SECURITIES AND EXCHANGE COMMISSION
                              Washington D.C. 20549

                                    FORM 10-Q

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934

     For the quarterly period ended May 31, 2008

[_]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

     For the transition period from _________  to  _________

                         Commission file number: 0-50472

                            NEW FRONTIER ENERGY, INC.
        (Exact name of small business issuer as specified in its charter)

              Colorado                                    84-1530098
              --------                                    ----------
    (State or other jurisdiction                 (I.R.S. Identification No.)
 of incorporation or organization)

    1789 W. Littleton Blvd., Littleton, Colorado                 80120
    --------------------------------------------              ----------
    (Address of principal executive offices)                  (Zip Code)

                                 (303) 730-9994
                                 --------------
                         (Registrant's telephone number)


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

Indicate by check mark whether the registrant (1) filed all reports required to
be filed by Section 13 or 15(d) of the Exchange Act of 1934 during the past 12
months (or for such shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for the past 90
days. Yes [X] No [_]

Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting company.

         Large accelerated filer [_]       Accelerated filer  [_]
         Non-accelerated filer   [_]       Smaller reporting company [X]

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

As of July 9, 2008, 12,991,685 shares of common stock were outstanding.



<PAGE>



                            NEW FRONTIER ENERGY, INC.

                                      Index

Part I - FINANCIAL INFORMATION


Item 1   Financial Statements

         Consolidated Balance Sheets  at May 31, 2008
         (unaudited) and February 29, 2008                                    2

         Consolidated Statements of Operations
         (unaudited) for the three months ended May 31, 2008 and 2007         3

         Consolidated Statements of Cash Flows (unaudited)
         for the three months ended May 31, 2008 and 2007                     4

         Notes to Consolidated Financial Statements (unaudited)               5

Item 2   Management's Discussion and Analysis or Plan of Operations          14

Item 3   Quantitative and Qualitative Disclosures About Market Risk          22

Item 4   Controls and Procedures                                             23

Item 4T  Controls and Procedures                                             23

Part II OTHER INFORMATION

Item 1    Legal Proceedings                                                  23

Item 1A   Risk Factors

Item 2    Unregistered Sales of Equity Securities and Use of Proceeds        23

Item 3    Defaults Upon Senior Securities                                    23

Item 4    Submission of Matters of a Vote of Security Holders                24

Item 5    Other Information                                                  24

Item 6    Exhibits                                                           24

EXHIBITS                                                                     24

SIGNATURES                                                                   25


                                       1
<PAGE>
<TABLE>
<CAPTION>

                           NEW FRONTIER ENERGY, INC.
                           CONSOLIDATED BALANCE SHEETS


                                                                          May 31,      February 29,
                                                                           2008            2008
                                                                        (Unaudited)
                                                                       ------------    ------------
                                     ASSETS
CURRENT ASSETS
<S>                                                                    <C>             <C>
     Cash                                                              $  4,252,828    $  3,602,939
     Accounts receivable, trade                                           1,095,911         972,292
     Prepaid expenses                                                       290,981         306,680
                                                                       ------------    ------------
          Total current assets                                            5,639,720       4,881,911
                                                                       ------------    ------------

PROPERTY AND EQUIPMENT,  NET OF ACCUMULATED DEPRECIATION
       AND DEPLETION OF $1,607,911 and $1,342,731 as of
       May 31, 2008 and February 29, 2008 respectively                   21,456,294      21,134,412
                                                                       ------------    ------------

OTHER ASSETS
     Deposits                                                               160,000         193,300
                                                                       ------------    ------------

                                                                       $ 27,256,014    $ 26,209,623
                                                                       ============    ============

                      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
     Accounts payable                                                  $    318,274    $    809,397
     Notes payable, affiliates                                              806,250         806,250
     Current portion of long term debt                                       38,837          34,020
     Dividends payable                                                    1,737,484       1,523,536
     Accrued expenses                                                       551,134         308,066
     Accrued interest                                                         2,772           2,672
     Accrued interest, affiliates                                             8,573           3,534
     Accounts payable, affiliates                                            36,430          48,459
                                                                       ------------    ------------
          Total current liabilities                                       3,499,754       3,535,934
                                                                       ------------    ------------

LONG TERM LIABILITIES

     Long term debt                                                         812,766         826,151
     Asset retirement obligation                                            290,000         290,000

MINORITY INTEREST IN CONSOLIDATED SUBSIDIARY                                390,538         393,592

STOCKHOLDERS' EQUITY
     Preferred stock, $.001 par value, 25,000,000 shares authorized:
       Series A Convertible, 100,000 shares authorized
       none issued and outstanding                                               --              --
       Series B Convertible, 36,036 shares authorized
       26,769 and 24,675  issued and outstanding as of May 31, 2008
       and February 29,  2008 respectively                                       27              25
       Series C Convertible, 230,000 shares authorized
       219,000 and 219,500 issued and outstanding as of May 31, 2008            219             220
       and February 29, 2008 respectively
     Common stock, $.001 par value, 500,000,000 shares authorized,
       11,864,581 and 10,178,078 shares issued and outstanding as
       of May 31, 2008 and February 29, 2008 respectively                    11,864          10,178
     Additional paid in capital                                          42,197,332      39,710,397
     Accumulated (deficit)                                              (19,946,486)    (18,556,874)
                                                                       ------------    ------------
                                                                         22,262,956      21,163,946
                                                                       ------------    ------------

                                                                       $ 27,256,014    $ 26,209,623
                                                                       ============    ============
</TABLE>

        See accompanying notes to the consolidated financial statements.

                                        2

<PAGE>

                            NEW FRONTIER ENERGY, INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)
                                                       Three Months Ended
                                                    May 31,          May 31,
                                                     2008             2007
                                                  ------------    ------------
Operating revenues
       Oil and gas sales                          $    460,778    $     52,596
       Gathering fees                                   37,069          44,796
                                                  ------------    ------------
                                                       497,847          97,392
                                                  ------------    ------------

Operating expenses
       Exploration costs, including dry holes           49,811          67,288
       Lease operating expenses                        291,184         385,316
       Cost of gas gathering                               648             833
       General and administrative                      524,966         637,084
       Issuance of common stock warrants               515,550         515,550
       Depreciation, depletion and amortization        265,177         117,973
                                                  ------------    ------------
            Total operating expenses                 1,647,336       1,724,044
                                                  ------------    ------------

(Loss) from operations                              (1,149,489)     (1,626,652)
                                                  ------------    ------------

Other income (expense)
       Interest income                                  21,547         133,474
       Interest expense                                (21,338)        (18,306)
       Debt issuance costs, non-cash                        --        (228,661)
                                                  ------------    ------------
            Other income (expense), net                    209        (113,493)
                                                  ------------    ------------

(Loss) before income taxes                          (1,149,280)     (1,740,145)
                                                  ------------    ------------

Income taxes
       Current                                              --              --
       Deferred                                             --              --
                                                  ------------    ------------
                                                            --              --
                                                  ------------    ------------

Minority interest in net (income) of
       consolidated subsidiary                         (11,018)        (11,517)
                                                  ------------    ------------

Net (loss)                                          (1,160,298)     (1,751,662)
Preferred stock dividends and distributions
       to minority interests                          (229,317)       (345,146)
                                                  ------------    ------------

Net (loss) attributable to common shareholders    $ (1,389,615)   $ (2,096,808)
                                                  ============    ============

Net (loss) per common share
       Basic and diluted                          $      (0.13)   $      (0.34)
                                                  ============    ============

Weighted average shares outstanding
       Basic and diluted                            10,731,350       6,123,691
                                                  ============    ============


        See accompanying notes to the consolidated financial statements.

