 | 2,236,005    |   |

----

*Table            of Contents *

gni

|                                                                      |   | For                  the            |       | For                  the           |   |
|---------------------------------------------------------------------------|--------|-------------------------------------|------------|------------------------------------|--------|
|                                                                      |   | Three                  Months Ended |       | Nine                  Months Ended |   |
|                                                                      |   | 2007                                |       | 2006                               |   | 2007 |   | 2006 |   |
|                                                                      |   |                                |       | (Restated)                         |   |   |   | (Restated) |   |
| Revenues                  from oil and gas product sales                  |   | $                                   | 205,188    |                               | $      | 215,768 |   | $ | 911,311 |   | $ | 453,211 |   |
|                                                                      |   |                                |       |                               |   |   |   |   |   |   |   |   |   |
| Management                  fees                                          |   |                                | 57,000     |                               |   | 0 |   |   | 79,500 |   |   | - |   |
|                                                                      |   |                                |       |                               |   |   |   |   |   |   |   |   |   |
| Total                  revenue                                            |   |                                | 262,188    |                               |   | 215,768 |   |   | 990,811 |   |   | 453,211 |   |
|                                                                      |   |                                |            |                               |   |  |   |   |  |   |   |  |   |
| Total                  operating expenses                                 |   |                                |            |                               |   |  |   |   |  |   |   |  |   |
| Operating                  expenses:                                      |   |                                |            |                               |   |  |   |   |  |   |   |  |   |
|                                                                      |   |                                |       |                               |   |   |   |   |   |   |   |   |   |
| Lease                  operating expense                                  |   |                                | 18,298     |                               |   | 675 |   |   | 27,623 |   |   | 1,156 |   |
|                                                                      |   |                                |       |                               |   |   |   |   |   |   |   |   |   |
| Production                  and ad valorem taxes                          |   |                                | 10,602     |                               |   | 11,959 |   |   | 19,650 |   |   | 24,718 |   |
|                                                                      |   |                                |       |                               |   |   |   |   |   |   |   |   |   |
| Depreciation,                  depletion and amortization                 |   |                                | 205,038    |                               |   | 123,694 |   |   | 872,113 |   |   | 152,864 |   |
|                                                                      |   |                                |       |                               |   |   |   |   |   |   |   |   |   |
| Accretion                  of asset retirement obligation                 |   |                                | 2,676      |                               |   | - |   |   | 8,711 |   |   | - |   |
|                                                                      |   |                                |       |                               |   |   |   |   |   |   |   |   |   |
| Exploration                  expenses, including dry holes and impairment |   |                                | 32,906     |                               |   | - |   |   | 461,317 |   |   | - |   |
|                                                                      |   |                                |       |                               |   |   |   |   |   |   |   |   |   |
| General                  and administrative expenses                      |   |                                | 764,469    |                               |   | 755,284 |   |   | 1,941,443 |   |   | 2,892,626 |   |
|                                                                      |   |                                |       |                               |   |   |   |   |   |   |   |   |   |
| Total                  operating expenses                                 |   |                                | 1,033,989  |                               |   | 891,612 |   |   | 3,330,857 |   |   | 3,071,364 |   |
|                                                                      |   |                                |            |                               |   |  |   |   |  |   |   |  |   |
| Loss                  from operations                                     |   |                                | (771,801   | )                                  |   | (675,844 | ) |   | (2,340,046 | ) |   | (2,618,153 | ) |
|                                                                      |   |                                |            |                               |   |  |   |   |  |   |   |  |   |
| Other                  income (expense)                                   |   |                                |            |                               |   |  |   |   |  |   |   |  |   |
|                                                                      |   |                                |       |                               |   |   |   |   |   |   |   |   |   |
| Gain/(loss)                  from valuation of derivative liability       |   |                                | 840,347    |                               |   | (904,000 | ) |   | 1,698,590 |   |   | (904,000 | ) |
|                                                                      |   |                                |       |                               |   |   |   |   |   |   |   |   |   |
| Interest                  and financing expense                           |   |                                | (874,675   | )                                  |   | (221,937 | ) |   | (2,432,858 | ) |   | (251,354 | ) |
|                                                                      |   |                                | (34,328    | )                                  |   | (1,125,937 | ) |   | (734,268 | ) |   | (1,155,354 | ) |
|                                                                      |   |                                |            |                               |   |  |   |   |  |   |   |  |   |
| Net                  loss                                                 |   | $                                   | (806,129   | )                                  | $      | (1,801,781 | ) | $ | (3,074,314 | ) | $ | (3,773,507 | ) |
|                                                                      |   |                                |            |                               |   |  |   |   |  |   |   |  |   |
|                                                                      |   |                                |            |                               |   |  |   |   |  |   |   |  |   |
| Basic                  and diluted loss per common share                  |   | $                                   | 0.02       |                               | $      | (0.04 | ) | $ | (0.06 | ) | $ | (0.08 | ) |
|                                                                      |   |                                |            |                               |   |  |   |   |  |   |   |  |   |
| Weighted                  average number of common shares outstanding     |   |                                | 51,095,329 |                               |   | 47,461,350 |   |   | 50,555,824 |   |   | 46,976,000 |   |

