================================================================================

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

                                  FORM 10-QSB/A

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

                  For the quarterly period ended June 30, 2006
                                                 -------------

                                       OR

[ ]      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 - 24012


                               KODIAK ENERGY INC.
                      -------------------------------------
             (Exact name of registrant as specified in its charter)


                Delaware                            65-0967706
     -------------------------------            -------------------
     (State or other jurisdiction of             (I.R.S. Employer
      incorporation or organization)            Identification No.)


            734 7th Ave S.W. Suite 460, Calgary, AB, T2P 3P8, Canada
            --------------------------------------------------------
               (Address of principal executive offices - Zip code)

                                 (403) 262-8044
                                ----------------
              (Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15 (d) of the Securities Exchange Act during the
preceding 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      No  X
         ---     ---

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE
PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court.

     Yes  X   No
         ---     ---

As of June 30, 2006, the Registrant had approximately 89,759,428 shares of
Common Stock, $.001 par value per share outstanding.

This 10QSB/A is being refiled to amend and restate the financial statements as
at June 30, 2006 and for the year then ended to correct errors found in
accounting for transactions and errors in applying the accounting policy for
share based payments. The changes to correct the errors are reflected in the
following sections noted below:

-        June 30, 2006 financial statements
-        Disclosure of related party transactions
-        Management Discussion and Analysis
-        Controls and Procedures


<PAGE>

                               KODIAK ENGERY INC.
                                      INDEX



                                                                            Page
                                                                            ----


PART I.  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS                                                 3

         Condensed Consolidated Balance Sheets as of  June 30, 2006
          (unaudited) and June 30, 2005                                       3

         Condensed Consolidated Statements of Operations (unaudited)
          for the three months and six months ended June 30, 2006
          and 2005                                                            4

         Condensed Consolidated Statements of Cash Flows (unaudited)
          for the six months ended June 30, 2006 and 2005                     5

         Notes to Condensed Consolidated Financial Statements                 6

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION           12

ITEM 3.  CONTROLS AND PROCEDURES                                             13


PART II. OTHER INFORMATION                                                   15

ITEM 1.  LEGAL PROCEEDINGS                                                   15

ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS                           15

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES                                     15

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS                  15

ITEM 5.  OTHER INFORMATION                                                   15

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K                                    15








                                        2
<PAGE>

ITEM 1. FINANCIAL STATEMENTS


KODIAK ENERGY, INC.
Consolidated Balance Sheets
(Development Stage Company
Going Concern Uncertainty - Note 1)

-------------------------------------------------------------------------------
                                                June 30,         December 31
                                                  2006               2005
                                              (Unaudited)         (Audited)
                                              (Restated -        (Restated -
                                                 Note 2)            Note 2)
-------------------------------------------------------------------------------
Assets

Current Assets
     Cash                                   $      1,962,688   $        190,651
     Other Receivables                               129,346             12,676
     Prepaid Expenses                                 31,461             67,850
     --------------------------------------------------------------------------
                                                   2,123,495            271,177

Other Assets (Note 3)                                 24,349             20,249
--------------------------------------------------------------------------------
                                                   2,147,844            291,426
--------------------------------------------------------------------------------
Property, Plant & Equipment
     Oil & Gas Properties     (Note 4)             1,193,544            250,318
     ($1,193,544 unproven properties
       excluded from costs amortized)
     Property & Equipment     (Note 4)                29,266             15,821
     Accumulated Amortization (Note 4)                (4,641)            (1,235)
     --------------------------------------------------------------------------
                                                   1,218,169            264,904
-------------------------------------------------------------------------------
                                                   3,366,013            556,330
================================================================================

Liabilities and Shareholders' Equity

Current Liabilities
     Accounts Payable                                164,969             28,553
     Accrued Expenses                                220,655            153,859
     Convertible Debt (Note 5)                             -             41,189
     --------------------------------------------------------------------------
                                                     385,624            223,601

Asset Retirement Obligations (Note 6)                 49,809                  -
--------------------------------------------------------------------------------
                                                     435,433            223,601
--------------------------------------------------------------------------------
Shareholders' Equity

Share Capital
     Authorized:
          100,000,000 Common Shares
          Par Value .001 Each

     Issued & Outstanding 89,759,428
              (2005 - 474,028)(Note 7)                89,759                473
     Shares to be Issued (Note 7)                          -            701,637
     Share Subscription Receivable                   (90,000)           (72,000)
         Additional Paid in Capital (Note 7)       4,908,354            834,561
     Deficit Accumulated during the
           Development Stage                      (1,973,085)        (1,196,403)
     Accumulated Other Comprehensive Loss             (4,448)            (7,539)
     --------------------------------------------------------------------------
                                                   2,930,580            332,729
-------------------------------------------------------------------------------

                                            $      3,366,013   $        556,330
================================================================================

(See accompanying notes to the unaudited consolidated financial statements)