                                        3

<PAGE>
<TABLE>
<CAPTION>

                            NEW FRONTIER ENERGY, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
                                                                                   Three Months Ended
                                                                                 May 31,         May 31,
                                                                                   2008           2007
                                                                               ------------    ------------
<S>                                                                            <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
     Net (loss)                                                                $ (1,160,298)   $ (1,751,662)
     Adjustments to reconcile net (loss) to net cash
       (used in) operating activities:
          Depreciation, depletion and amortization                                  265,177         117,973
          Debt issuance costs, noncash                                                   --         228,661
          Minority interest in net income  (loss) of consolidated subsidiary         11,018          11,517
          Interest on convertible debenture                                              --          12,234
          Stock option expenses, amortization and grants                            515,550         515,550
          (Increase) decrease in assets:
             Accounts receivable, trade                                            (123,619)       (261,441)
             Prepaid expense                                                         15,699        (692,906)
          Increase (decrease) in liabilities:
             Accounts payable                                                      (491,123)         58,326
             Accrued expenses                                                       236,178         (57,945)
                                                                               ------------    ------------

       Net cash (used in) operating activities                                     (731,418)     (1,819,693)
                                                                               ------------    ------------

CASH FLOWS FROM INVESTING ACTIVITIES:

     (Increase) decrease in other assets                                             33,300         (50,000)
     Purchase of property and equipment                                            (587,057)       (104,697)
                                                                               ------------    ------------

       Net cash (used in) investing activities                                     (553,757)       (154,697)
                                                                               ------------    ------------

CASH FLOWS FROM FINANCING ACTIVITIES:

     Payment of  convertible debentures affiliate                                        --        (300,000)
     Payment of notes payable                                                        (8,568)             --
     Proceeds from common stock warrant conversions                               1,712,469              --
     Proceeds from exercise of placement agent warrants                             269,747              --
     Preferred stock dividends paid                                                  (1,544)         (6,043)
     Cost of issuance of equity for cash                                             (9,145)             --
     Minority interest in subsidiary                                                (14,072)        (58,960)
     Distributions to minority interest holders in consolidated subsidiary          (13,823)        (18,900)
                                                                               ------------    ------------

       Net cash provided by (used in) financing activities                        1,935,064        (383,903)
                                                                               ------------    ------------

INCREASE  (DECREASE) IN CASH                                                        649,889      (2,358,293)

BEGINNING BALANCE                                                                 3,602,939      12,724,234
                                                                               ------------    ------------

ENDING BALANCE                                                                 $  4,252,828    $ 10,365,941
                                                                               ============    ============

Cash paid for income taxes                                                     $         --    $         --
                                                                               ============    ============
Cash paid for interest                                                         $     18,872    $      6,072
                                                                               ============    ============

Supplemental schedule of non-cash investing and financing activities:

       Series B  and C preferred stock converted to
          common stock                                                         $        140    $         68
       Conversion of convertible debentures and accrued interest
          to common stock                                                      $         --    $     18,628

</TABLE>


        See accompanying notes to the consolidated financial statements.

                                        4
<PAGE>
                            NEW FRONTIER ENERGY, INC.
         NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                                  May 31, 2008

1.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     Organization and Nature of Business
     -----------------------------------

     New Frontier Energy, Inc. ("New Frontier" or the "Company") was
     incorporated as Storage Finders.com under the laws of Colorado on January
     7, 2000. In March 2001 the Company changed its name to New Frontier Energy,
     Inc. The Company is a domestic energy company engaged in the exploration
     for, and development of, oil and natural gas reserves operating primarily
     in Colorado and Wyoming.

     Effective February 6, 2002, Wyoming Oil & Minerals, Inc. ("Wyoming")
     completed a share exchange with the Company. Under the terms of the share
     exchange, the shareholders of the Company surrendered their shares in
     exchange for shares of Wyoming. The Company's shareholders became
     shareholders in Wyoming, and the Company became a wholly owned subsidiary
     of Wyoming.

     On June 30, 2003, Wyoming's Board of Directors approved a dividend in the
     form of the common stock of its subsidiary, New Frontier. The dividend was
     paid in the form of one share of New Frontier common stock (the "Common
     Stock") for every four shares of common stock of Wyoming. Shareholders of
     record of Wyoming as of the close of business on June 30, 2003, the record
     date, were issued a certificate representing one share of New Frontier for
     each four shares of Wyoming they held at that date.

     The Company owns 82.76% of the limited partnership interests (the "Limited
     Partnership Interests") of Slater Dome Gathering, LLLP ("SDG"). SDG owns
     the 18-mile gas gathering line that transports the Company's natural gas
     from the Slater Dome Field to the Questar transportation line in Baggs,
     Wyoming.

     On December 26, 2007, the Company entered into a Partnership Interest
     Purchase Agreement with Natural Resource Group Gathering, LLC ("NRGG") to
     acquire NRGG's general partnership interest (the "General Partnership
     Interest") in SDG effective as of January 1, 2008. In connection with the
     purchase of the General Partnership Interest, the Company was appointed the
     general partner of SDG. The General Partnership Interest is equal to 25% of
     the Percentage Interests (as defined in SDG's Limited Partnership
     Agreement) in SDG.

                                       5

<PAGE>

     Principles of Consolidation
     ---------------------------

     The May 31, 2008, financial statements include the accounts of the Company
     and SDG as of and for the three months ended March 31, 2008 and 2007. SDG
     has a calendar quarter end, March 31, which is consolidated with the
     Company effective May 31, 2008 and 2007. All significant intercompany
     accounts and transactions in 2008 and 2007 were eliminated.

     Debt With Detachable Warrant and/or Beneficial Conversion Feature
     -----------------------------------------------------------------

     The Company accounts for the issuance of detachable stock purchase warrants
     in accordance with Accounting Principles Board Opinion 14 ("APB 14"),
     whereby the fair value of the debt and the detachable warrants are
     separately measured and the proceeds from the debt are allocated on a
     pro-rata basis to both the debt and the detachable warrants. The resulting
     discount from the fair value of the debt allocated to the warrants, which
     is accounted for as paid-in capital, is amortized over the estimated life
     of the debt.