----

*Table            of Contents *

gnis

|                                                                        |   | For                    the           |       | For                    the           |   |
|-----------------------------------------------------------------------------|--------|--------------------------------------|------------|--------------------------------------|--------|
|                                                                        |   | Nine                    Months Ended |       | Nine                    Months Ended |   |
|                                                                        |   | 2007                                 |       | 2006                                 |   |
|                                                                        |   |                                 |       | (Restated)                           |   |
| Cash                    flow from operating activities                      |   |                                 |       |                                 |   |
| Net                    loss                                                 |   | $                                    | (3,074,314 | )                                    | $      | (3,773,507 | ) |
|                                                                        |   |                                 |            |                                 |   |  |   |
| Adjustments                    to net loss not affecting cash:              |   |                                 |            |                                 |   |  |   |
| Depreciation                    and depletion                               |   |                                 | 872,113    |                                 |   | 202,864 |   |
| Amortization                    of debt cost                                |   |                                 | 199,920    |                                 |   | - |   |
| Impairment                    of oil and gas properties                     |   |                                 | 461,098    |                                 |   | - |   |
| Stock                    issued for compensation and services               |   |                                 | 464,319    |                                 |   | 1,628,282 |   |
| Amortization                    of discount of debentures                   |   |                                 | 1,229,302  |                                 |   | 163,800 |   |
| Accretion                    expense                                        |   |                                 | 8,711      |                                 |   |  |   |
| Gain                    from valuation of derivatives                       |   |                                 | (1,698,590 | )                                    |   | 904,000 |   |
| Change                    in current assets and liabilities                 |   |                                 |            |                                 |   |  |   |
| Accounts                    receivable                                      |   |                                 | (85,642    | )                                    |   | (74,884 | ) |
| Prepaid                    expenses and other current assets                |   |                                 | 161,196    |                                 |   | (304,969 | ) |
| Accounts                    payable and accrued expenses                    |   |                                 | 271,789    |                                 |   | (61,677 | ) |
|                                                                        |   |                                 |            |                                 |   |  |   |
| Cash                    used in operating activities                        |   |                                 | (1,190,098 | )                                    |   | (1,316,091 | ) |
|                                                                        |   |                                 |            |                                 |   |  |   |
| Cash                    flow from investing activities                      |   |                                 |            |                                 |   |  |   |
| Purchase                    of oil and gas properties                       |   |                                 | -          |                                 |   | (3,277,123 | ) |
|                                                                        |   |                                 |            |                                 |   |  |   |
| Cash provided                    by (used in) for investing activities |   |                                 | -          |                                 |   | (3,277,123 | ) |
|                                                                        |   |                                 |            |                                 |   |  |   |
| Cash                    flow from financing activities                      |   |                                 |            |                                 |   |  |   |
| Issuance                    of common stock and warrants                    |   |                                 | -          |                                 |   | 1,800,000 |   |
| Proceeds                    from note payable                               |   |                                 | 900,000    |                                 |   | 100,000 |   |
| Proceeds                    from convertible notes                          |   |                                 | -          |                                 |   | 3,545,000 |   |
| Advance                    from related party                               |   |                                 | -          |                                 |   | (19,512 | ) |
|                                                                        |   |                                 |            |                                 |   |  |   |
| Cash                    provided by financing activities                    |   |                                 | 900,000    |                                 |   | 5,425,488 |   |
|                                                                        |   |                                 |            |                                 |   |  |   |
| Net                    change in cash                                       |   |                                 | (290,098   | )                                    |   | 832,274 |   |
|                                                                        |   |                                 |            |                                 |   |  |   |
| Cash                    at beginning of period                              |   |                                 | 872,572    |                                 |   | 145,064 |   |
|                                                                        |   |                                 |            |                                 |   |  |   |
| Cash                    at end of period                                    |   | $                                    | 582,474    |                                 | $      | 977,338 |   |
|                                                                        |   |                                 |            |                                 |   |  |   |
| Supplemental                    disclosure of cash flow information:        |   |                                 |            |                                 |   |  |   |
| Cash                    paid during the period for:                         |   |                                 |            |                                 |   |  |   |
| Interest                                                                    |   | $                                    | -          |                                 | $      | - |   |
| Income                    taxes                                             |   | $                                    | -          |                                 | $      | - |   |
|                                                                        |   |                                 |            |                                 |   |  |   |
| Supplemental                    non-cash financing transactions:            |   |                                 |            |                                 |   |  |   |
| Conversion                    of notes payable and interest into equity     |   | $                                    | -          |                                 | $      | 1,550,302 |   |
| Issuance                    of common stock for oil and gas property        |   | $                                    | -          |                                 | $      | 1,550,302 |   |
| Conversion                    of debenture into equity                      |   | $                                    | 75,000     |                                 | $      | - |   |