                                       3
<PAGE>
<TABLE>
<CAPTION>

KODIAK ENERGY, INC.
Consolidated Statements of Operations - Unaudited
(Development Stage Company
Going Concern Uncertainty - Note 1)


                                                                               Cumulative Since
                                                                                  Inception
                         Three Months     Three       Six Months      Six       Apr 7, 2004 to
                         June 30, 2006    Months     June 30, 2006   Months      June 30, 2006
                          (Restated-     June 30,     (Restated-    June 30,     (Restated-
                            Note 2)        2005         Note 2)       2005          Note 2)
                         -----------------------------------------------------------------------
<S>                      <C>             <C>         <C>           <C>         <C>
EXPENSES
   Administrative        $    237,622    $  1,359    $   434,034   $   8,487   $       795,391
   Compensation
     Expense (Note 7)         337,500           -        337,500           -           337,500
   Interest Expense                 -           -              -           -           808,811
                         -----------------------------------------------------------------------
   Loss Before Other
     Expenses                (575,122)     (1,359)      (771,534)     (8,487)       (1,941,702)
Other Expenses
   Depletion,
      Depreciation
      and Accretion            (2,879)          -         (5,148)          -            (6,383)
   Loss from
      valuation
      adjustment                    -           -              -           -           (25,000)
                         -----------------------------------------------------------------------
                               (2,879)          -         (5,148)           -          (31,323)
                         -----------------------------------------------------------------------
NET LOSS                 $   (578,001)   $ (1,359)   $  (776,682)  $  (8,487)  $    (1,973,085)



BASIC AND DILUTED LOSS
PER COMMON SHARE         $      (0.01)   $  (0.00)   $     (0.02)  $  (0.02)

WEIGHTED AVERAGE NUMBER
OF SHARES OUTSTANDING      73,115,017     474,028     48,682,635    474,028


</TABLE>



(See accompanying notes to the unaudited consolidated financial statements)



                                       4
<PAGE>
<TABLE>
<CAPTION>

KODIAK ENERGY, INC.
Consolidated Statements of Cash Flows - Unaudited
(Development Stage Company
Going Concern Uncertainty - Note 1)

                                                                                                        Cumulative Since
                                                                                                           Inception
                                               Three Months       Three       Six Months      Six        Apr 7, 2004 to
                                               June 30, 2006      Months     June 30, 2006   Months      June 30, 2006
                                                (Restated-       June 30,     (Restated-    June 30,       (Restated-
                                                  Note 2)          2005         Note 2)       2005           Note 2)
                                                -----------------------------------------------------------------------
<S>                                              <C>             <C>          <C>           <C>           <C>
OPERATING ACTIVITIES
NET LOSS                                         $(578,001)      $(1,359)      $(776,682)   $(8,487)      $(1,973,085)
Adjustments to reconcile net loss to
net cash used in operating activities:
   Amortization of Furniture & Fixtures              2,879             -           5,148          -             6,383
   Contributions To Capital                              -             -               -          -               900
   Foreign Currency Translation                        119             -           3,092          -            (4,124)
   Compensation Expense                            337,500             -         337,500          -           337,500
   Interest Expense                                      -             -               -          -           808,811
   Loss From Valuation Adjustment                        -             -               -          -            25,000
Changes in Non-Cash Working Capital
Components:
  Change In Other Receivables                      (31,356)            -        (102,195)         -          (114,871)
  Change In Prepaid Expenses                        27,450             -          26,389          -           (31,461)
  Change In Accounts Payable                        29,692             -          10,139          -            31,692
  Change In Accrued Liabilities                    102,568         1,359         111,156      8,487           220,655
  Change In Convertible Debt                             -             -         (41,189)         -                 -
                                                -----------------------------------------------------------------------

Net Cash Used in Operating Activities             (109,149)            -        (426,642)         -          (692,600)

Investment Activities:
   Additions to Property, Plant & Equip           (405,809)            -        (908,603)         -        (1,174,742)
   Additions to Other Assets                                           -          (4,100)         -           (24,349)
   Change In Other Receivables                     (14,475)            -         (14,475)         -           (14,475)
   Change In Accounts Payable                     (102,278)            -         126,276          -           133,276
   Change In Accrued Liabilities                         -             -         (44,360)         -                 -
                                                -----------------------------------------------------------------------
Net Cash Used in Investing Activities             (523,780)                     (845,262)         -        (1,080,290)

Financing Activities
   Shares issued                                 1,751,732             -       3,825,578          -         3,825,578
Shares to be issued                                      -             -        (773,637)         -                 -
      Share Subscription Receivable                 50,000             -         (18,000)         -           (85,000)
   Change In Prepaid Expenses                       10,000             -          10,000          -                 -
                                                -----------------------------------------------------------------------
Net Cash Provided By Financing Activities        1,811,732             -       3,043,941          -         3,735,578

Net Cash Increase                                1,178,803             -       1,772,037          -         1,962,688
Cash beginning of Period                           783,885             -         190,651          -                 -
                                                -----------------------------------------------------------------------
Cash end of Period                              $1,962,688             -      $1,962,688          -        $1,962,688
                                                -----------------------------------------------------------------------
</TABLE>



