| Nevada                          |   | 98-0550352          |
|---------------------------------|--------|---------------------|
| (State or other jurisdiction of |   | (IRS Employer       |
| incorporation or organization)  |   | Identification No.) |

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|                                             |         |                                                                                  |         | Page   |
|--------------------------------------------------|--------------|---------------------------------------------------------------------------------------|--------------|--------|
|                                             |         |                                                                                  |         |   |
| PART I – FINANCIAL INFORMATION (Unaudited) |         |                                                                                  |
|                                             |         |                                                                                  |         |   |
| Item 1:                                          |         | Condensed Consolidated Financial Statements                                           |         | 3      |
|                                             |         |                                                                                  |         |   |
| Item 2:                                          |         | Management's Discussion and Analysis of Financial Condition and Results of Operations |         | 17     |
|                                             |         |                                                                                  |         |   |
| Item 3:                                          |         | Quantitative and Qualitative Disclosures About Market Risk                            |         | 21     |
|                                             |         |                                                                                  |         |   |
| Item 4T:                                    |         | Controls and Procedures                                                               |         | 21     |
|                                             |         |                                                                                  |         |   |
| PART II - OTHER INFORMATION                      |         | 22                                                                                    |
|                                             |         |                                                                                  |         |   |
| Item 1:                                          |         | Legal Proceedings                                                                     |         | 22     |
|                                             |         |                                                                                  |         |   |
| Item 1A:                                         |         | Risk Factors                                                                          |         | 22     |
|                                             |         |                                                                                  |         |   |
| Item 2:                                          |         | Unregistered Sales of Equity Securities and Use of Proceeds                           |         | 22     |
|                                             |         |                                                                                  |         |   |
| Item 3:                                          |         | Defaults upon Senior Securities                                                       |         | 22     |
|                                             |         |                                                                                  |         |   |
| Item 4:                                          |         | Submission of Matters to a Vote of Security Holders                                   |         | 22     |
|                                             |         |                                                                                  |         |   |
| Item 5:                                          |         | Other Information                                                                     |         | 22     |
|                                             |         |                                                                                  |         |   |
| Item 6:                                          |    | Exhibits                                                                              |    | 22     |

----

|                                                                                                                                                                        |   | January 31, |       |   | April 30, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|------------|--------|----------------|--------|
|                                                                                                                                                                        |   | 2011             |       |   | 2010           |   |
| ASSETS                                                                                                                                                                      |   |             |       |   |           |   |
| Current assets:                                                                                                                                                             |   |             |       |   |           |   |
| Cash and cash equivalents                                                                                                                                                   |   | $                | 886        |   |           | $      | 3,026 |   |
| Accounts receivable, net of allowance of $10,000 at 4/30/10                                                                                                                 |   |             | 5,000      |   |           |   | 13,150 |   |
| Prepaid expenses                                                                                                                                                            |   |             | 12,223     |   |           |   | 250,733 |   |
| Total current assets                                                                                                                                                        |   |             | 18,109     |   |           |   | 266,909 |   |
| Properties and equipment, at cost:                                                                                                                                          |   |             |       |   |           |   |   |   |
| Proved oil and natural gas properties and equipment                                                                                                                         |   |             | 2,358      |   |           |   | 68,424 |   |
| Accumulated depreciation and amortization                                                                                                                                   |   |             | (52        | )      |           |   | (16,174 | ) |
| Total properties and equipment                                                                                                                                              |   |             | 2,306      |   |           |   | 52,250 |   |
| Deposits and other assets                                                                                                                                                   |   |             | -          |   |           |   | 5,864 |   |
| Total assets                                                                                                                                                                |   | $                | 20,415     |   |           | $      | 325,023 |   |
|                                                                                                                                                                        |   |             |       |   |           |   |   |   |
| LIABILITIES AND STOCKHOLDERS' DEFICIT                                                                                                                                       |   |             |       |   |           |   |   |   |
| Current liabilities:                                                                                                                                                        |   |             |       |   |           |   |   |   |
| Accounts payable                                                                                                                                                            |   |             |       |   |           |   |   |   |
| Trade                                                                                                                                                                       |   | $                | 25,321     |   |           | $      | 13,554 |   |
| Oil and gas proceeds due others                                                                                                                                             |   |             | 368        |   |           |   | 4,990 |   |
| Related parties                                                                                                                                                             |   |             | 21,906     |   |           |   | - |   |
| Advances received from joint interest participants                                                                                                                          |   |             | -          |   |           |   | 33,056 |   |
| Accrued expenses                                                                                                                                                            |   |             | 473        |   |           |   | - |   |
| Accrued interest - related parties                                                                                                                                          |   |             | -          |   |           |   | 49,618 |   |
| Convertible notes payable - principally related parties                                                                                                                     |   |             | 38,678     |   |           |   | 510,476 |   |
| Total current liabilities                                                                                                                                                   |   |             | 86,746     |   |           |   | 611,694 |   |
| Commitments and contingencies                                                                                                                                               |   |             |       |   |           |   |   |   |
|                                                                                                                                                                        |   |             |       |   |           |   |   |   |
| Stockholders' deficit:                                                                                                                                                      |   |             |       |   |           |   |   |   |
| Preferred stock:  $0.001 par value; 100,000,000 shares authorized; no shares issued and outstanding                                                               |   |             | -          |   |           |   | - |   |
| Common stock: $0.001 par value; 100,000,000 shares authorized; 21,554,945 and 17,375,539 shares issued and outstanding at January 31, 2011 and April 30, 2010, respectively |   |             | 21,555     |   |           |   | 17,376 |   |
| Additional paid in capital                                                                                                                                                  |   |             | 2,838,197  |   |           |   | 2,219,708 |   |
| Prepaid officer compensation                                                                                                                                                |   |             | -          |   |           |   | (12,129 | ) |
| Other comprehensive loss                                                                                                                                                    |   |             | -          |   |           |   | (1,000 | ) |
| Deficit accumulated during the exploration stage                                                                                                                            |   |             | (2,926,083 | )      |           |   | (2,510,626 | ) |
| Total stockholders' deficit                                                                                                                                                 |   |             | (66,331    | )      |           |   | (286,671 | ) |
| Total liabilities and stockholders' deficit                                                                                                                                 |   | $                | 20,415     |   |           | $      | 325,023 |   |