----

*Table            of Contents *

***Selected        Notes to the Condensed Consolidated Financial        Statements        (unaudited)***

| 1. | BASIS                  OF PRESENTATION AND LIQUIDITY |
|----|------------------------------------------------------|

| 2. | FINANCIAL                  OBLIGATIONS |
|----|----------------------------------------|

----

*Table            of Contents *

| 3. | ASSET                  RETIREMENT OBLIGATION |
|----|----------------------------------------------|

|                                                              |   | **2007** |   | **2006** |   |
|-------------------------------------------------------------------|--------|----------|--------|----------|--------|
|                                                              |   |     |   |     |   |
| Asset                    retirement obligation at October 1, 2006 |   |     | 32,013 |     |   | - |   |
| Liabilities                    incurred                           |   |     |   |     |   |   |   |
| Liabilities                    assumed                            |   |     | -      |     |   | - |   |
| Liabilities                    settled                            |   |     | -      |     |   | - |   |
| Accretion                    expense                              |   |     | 8,711  |     |   | - |   |
|                                                              |   |     |   |     |   | - |   |
|                                                              |   |     |   |     |   |   |   |
| Asset                    retirement obligation at March 31, 2007  |   |     | 40,724 |     |   | - |   |

| 4. | RECLASSIFICATIONS |
|----|-------------------|

| 5. | RESTATEMENT                        OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS |
|----|-------------------------------------------------------------------------------------------|