     In accordance with the provisions of Emerging Issues Task Force ("EITF")
     Issue 98-5 and EITF 00-27, a portion of the proceeds received are allocated
     to any embedded beneficial conversion feature, based on the difference
     between the effective conversion price of the proceeds allocated to the
     convertible debt and the fair value of the underlying Common Stock on the
     date the debt is issued. In addition, the detachable stock purchase
     warrants, proceeds are first allocated to the stock purchase warrants and
     the debt and then the resulting debt proceeds are allocated between the
     beneficial conversion feature, which is accounted for as paid-in capital,
     and the initial carrying amount of the debt. The discount resulting from
     the beneficial conversion feature is amortized over the estimated life of
     the debt.

     Unaudited Statements
     --------------------

     The financial statements included in this Form 10-Q have been prepared by
     the Company without audit pursuant to the rules and regulations of the
     Securities and Exchange Commission. Certain information and footnote
     disclosures normally included in the financial statements prepared in
     accordance with accounting principles generally accepted in the United
     States have been condensed or omitted as allowed by such rules and
     regulations, and management believes that the disclosures are adequate to
     make the information presented not misleading. These financials statements
     include all of the adjustments, which, in the opinion of management, are
     necessary to a fair presentation of financial position and results of
     operations. All such adjustments are of a normal and recurring nature only.
     The results of operations for the interim periods are not necessarily
     indicative of the results to be expected for the full fiscal year. These
     financial statements should be read in conjunction with the audited
     financial statements at February 29, 2008, included in the Company's annual
     report on Form 10-KSB filed with the Commission on May 27, 2008.

                                       6

<PAGE>

     Reclassifications
     -----------------

     Certain amounts reported in the Company's financial statements for the
     three months ended May 31, 2007, have been reclassified to conform to the
     current period presentation.

2.   CONVERTIBLE DEBT, AFFILIATES

     Effective May 10, 2006, the Company entered into a Purchase and Sale
     Agreement (the "Acquisition") with Natural Resource Group Gathering, LLC
     ("NRGG"), whereby the Company increased its investment in Slater Dome
     Gathering, LLLP ("SDG") by acquiring additional Class A limited partnership
     interests, in exchange for a subordinated convertible debenture in the
     amount of $608,194. The debenture was paid in full as of December 31, 2007.

3.   NOTES PAYABLE, AFFILIATES

     Effective December 31, 2007 the Company entered into a Purchase and Sale
     Agreement with Natural Resource Group Gathering, LLC ("NRGG"), whereby the
     Company increased its investment in Slater Dome Gathering, LLLP ("SDG") by
     acquiring the general partner's interest for $1,075,000 consisting of
     $268,750 in cash and executing a promissory note in the amount of $806,250.
     The Note bears interest at a rate of 2.5% per annum and is payable in
     quarterly installments of $201,562 plus interest and is due December 31,
     2008. At the option of the Company, quarterly payments may be deferred
     until the maturity date. As a result, the Company owns the 25% general
     partner's interest together with 82.76% of the Class A limited partnership
     interests in SDG. The Company will receive 84.487% of SDG cash
     distributions until the limited partners have received cash distributions
     equal to their initial capital contributions and 87.07% of cash
     distributions thereafter.

     The Company's President and Chief Executive Officer is a manager and owns
     50% of the membership interests of NRGG, the general partner of SDG,
     through December 31, 2007.

     At May 31, 2008 the balance of the note payable is $806,250; no interest
     was paid during the three months ended May 31, 2007 and interest in the
     amount of $5,039 has been accrued.

                                       7
<PAGE>
4.   NOTES PAYABLE

     On June 15, 2007, the Company acquired a facility (the "Steamboat
     Property") to be used as a field office and provide lodging while Company
     personnel are working the Slater Dome Field area. The purchase price for
     the Steamboat Property was $1,175,000. In connection with the purchase of
     the Steamboat Property, the Company entered into a five-year mortgage in
     the principal amount of $881,250 (the "Steamboat Mortgage"), which bears
     interest at a rate of 7.56% per annum. The Steamboat Mortgage requires
     equal monthly payments during the term of the mortgage in the amount of
     $8,256, with the balance of $698,604 due on June 14, 2012. The Steamboat
     Mortgage can be prepaid at any time without penalty. The Steamboat Mortgage
     is collateralized by the Steamboat Property. The current portion of the
     Steamboat Mortgage amounts to $38,837 with the balance of $812,766 being
     long term. Interest in the amount of $16,200 was paid and $2,771 has been
     accrued on the Steamboat Mortgage as of May 31, 2008.

5.   STOCKHOLDERS' EQUITY

     Series B Convertible Preferred Stock
     ------------------------------------

     Effective November 1, 2004, the board of directors of the Company approved
     an amendment to the Company's Articles of Incorporation to provide for the
     issuance of up to 36,036 shares of Series B 12% Cumulative Convertible
     Preferred Stock par value $0.001 (the "Series B Preferred"). Between
     December 23, 2004 and February 28, 2005, the Company sold 32,175 shares of
     Series B Preferred. The issue price of the Series B Preferred Stock is $100
     per share. Each share of Series B Preferred is convertible, at the option
     of the Holder, into that number of shares of Common Stock determined by
     dividing the issue price of the aggregate number of shares of Series B
     Preferred being converted plus any accrued and unpaid dividends by $.65 per
     share, unless otherwise adjusted. The Series B Preferred pays a cumulative,
     preferential cash dividend equal to 12% of the $100 issue price per year
     and is payable quarterly in arrears. The dividend is payable out of funds
     legally available for that purpose and will accumulate during any period
     when it is not paid.

     In connection with the offer and sale of Series B Preferred Stock, the
     Company granted a warrant to purchase 24.75 units of the Series B Preferred
     Stock offering at a purchase price of $13,000 per Unit (the "Placement
     Agent Warrant"). Each Unit consists of (i) $13,000 of Series B Preferred
     Stock, convertible into 20,000 shares of Common Stock at the rate of $0.65
     per Share; and (ii) a three-year warrant to purchase 27,131 shares of
     Common Stock at an exercise price of $1.11 per share on the same terms and
     conditions as the warrants issued to the Series B Preferred Stock holders.
     The 18,562 outstanding Placement Agent Warrants were exercised on May 1,
     2008 and the Company issued 2,697.51 shares of Series B Preferred Stock and
     received proceeds of $269,747.

                                       8

<PAGE>
     During the three months ended May 31, 2008, holders of 602.91 shares of
     Series B Preferred Stock converted the shares into 92,752 shares of common
     stock in accordance with the terms of the Series B Preferred. As of May 31,
     2008, there were 26,769 shares of the Series B Preferred issued and
     outstanding.

     During the three months ended May 31, 2008, the Company paid $ 0 in
     dividends and accrued $76,088 on the Series B Preferred Stock. As of May
     31, 2008, the Company had accrued dividends on the Series B Preferred Stock
     of $952, 082.

