---

UNITED STATESSECURITIES
AND EXCHANGE COMMISSIONWashington, DC 20549

FORM 10-QSB

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

For the quarterly period ended December 31, 2007

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

000-30087Commission file number

AMG OIL LTD.(Exact
name of Small Business Issuer as Specified in its Charter)

|State of Nevada                   | N/A                   
|--------------------------------- | ----------------------
|(State or other jurisdiction      | (I.R.S. Employer      
|of Incorporation or Organization) | Identification Number)

2800-600 17th Street,South Denver, CO.
80202-5428(Address of Principal Executive Offices)

(303) 226-5889(Issuer's Telephone Number)

Check whether the issuer (1) filed all reports required to be
filed by Section 13 or 15(d) of the Exchange Act 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 shell company
(as defined in Rule 12b-2 of the Exchange Act). Yes [X]   No
[   ]

State the number of shares outstanding of each of the issuer's
classes of common equity, as of the latest practicable date.Common
stock, $.00001 par value per share: 23,200,000 outstanding as of February
14, 2008.

Transitional Small Business Disclosure Format (check one): Yes
  [   ]   No [X]

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AMG OIL LTD.

Quarterly Report On Form 10-QSB

For The Quarterly Period Ended December 31, 2007

INDEX

|PART I - FINANCIAL INFORMATION                                           
|-------------------------------------------------------------------------
|Item 1. Financial Statements                                             
|Item 2. Managements Discussion and Analysis                             
|Item 3. Controls and Procedures                                          
|                                                                         
|PART II  OTHER INFORMATION                                              
|Item 1. Legal Proceedings                                                
|Item 2. Unregistered Sales of Equity Securities and Use
      of Proceeds
|Item 3. Defaults Upon Senior Securities                                  
|Item 4. Submission of Matters to a vote of Securities Holders            
|Item 5. Other Information                                                
|Item 6. Exhibits                                                         
|                                                                         
|SIGNATURES                                                               

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PART I  FINANCIAL INFORMATION

Item 1. Financial Statements

The following unaudited interim financial statements of AMG Oil
Ltd. (the Company) are included in this Quarterly Report on Form 10-QSB:

|                                                                                                               | Page
|-------------------------------------------------------------------------------------------------------------- | ----
|Interim
      Balance Sheets as of December 31, 2007                                                           | F-1 
|Interim
      Statements of Operations for the three months ended December 31, 2007 and
      2006             | F-2 
|Interim
      Statements of Changes in Stockholders Equity for the three months ended
      December 31, 2007 | F-3 
|Interim
      Statements of Cash Flows for the three months ended December 31, 2007 and
      2006             | F-4 
|Notes
      to the Interim Financial Statements                                                                | F-5 

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|AMG OIL LTD.                              
|------------------------------------------
|(An Exploration Stage Enterprise)         
|Interim Balance Sheets                    
|(Expressed in
      United States Dollars)