(See accompanying notes to the unaudited consolidated financial statements)


                                       5
<PAGE>

KODIAK ENERGY, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
For the Three and Six Month Period Ended June 30, 2006


1.   ORGANIZATION, BASIS OF PRESENTATION AND GOING CONCERN UNCERTAINTY


The interim consolidated financial statements include the accounts of Kodiak
Energy Inc. and subsidiaries (collectively "Kodiak", the "Company", "we", "us"
or "our") as at June 30, 2006 and December 31, 2005 and for the periods ended
June 30, 2006, June 30, 2005 and the period from April 7, 2004 (inception) until
June 30, 2006, presented in accordance with generally accepted accounting
principles in the United States of America ("U.S. GAAP") on the same basis as
the audited consolidated financial statement as at and for the period ended
December 31, 2005, except as outlined in Note 2. These interim consolidated
financial statements should be read in conjunction with December 31, 2005
audited consolidated financial statements and the notes thereto. Interim results
are not necessarily indicative of results expected for the fiscal year. These
interim consolidated financial statements have not been audited.

The Company was incorporated under the laws of the state of Delaware on December
15, 1999 under the name "Island Critical Care, Corp." with authorized common
stock of 50,000,000 shares with a par value of $.001. On December 30, 2004 the
name was changed to "Kodiak Energy, Inc." and the authorized common stock was
increased to 100,000,000 shares with the same par value. On January 17, 2005 the
Company affected a reverse split of 100 outstanding shares for one share. These
consolidated financial statements have been prepared showing post split shares
from inception. The Company was engaged in the development of the manufacture
and distribution of medical instrumentation and it became inactive after the
bankruptcy outlined below.

The Company is in the development stage and its efforts have been principally
devoted to capital raising, organizational infrastructure development, and
acquisitions of oil and gas properties for the purposes of future extraction of
the resources.

Bankruptcy
----------

On February 5, 2003 the Company filed a petition for bankruptcy in the District
of Prince Edward Island, Division No. 01-Prince Edward Island Court No. 1713,
Estate No. 51-104460, titled "Island Critical Care Corp.". The Company emerged
from bankruptcy pursuant to a Bankruptcy Court Order entered on April 7, 2004
with no remaining assets or liabilities and adopted Fresh Start Accounting.

The terms of the bankruptcy settlement included the authorization for the
issuance of 150,000 post split restricted common shares in exchange for $25,000,
which was paid into the bankruptcy court by the recipient of the shares.

The Company emerged from bankruptcy as a development stage company.

Going Concern Uncertainty
-------------------------

These consolidated financial statements have been prepared assuming the Company
will continue as a going concern, which presumes the realization of assets and
discharge of liabilities in the normal course of business for the foreseeable
future. The Company has not generated positive cash flow since inception and has
incurred recurring operating losses and will need working capital for its future
planned activities. These conditions raise substantial doubt about the Company's
ability to continue as a going concern. Continuation of the Company as a going
concern is dependent upon obtaining sufficient working capital to finance
ongoing operations. The management of the Company has developed a strategy to
address this uncertainty, including additional loans from officers, and equity
funding, however there are no assurances that any such financing could be
obtained on favorable terms, if at all.

                                       6
<PAGE>

2.   RESTATEMENT

In November 2006, we determined that it was necessary to restate our financial
results for the year ending December 31, 2005 and for the periods ending March
31, 2006 and June 30, 2006. The purpose of the restatements is to correct errors
found in accounting for transactions resulting from a lack of adequate
procedures necessary to ensure that records were maintained in reasonable detail
to fairly reflect the transactions of the Company in the start up phase of
operations. More specifically the errors found are outlined as follows:

      *   Capitalization of items which should have been expensed under the
          successful efforts method of accounting for oil and gas property
      *   Not recognizing the beneficial conversion feature of debt payable in
          common shares of the Company
      *   Certain expenses paid after year end not being accrued for at period
          end
      *   Expensing costs relating to issuance of common shares
      *   Calculation errors made in the translation of Canadian operations to
          U.S. dollars

Effects of the restatement by line item follow:

Unaudited Consolidated Balance Sheets

                                     June 30,
                                       2006                          June 30,
                                   As Previously    Impact of          2006
                                     Reported         Errors         Restated
                                    --------------------------------------------
Cash                                $ 1,869,788     $    92,900     $ 1,962,688
Other Receivables                       117,150          12,196         129,346
Prepaid Expenses                         72,063         (40,602)         31,461
                                    --------------------------------------------
Total current assets                  2,059,001          64,494       2,123,495

Other Assets                                  -          24,349          24,349

Oil & Gas Properties                  1,254,074         (60,530)      1,193,544
Furniture & Fixtures                     28,197           1,069          29,266
Accumulated Amortization                 (4,098)           (543)         (4,641)
                                    --------------------------------------------
Total Property, Plant &
 Equipment                            1,278,173         (60,004)      1,218,169
                                    --------------------------------------------
Total Assets                          3,337,174          28,839       3,366,013
                                    --------------------------------------------