----

|                                                                |   | 2011   |       |   | 2010   |   |
|---------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                                                |   |   |       |   |   |   |
| Oil and natural gas sales                                           |   | $      | 322        |   |   | $      | 2,263 |   |
| Total revenues                                                      |   |   | 322        |   |   |   | 2,263 |   |
| Costs and expenses                                                  |   |   |       |   |   |   |   |   |
| Oil and natural gas production taxes                                |   |   | 23         |   |   |   | 163 |   |
| Oil and natural gas production expenses                             |   |   | 171        |   |   |   | 2,138 |   |
| Depreciation and amortization                                       |   |   | 52         |   |   |   | 1,620 |   |
| Non-cash compensation                                               |   |   | 53,500     |   |   |   | 152,076 |   |
| General and administrative expense, net of operator's overhead fees |   |   | 23,672     |   |   |   | 2,656 |   |
|                                                                |   |   | 77,418     |   |   |   | 158,653 |   |
| Loss from operations                                                |   |   | (77,096    | )      |   |   | (156,390 | ) |
| Other income (expense):                                             |   |   |       |   |   |   |   |   |
| Interest income                                                     |   |   | -          |   |   |   | 300 |   |
| Interest expense                                                    |   |   | (5,500     | )      |   |   | (12,036 | ) |
| Total other income (expense)                                        |   |   | (5,500     | )      |   |   | (11,736 | ) |
| Net loss                                                            |   |   | (82,596    | )      |   |   | (168,126 | ) |
| Other comprehensive loss                                            |   |   |       |   |   |   |   |   |
| Unrealized loss on available for sale securities                    |   |   | -          |   |   |   | - |   |
| Net comprehensive loss                                              |   | $      | (82,596    | )      |   | $      | (168,126 | ) |
|                                                                |   |   |       |   |   |   |   |   |
| Net loss per common share, basic and diluted                        |   | $      | (0.00      | )      |   | $      | (0.01 | ) |
|                                                                |   |   |       |   |   |   |   |   |
| Weighted average common shares outstanding                          |   |   | 20,029,232 |   |   |   | 16,055,539 |   |