|                                                 |   | December 31, |   |   | December 31, |   |   | September 30, |  
|------------------------------------------------ | - | ------------ | - | - | ------------ | - | - | ------------- | -
|                                                 |   | 2007         |   |   | 2006         |   |   | 2007          |  
|                                                 |   | (Unaudited)  |   |   | (Unaudited)  |   |   | (Audited)     |  
|Assets                                           |   |              |   |   |              |   |   |               |  
|                                                 |   |              |   |   |              |   |   |               |  
|Current                                          |   |              |   |   |              |   |   |               |  
|                                                 |   |              |   |   |              |   |   |               |  
|Cash and cash equivalents                        | $ | 1,300,558    |   | $ | 1,345,501    |   | $ | 1,318,132     |  
|Prepaid expenses                                 |   | -            |   |   | -            |   |   | 150           |  
|                                                 |   |              |   |   |              |   |   |               |  
|Total Current
      Assets and Total Assets      | $ | 1,300,558    |   | $ | 1,345,501    |   | $ | 1,318,282     |  
|                                                 |   |              |   |   |              |   |   |               |  
|Current Liabilities                              |   |              |   |   |              |   |   |               |  
|                                                 |   |              |   |   |              |   |   |               |  
|Accounts payable and accrued liabilities         | $ | 8,000        |   | $ | 8,000        |   | $ | 8,155         |  
|Due to related parties (Note 4)                  |   | 7,783        |   |   | 4,907        |   |   | 2,535         |  
|                                                 |   |              |   |   |              |   |   |               |  
|Total Current Liabilities and Total Liabilities  |   | 15,783       |   |   | 12,907       |   |   | 10,690        |  
|                                                 |   |              |   |   |              |   |   |               |  
|Commitments and Contingencies (Note
      1)     |   | -            |   |   | -            |   |   | -             |  
|                                                 |   |              |   |   |              |   |   |               |  
|Stockholders Equity                             |   |              |   |   |              |   |   |               |  
|Common voting stock (Note 3) $0.00001 par value  |   |              |   |   |              |   |   |               |  
|100,000,000 shares authorized                    |   |              |   |   |              |   |   |               |  
|Issued and outstanding at September 30, and      |   |              |   |   |              |   |   |               |  
|December 31:                                     |   |              |   |   |              |   |   |               |  
|2007: 23,200,000 shares                          |   |              |   |   |              |   |   |               |  
|2006: 23,200,000 shares                          |   | 232          |   |   | 232          |   |   | 232           |  
|Additional paid-in capital                       |   | 4,194,600    |   |   | 4,194,600    |   |   | 4,194,600     |  
|Deficit accumulated during the exploration stage |   | (2,910,057   | ) |   | (2,862,238   | ) |   | (2,887,240    | )
|                                                 |   |              |   |   |              |   |   |               |  
|Total Stockholders Equity                       |   | 1,284,775    |   |   | 1,332,594    |   |   | 1,307,592     |  
|                                                 |   |              |   |   |              |   |   |               |  
|Total Liabilities and Stockholders Equity       | $ | 1,300,558    |   | $ | 1,345,501    |   | $ | 1,318,282     |  

See accompanying notes to the interim financial statements
F1

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|AMG OIL LTD.                              
|------------------------------------------
|(An Exploration Stage Enterprise)         
|Interim Statements of Operations          
|(Unaudited)                               
|(Expressed in
      United States Dollars)

|                                      |   |              |   |   |              |   |   | Cumulative      |  
|------------------------------------- | - | ------------ | - | - | ------------ | - | - | --------------- | -
|                                      |   |              |   |   |              |   |   | from Inception  |  
|                                      |   | Three Months |   |   | Three Months |   |   | on February 20, |  
|                                      |   | Ended        |   |   | Ended        |   |   | 1997 to         |  
|                                      |   | December 31, |   |   | December 31, |   |   | December 31,    |  
|                                      |   | 2007         |   |   | 2006         |   |   | 2007            |  
|                                      |   |              |   |   |              |   |   |                 |  
|Expenses                              |   |              |   |   |              |   |   |                 |  
|                                      |   |              |   |   |              |   |   |                 |  
|General and administrative            | $ | 38,124       |   | $ | 16,455       |   | $ | 1,012,405       |  
|Loss on sale of investments           |   | -            |   |   | -            |   |   | 17,820          |  
|Write-down of investments             |   | -            |   |   | -            |   |   | 234,780         |  
|Write-off of loan
      receivable    |   | -            |   |   | -            |   |   | 30,000          |  
|                                      |   |              |   |   |              |   |   |                 |  
|Total expenses                        |   | (38,124      | ) |   | (16,455      | ) |   | (1,295,005      | )
|                                      |   |              |   |   |              |   |   |                 |  
|Other Income                          |   |              |   |   |              |   |   |                 |  
|Interest                              |   | 15,307       |   |   | 16,127       |   |   | 172,358         |  
|                                      |   |              |   |   |              |   |   |                 |  
|Net loss from continuing operations   |   | (22,817      | ) |   | (328         | ) |   | (1,122,647      | )
|                                      |   |              |   |   |              |   |   |                 |  
|Net loss from discontinued operations |   | -            |   |   | -            |   |   | (1,787,410      | )
|                                      |   |              |   |   |              |   |   |                 |  
|Net loss                              | $ | (22,817      | ) | $ | (328         | ) | $ | (2,910,057      | )
|                                      |   |              |   |   |              |   |   |                 |  
|Basic loss per share:                 |   |              |   |   |              |   |   |                 |  
|From continuing
      operations      | $ | (0.00        | ) | $ | (0.00        | ) |   |                 |  
|From discontinued
      operations    |   | (0.00        | ) |   | (0.00        | ) |   |                 |  
|                                      | $ | (0.00        | ) | $ | (0.00        | ) |   |                 |  
|                                      |   |              |   |   |              |   |   |                 |  
|Weighted average number of            |   |              |   |   |              |   |   |                 |  
|common shares outstanding             |   | 23,200,000   |   |   | 23,200,000   |   |   |                 |  