Accounts Payable                         96,638          68,331         164,969
Accrued Expenses                        163,297          57,358         220,655
                                    --------------------------------------------
Total Current Liabilities               259,935         125,689         385,624


Asset Retirement Obligation              53,632          (3,823)         49,809

Share Capital                            89,758               1          89,759
Share Subscription Receivable           (85,000)         (5,000)        (90,000)
Additional Paid in Capital            4,108,200         801,154       4,908,354
Deficit Accumulated during
 the Development Stage               (1,046,152)       (926,933)     (1,973,085)
Accumulated Other
 Comprehensive Loss                     (43,199)         38,751          (4,448)
                                    --------------------------------------------
Total Shareholders' Equity            3,023,607         (93,027)      2,930,580
                                    --------------------------------------------
Total Liabilities &
 Shareholders' Equity               $ 3,337,174     $    28,839     $ 3,366,013
                                    --------------------------------------------

For the impact of the errors on the December 31, 2005 balance sheet refer to the
Amended Form 10-KSB/A for the year ended December 31, 2005.


                                       7
<PAGE>

Unaudited Consolidated Statements of Operations

<TABLE>
<CAPTION>

                             Three Months                               Six Months
                                Ended                    Three Months     Ended                      Six Months
                               June 30,                     Ended        June 30,                      Ended
                                2006                       June 30,        2006                       June 30,
                            As Previously   Impact of        2006      As Previously   Impact of        2006
                              Reported        Errors       Restated      Reported        Errors       Restated
                            -----------------------------------------------------------------------------------
<S>                         <C>             <C>          <C>            <C>            <C>           <C>
Administrative Expense      $    229,432    $   8,190    $  237,622    $    405,313    $  28,721     $ 434,034
Loss Before Other Expense       (566,932)      (8,109)     (575,122)       (742,813)     (28,721)     (771,534)
Amortization of Furniture
  & Fixtures                      (2,597)        (282)       (2,879)         (3,807)      (1,341)       (5,148)
Interest Income                      (55)          55            --           9,970       (9,970)           --
Net Loss                    $   (569,584)   $  (8,417)   $ (578,001)   $   (736,650)   $ (40,032)    $ (76,682)
 Basic and diluted loss
  per share                 $      (0.01)   $   (0.00)   $    (0.01)   $      (0.02)   $   (0.00)    $   (0.02)

</TABLE>

For the impact of the errors on the Cumulative Since Inception April 7, 2004 to
June 30, 2006 refer to the impact of the errors in the Amended Form 10KSB/A at
December 31, 2005 and including the errors noted above.


Unaudited Consolidated Statements of Cash Flows

<TABLE>
<CAPTION>

                                   Three Months                                 Six Months
                                      Ended                      Three Months      Ended                       Six Months
                                     June 30,                       Ended        June 30,                        Ended
                                       2006                        June 30,        2006                         June 30,
                                  As Previously     Impact of        2006      As Previously     Impact of        2006
                                     Reported         Errors       Restated      Reported          Errors       Restated
                                  ----------------------------------------------------------------------------------------
<S>                                 <C>              <C>          <C>            <C>              <C>           <C>
Operating Activities
Net Loss                            $(569,584)       $(8,417)     $(578,001)     $(736,650)       $(40,032)     $(776,682)
Amortization of Furniture &
Fixtures                                2,597            282          2,879          3,807           1,341          5,148
Foreign Currency Translation         (105,476)       105,595            119         (1,530)          4,625          3,095
Change in Other Receivables           (86,627)        55,271        (31,356)      (110,680)          8,485      (102,195)
Change in Prepaid Expenses              8,363         19,087         27,450        (14,213)         40,602         26,389
Change in Accounts Payable            (21,750)        51,442         29,692         32,096         (21,957)        10,139
Change in Accrued Expenses            158,707        (56,139)       102,568        158,707         (47,551)       111,156
Change in Convertible Debt                                                                         (41,189)       (41,189)
                                  ----------------------------------------------------------------------------------------
Net Cash Used in Operations          (276,270)       167,121       (109,149)      (330,963)        (95,679)      (426,642)
                                  ----------------------------------------------------------------------------------------

Investment Activities
Additions to Capital Assets          (631,682)       225,873       (405,809)      (947,564)         38,961       (908,603)
Additions to Other Assets                   -         (1,288)        (1,288)             -          (4,100)        (4,100)
Change in Other Receivables                 -        (14,475)       (14,475)             -         (14,475)       (14,475)
Change in Accounts Payable                  -       (102,208)      (102,208)             -         126,276        126,276
Change in Accrued Expenses                  -              -              -              -         (44,360)       (44,360)
                                  ----------------------------------------------------------------------------------------
Net Cash Used in Investing           (631,682)       107,902       (523,780)      (947,564)        102,302       (845,262)
                                  ----------------------------------------------------------------------------------------