----

|                                                                |   |   |       |   |   |   |       | Inception         |   |
|---------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|-------------------|--------|
|                                                                |   |   |       |   |   |   |       | (August 18, 2006) |   |
|                                                                |   |   |       |   |   |   |       | through           |   |
|                                                                |   |   |       |   |   |   |       | January 31,       |   |
|                                                                |   | 2011   |       |   | 2010   |   |       | 2011              |   |
|                                                                |   |   |       |   |   |   |       |              |   |
| Oil and natural gas sales                                           |   | $      | 4,366      |   |   | $      | 5,851      |              |   | $ | 43,381 |   |
| Pipeline fees                                                       |   |   | -          |   |   |   | -          |              |   |   | 2,450 |   |
| Total revenues                                                      |   |   | 4,366      |   |   |   | 5,851      |              |   |   | 45,831 |   |
| Costs and expenses                                                  |   |   |       |   |   |   |       |              |   |   |   |   |
| Oil and natural gas production taxes                                |   |   | 312        |   |   |   | 421        |              |   |   | 3,122 |   |
| Oil and natural gas production expenses                             |   |   | 8,568      |   |   |   | 11,105     |              |   |   | 106,871 |   |
| Depreciation and amortization                                       |   |   | 1,530      |   |   |   | 4,860      |              |   |   | 16,116 |   |
| Asset impairment                                                    |   |   | 46,894     |   |   |   | 108,000    |              |   |   | 910,714 |   |
| Non-cash compensation                                               |   |   | 266,254    |   |   |   | 394,728    |              |   |   | 1,413,791 |   |
| Bad debt expense                                                    |   |   | 7,828      |   |   |   | 10,000     |              |   |   | 93,828 |   |
| General and administrative expense, net of operator's overhead fees |   |   | 51,757     |   |   |   | 89,142     |              |   |   | 340,584 |   |
|                                                                |   |   | 383,143    |   |   |   | 618,256    |              |   |   | 2,885,026 |   |
| Loss from operations                                                |   |   | (378,777   | )      |   |   | (612,405   | )                 |   |   | (2,839,195 | ) |
| Other income (expense):                                             |   |   |       |   |   |   |       |              |   |   |   |   |
| Other income                                                        |   |   | -          |   |   |   | -          |              |   |   | 320 |   |
| Interest income                                                     |   |   | -          |   |   |   | 900        |              |   |   | 900 |   |
| Interest expense                                                    |   |   | (36,680    | )      |   |   | (36,190    | )                 |   |   | (88,108 | ) |
| Total other income (expense)                                        |   |   | (36,680    | )      |   |   | (35,290    | )                 |   |   | (86,888 | ) |
| Net loss                                                            |   |   | (415,457   | )      |   |   | (647,695   | )                 |   |   | (2,926,083 | ) |
| Other comprehensive loss                                            |   |   |       |   |   |   |       |              |   |   |   |   |
| Unrealized loss on available for sale securities                    |   |   | -          |   |   |   | -          |              |   |   | (1,000 | ) |
| Net comprehensive loss                                              |   | $      | (415,457   | )      |   | $      | (647,695   | )                 |   | $ | (2,927,083 | ) |
|                                                                |   |   |       |   |   |   |       |              |   |   |   |   |
| Net loss per common share, basic and diluted                        |   | $      | (0.02      | )      |   | $      | (0.04      | )                 |   |   |   |   |
|                                                                |   |   |       |   |   |   |       |              |   |   |   |   |
| Weighted average common shares outstanding                          |   |   | 18,260,104 |   |   |   | 15,530,956 |              |   |   |   |   |