See accompanying notes to the interim financial statements
F2

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|AMG OIL LTD.                                               
|-----------------------------------------------------------
|(An Exploration Stage Enterprise)                          
|Interim Statements of Changes in Stockholders
      Equity
|(Unaudited)                                                
|(Expressed in
      United States Dollars)                 
|                                                           
|For the Three
      Months Ended December 31, 2007         

DeficitAccumulatedAdditional
      
      
      During the
      
      
      TotalCommon
        Stock
      
      
      Paid-in
      
      
      Exploration
      
      
      StockholdersShares
      
      
      Amount
      
      
      Capital
      
      
      Stage
      
      
      EquityBalance at September 30, 2007
      
      23,200,000
      
      $
      232
      
      $
      4,194,600
      
      $
      (2,887,240
      )
      $
      1,307,592Net loss during the period
      
      -
      
      
      -
      
      
      -
      
      
      (22,817
      )
      
      (22,817
      )Balance at December 31, 2007
      
      23,200,000
      
      $
      232
      
      $
      4,194,600
      
      $
      (2,910,057
      )
      $
      1,284,775


See accompanying notes to the interim financial statements
F3

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|AMG OIL LTD.                              
|------------------------------------------
|(An Exploration Stage Enterprise)         
|Interim Statements of Cash Flows          
|(Unaudited)                               
|(Expressed in
      United States Dollars)