|                                                  |   | **Consolidated                      Balance Sheet** |       |
|-------------------------------------------------------|--------|-----------------------------------------------------|------------|
|                                                  |   | **As                      Previously**              |       |   |   |   |   |
|                                                  |   | **Reported**                                   |       | **Adjustments**  |   | **As                      Restated**  |   |
|                                                  |   |                                           |       |    |   |    |   |
| As                      of March 31, 2006        |   |                                           |       |                          |   |                          |   |
| Warrant                      liability                |   | $                                                   | 3,694,293  |   | $ | 330,000 |   | $ | 4,024,293 |   |
| Accumulated                      deficit              |   |                                                | (2,909,412 | ) |   | (330,000 | ) |   | (3,239,412 | ) |
| Total                      stockholders’ equity |   |                                                | 2,924,552  |   |   | (330,000 | ) |   | 2,594,552 |   |

|                                                          |   | **Consolidated                      Statements of Operations**  |       |
|---------------------------------------------------------------|--------|----------------------------------------------------------------------|------------|
|                                                          |   | **As                      Previously**                               |       |   |   |   |   |
|                                                          |   | **Reported**                                                    |       | **Adjustments**  |   | **As                      Restated**  |   |
|                                                          |   |                                                            |       |    |   |    |   |
| Three                      Months Ended March 31, 2006        |   |                                                            |       |                          |   |                          |   |
| Depreciation                      and depletion               |   | $                                                                    | 132,431    |   | $ | (8,737 | ) | $ | 123,694 |   |
| General                      and administrative expenses      |   |                                                                 | 753,733    |   |   | 1,551 |   |   | 755,284 |   |
| Loss                      from valuation of warrant liability |   |                                                                 | (574,000   | ) |   | (330,000 | ) |   | (904,000 | ) |
| Net                      loss                                 |   |                                                                 | (1,478,696 | ) |   | (322,814 | ) |   | (1,801,781 | ) |
| Net                      loss per common share:               |   |                                                                 |            |   |   |  |   |   |  |   |
| Basic                      and diluted loss per common share  |   | $                                                                    | (0.03      | ) | $ | (0.01 | ) | $ | (0.04 | ) |
|                                                          |   |                                                                 |            |   |   |  |   |   |  |   |
| Nine                      Months Ended March 31, 2006         |   |                                                                 |            |   |   |  |   |   |  |   |
| Depreciation                      and depletion               |   | $                                                                    | 161,331    |   | $ | (8,467 | ) | $ | 152,864 |   |
| General                      and administrative expense       |   |                                                                 | 2,058,075  |   |   | 834,551 |   |   | 2,892,626 |   |
| Loss                      from valuation of warrant liability |   |                                                                 | (574,000   | ) |   | (330,000 | ) |   | (904,000 | ) |
| Net                      loss                                 |   |                                                                 | (2,617,423 | ) |   | (1,156,084 | ) |   | (3,773,507 | ) |
| Net                      loss per common share:               |   |                                                                 |            |   |   |  |   |   |  |   |
| Basic                      and diluted loss per common share  |   | $                                                                    | (0.07      | ) | $ | (0.01 | ) | $ | (0.08 | ) |