     Series C Convertible Preferred Stock
     ------------------------------------

     Effective November 22, 2006, the board of directors of New Frontier Energy,
     Inc. approved an amendment to the Company's Articles of Incorporation to
     provide for the issuance of up to 230,000 shares of Series C 2.5%
     Cumulative Convertible Preferred Stock par value $0.001 (the "Series C
     Preferred Stock"). Between December 1, 2006 and January 16, 2007 the
     Company sold 222,250 shares of Series C Preferred Stock.

     The stated value and issue price of the Series C Preferred Stock is $100
     per share. Holders of the Series C Preferred Stock are entitled to receive
     cumulative dividends at the rate of 2.5% per annum, payable quarterly on
     January 31, April 30, July 31 and October 31, beginning with January 31,
     2007. The form of dividend payments may be, at the Company's option, in
     cash or shares of the Company's $0.001 par value common stock (the "Common
     Stock"), or a combination thereof. The Series C Preferred Stock is
     convertible into shares of Common Stock at the rate of $1.05 per share.

     The Series C Preferred Stock has customary weighted-average anti-dilution
     rights with respect to any subsequent issuance of Common Stock or Common
     Stock equivalents at a price less than $1.05 per share, and otherwise in
     connection with forward or reverse stock splits, stock dividends,
     recapitalizations, and the like. The anti-dilution provisions shall not
     apply to employee stock options and shares issued in connection with
     certain mergers and acquisitions.

     Except as otherwise provided in the Series C Preferred Stock Certificate of
     Designation with respect to matters that adversely affect the rights of the
     holders of the Series C Preferred Stock, and as otherwise required by law,
     the Series C Preferred Stock has no voting rights.

     Upon any liquidation, dissolution or winding-up of the Company, whether
     voluntary or involuntary, the holders of the Series C Preferred Stock shall
     be entitled to receive out of the assets of the Company, whether such
     assets are capital or surplus, for each share of Series C Preferred Stock
     an amount equal to the stated value ($100) of the Series C Preferred Stock
     per share plus any accrued and unpaid dividends thereon and any other fees
     or liquidated damages owing. If the assets of the Company are insufficient
     to pay such amounts in full, then the entire assets to be distributed to
     the holders of the Series C Preferred Stock shall be distributed among the
     holders of the Series C Preferred Stock ratably in accordance with the
     respective amounts that would be payable on such shares if all amounts
     payable thereon were paid in full.

                                       9

<PAGE>
     The Company has the right to redeem the Series C Preferred Stock commencing
     six months from a final closing date in the event the closing bid price of
     the Company's Common Stock has closed for 20 consecutive trading days at a
     price not less than $3.00 (subject to adjustment) by delivering notice to
     holders of the Series C Preferred Stock. The maximum aggregate number of
     Series C Preferred Stock which may be redeemed pursuant to any such
     redemption notice in any given week shall be that number of shares of
     Series C Preferred Stock for which the underlying Common Stock (together
     with any accrued dividends payable in Common Stock thereon) are less than
     or equal to 25% of the average daily trading volume of the Common Stock for
     the 20 Trading Days preceding each such redemption notice date.

     During the three months ended May 31, 2008, there were 500 shares of Series
     C Preferred Stock converted into 47,619 shares of Common Stock. As of May
     31, 2008, there were 219,000 shares of the Series C Preferred Stock issued
     and outstanding.

     The Company paid $1,541 in dividends on the Series C Preferred Stock and
     accrued $139,404 on the Series C Preferred Stock resulting in accrued
     dividends in the aggregate amount of $785,402 as of May 31, 2005.

     Warrants
     --------

     During the three months ended May 31, 2008, warrants to purchase 1,542,765
     shares stock at $1.11 were exercised for cash proceeds of $1,712,469.

     Stock Options
     -------------

     On November 10, 2006, the Company granted certain employees and agents of
     the Company an aggregate of 3,950,000 options to acquire shares of the
     Company's Common Stock, which are exercisable at a price of $1.25 (the
     "Non-Qualified Stock Options"). The Non-Qualified Stock Options vest at a
     rate of 12.5% each fiscal quarter ending November 30, February 28, May 31
     and August 31 through November 30, 2008 and expire on November 30, 2016.
     The Company's stock closed at $1.24 on November 10, 2006. The fair value of
     the Non-Qualified Stock Options was estimated on the date of the grant
     utilizing the Black-Scholes option pricing model with the following
     assumptions: expected life of the options is 10 years, expected volatility
     of 67%, risk free interest rate of 5% and no dividend yield. The fair value
     for the Non-Qualified Stock Options granted was approximately $0.96 per
     share. The value of the options was recorded at $4,124,400 and $515,550 is
     being amortized quarterly as the options vest.

     The activity for the Non-Qualified Stock Options during the three months
     ended May 31, 2008 is summarized as follows:

                                       10
<PAGE>
                                                          May 31, 2008
                                                                      Weighted
                                                                      Average
                                                                      Exercise
                                                      Shares          Price
                                                    ---------         --------
     Beginning of period                            2,962,500         $   1.25
       Vested                                         493,750         $   1.25
       Exercised                                           --         $     --
       Expired                                             --         $     --
                                                    ---------
     End of period                                  3,456,250         $   1.25
                                                    =========

     A summary of the incentive stock option activity during the three months
     ended May 31, 2008 is summarized in the following table:


                                                          May 31, 2008
                                                                      Weighted
                                                                      Average
                                                                      Exercise
                                                      Shares          Price
                                                    ---------         --------
     Beginning of period                              584,333         $   0.89
       Vested                                              --         $     --
       Exercised                                           --         $     --
       Expired                                             --         $     --
                                                    ---------
     End of period                                    584,333         $   0.89
                                                    =========


                                       11
<PAGE>

     The following tables summarize information about fixed-price stock options
     and warrants during the three months ended May 31, 2008:

                                                          May 31, 2008
                                                                      Weighted
                                                                      Average
                                                                      Exercise
                                                       Shares         Price
                                                    -----------       --------
     Beginning of period                             40,100,012       $   1.59
       Granted                                          501,689       $   1.11
       Anti-dilution warrants issued                         --       $     --
       Exercised                                     (1,542,765)      $   1.11
       Expired                                       (3,763,688)      $   1.11
                                                    -----------
     End of period                                   35,295,248       $   1.66
                                                    ===========

     The following table summarizes the options and warrants outstanding and
     exercisable at May 31, 2008:

                Options and Warrants Outstanding and Exercisable

                                             Weighted
                                             Average
                Range                       Remaining  Weighted
                  of              Number   Contractual Average
               Exercise         of Shares    Life in   Exercise
                Price          Outstanding    Years     Price
            ---------------------------------------------------
            $0.75 to $1.50      27,402,286     1.49    $ 1.42
            $1.51 to $2.75      11,933,545     1.61    $ 2.01
                                ----------
                                39,335,831
                                ==========


     In October 2006, the Board of Directors adopted an incentive stock option
     plan reserving 10,000,000 shares of the Company's $0.001 par value common
     stock for issuance pursuant to the plan. The plan was adopted by
     shareholders on June 11, 2007. As of May 31, 2008, no options have been
     granted under the plan.