|                                                |   |              |   |   |              |   |   | Cumulative        |  
|----------------------------------------------- | - | ------------ | - | - | ------------ | - | - | ----------------- | -
|                                                |   | Three Months |   |   | Three Months |   |   | from Inception    |  
|                                                |   | Ended        |   |   | Ended        |   |   | on February 20,   |  
|                                                |   | December 31, |   |   | December 31, |   |   | 1997 to           |  
|                                                |   | 2007         |   |   | 2006         |   |   | December 31, 2007 |  
|Cash provided by (used in):                     |   |              |   |   |              |   |   |                   |  
|Operating Activities                            |   |              |   |   |              |   |   |                   |  
|Net loss from continuing operations             | $ | (22,817      | ) | $ | (328         | ) | $ | (1,122,647        | )
|Adjustments to reconcile net loss to            |   |              |   |   |              |   |   |                   |  
|cash used in operating activities:              |   |              |   |   |              |   |   |                   |  
|Depreciation                                    |   | -            |   |   | -            |   |   | 5,889             |  
|Net compensation expense from stock             |   |              |   |   |              |   |   |                   |  
|options                                         |   | -            |   |   | -            |   |   | 184,875           |  
|Loss on sale of investments                     |   | -            |   |   | -            |   |   | 17,820            |  
|Write-down of investments                       |   | -            |   |   | -            |   |   | 234,780           |  
|Write-off of loan receivable                    |   | -            |   |   | -            |   |   | 30,000            |  
|Changes in non-cash working capital:            |   |              |   |   |              |   |   |                   |  
|Accounts payable and accrued
      liabilities  |   | (155         | ) |   | (4,522       | ) |   | 8,000             |  
|Due to related parties                          |   | 5,248        |   |   | 2,069        |   |   | (14,451           | )
|Prepaid expenses                                |   | 150          |   |   | -            |   |   | -                 |  
|Net cash used in continuing operations          |   | (17,574      | ) |   | (2,781       | ) |   | (655,734          | )
|Net cash used in discontinued operations        |   | -            |   |   | -            |   |   | 60,405            |  
|Net cash used in
      operating activities     |   | (17,574      | ) |   | (2,781       | ) |   | (595,329          | )
|Financing Activities                            |   |              |   |   |              |   |   |                   |  
|Common shares issued for cash                   |   | -            |   |   | -            |   |   | 4,039,957         |  
|Common shares re-purchased with cash            |   | -            |   |   | -            |   |   | (30,000           | )
|Net cash provided
      by financing activities |   | -            |   |   | -            |   |   | 4,009,957         |  
|Investing Activities                            |   |              |   |   |              |   |   |                   |  
|Loan receivable                                 |   | -            |   |   | -            |   |   | (30,000           | )
|Purchase of investments                         |   | -            |   |   | -            |   |   | (324,856          | )
|Proceeds from sale of investments               |   | -            |   |   | -            |   |   | 82,256            |  
|Oil and gas exploration expenditures            |   | -            |   |   | -            |   |   | (1,835,581        | )
|Purchase of
      property and equipment        |   | -            |   |   | -            |   |   | (5,889            | )
|Net cash used in investing activities           |   | -            |   |   | -            |   |   | (2,114,070        | )
|Net increase (decrease) in cash                 |   |              |   |   |              |   |   |                   |  
|during the period                               |   | (17,574      | ) |   | (2,781       | ) |   | 1,300,558         |  
|Cash position -
      Beginning of period       |   | 1,318,132    |   |   | 1,348,282    |   |   | -                 |  
|Cash position  End of period                   | $ | 1,300,558    |   | $ | 1,345,501    |   | $ | 1,300,558         |  
|Supplemental disclosure of net-cash for         |   |              |   |   |              |   |   |                   |  
|discontinued operations:                        |   |              |   |   |              |   |   |                   |  
|Net loss from discontinued operations           | $ | -            |   | $ | -            |   | $ | (1,787,410        | )
|Gain on forgiveness of debt                     |   | -            |   |   | -            |   |   | 22,234            |  
|Write-off of oil and gas interest               |   | -            |   |   | -            |   |   | 1,832,520         |  
|Gain on sale of oil and gas interest            |   | -            |   |   | -            |   |   | (6,939            | )
|Net cash used in
      discontinued items       |   | -            |   |   | -            |   |   | 60,405            |  
|Supplemental disclosure of non-cash             |   |              |   |   |              |   |   |                   |  
|investing activities:                           |   |              |   |   |              |   |   |                   |  
|Purchase of investments                         | $ | -            |   | $ | -            |   | $ | (10,000           | )

See accompanying notes to the interim financial statements
F4

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|AMG OIL LTD.                                               
|-----------------------------------------------------------
|(An Exploration Stage Enterprise)                          
|Notes to the Interim Financial Statements                  
|(unaudited 
      Prepared by Management)                 
|                                                           
|For the Three
      Months Ended December 31, 2007 and 2006

NOTE 1 - NATURE OF OPERATIONS AND CONTINGENCIES

The plan of operations for the Company is to acquire a business
either through purchase, merger, consolidation, application or other means, so
that the Company would cease being a shell company. Initially, management of the
Company anticipates concentrating its efforts on locating and acquiring a
business, properties, or other assets, or combination thereof, in the oil and
gas industry, although management may cause us to attempt to acquire a business
in another area. However, there can be no assurance that the Company will be
able to find a suitable business to acquire, successfully negotiate the terms of
any acquisition, or have the assets to complete any transaction.

These financial statements have been prepared in accordance
with generally accepted accounting principles in the United States on a going
concern basis, which contemplates the realization of assets and the liquidation
of liabilities in the ordinary course of business. They do not include any
adjustments to the recoverability and classification of recorded assets amounts
and liabilities that might be necessary should the Company be unable to continue
as a going concern. The Company has no revenue producing operations and has
incurred recurring operating losses and an accumulated deficit of $2,910,057 at
December 31, 2007. These factors, among others, raise substantial doubt about
the Companys ability to be able to continue as a going concern. The future of
the Company and the realization of its asset values will depend upon the
Companys ability to obtain adequate financing and continuing support from
stockholders and creditors to attain profitable operations. The Company has no
significant commitments or contractual obligations with any parties respecting
executive compensation, consulting arrangements or other matters, except as
disclosed.