----

|                                                 |   |       |   |         |       |   |    |   |   |       |   |   | Intrinsic          |   |
|------------------------------------------------------|--------|------------|--------|--------------|------------|--------|---------|--------|--------|------------|--------|--------|--------------------|--------|
|                                                 |   |       |   |         |       |   |    |   |   | Additional |   |   | Value of           |   |
|                                                 |   |       |   | Common stock |       |   | Paid in |   |   | Common     |   |
|                                                 |   | Date       |   | Shares       |       |   | Amount  |   |   | Capital    |   |   | Stock Options |   |
|                                                 |   |       |   |         |       |   |    |   |   |       |   |   |               |   |
| BALANCE August 18, 2006                              |   |       |   |         | -          |   |    | $      | -      |       |   | $      | -                  |   |   | $ | - |   |
| Common stock issued for net assets                   |   | 9/1/2006   |   |         | 11,264,485 |   |    |   | 11,265 |       |   |   | 88,735             |   |   |   | - |   |
| Common stock issued for cash                         |   | 9/7/2006   |   |         | 1,126,448  |   |    |   | 1,126  |       |   |   | 8,874              |   |   |   | - |   |
| Common stock issued for cash                         |   | 9/11/2006  |   |         | 1,126,448  |   |    |   | 1,126  |       |   |   | 8,874              |   |   |   | - |   |
| Net loss                                             |   |       |   |         | -          |   |    |   | -      |       |   |   |               |   |   |   | - |   |
| BALANCE April 30, 2007                               |   |       |   |         | 13,517,381 |   |    |   | 13,517 |       |   |   | 106,483            |   |   |   | - |   |
| Net loss                                             |   |       |   |         | -          |   |    |   | -      |       |   |   |               |   |   |   | - |   |
| BALANCE April 30, 2008                               |   |       |   |         | 13,517,381 |   |    |   | 13,517 |       |   |   | 106,483            |   |   |   | - |   |
| Acquisition of North American Energy Resources, Inc. |   | 7/28/2008  |   |         | 177,000    |   |    |   | 177    |       |   |   | 119,653            |   |   |   | - |   |
| Conversion of note payable and accrued               |   |       |   |         |       |   |    |   |   |       |   |   |               |   |   |   |   |   |
| interest for common stock                            |   | 7/31/2008  |   |         | 153,000    |   |    |   | 153    |       |   |   | 35,377             |   |   |   | - |   |
| Common stock options granted for:                    |   |       |   |         |       |   |    |   |   |       |   |   |               |   |   |   |   |   |
| 350,000 shares at $1.00 per share                    |   | 8/1/2008   |   |         | -          |   |    |   | -      |       |   |   | 178,000            |   |   |   | (178,000 | ) |
| 50,000 shares at $1.25 per share                     |   | 8/1/2008   |   |         | -          |   |    |   | -      |       |   |   | 27,096             |   |   |   | (27,096 | ) |
| Exercise common stock options:                       |   |       |   |         |       |   |    |   |   |       |   |   |               |   |   |   |   |   |
| for $1.25 per share                                  |   | 9/22/2008  |   |         | 100        |   |    |   | -      |       |   |   | 6,250              |   |   |   | - |   |
| for $1.00 per share                                  |   | 9/22/2008  |   |         | 1,000      |   |    |   | 1      |       |   |   | 49,999             |   |   |   | - |   |
| for $1.25 per share                                  |   | 10/13/2008 |   |         | 100        |   |    |   | -      |       |   |   | 6,250              |   |   |   | - |   |
| for $1.00 per share                                  |   | 10/13/2008 |   |         | 70         |   |    |   | -      |       |   |   | 3,500              |   |   |   | - |   |
| Accounts payable paid with common stock              |   | 10/14/2008 |   |         | 90         |   |    |   | -      |       |   |   | 9,016              |   |   |   | - |   |
| Amortize intrinsic value of options                  |   | 10/31/2008 |   |         | -          |   |    |   | -      |       |   |   | -                  |   |   |   | 17,091 |   |
| Cancel common stock options                          |   | 11/5/2008  |   |         | -          |   |    |   | -      |       |   |   | (188,005           | )      |   |   | 188,005 |   |
| Common stock issued for compensation                 |   | 11/7/2008  |   |         | 100        |   |    |   | -      |       |   |   | 6,250              |   |   |   | - |   |
| Common stock issued for accounts payable             |   | 11/7/2008  |   |         | 60         |   |    |   | -      |       |   |   | 3,000              |   |   |   | - |   |
| Common stock issued for consulting service           |   | 11/12/2008 |   |         | 3,000      |   |    |   | 3      |       |   |   | 310,497            |   |   |   | - |   |
| Common stock issued for accounts payable             |   | 11/17/2008 |   |         | 400        |   |    |   | 1      |       |   |   | 24,999             |   |   |   | - |   |
| Capital contribution by shareholder in cash          |   | 11/30/2008 |   |         | -          |   |    |   | -      |       |   |   | 50,000             |   |   |   | - |   |
| Common stock issued for:                             |   |       |   |         |       |   |    |   |   |       |   |   |               |   |   |   |   |   |
| Compensation                                         |   | 12/9/2008  |   |         | 338        |   |    |   | -      |       |   |   | 5,000              |   |   |   | - |   |
| Accounts payable                                     |   | 12/9/2008  |   |         | 300        |   |    |   | -      |       |   |   | 1,200              |   |   |   | - |   |
| Accounts payable                                     |   | 12/9/2008  |   |         | 400        |   |    |   | -      |       |   |   | 6,000              |   |   |   | - |   |
| Compensation                                         |   | 1/5/2009   |   |         | 500        |   |    |   | 1      |       |   |   | 4,999              |   |   |   | - |   |
| Accounts payable                                     |   | 1/5/2009   |   |         | 800        |   |    |   | 1      |       |   |   | 3,199              |   |   |   | - |   |
| Accounts payable                                     |   | 1/5/2009   |   |         | 400        |   |    |   | 1      |       |   |   | 3,999              |   |   |   | - |   |
| Accounts payable                                     |   | 1/19/2009  |   |         | 4,000      |   |    |   | 4      |       |   |   | 14,996             |   |   |   | - |   |
| Compensation                                         |   | 1/26/2009  |   |         | 1,500      |   |    |   | 2      |       |   |   | 4,998              |   |   |   | - |   |
| Accounts payable                                     |   | 2/24/2009  |   |         | 6,000      |   |    |   | 6      |       |   |   | 9,761              |   |   |   | - |   |
| Compensation                                         |   | 2/24/2009  |   |         | 1,000      |   |    |   | 1      |       |   |   | 1,999              |   |   |   | - |   |
| Compensation                                         |   | 3/4/2009   |   |         | 4,000      |   |    |   | 4      |       |   |   | 4,996              |   |   |   | - |   |
| Compensation                                         |   | 4/6/2009   |   |         | 4,000      |   |    |   | 4      |       |   |   | 5,996              |   |   |   | - |   |
| Officer compensation                                 |   | 4/21/2009  |   |         | 160,000    |   |    |   | 160    |       |   |   | 145,440            |   |   |   | - |   |
| Net loss                                             |   |       |   |         | -          |   |    |   | -      |       |   |   | -                  |   |   |   | - |   |
| BALANCE April 30, 2009                               |   |       |   |         | 14,035,539 |   |    | $      | 14,036 |       |   |   | 960,948            |   |   |   | - |   |