6.   RELATED PARTIES

     The Company paid $8,000 during each of the three months ended May 31, 2008
     and 2007, respectively, in connection with an office lease for office space
     in Littleton, Colorado with Spotswood Properties, LLC, ("Spotswood"), a
     Colorado limited liability company and an affiliate of the Company's
     president. The lease provides for the payment of $2,667 per month plus
     utilities and other incidentals. The president of the Company owns 50% of
     Spotswood.

                                       12
<PAGE>
     The Company paid a corporation controlled by one of the directors $15,000
     for geological consulting during each of the three months ended May 31,
     2008 and 2007, respectively.

     SDG paid rent in the amount of $900 during the three months ended March 31,
     2007 to Spotswood and accrued management fees, to NRGG, the general partner
     of SDG, in the amount of $1,770 during the three months ended March 31,
     2007, The President of the Company is a manager and owns 50% of the
     membership interests of NRGG.

7.   BUSINESS SEGMENT INFORMATION

     The Company operates in two business segments: oil and gas exploration and
     gas gathering. Operating results and other financial data for the three
     months ended May 31, 2008 and 2007, are presented for the principal
     business segments as follows:
<TABLE>
<CAPTION>

                                                     Oil & Gas    Gas Gathering   Consolidated
                                                  ---------------------------------------------
<S>                                               <C>             <C>             <C>
     May 31, 2008
       Revenues                                   $    460,778    $     37,069    $    497,847
       Income (loss) before taxes                 $ (1,147,730)   $     (1,551)   $ (1,149,280)
       Total assets                               $ 24,811,548    $  2,444,466    $ 27,256,014
       Property additions                         $    587,057    $         --    $    587,057
       Interest expense                           $    (21,338)   $         --    $    (21,338)
       Debt issuance costs, non-cash              $         --    $         --    $         --
       Depreciation, depletion and amortization   $    232,554    $     32,623    $    265,177

     May 31, 2007
       Revenues                                   $     52,596    $     44,796    $     97,392
       Loss before taxes                          $ (1,741,674)   $      1,529    $ (1,740,145)
       Total assets                               $ 25,162,183    $  2,518,317    $ 27,680,500
       Property additions                         $    104,697    $         --    $    104,697
       Interest expense                           $    (18,306)   $         --    $    (18,306)
       Debt issuance costs, non-cash              $   (228,661)   $         --    $   (228,661)
       Depreciation, depletion and amortization   $     85,350    $     32,623    $    117,973
</TABLE>

                                       13
<PAGE>



8.   SUBSEQUENT EVENTS

     In June 2008, the Company issued an aggregate of 1,127,104 shares of common
     stock pursuant to conversion of 6,800 shares of Series B Preferred Stock
     and 850 shares of Series C Preferred Stock.


Item 2. Management's Discussion and Analysis or Plan of Operation.
------------------------------------------------------------------

Forward Looking Information

     Information contained in the following discussion of results of operations
     and financial condition and in certain of the notes to the financial
     statements included in this document contain forward-looking statements
     within the meaning of the Private Securities Litigation Reform Act of 1995,
     which can be identified by the use of words such as "may," "will,"
     "expect," "anticipate," "estimate," or "continue," or variations thereon or
     comparable terminology. In addition, all statements other than statements
     of historical facts that address activities, events, or developments the
     Company expects, believes, or anticipates will or may occur in the future,
     and other such matters, are forward-looking statements. The following
     discussion should be read in conjunction with the Company's unaudited
     financial statements and related notes included elsewhere herein.

     The Company's future operating results may be affected by various trends
     and factors, which are beyond the Company's control. The important factors
     that could prevent us from achieving our stated goals and objectives
     include, but are not limited to, those set forth in our Annual Report on
     Form 10-KSB for the fiscal year ended February 29, 2008 and the following:

     o    The general state of the economy;
     o    Our ability to find third parties to implement our plan of operations
          in drilling additional wells at the Slater Dome Field (as defined
          below) and prove reserves at the Focus Ranch Unit;
     o    Our ability to successfully implement our plan of operations;
     o    Our ability to raise additional capital, as it may be affected by
          current conditions in the stock market and competition in the oil and
          gas industry for risk capital;
     o    Environmental and other regulations, as the same presently exist and
          may hereafter be amended;
     o    Our ability to identify, finance and integrate other acquisitions;
     o    Volatility of our stock price; and
     o    Actions of overseas producers of oil and natural gas over which we
          have no control.

                                       14
<PAGE>
     We undertake no responsibility or obligation to update publicly these
     forward-looking statements, but may do so in the future in written or oral
     statements. Investors should take note of any future statements made by or
     on our behalf.

     The Company cautions the reader that a number of important factors
     discussed herein, and in other reports filed with the Securities and
     Exchange Commission, including its 10-KSB for the year ended February 29,
     2008, could affect the Company's actual results and cause actual results to
     differ materially from those discussed in forward-looking statements. This
     information should be read in conjunction with our Annual Report on Form
     10-KSB for the year ended February 29, 2008.

Overview

     We are a natural resource exploration and production company engaged in the
     exploration, acquisition and development of oil and gas properties in the
     United States. We currently own an interest in five oil and gas prospects,
     three of which are undeveloped. The Company owns a 66.66667% working
     interest in the Slater Dome Field and is the operator of this field. The
     Slater Dome Field consists of 33,303 net acres, held by mineral leases, and
     is located along the Colorado-Wyoming border in Moffat County, Colorado,
     and Carbon County, Wyoming. The Slater Dome Field targets coal-bed methane
     gas located at relatively shallow depths by industry drilling standards.
     The Flattops Prospect consists of 3,276 net acres, of which we own 100% of
     the working interest. The North Slater Dome Field, consisting of 600 gross
     acres, of which we own a 100% working interest. The Focus Ranch Unit
     consists of approximately 36,891 gross acres, 30,500 net acres adjacent to
     and southeast of the Slater Dome Field in northwest Colorado and one gas
     well, the Focus Ranch Federal 12-1 well ("Focus Ranch Unit") and is subject
     to a farmout agreement. The agreement provides that the Company shall
     become the operator of and acquire the Farmor's interest in the Focus Ranch
     Unit. The Farmor will retain a 1% working interest in the Unit and the
     Company will acquire the balance of Farmor's interest ranging between a 74%
     and a 99% working interest on a lease by lease basis. As of the date of
     this Form 10-Q, the Focus Ranch Unit had not been assigned to the Company.
     The Bureau of Land Management has placed the Focus Ranch Unit in suspense
     pending the results of the testing of the Federal 12-1 well which is
     expected to be completed by fall 2008. We also own a 15% working interest
     in 15,049 gross acres in Routt County Colorado called Gibraltar Peaks
     Prospect. The acreage includes all rights from the surface of the earth to
     the base of the Mesa Verde Formation. The Gibraltar Peaks Prospect is
     included in the Focus Ranch Unit. The Amber Waves prospect located in
     Denver Julesburg Basin prospect consists of 6,885 net acres of which we own
     100%.