Financing Activities
Proceeds on Shares Issued           1,781,529        (29,797)     1,751,732      2,949,235         876,343      3,825,578
Shares to be Issued                         -              -              -              -       (773,637)       (773,637)
Change in Accounts Payable           (36,713)         36,713              -        (36,713)         36,713              -
Receivable                                  -         55,000         50,000              -         (18,000)       (18,000)
Change in Prepaid Expenses                  -         10,000         10,000              -          10,000         10,000
                                  ----------------------------------------------------------------------------------------
Net Cash Provided by Financing      1,744,816         71,916      1,811,732      2,912,522         131,419      3,043,941
                                  ----------------------------------------------------------------------------------------

Net Cash Increase                     836,864        341,939      1,178,803      1,633,995         138,042      1,772,037
Cash Beginning of  Period           1,032,924       (249,039)       783,885        235,793         (45,142)       190,651
Cash End of  Period                $1,869,788        $92,900     $1,962,688     $1,869,788         $92,900     $1,962,688

</TABLE>

                                       8
<PAGE>

For the impact of the errors on the Cumulative Since Inception April 7, 2004 to
June 30, 2006 refer to the impact of the errors in the Amended Form 10KSB/A at
December 31, 2005 and including the errors noted above.


3.   OTHER ASSETS

Other Assets in the amount of $24,349 represents a long term deposit required by
regulatory authorities for environmental obligations for well abandonment and
restoration in Alberta.

4.   PROPERTY PLANT & EQUIPMENT


                                                     Net Book       Net Book
                                    Accumulated       Value           Value
                                    depreciation     June 30,      December 31,
                        Cost       and depletion       2006           2005
                    (As Restated)  (As Restated)   (As Restated)  (As Restated)
Canada:
Oil and gas
  properties         $ 1,065,271    $       --     $ 1,061,544      $ 118,318
United States:
Oil and gas
  properties             132,000            --         132,000        132,000
                    -----------------------------------------------------------

Sub-Total              1,197,271            --       1,193,544        250,318
                    -----------------------------------------------------------

Furniture &
  fixtures                29,266          4,641         24,625         14,586
                    -----------------------------------------------------------

Oil and gas
  property           $ 1,226,537    $     4,641    $ 1,228,169      $ 264,904

There were $1,193,544 of unproved properties at June 30, 2006 that were excluded
from the depletion pool (December 31, 2005 - $250,318). The Company capitalized
nil (2005 - Nil) of Asset Retirement Obligations during the three month period
ending June 30, 2006 and for the six month period ending June 30, 2006, $47,339
(2005 - Nil) was capitalized.

5.   CONVERTIBLE DEBT

Debt of $41,189 at December 31, 2005 was non-interest bearing and convertible to
common shares of the Company pursuant to the stock for services compensation
plan. A beneficial conversion feature of $808,811 was calculated on the debt for
the year ended December 31, 2005 representing the difference between the
conversion price and the fair value of the common stock at the commitment date.
This amount is recorded as interest expense and an increase in additional paid
in capital. The Company issued 1,000,000 shares in January, 2006 to settle this
debt pursuant to the stock for services compensation plan. Debt was reduced by
$41,189 and Shares Issued increased by $1,000 and Additional Paid in Capital
increased by $40,189.

6.   ASSET RETIREMENT OBLIGATIONS

Changes in the carrying amounts of the asset retirement obligations associated
with the Company's oil and natural gas properties are as follows:

  ----------------------------------------------------------------------------
                                                                        2006
  ----------------------------------------------------------------------------
  Asset retirement obligations, December 31, 2005                           -
  ----------------------------------------------------------------------------
  Obligations incurred during period                                   47,339
  ----------------------------------------------------------------------------
  Accretion                                                             2,470
  ----------------------------------------------------------------------------
  Asset retirement obligations, June 30, 2006                          49,809
  ----------------------------------------------------------------------------


                                       9
<PAGE>

At June 30, 2006 the estimated total undiscounted amount required to settle the
asset retirement obligations was $ 97,472. These obligations will be settled at
the end of the useful lives of the underlying assets, which currently extend up
to 8 years into the future. This amount has been discounted using a credit
adjusted risk-free interest rate of 7.5% and a rate of 2.5% inflation.