| 6. | NET                  LOSS PER COMMON SHARE |
|----|--------------------------------------------|

----

*Table            of Contents *

| 7. | LONG-TERM                  DEBT |
|----|---------------------------------|

| 8. | COMMITMENTS                  AND CONTINGENCIES |
|----|------------------------------------------------|

*Employee        compensation plan*

*Litigation*

*Other*

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

**Forward-Looking        Statements **

----

*Table            of Contents *

***Liquidity        and Capital Resources***

***Financing        Activities***

***Operating        Activities***

***Results        of Operations***

----

*Table            of Contents *

***Overall***

|                                                                                |   | Quarter                  Ended March 31, |         | Increase                  (Decrease) |   | Nine                  Months Ended March 31, |   | Increase                  (Decrease) |         |
|-------------------------------------------------------------------------------------|--------|------------------------------------------|--------------|--------------------------------------|--------|----------------------------------------------|--------|--------------------------------------|--------------|
|                                                                                |   | 2007                                     |         | 2006                                 |   |                                         |   | 2007                                 |         | 2006 |   |   |   |
|                                                                                |   |                                     |         |                                 |   |                                         |   |                                 |         |   |   |   |   |
|  Results                  of oil and gas producing                  operations |   | $                                        | (7           | )                                    |   | 79                                           |   |                                 | (86          | ) | $ | (399 | ) |   | 274 |   |   | (673 | ) |
|                                                                                |   |                                     |              |                                 |   |                                              |   |                                 |              |   |   |  |   |   |  |   |   |  |   |
| General                  & administrative expense                               |   | $                                        | 764          |                                 |   | 755                                          |   |                                 | 9            |   | $ | 1,941 |   |   | 2,893 |   |   | (952 | ) |
|                                                                                |   |                                     |              |                                 |   |                                              |   |                                 |              |   |   |  |   |   |  |   |   |  |   |
| Gain/(loss)                  from valuation of derivative liaility                  |   | $                                        | 840          |                                 |   | (904                                         | )      |                                 | 1,744        |   | $ | 1,699 |   |   | (574 | ) |   | 2,273 |   |
|                                                                                |   |                                     |              |                                 |   |                                              |   |                                 |              |   |   |  |   |   |  |   |   |  |   |
| Interest                  expense                                                   |   |                                     | (875         | )                                    |   | (222                                         | )      |                                 | (653         | ) |   | (2,433 | ) |   | (251 | ) |   | (2,182 | ) |
|                                                                                |   |                                     |    |                                 |   |                                    |   |                                 |    |   |   |    |   |   |    |   |   |    |   |
| Net                  income/ (loss)                                                 |   | $                                        | (806         | )                                    |   | (1,802                                       | )      |                                 | 996          |   | $ | (3,074 | ) |   | (3,444 | ) |   | 370 |   |

----

*Table            of Contents *

***Operating        revenues***

|                                   |   | **Current                    Quarter** |    | **Prior                    Quarter** |   | **Nine                    Months Ended** |   | **Nine                    Months Ended** |    |
|----------------------------------------|--------|----------------------------------------|---------|--------------------------------------|--------|------------------------------------------|--------|------------------------------------------|---------|
|                                   |   | **3/31/2007**                          |    | **3/31/2006**                        |   | **3/31/2007**                            |   | **3/31/2006**                            |    |
|                                   |   |                                   |    |                                 |   |                                     |   |                                     |    |
| Operating                    revenues  |   | $                                      | 205,188 |                                 |   | 215,768                                  |   |                                     | 911,311 |   |   | 453,211 |   |
|                                   |   |                                   |    |                                 |   |                                     |   |                                     |    |   |   |   |   |
| Sales                                  |   |                                   |    |                                 |   |                                     |   |                                     |    |   |   |   |   |
| Condensate                    (Mbbls)  |   |                                   | 3.0     |                                 |   | 2.0                                      |   |                                     | 11.3    |   |   | 4.8 |   |
| Natural                    Gas (MMcf)  |   |                                   | 5.9     |                                 |   | 9.0                                      |   |                                     | 34.1    |   |   | 17.3 |   |
| Total                    (BOE)         |   |                                   | 4.0     |                                 |   | 3.5                                      |   |                                     | 36.0    |   |   | 7.7 |   |
|                                   |   |                                   |    |                                 |   |                                     |   |                                     |    |   |   |   |   |
| Average                    price       |   |                                   |    |                                 |   |                                     |   |                                     |    |   |   |   |   |
| Condensate                    ($/Bbl)  |   | $                                      | 53.01   |                                 |   | 62.30                                    |   |                                     | 60.89   |   |   | 60.23 |   |
| Natural                    Gas ($/Mcf) |   | $                                      | 6.62    |                                 |   | 8.51                                     |   |                                     | 7.34    |   |   | 8.65 |   |

***Operating        expenses***

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*Table            of Contents *

***Interest        Expense***

***Gain        (Loss) on valuation of derivative liability***

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*Table            of Contents *