                                       15

<PAGE>
     Our plan of operation is to further develop the Slater Dome Field by
     drilling additional wells in the summer of 2008; such wells are anticipated
     to be adjacent or near our existing wells in the southeast section of this
     property. We also plan to test the Niobrara and Frontier formations in the
     Focus Ranch Federal 12-1 well in the Unit. We intend to sell a portion of
     our Amber Waves Prospect located in Northeast Colorado and we will attempt
     to obtain a promoted or carried working interest as well as a prospect fee.
     We also plan to evaluate opportunities to acquire other interests in oil
     and gas properties.

     The following discussion and analysis covers the consolidated financial
     condition of the Company at May 31, 2008, changes in our financial
     condition since February 29, 2008, the end of the previous fiscal year, and
     a comparison of the results of operation for the three months ended May 31,
     2008 to the same period from the previous year. This information should be
     read in conjunction with our Annual Report on Form 10-KSB for the year
     ended February 29, 2008.

Results of Operation: Three months ended May 31, 2008 compared to the three
months ended May 31, 2007

     For the three months ended May 31, 2008 we reported a net loss attributable
to common shareholders of $1,389,615 or $0.13 per share, on revenue of $497,847.
This compares to a net loss attributable to common shareholders of $2,096,808,
or $0.34 per share, on revenue of $97,392, for the comparable period of the
previous fiscal year. We expect to incur losses until such time as we complete
the dewatering process of our wells, stabilize production of the coal-bed
methane gas.

     Revenues for the three months ended May 31, 2008 were $497,847 compared
with $97,392 for the three months ended May 31, 2007, an increase of $400,455 or
411.18%. Oil and gas revenues during the three months ended May 31, 2008 were
$460,778 compared with $52,596 during the three months ended May 31, 2007, an
increase of $408,182 or 776.07%. The reason for the change is twofold and is a
function of production and the sales price of the gas. Production to our
interest increased approximately 42,584 MCF (69.54%) compared to the same
three-month period ending May 31, 2007. The increase in production is
principally attributable to increased compression capacity, and the addition of
four additional wells drilled in the summer of 2007. Average gas sales prices
increased by $3.94 per MCF or 95% from $4.15 to $8.09 during the three months
ended May 31, 2008 as compared to the three months ended May 31, 2007. SDG
revenues from the gathering pipeline were $37,069 for the three months ended
March 31, 2008 compared with $44,796 for the quarter ended March 31, 2007, a
decrease of $7,727 or 17.25%. The decrease relates principally to the fact that
the Company increased its ownership in SDG which owns the gas gathering pipeline
and accordingly, gathering fees received from third parties decreased.

     Exploration costs for the three months ended May 31, 2008 were $49,811
compared with $67,288 in the three months ended May 31, 2007, a decrease of
$17,477 or 25.97%. The reason for the decrease is the result of decreases in
seismic consulting, seismic lines, miscellaneous costs and delay rentals offset
by an increase in geological consulting.


                                       16
<PAGE>

                                                                       Increase
                                          2008           2007         (Decrease)
                                        --------       --------        --------
Geologic consulting                     $ 15,000       $ 15,000        $     --
Seismic consulting                        29,739         15,571        $ 14,168
Seismic lines                                 --         27,326        $(27,326)
Misc other costs                           3,483            919        $  2,564
Delay rentals                              1,589          8,472        $ (6,883)
                                        --------       --------        --------
                                        $ 49,811       $ 67,288        $(17,477)
                                        ========       ========        ========

The increase in seismic consulting is a result of exploration activity and
reprocessing seismic lines at the Slater Dome Field and the Focus Ranch Unit.
The decrease in seismic lines is directly related to the culmination of our
analysis of potential prospects in the Denver Julesburg Basin in prior periods.
Decreases in miscellaneous other costs and delay rentals are considered normal
in the ordinary course of business.

     Lease operating expenses for the three months ended May 31, 2008 were
$291,184 compared with $385,316 in the three months ended May 31, 2007, a
decrease of $94,132 or 24.43%. The changes are summarized as follows:


                                                                       Increase
                                          2008           2007         (Decrease)
                                        --------       --------        --------
Lease operating expenses               $ 256,142      $ 382,206       $(126,064)
Gas sales costs                            6,000             --           6,000
Production taxes                          29,042          3,110          25,932
                                       ---------      ---------       ---------
                                       $ 291,184      $ 385,316       $ (94,132)
                                       =========      =========       =========


Lease operating expenses decreased $126,064 when compared with the previous
period ending in 2007 because expenditures required in 2007 associated with
rehabilitation of the property after taking over operations in the winter of
2007 were not present. Gas sales costs increased because we contracted with an
entity to market our gas in July 2007 and such costs were not present in the
quarter ended May 31, 2007. The production tax fluctuation is considered normal
in the ordinary course of business and directly relate to the increase in
production.

     The costs of gas gathering decreased by $185 from $833 to $648 or 22.19%
during the three months ended March 31, 2008 as compared to the same quarter in
2007. The increase is considered normal in the ordinary course of business.

     General and administrative expenses for the three months ended May 31, 2008
were $524,966 compared with $637,084 in the three months ended May 31,
2007, a decrease of $112,118 or 17.6%. The following table summarizes the major
components of the fluctuations:

                                       17
<PAGE>
                                                                  Increase
                                           2008        2007      (Decrease)
                                        ---------   ---------    ---------
     Employee compensation              $ 141,503   $ 292,724    $(151,221)
     Financial public relations           141,371     155,287      (13,916)
     Professional fees                     78,275      56,137       22,138
     Insurance                             34,611      37,461       (2,850)
     Reserve engineering costs             28,754      25,783        2,971
     Payroll and other taxes               11,964      20,945       (8,981)
     Travel                                 5,782      13,104       (7,322)
     Rent                                  11,300       8,900        2,400
     Office                                38,186       2,499       35,687
     Miscellaneous other                   14,624      11,137        3,487
     Repairs and maintenance                2,911       6,240       (3,329)
     Landman fees and expenses             13,461       5,097        8,364
     Management fees SDG                    2,224       1,770          454
                                        ---------   ---------    ---------
                                        $ 524,966   $ 637,084    $(112,118)
                                        =========   =========    =========