7.   SHARE CAPITAL

Authorized:
     100,000,000 common shares at $0.001 par value

--------------------------------------------------------------------------------
                                           Number        Value   Additional Paid
                                                                    in Capital
--------------------------------------------------------------------------------
Balance at June 30, 2005 and
 December 31, 2005                          474,028     $   474   $     834,561
--------------------------------------------------------------------------------
Private Placement, net of issue
  costs (26,363)                         16,000,000      16,000         756,656
--------------------------------------------------------------------------------
Private Placement, net of issue
  costs (140,000)                           933,324         933       1,259,067
--------------------------------------------------------------------------------
Shares issued for service                 1,000,000       1,000          40,189
--------------------------------------------------------------------------------
2:1 Stock split                          18,407,362      18,408         (18,408)
--------------------------------------------------------------------------------
Shares issued for service, net
  of issue costs (15,526)                 7,500,000       7,500         314,973
--------------------------------------------------------------------------------
2:1 Stock split                          44,314,714      44,315         (44,314)
--------------------------------------------------------------------------------
Private Placement, net of issue
  costs (153,740)                         1,130,000       1,130       1,766,130
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
Balance June 30, 2006                    89,759,428     $89,759      $4,908,354
--------------------------------------------------------------------------------

At the annual general meeting held on July 18, 2006, the shareholders of the
Company voted in favor of increasing the authorized common shares to
300,000,000.

On January 13, 2006 16,000,000 shares were issued pursuant to two private
placements for which a portion closed December 22, 2005 (13,650,000 shares for
gross proceeds of $300,000 - Note 9) and December 30, 2005 (910,000 shares,
$500,000) respectively reported as "Shares to be Issued" at December 31, 2005 in
the amount of $773,637 (net of share issue costs of $26,363) as the share
certificates were not issued until January 13, 2006.

The Company closed a private placement in January for 933,324 common shares at a
price of $1.50 per share for gross proceeds of $1,400,000.

The Company issued 1,000,000 common shares to settle debt of $41,189 (Note 5)
pursuant to the stock for services compensation plan. A beneficial conversion
feature of $808,811 was calculated on the debt for the year ended December 31,
2005 representing the difference between the conversion price and the fair value
of the common stock at the commitment date. This amount is recorded as interest
expense and an increase in additional paid in capital for the year ended
December 31, 2005.

On February 20, 2006 the Company's stock split forward by paying a stock
dividend to our existing shareholders. All shareholders of record on February
14, 2006 received 1 dividend share for every share they owned amounting to
18,407,362 shares of common stock issued.

During 2006, the Company issued 7,500,000 common shares, pursuant to an S8
registration, for services provided to the Company for corporate development
that have been recorded under the provisions of SFAS No. 123R relating to
transactions with non-employees where the fair value of the shares issued
$337,500 (Note 8) has been recorded as a Compensation Expense and an increase in
Additional Paid In Capital ,less share issue costs of $15,526.


                                       10
<PAGE>

On May 1, 2006 the Company's stock split forward by paying a stock dividend to
our existing shareholders. All shareholders of record on April 28, 2006 received
1 dividend share for every share they owned amounting to 44,314,714 shares of
common stock issued.

The Company closed a private placement in June for 1,130,000 units at a price of
$1.70 per unit for gross proceeds of $1,921,000. Each unit entitled the
subscriber to one common share of the Company and one warrant. An amount of
$85,000 is included in Other Receivables as receivable from a subscriber at June
30, 2006.

Warrants

Pursuant to a private placement in June, 2006 the Company has 1,130,000 warrants
outstanding as of June 30, 2006. Each warrant entitles the warrant holder to
exchange one warrant for one common share at a price of $2.50 until June 30,
2008 and $3.50 from July 1, 2008 to June 30, 2011.


8.   RELATED PARTY TRANSACTIONS

An officer-director acquired 150,000 shares, post split, of the common capital
stock issued at the emergence from bankruptcy on April 7, 2004, for $25,000.

Officers and directors of the Company purchased 10,200,000 shares of the common
capital stock of the Company on December 22, 2005 at $0.02 per share for
$204,000. These shares were not issued by the Transfer Agent until January 13,
2006 and were reflected in shareholders' equity as part of the caption "Shares
to be Issued" at December 31, 2005.

For the six months ended June 30, 2006, the Company paid Sicamous Oil & Gas
Consultants $41,003 (2005 - Nil) for consulting services rendered by the COO.
Sicamous Oil & Gas Consultants is a company owned by our Chief Operating
Officer, Mr. William Tighe. Included in Accounts Payable is an amount of $7,027
(2005 - Nil) payable to Sicamous Oil & Gas Consultants.

For the six months ended June 30, 2006, the Company paid MHC Corporation $26,837
(2005 - Nil) for consulting services rendered by the CEO. MHC Corporation is a
company owned by our Chief Executive Officer, Mark Hlady. Included in Accounts
Payable is an amount of $4,392 (2005 - Nil) payable to MHC Corporation.

During the six months ended June 30, 2006 the Company paid $16,087 (December 31,
2005 -$131,156) to companies which beneficially own 8.1% of the Company for
investor relations services. Investor relations services in the amount of
$16,087 (2005 - Nil) are included in Administrative Expenses and a retainer in
the amount of $25,000 in Prepaid Expenses (December 31, 2005 $54,793 are
included in Administrative Expense and $26,363 were commissions on a private
placement included in Additional Paid in Capital and a retainer in the amount of
$50,000 in Prepaid Expenses).