**Off        Balance Sheet Arrangements**

**Item        3. Controls and Procedures.**

**PART        II - OTHER INFORMATION**

***Item        2. Unregistered Sales of Equity Securities and Use of        Proceeds.***

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*Table            of Contents *

| ** Issued                  to:** |   |   |       |   |   | **Shares**  |   |   | **Date**      |   |
|---------------------------------------|--------|--------|------------|--------|--------|------------------|--------|--------|--------------------|--------|
|                                  |   |   |       |   |   |             |   |   |               |   |
| Patty                    Dickerson    |   |   | Management |   |   | 75,000           |   |   | 1/29/2007          |   |
| Geoff                    Evett        |   |   | Director   |   |   | 25,000           |   |   | 1/29/2007          |   |
| Joe                    Gittelman      |   |   | Advisor    |   |   | 43,750           |   |   | 2/6/2007           |   |
| Eric                    Hanlon        |   |   | Advisor    |   |   | 60,000           |   |   | 1/19/2007          |   |
| Eric                    Hanlon        |   |   | Advisor    |   |   | 30,000           |   |   | 2/6/2007           |   |
| Eric                    Hanlon        |   |   | Advisor    |   |   | 30,000           |   |   | 3/5/2007           |   |
| Alex                    Kulpecz       |   |   | Advisor    |   |   | 59,375           |   |   | 2/6/2007           |   |
| Roger                    Leopard      |   |   | Director   |   |   | 25,000           |   |   | 1/29/2007          |   |
| Fred                    Stein         |   |   | Advisor    |   |   | 50,000           |   |   | 2/6/2007           |   |
| Lender                                |   |   |       |   |   | 165,673          |   |   | 3/30/2007          |   |
| Lender                                |   |   |       |   |   | 422,654          |   |   | 1/19/2007          |   |
|                                  |   |   |       |   |   | 986,452          |   |   |     |   |

***Item        6. Exhibits.***

| Exhibit                  No. |   | Description                                                                                                                                                                                                                                                                                                                                                   |
|------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                         |   |                                                                                                                                                                                                                                                                                                                                                          |
| *31.1                        |   | Certification                  by Chief Executive Officer, required by Rule 13a-14(a) or Rule                  15d-14(a)                  of the Exchange Act, promulgated pursuant to Section 302 of the                  Sarbanes-Oxley Act of 2002.                                                                                                        |
|                         |   |                                                                                                                                                                                                                                                                                                                                                          |
| *31.2                        |   | Certification                  by Chief Financial Officer, required by Rule 13a-14(a) or Rule                  15d-14(a)                  of the Exchange Act, promulgated pursuant to Section 302 of the                  Sarbanes-Oxley Act of 2002.                                                                                                        |
|                         |   |                                                                                                                                                                                                                                                                                                                                                          |
| *32.1                        |   | Certification                  by Chief Executive Officer, required by Rule 13a-14(b) or Rule                  15d-14(b)                  of the Exchange Act and Section 1350 of Chapter 63 of Title 18                  of the                  United States Code, promulgated pursuant to Section 906 of the                  Sarbanes-Oxley Act of 2002. |
|                         |   |                                                                                                                                                                                                                                                                                                                                                          |
| *32.2                        |   | Certification                  by Chief Financial Officer, required by Rule 13a-14(b) or Rule                  15d-14(b)                  of the Exchange Act and Section 1350 of Chapter 63 of Title 18                  of the                  United States Code, promulgated pursuant to Section 906 of the                  Sarbanes-Oxley Act of 2002. |

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*Table            of Contents *

**SIGNATURES**

|                                                 |   | Ignis                  Petroleum Group, Inc. (Registrant) |
|------------------------------------------------------|--------|-----------------------------------------------------------|
|                                                 |   |                                                      |   |   |
| Date:                  May                  16, 2007 |   |                                                      | By: | /s/                  Michael Piazza |
|                                                 |   |                                                      | Michael                  Piazza, |
|                                                 |   |                                                      | President,                  Chief Executive Officer and                  Treasurer |

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