----

|                                                             |   |         |    |   |          |   |   | Deficit     |   |   |       |   |
|------------------------------------------------------------------|--------|--------------|---------|--------|---------------|--------|--------|-------------|--------|--------|------------|--------|
|                                                             |   |         |    |   | Accumulated   |   |   | Accumulated |   |   |       |   |
|                                                             |   | Prepaid      |    |   | Other         |   |   | During the  |   |   |       |   |
|                                                             |   | Officer      |    |   | Comprehensive |   |   | Development |   |   |       |   |
|                                                             |   | Compensation |    |   | Loss          |   |   | Stage       |   |   | Total      |   |
|                                                             |   |         |    |   |          |   |   |        |   |   |       |   |
| BALANCE August 18, 2006                                          |   | $            | -       |   |          | $      | -      |        |   | $      | -          |   |   | $ | - |   |
| Common stock issued for net assets                               |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | 100,000 |   |
| Common stock issued for cash                                     |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | 10,000 |   |
| Common stock issued for cash                                     |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | 10,000 |   |
| Net loss                                                         |   |         | -       |   |          |   | -      |        |   |   | (5,379     | )      |   |   | (5,379 | ) |
| BALANCE April 30, 2007                                           |   |         | -       |   |          |   | -      |        |   |   | (5,379     | )      |   |   | 114,621 |   |
| Net loss                                                         |   |         | -       |   |          |   | -      |        |   |   | (24,805    | )      |   |   | (24,805 | ) |
| BALANCE April 30, 2008                                           |   |         | -       |   |          |   | -      |        |   |   | (30,184    | )      |   |   | 89,816 |   |
| Acquisition of North American Energy Resources, Inc.             |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | 119,830 |   |
| Conversion of note payable and accrued interest for common stock |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | 35,530 |   |
| Common stock options granted for:                                |   |         |    |   |          |   |   |        |   |   |       |   |   |   |   |   |
| 350,000 shares at $1.00 per share                                |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | - |   |
| 50,000 shares at $1.25 per share                                 |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | - |   |
| Exercise common stock options:                                   |   |         |    |   |          |   |   |        |   |   |       |   |   |   |   |   |
| for $1.25 per share                                              |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | 6,250 |   |
| for $1.00 per share                                              |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | 50,000 |   |
| for $1.25 per share                                              |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | 6,250 |   |
| for $1.00 per share                                              |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | 3,500 |   |
| Accounts payable paid with common stock                          |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | 9,016 |   |
| Amortize intrinsic value of options                              |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | 17,091 |   |
| Cancel common stock options                                      |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | - |   |
| Common stock issued for compensation                             |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | 6,250 |   |
| Common stock issued for accounts payable                         |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | 3,000 |   |
| Common stock issued for consulting service                       |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | 310,500 |   |
| Common stock issued for accounts payable                         |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | 25,000 |   |
| Capital contribution by shareholder in cash                      |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | 50,000 |   |
| Common stock issued for:                                         |   |         |    |   |          |   |   |        |   |   |       |   |   |   |   |   |
| Compensation                                                     |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | 5,000 |   |
| Accounts payable                                                 |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | 1,200 |   |
| Accounts payable                                                 |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | 6,000 |   |
| Compensation                                                     |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | 5,000 |   |
| Accounts payable                                                 |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | 3,200 |   |
| Accounts payable                                                 |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | 4,000 |   |
| Accounts payable                                                 |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | 15,000 |   |
| Compensation                                                     |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | 5,000 |   |
| Accounts payable                                                 |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | 9,767 |   |
| Compensation                                                     |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | 2,000 |   |
| Compensation                                                     |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | 5,000 |   |
| Compensation                                                     |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | 6,000 |   |
| Officer compensation                                             |   |         | (84,933 | )      |          |   | -      |        |   |   | -          |   |   |   | 60,667 |   |
| Net loss                                                         |   |         | -       |   |          |   | -      |        |   |   | (1,097,468 | )      |   |   | (1,097,468 | ) |
| BALANCE April 30, 2009                                           |   |         | (84,933 | )      |          |   | -      |        |   |   | (1,127,652 | )      |   | $ | (237,601 | ) |