During the six months ended June 30, 2006 the Company paid 2,000,000 shares for
service to an individual whom beneficially owns 8.1% of the Company for
corporate development services. The shares were valued at $90,000 and were
recorded as Compensation Expense and an addition to Additional Paid in Capital.

Included in other receivables at June 30, 2006 $8,538 was due from officers and
other related parties for fees paid by the Company in excess of consulting
services provided.



                                       11
<PAGE>


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

All statements contained herein that are not historical facts, including, but
not limited to, statements regarding the Company's current business strategy,
the Company's projected sources and uses of cash, and the Company's plans for
future development and operations, are based upon current expectations. These
statements are forward-looking in nature and involve a number of risks and
uncertainties. Actual results may differ materially. Among the factors that
could cause actual results to differ materially are the following: the
availability of sufficient capital to finance the Company's business plans on
terms satisfactory to the Company; competitive factors; changes in labor,
equipment and capital costs; changes in regulations affecting the Company's
business; future acquisitions or strategic partnerships; general business and
economic conditions; and factors described from time to time in the reports
filed by the Company with the Securities and Exchange Commission. The Company
cautions readers not to place undue reliance on any such forward-looking
statements, which statements are made pursuant to the Private Litigation Reform
Act of 1995 and, as a result, are pertinent only as of the date made.

PLAN OF OPERATION

The Company had no revenue for the quarters ended June 30, 2006 or 2005. In the
next twelve months Kodiak plans to progressively and methodically develop its
asset base.

Canada
Kodiak drilled two wells in March of 2006 on the Manyberries property. Kodiak
has negotiated an agreement whereby the Company will earn 100% of the project
after drilling 3 shallow gas wells. To date, 2 wells have been drilled and one
recompleted and a substantial amount of seismic information purchased and
processed. We expect to drill the third well in the third quarter of 2006. In
the next twelve months we plan to drill more shallow gas wells and complete a 3D
seismic program to prove the existence of deeper oil plays. Upon confirmation of
sufficient reserves, pipelines will be constructed to tie the wells into
existing systems.

For the Granlea (Province) property a 2D seismic program was completed, a well
drilled/completed to the Sawtooth formation and a completion of a pipeline tie
in is expected in late Q3. The well will be placed on production at that time.
Based on production results, additional drilling and land acquisitions in the
area will be discussed with our joint venture partner.

Montana
Our partner is the operator of the Montana shallow gas project and three
drilling locations have been identified. They are in the process of obtaining
the last license, and equipment has been sourced. We expect drilling to commence
in the third quarter of 2006. Subsequent to the drilling, any successful wells
will be tied into existing facilities in the third quarter of 2006. We have
allocated approximately $400,000 for this project for the 3nd quarter of 2006.


                                       12
<PAGE>


Utah
Kodiak has signed a letter of intent with Flair Petroleum (Reibanc USA) for 22%
of a Heavy Oil Project. Subject to, and subsequent to, due diligence on the
leases and an executed joint venture agreement, Kodiak will fund up to
$2,000,000 for a feasibility study consisting of geological work, preliminary
engineering and studies, to support the subsequent development of the project.
This work would take approximately 18 to 24 months to complete, once initiated.

Financial Condition and Changes in Financial Condition

The Company had no revenues for the quarter ended June 30, 2006.

Net Loss for the quarter ended June 30, 2006 totaled $578,001. The majority of
the net loss relates to $337,500 for common shares issued for services provided
to the Company that have been recorded under the provisions of SFAS No. 123R
relating to transactions with non-employees where the fair value of the services
rendered has been recorded as an expense with an increase in capital in excess
par. Other administrative expenses relate to consulting, public company
expenses, audit fees, general and administration and legal.

Net loss for the quarter ended June 30, 2005 totaled $1,359. The expenses relate
to general and administrative costs.

Liquidity and Capital Resources:

Since inception to June 30, 2006, we have funded our operations from the sale of
securities and loans from shareholders.

As of June 30, 2006, our assets totaled $3,366,013, which consisted primarily of
cash from the June private placement, oil and gas rights and land in Canada and
Montana. Our total liabilities were $385,624, which were primarily accounts
payable for administrative expenses and for financing costs for the June private
placement. We had stockholders' equity of $2,930,580.

On January 20, 2006 Kodiak raised gross proceeds of $1,400,000 through the sale
of 933,324 common shares at a price of $1.50 per share. Kodiak Energy used the
funds for drilling 2 wells at the Manyberries property, and general corporate
purposes.

On June 30 Kodiak Energy raised gross proceeds of $1,921,000 through the sale of
1,130,000 units at a price of $1.70 per share. The units consisted of one common
share and one warrant to purchase a share for $2.50 until June 30, 2008 and
$3.50 from July 1, 2008 until June 30, 2011. The funds will be used for further
development of the Company's land holdings as well as general corporate
purposes. As at June 30, 2006 the working capital was $1,737,871.