The Company is an exploration stage enterprise and is required
to identify that these financial statements are those of an exploration stage
enterprise in accordance with paragraph 12 of Statement of Financial Accounting
Standards No. 7 and is focusing on acquiring suitable resource-based assets.

NOTE 2 - ACCOUNTING PRINCIPLES AND USE OF ESTIMATES

The accompanying unaudited interim financial statements of AMG
  Oil Ltd. have been prepared in accordance with generally accepted accounting
  principles for interim financial information and the instructions to Form 10-QSB
  as prescribed by the Securities and Exchange Commission. This form 10-QSB should
  be read in conjunction with the Companys September 30, 2007 Form 10-KSB.
  All material adjustments which, in the opinion of management, are necessary
  for a fair presentation of the results for the interim periods have been reflected.
  The results of the three months ended December 31, 2007 are not necessarily
  indicative of the results to be expected for the full year.

F5

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NOTE 3 - COMMON STOCK

Authorized and Issued Share Capital

The authorized share capital of the Company is 100,000,000
shares of common stock with a par value of $0.00001 per share.

|                                                     |  | Number          |  |   | Stated    | 
|---------------------------------------------------- |  | --------------- |  | - | --------- | 
|Issued and fully paid:                               |  | of
      Shares |  |   | Value     | 
|Balance at September 30, 2007 and December
      31, |  | 23,200,000      |  | $ | 4,194,832 | 

Share Purchase Warrants

Stock Options

At December 31, 2007, the following stock options are
outstanding:

Number
    
    Price
    
    ExpiryOf Shares
    
    per
      Share
    
    Date396,000
    
    $0.25
    
    February 28, 2008


At December 31, 2007, the following share purchase warrants are
outstanding:

Number
    
    Price
    
    ExpiryOf Shares
    
    per
      Share
    
    Date6,600,000
    
    $0.50
    
    February 28, 2008


NOTE 4  RELATED PARTY TRANSACTIONS

During the three months ended December 31, 2007, the Company
incurred $17,948 (December 31, 2006: $12,178) of mainly general and
administrative costs through DLJ Management Corp., (DLJ), a wholly owned
subsidiary of Trans-Orient Petroleum Ltd. (Trans-Orient). The amount
represents costs incurred by DLJ on behalf of the Company. At December 31, 2007
the Company owes DLJ $7,783 (December 31, 2006: $4,907). Trans-Orient is related
to the Company through a common director and DLJ Management Corp., employs a
director of the Company.

During the three months ended December 31, 2007 two Directors
were paid $5,866 (2006: $2,740) of which $4,866 was paid indirectly through DLJ
for time spent on the Company.

NOTE 5  LOSS PER SHARE

Loss per share is calculated using the weighted-average number
of commons shares outstanding during the period. Diluted loss per share is not
presented, as it is anti-dilutive.

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ITEM
2.           MANAGEMENTS
DISCUSSION and ANALYSIS

The following discussion of our financial condition, changes in
financial condition and results of operations for the three months ended
December 31, 2007 should be read in conjunction with our unaudited consolidated
interim financial statements and related notes for the three months ended
December 31, 2007.

Forward Looking Statements

Certain information in this report including statements made in
"Management's Discussion and Analysis", "Description of Business" and elsewhere
contain "forward-looking statements". All statements other than statements of
historical fact are "forward-looking statements", including any projections of
earnings, revenues or other financial items, any statements of the plans and
objectives of management for future operations, any statements concerning
proposed new products or services, any statements regarding future economic
conditions or performance, and any statements of assumptions underlying any of
the foregoing. In some cases, forward-looking statements can be identified by
the use of terminology such as "may," "will," "expects," "plans," "anticipates,"
"estimates," "potential," or "continue," or the negative thereof or other
comparable terminology. Although AMG Oil Ltd believes that the expectations
reflected in its forward-looking statements are reasonable, it can give no
assurance that such expectations or any of its forward-looking statements will
prove to be correct, and actual results could differ materially from those
projected or assumed in these forward-looking statements.