     Employee compensation decreased $151,221 in the quarter ended May 31, 2008
compared with the quarter ended May 31, 2007 because 2007 bonuses in the amount
of $160,000 were not present in 2008 offset by additional field and office
employees compensation in the amount of $8,779 in 2008. The decrease in
financial public relations in the amount of $13,916 was principally the result
of decrease fees paid to consultants for financial public relations and
shareholder relations in the amount of $39,256 which was offset by increases in
travel, advertising and presentation fees in the amount of $25,340. Professional
fees increased by $22,138 in the three months ended May 31, 2008, compared to
the quarter ending in 2007 and was as a result of increased legal and accounting
which is considered normal in the ordinary course of business and is a result of
increased corporate activity. Insurance decreased by $2,850 in the three months
ended May 31, 2008 compared to the quarter ending in 2007 and is principally a
function of rate changes and is considered normal in the ordinary course of
business. The decrease in payroll taxes and employee benefits in the amount of
$8,981 directly relates to the decrease in compensation expenses. Travel
expenses decreased by $7,322 because travel has been coordinated with financial
public relations. Rent increased by $2,400 because the field office rent
increased $3,300 offset by a decrease of $900 in rent paid by SDG. Office
increased by $35,687, principally because of additional computer software
maintenance fees of $18,148, and office supplies increased $18,418, both of
which are considered normal in the ordinary course of business. Miscellaneous
other expenses increased $3,487 and such increase is considered normal in the
ordinary course of business. Repairs and maintenance decreased $3,329
principally as a result of nonrecurring repairs in 2007 by SDG. Landman fees and
expenses increased $8,364 as a result of title work in the Amber Waves Prospect
in 2008. Management fees incurred by SDG increased by $454; such increase is
considered normal in the ordinary course of business.

                                       18
<PAGE>

     Amortization of the non-qualified common stock options issued in November
2006 was $515,550 for both the three months ended May 31, 2008 and 2007, because
the warrants vest quarterly through August 31, 2008.

     Depreciation, depletion and amortization for the three months ended May 31,
2008 was $265,177 compared with $117,973 during the three months ended May 31,
2007, an increase of $147,204 or 124.78%. The components of the increase are
summarized in the following table:

                                                                   Increase
                                                2008      2007    (Decrease)
                                             --------   --------   --------
     Producing oil and gas properties        $199,100   $ 72,500   $126,600
     Slater Dome Gathering, LLLP               32,623     32,623         --
     Other depreciable assets                  33,454     12,850     20,604
                                             --------   --------   --------
                                             $265,177   $117,973   $147,204
                                             ========   ========   ========

The increase in depletion on producing properties is attributable to the
increased production from the Slater Dome Field, Other depreciation increased
$20,604 for the three months ended May 31, 2008 as compared with the three
months ended May 31, 2007 because of depreciation associated with additional non
oil and gas property and equipment the Company placed into service.

     Interest income for the three months ended May 31, 2008 was $21,547
compared with $133,474 in the three months ended May 31, 2007, a decrease of
$111,927 or 83.86%. Such decrease is a result of smaller interest bearing cash
balances held.

     Interest expense for the three months ended May 31, 2008 was $21,338
compared with $18,306 in the three months ended May 31, 2007, an increase of
$3,032 or 16.56%. The components of the change are summarized as follows:

                                                                  Increase
                                                 2008      2007  (Decrease)
                                               -------   -------  --------
     Convertible debenture                     $    --   $16,380  $(16,380)
     Convertible debenture, affiliates              --     1,926    (1,926)
     Notes payable, affiliates                   5,039        --     5,039
     Notes payable                              16,299        --    16,299
                                               -------   -------  --------
                                               $21,338   $18,306  $  3,032
                                               =======   =======  ========

The convertible debentures interest decreased because the debentures were
converted to common stock or paid on July 23, 2007. The convertible debenture to
affiliates interest decreased because the Company paid the remaining balance of
the convertible debenture in full in December 2007. Notes payable, affiliates
increased $5,309 in the three months ended May 31, 2008 compared with $0 in the
quarter ended May 31, 2007 because the note to NRGG was issued in December 2007
and accordingly, not present in the quarter ending in 2007. Notes payable
interest increased by $16,299 because an obligation for the field facility was
incurred in June 2007 and accordingly, was not present in the quarter ended May
31, 2007.


                                       19
<PAGE>
     Debt issuance costs for the three months ended May 31, 2008 was $0 as
compared with $228,661 for the three months ended May 31, 2007, a decrease of
$228,661. The change in debt issuance cost arises because the debentures matured
on July 23, 2007 and the completion of the amortization period occurred in 2007.

     The minority interest in the income of the consolidated subsidiary for the
three months ended May 31, 2008 was $11,018 as compared to $11,517 for the three
months ended May 31, 2007 resulting in a decrease of $499 or 4.33%. This
fluctuation principally relates to the acquisition of the general partners
interest in December 2007.

     During the three months ended May 31, 2008, the Company charged dividends
on the Series B and C Convertible Preferred Stock in the amount of $76,088 and
$139,404 respectively, together with distributions to the SDG minority interests
in the amount of $13,825 to the loss attributable to common shares compared with
$345,146 during the three months ended May 31, 2007, a decrease of $115,829 or
33.56%. The changes in the dividends on the Series B and C Preferred Stock
arises from changes in computational balances. The decrease in distributions to
the SDG minority interests in the amount of $5,075 is because SDG made smaller
distribution to minority interest owners during the three months ended March 31,
2008 as compared with the same period in 2007.

                                                                  Increase
                                       2008          2007        (Decrease)
                                    ---------     ---------      ---------
     Dividends Series B             $  76,088     $  86,596      $ (10,508)
     Dividends Series C               139,404       239,650       (100,246)
     Distributions SDG                 13,825        18,900         (5,075)
                                    ---------     ---------      ---------
                                    $ 229,317     $ 345,146      $(115,829)
                                    =========     =========      =========

     As a result of the above, we generated a net loss attributable to common
shareholders of $1,389,615 or $0.13 per share during the three months ended May
31, 2008 as compared to a net loss attributable to common shareholders of
$2,096,808 or $0.34 per share during the three months ended May 31, 2007.

Liquidity and Capital Resources

     We have not generated positive cash flows from operating activities and
used $731,418 in operating activities during the three months ended May 31,
2008. The primary sources of capital have been from sales of gas and issuances
of equity securities during the three months ended May 31, 2008. Our primary use
of capital has been for the acquisition, development and exploration of oil and
gas properties. Our working capital requirements are expected to increase in
line with the growth of our business. We have no lines of credit or other bank
or off balance sheet financing arrangements. We believe our capital requirements
will continue to be met with cash from operations, additional issuance of equity
or debt securities as well as traditional bank financing. Additional issuances
of equity or convertible debt securities will result in dilution to our current
Common Stockholders'.