RAISING CAPITAL

The Company currently lacks the capital resources to fully implement and carry
out its business plan as described herein. At some point in the future we expect
to raise additional capital, either through debt, equity or any combination
thereof. In the event that additional capital is raised at some time in the
future, existing shareholders will experience dilution of their interest in the
Company.

ITEM 3.  CONTROLS AND PROCEDURES

Restatement

During the process of preparing for the Company's third quarter financial report
the CFO identified rrors in the accounting records that originated in the fourth
quarter of 2005, the first quarter ended March 31, 2006 and the second quarter
ended June 30, 2006. The errors arose as a result of a lack of adequate
procedures and documentation necessary to ensure that records were maintained in
reasonable detail to fairly reflect the transactions of the Company in the start
up phase of operations.

After discussing these matters with management the CFO recommended to the Audit
Committee that previously reported financial results be restated to reflect
correction of these errors. The Audit Committee agreed with this recommendation.
Pursuant to the recommendation of the Audit Committee, the Board of Directors
determined at its meeting on November 3, 2006, that previously reported results
for the Company be restated to correct these errors and, in light of the
restatement, that the financial statements and other information referred to
above should no longer be relied upon.


                                       13
<PAGE>

Evaluation of Disclosure Controls and Procedures

The CFO evaluated the disclosure controls and procedures and identified a lack
of sufficient procedures, documentation and qualified personnel to ensure the
records fairly reflected the transactions of the Company resulting in a material
weakness in the Company's internal control over financial reporting. Solely as a
result of the material weakness, management concluded that the disclosure
controls and procedures were not effective as of December 31, 2005, March 31,
2006 or June 30, 2006.

Remediation of Material Weakness in Internal Control

As of the date of this filing the CFO is in the process of designing disclosure
controls and procedures to be implemented to ensure the records fairly reflect
the transactions of the Company. The remedial actions include:

      *   Designing adequate disclosure controls and procedures for the Company
      *   Implementing the disclosure controls and procedures
      *   Testing the effectiveness of the implemented disclosure controls and
          procedures
      *   Reporting the results of the tests of effectiveness to management,
          Audit Committee and Board of Directors

In connection with the amended Form 10-K, under the direction of the Chief
Executive Officer and Chief Financial Officer, we have evaluated our disclosure
controls and procedures as currently in effect, including the remedial actions
discussed above, and we have concluded that, as of this date, our disclosure
controls and procedures are not effective.

As previously reported, there was no change in our internal control over
financial reporting during the quarter year ended December 31, 2005, that
materially affected, or is reasonably likely to materially affect, our internal
control over financial reporting. However, subsequent to June 30, 2006, we are
taking the remedial actions described above.



















                                       14
<PAGE>


                           PART II - OTHER INFORMATION


ITEM 1.  LEGAL PROCEEDINGS

None.

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

On January 20, 2006, pursuant to subscription agreements, we closed a private
placement to two investors of an aggregate of 933,334 common shares at a price
of US$1.50 per share, for total proceeds of US$1,400,000. The common shares were
issued pursuant to Regulation S ("Regulation S") under the Securities Act of
1933, as amended (the "1933 Act").

On June 30 Kodiak raised gross proceeds of $1,921,000 through the sale of
1,130,000 units at a price of $1.70 per share. The units consisted of one common
share and one warrant to purchase a share for $2.50 until June 30, 2008 and
$3.50 from July 1, 2008 until June 30, 2011. The common shares were issued
pursuant to Regulation S ("Regulation S") under the Securities Act of 1933, as
amended (the "1933 Act").

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

None.

Item 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

On July 18, 2006, Kodiak Energy held its annual shareholders meeting. At the
meeting the shareholders voted in favour of four proposals put to them, listed
below.

The shareholders elected the following persons to act as directors until the
next meeting of the shareholders; Mark Hlady, William Tighe, Glenn Watt, Peter
Schriber and Marvin Jones.

The shareholders approved the stock option plan of Kodiak Energy, Inc.

The shareholders approved an amendment to the certificate of incorporation to
change the name of the company to "Kodiak Petroleum Ltd.

The shareholders also approved an amendment to the certificate of incorporation
to increase the number of shares of authorized common stock from 100,000,000 to
300,000,000.

Item 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

EXHIBITS

   31.1 - Certification of President Pursuant to Section 302 of the
          Sarbanes-Oxley Act of 2002

   31.2 - Certification of Chief Financial Officer to Section 302 of the
          Sarbanes-Oxley Act of 2002

   32   - Certification of President and Chief Financial Officer Pursuant to
          Section 906 of the Sarbanes-Oxley Act of 2002

REPORTS ON FORM 8-K

On April 27, 2006 we filed an 8K under item 5.02 Election of Directors and
Appointment of Principal Officers.


                                       15
<PAGE>


                                   SIGNATURES
                                   ----------

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                              KODIAK ENERGY, INC.
                                               (Registrant)


Dated: December 13, 2006                      By: /s/  Mark Hlady
                                              ----------------------------------
                                              Mark Hlady
                                              CEO, CFO and Chairman































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