Forward-looking statements include but are not limited to:

- AMG Oil Ltds ability to implement successfully its operating strategy;
- Future financial performance as estimated in AMG Oil Ltds financial
  projections;
- AMG Oil Ltds forecasts of market demand; and,
- Highly competitive market conditions.

This list of categories of forward-looking statements should
not be construed as exhaustive. AMG Oil Ltd will not update or revise any
forward-looking statements.

The following discussion contains forward-looking statements
that involve risks, uncertainties and assumptions. Our actual results may differ
materially from those anticipated in these forward-looking statements as a
result of many factors, including, but not limited to, those set forth under
Risk Factors in our annual report on Form 10-KSB for the year ended September
30, 2007, elsewhere in that report and in this quarterly report.

Going Concern

Our financial statements have been prepared in accordance with
generally accepted accounting principles in the United States on a going concern
basis, which contemplates the realization of assets and the liquidation of
liabilities in the ordinary course of business. They do not include any
adjustments to the recoverability and classification of recorded asset amounts
and liabilities that might be necessary should we be unable to continue as a
going concern. We have incurred recurring operating losses and have an

---

accumulated deficit of $2,910,057. These factors, among others,
raise substantial doubt about our ability to be able to continue as a going
concern. The future of our company will depend upon our ability to obtain
adequate financing, acquire a suitable resource based asset and maintain
continuing support from shareholders and creditors to attain profitable
operations.

Description of Business

Overview

The Registrant was previously engaged in the acquisition and
exploration of resource properties, but has been inactive since 2003. Currently,
the Registrants only asset is cash. Accordingly, the Registrant is a shell
company within the meaning assigned that term in Rule 12b-2 of the Securities
Exchange Act of 1934, as amended (the Exchange Act).

The Registrant is administered through its corporate office
located at 600 17th Street, Suite 2800, South Denver, CO, USA
80202-5428. The Registrants telephone number is (303) 226-5889.

Corporate History

The Registrant was incorporated on February 20, 1997 under the
name "Trans New Zealand Oil Company" by filing its Articles of Incorporation
with the Secretary of State of Nevada. The Registrant changed its name to AMG
Oil Ltd. on July 27, 1998. The Registrant's fiscal year end is September 30.

From 1999 to 2003, the Registrant was modestly active in
seeking suitable oil and gas properties for exploration and development in New
Zealand. It withdrew from the New Zealand exploration permit during the 2003
fiscal year, and assigned its interest to the other participants in the
permit.

On February 1, 2006, the British Columbia Securities Commission
granted the Registrants application to be designated as a reporting issuer
under the Securities Act (British Columbia). Accordingly, the Registrant and its
insiders are now subject to the continuous disclosure requirements under the
securities laws of the Province of British Columbia, Canada.

Current Status

The Registrant does not receive any revenue from its
discontinued oil and gas operations in New Zealand and has no significant
assets, tangible or intangible other than cash. The Registrant has no history of
earnings and there is no assurance that the business of the Registrant will be
profitable. As at the end of the quarter ended December 31, 2007, the Registrant
has an accumulated deficit of $2,910,057 which includes a loss of $22,817 for
the three month period ending December 31, 2007 and the Registrant is expected
to continue incurring operating losses and accumulating deficits in future
periods. The Registrant has no significant future obligations.

We currently have ongoing obligations with respect to our
corporate operations and we expect to have sufficient capital required to
continue our ongoing activities over the next twelve months.

There can be no assurance that we will earn revenue, operate
profitably or provide a return on investment to our security holders. We now
propose to derive all of our revenue from the intended acquisition of suitable
resource based assets.

---

Employees and Consultants

The Registrant has no employees, with the exception of our sole
executive officer, Mr. Michael Hart, and has not retained the services of any
consultants.

On October 1, 2007, the Company entered into a consulting
agreement to provide advisory services to the Company on an on-going basis that
includes monthly compensation of CDN$5,000 per month.

The Registrant is in the start-up stage and none of the
Registrants executive officers have employment agreements with the Registrant.