                                       20
<PAGE>
     Our plan of operations for the next twelve months call for us to
participate in the drilling of additional wells at Slater Dome Field, to develop
the Flattops Prospect by drilling two wells in the summer/fall of 2009, testing
the Niobrara formation at the Focus Ranch Unit and to provide capital for other
lease acquisitions. We believe that the plan of operations for the next twelve
months will require capital of approximately $10,000,000. To the extent that
additional opportunities present themselves to the Company, the Company may
require additional sources of capital to participate in these opportunities. We
expect that working capital requirements will be funded through a combination of
our existing funds, cash flow from operations and issuance of equity and debt
securities. Further, the Company could receive proceeds from the exercise of
outstanding warrants issued to the holders of the Company's Convertible
Debenture and the associated placement agent warrants. The Convertible Debt
Warrants are exercisable at a price of $1.33 and the placement agent warrants
are exercisable at $1.08. The warrants issued to the holders of the Convertible
Debentures and the placement agent warrants expire on July 22, 2008. If all of
the warrants issued in connection with the convertible debt were exercised, it
would result in proceeds to the Company of $2,789,121. There can be no assurance
that any of the warrant holders will exercise these warrants. Management
believes that current cash balances plus cash flow from operations will not be
sufficient to fund our capital and liquidity needs for the next twelve months
and the Company will be required to obtain additional capital to execute its
drilling and development plans.

     As of May 31, 2008, we had a cash balance of $4,252,828. We used $731,418
in cash for operating activities during the three months ended May 31, 2008 as
compared to $1,819,693 during the three months ended May 31, 2007.

     The following summarizes the Company's capital resources at May 31, 2008
compared with February 29, 2008:
<TABLE>
<CAPTION>

                                           May 31,     February 29,     Increase    Increase
                                            2008           2008        (Decrease)  (Decrease)
     ----------------------------------------------------------------------------------------
<S>                                      <C>            <C>              <C>              <C>
     Cash                              $ 4,252,828    $ 3,602,939     $  649,889          18%
     Current assets                      5,639,720      4,881,911        757,809          16%
     Total Assets                       27,256,014     26,209,623      1,046,391           4%
     Current liabilities                 3,499,754      3,535,934        (36,180)         -1%
     Working capital                     2,139,966      1,345,977        793,989          59%
     Net cash  (used) in operating        (731,418)    (3,048,539)     2,317,121         -76%
     activities
     Net  cash used in investing          (553,757)    (5,653,729)     5,099,972         -90%
     activities
     Net cash  provided by (used in)     1,935,064       (419,027)     2,354,091        -562%
     financing activities
</TABLE>

                                       21

<PAGE>

The principal components of the changes in cash are summarized as follows:


     Proceeds from revenues                                     $  497,847
     Proceeds from exercising warrants                           1,712,469
     Proceeds from exercising placement agent warrants             269,747
     Operating costs billed to non-affiliates                     (662,123)
     Purchase of property and equipment                           (587,059)
     Deposits                                                       33,300
     Principal payments on notes payable                            (8,568)
     Preferred stock dividends                                      (1,544)
     Distributions to SDG minority interests                       (13,823)
     Operating expenses and other                                 (590,356)
                                                                ----------
                                                                $  649,889
                                                                ==========

     The principal cause of the changes in current liabilities in the amount of
$36,180 was payment of $491,033 for accounts payable offset by $213,948 increase
in dividends payable and $243,068 increase on accrued expenses. The Company
increased the current portion of the long-term debt by $4,817 as a normal course
of the loan amortization. The remaining changes are considered normal in the
ordinary course of business.

                                                                      Increase
                                          5/31/2008    2/29/2008     (Decrease)
                                         ----------   ----------    ----------
     Accounts payable                    $  318,274   $  809,397    $ (491,123)
     Convertible debenture, affiliates      806,250      806,250            --
     Dividends payable                    1,737,484    1,523,536       213,948
     Accrued expenses                       551,134      308,066       243,068
     Accounts payable, affiliates            36,430       48,459       (12,029)
     Accrued interest                        11,345        6,206         5,139
     Current portion of long term debt       38,837       34,020         4,817
                                         ----------   ----------    ----------
                                         $3,499,754   $3,535,934    $  (36,180)
                                         ==========   ==========    ==========

     The increase in working capital of $793,989 or 59% is principally due to
increased revenues and accounts receivable.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Interest Rate Risks

     The Company pays a fixed rate of interest on its outstanding debt and
accordingly, there is no interest rate market risk.

                                       22
<PAGE>
Commodity Price Risks

     Our major market risk exposure is in the pricing applicable to our natural
gas production. Pricing is primarily driven by the prevailing spot market prices
applicable to our U.S. natural gas production. Pricing for natural gas has been
volatile and unpredictable for several years. The prices we receive for
production depend on many factors outside of our control. For the quarter ended
May 31, 2008, our income before income taxes would have changed by $30,600 for
each $0.50 change per Mcf in natural gas prices. We have not entered into
natural gas derivative contracts to manage our exposure to natural gas price
volatility.

Item 4.  Controls and Procedures

     As of the end of the period covered by this report, an evaluation was
carried out by New Frontier Energy, Inc., with the participation of our Chief
Executive Officer and Chief Financial Officer, of the effectiveness of our
disclosure controls and procedures (as defined in Rule 13a-15(e) under the
Securities Exchange Act of 1934). Based upon that evaluation, our Chief
Executive Officer and Chief Financial Officer concluded that these disclosure
controls and procedures were effective as of the end of the period covered by
this report.

     In addition, no change in our internal control over financial reporting (as
defined in Rule 13a-15(f) under the Securities Exchange Act of 1934) occurred
during our most recent fiscal quarter that has materially affected, or is
reasonably likely to materially affect, our internal control over financial
reporting.

                           PART II--OTHER INFORMATION

Item 1. Legal Proceedings

     Not Applicable.

Item 1A. Risk Factors

     There have been no material changes to the Risk Factors discussed in our
Annual Report on Form 10-KSB/A for the fiscal year ended February 29, 2008 filed
with the Securities and Exchange Commission on June 24, 2008 and investors are
encouraged to review those risk factors in detail before making any investment
in the Company's securities.

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

     None

Item 3.    Defaults Upon Senior Securities.

     Not Applicable.


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

     Not Applicable.


Item 5.  Other Information

     Not Applicable.

Item 6.  Exhibits

     Exhibits: The following exhibits are filed with this report:

     31.1 Certification pursuant to Rule 13a-14(a) or 15d-14(a) under The
          Securities Exchange Act of 1934 as amended.

     31.2 Certification pursuant to Rule 13a-14(a) or 15d-14(a) under The
          Securities Exchange Act of 1934 as amended.

     32.  Certifications pursuant to 18 U.S.C section 1350, as adopted pursuant
          to Section 906 of the Sarbanes-Oxley Act of 2002.



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                                   SIGNATURES

     In accordance with the requirements of the Securities Exchange Act of 1934,
as amended, the registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

                                New Frontier Energy, Inc.


Date: July 11, 2008             By:  /s/ Paul G. Laird
                                     ----------------------------------
                                     Paul G. Laird, President and Chief
                                     Executive Officer


                                By:  /s/ Les Bates
                                     ----------------------------------
                                     Les Bates, Chief Financial Officer





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