Administration Contract

The Registrant receives corporate services from DLJ Management
Corp. (DLJ), a subsidiary of Trans-Orient Petroleum Corp, based on an oral
agreement. The services consist of shareholder relations and communications,
administrative and accounting support. DLJ Management Corp bills monthly for its
services on a cost-recovery basis, billing the Registrant and other companies
for costs already incurred with no mark-up or other such charges, for items such
as labor, rent, office costs, and employee benefits. During the three months
ended December 31, 2007, the Company incurred $17,948 (2006: $12,178) of mainly
general and administrative costs through DLJ. This amount represents costs
incurred by DLJ on behalf of the Company.

Results of Operations

The Company has incurred losses to date of $2,910,057 which
includes a net loss for the first quarter of the 2007 fiscal year of $22,817
versus a first quarter loss of $328 last year.

The Companys loss of $22,817 for the three months ended
December 31, 2007 consisted of general and administrative costs (G&A) of
$38,124 as detailed below. These costs were partially offset by interest income
being received by the Company amounting to $15,307.

Summary of Quarterly Result

Three Month Period Ended
      December 31, 2007 $
    Three Month Period Ended
      September 30, 2007 $
    Three Month Period Ended June
      30, 2007 $
    Three Month Period Ended
      March 31, 2007 $
    Three Month Period Ended
      December 31, 2006 $
    Three Month Period Ended
      Sept. 30, 2006 $
    Three Month Period Ended June
      30, 2006 $
    Three Month Period Ended
      March 31, 2006 $Total Revenue
    -
    -
    -
    -
    -
    -
    -
    -G&A
    (38,124)
    (26,456)
    (17,726)
    (30,003)
    (16,455)
    (23,120)
    (21,380)
    (21,712)Interest Income
    15,307
    16,723
    16,369
    16,091
    16,127
    14,351
    13,125
    4,296Net income (loss) for the period
    (22,817)
    (9,733)
    (1,357)
    (13,912)
    (328)
    (8,769)
    (8,255)
    (17,416)Basic and Diluted loss per share
    (0.00)
    (0.00)
    (0.00)
    (0.00)
    (0.00)
    (0.00)
    (0.00)
    (0.00)


---

In the periods where net losses are incurred, stock options and
share purchase warrants outstanding were not included in the computation of
diluted loss per share as the inclusion of such securities would be
anti-dilutive.

The Company has not had any discontinued operations or
extraordinary items in the past two years, therefore has not shown the impacts
of these on the net loss and basic/diluted loss per share.

A comparative summary of the Companys G&A costs over the
three month period ending December 31, 2007 is as follows:

3 months ended December31,2007
      
      
      2006Filing, listing and transfer
      $
      851
      
      $
      1,457agentConsulting
      
      15,900
      
      
      -Office and administration
      
      8,229
      
      
      5,634Professional fees
      
      636
      
      
      1,802Wages
      
      12,508
      
      
      7,562$
      38,124
      
      $
      16,455


Capital Expenditures

The Company has no material commitments for capital expenditure
  at December 31, 2007 or as of the date of this filing.

Liquidity and Capital Resources

The Company did not conduct any financing or investing activities
  during the three months ended December 31, 2007.

The authorized share capital of the Company is 100,000,000
shares of common stock with a par value of $0.00001 per share. At December 31,
2007, there were 23,200,000 shares (December 31, 2006: 23,200,000) issued and
outstanding, along with 396,000 compensation options and 6,600,000 share
purchase warrants. Please refer to Note 3 of the accompanying interim financial
statements.

At December 31, 2007 our current assets totaled $1,300,558
compared to $1,318,132 at the beginning of the fiscal year. Our current assets
for both periods consisted primarily of cash. Our current liabilities at
December 31, 2007 were $15,783 (September 30, 2007: $10,690). Cash on hand is
currently our only source of liquidity and at the date of this report we feel
that we have sufficient working capital on hand to operate for the next twelve
months. We do not have any lending arrangements in place with banking or
financial institutions and we do not anticipate that we will be able to secure
these funding arrangements in the near future.

Off-Balance Sheet Arrangements and Proposed Transactions

The Company does not have any off-balance sheet
arrangements.

Transactions with Related Parties

Please refer to Note 4 of the accompanying interim financial
statements.

---

Recent Accounting Pronouncements

In February 2007, the FASB issued SFAS No. 159, The Fair Value Option for Financial Assets and Financial Liabilities. This statement permits companies to choose to measure many financial instruments and certain other items at fair value.
This statement expands the use of fair value measurement and applies to companies that elect the fair value option. The fair value option established by this statement permits all entities to choose to measure eligible items at fair value at
specified election dates. This statement is effective as of the beginning of fiscal years that begin after November 15, 2007. SFAS 159 is not expected to have a material impact on the Companys financial position, results of operations or cash
flows.

Controls and Procedures

As required by Rule 13a-15 under the Exchange Act, our management carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of December 31, 2007, being the date of our most recently
completed fiscal quarter. This evaluation was carried out under the supervision and with the participation of our principal executive officer and principal financial officer. Based upon that evaluation, our principal executive officer and principal
financial officer concluded that as of the period covered by this report, our disclosure controls and procedures were effective in recording, processing, summarizing and reporting on a timely basis, information required to be disclosed by us in
reports that we file or submit with under the Exchange Act.

Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is accumulated and communicated to management, including
our principal executive officer and our principal financial officer, to allow timely decisions regarding required disclosure.

During our most recently completed fiscal quarter ended December 31, 2007 there were no changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over
financial reporting.

The term internal control over financial reporting is defined as a process designed by, or under the supervision of, a registrants principal executive and principal financial officers, or persons performing similar functions, and
effected by such registrants board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles and includes those policies and procedures that:

|(a) | Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the registrant;                                                                                                                                                                                 
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                  
|(b) | Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the
registrant are being made only in accordance with authorizations of management and directors of the registrant; and

---

|(c) | Provide reasonable assurance regarding prevention or
      timely detection of unauthorized acquisition, use or disposition of the
      registrants assets that could have a material effect on the financial
      statements.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

PART II OTHER INFORMATION

Legal Proceedings

None.

Unregistered Sales of Equity Securities and Use of Proceeds

None.

Defaults Upon Senior Securities

None.

Submissions of Matters to a Vote of Security Holders

No matters were submitted to our security holders for a vote
during the three months ended December 31, 2007.

Exhibits and Reports on Form 8-K

(a) Exhibits

Exhibit No.
      Description of Exhibit3.1
      Articles of Incorporation,
          as filed February 20, 1997 (1)3.2
      Bylaws (1)3.3
      Articles of Amendment to the
          Articles of Incorporation, as filed on July 27, 1998 (1)10.4
      Consulting agreement with
          PCL (3)31.1
      Certification
          of Principal Executive Officer pursuant to Rule 13a-14 and Rule 15d-14(a),
          promulgated under the Securities and Exchange Act of 1934, as amended.
          (2)31.2
      Certification
          of Principal Financial Officer pursuant to Rule 13a-14 and Rule 15d-14(a),
          promulgated under the Securities and Exchange Act of 1934, as amended.
          (2)32.1
      Certification
          pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906
          of the Sarbanes-Oxley Act of 2002 (Principal Executive Officer) (2)


---

|(1) | Incorporated herein by reference from our Form 10-SB
      registration statement and all amendments thereto filed with the
      Securities and Exchange Commission, and amendments thereto, SEC file No.
      000-30087.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                            
|(2) | Filed as an exhibit to this Quarterly Report on Form
      10-QSB.                                                                                                                                                         
|    |                                                                                                                                                                                                                            
|(3) | Incorporated herein by reference from our Form 10-KSB
      filed on December 26, 2007, for the fiscal year-ended September 30,
      2007.                                                                                

(b) Reports on Form 8-K filed during the quarter.

Additional information relating to the Company is available on
www.sedar.com and www.sec.gov.



SIGNATURES

****In accordance with the requirements of the Exchange Act, the Registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized on this 14th day of February, 2008.

|                        | **AMG OIL LTD.**
|----------------------- | ----------------
|                        | **(Registrant)**
|                        |                 
|Date: February 14, 2008 | BY:             
|                        |                 
|                        |                 
|Date: February 14, 2008 |                 
|                        |                 

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