----

|                                              |   |          |   |         |       |   |    |   |   |       |   |   | Intrinsic          |   |
|--------------------------------------------------------|--------|---------------|--------|--------------|------------|--------|---------|--------|--------|------------|--------|--------|--------------------|--------|
|                                                   |   |          |   |         |       |   |    |   |   | Additional |   |   | Value of           |   |
|                                                   |   |          |   | Common stock |       |   | Paid in |   |   | Common     |   |
|                                                   |   | Date          |   | Shares       |       |   | Amount  |   |   | Capital    |   |   | Stock Options |   |
|                                                   |   |          |   |         |       |   |    |   |   |       |   |   |               |   |
| BALANCE April 30, 2009                                 |   |          |   |         | 14,035,539 |   |    | $      | 14,036 |       |   | $      | 960,948            |   |   | $ | - |   |
| Common stock issued for:                               |   |          |   |         |       |   |    |   |   |       |   |   |               |   |   |   |   |   |
| consulting agreement                                   |   | 5/1/2009      |   |         | 400,000    |   |    |   | 400    |       |   |   | 419,600            |   |   |   | - |   |
| consulting agreement                                   |   | 5/1/2009      |   |         | 200,000    |   |    |   | 200    |       |   |   | 209,800            |   |   |   | - |   |
| oil and gas non-producing property                     |   | 6/9/2009      |   |         | 700,000    |   |    |   | 700    |       |   |   | 125,300            |   |   |   | - |   |
| accounts payable                                       |   | 7/27/2009     |   |         | 10,000     |   |    |   | 10     |       |   |   | 4,990              |   |   |   | - |   |
| consulting agreement                                   |   | 7/27/2009     |   |         | 30,000     |   |    |   | 30     |       |   |   | 14,970             |   |   |   | - |   |
| consulting agreement                                   |   | 7/27/2009     |   |         | 30,000     |   |    |   | 30     |       |   |   | 14,970             |   |   |   | - |   |
| oil and gas producing property                         |   | 9/25/2009     |   |         | 350,000    |   |    |   | 350    |       |   |   | 192,150            |   |   |   | - |   |
| consulting contract                                    |   | 9/25/2009     |   |         | 300,000    |   |    |   | 300    |       |   |   | 182,700            |   |   |   | - |   |
| cash                                                   |   | 2/23/2010     |   |         | 200,000    |   |    |   | 200    |       |   |   | 5,800              |   |   |   | - |   |
| consulting agreement                                   |   | 2/24/2010     |   |         | 400,000    |   |    |   | 400    |       |   |   | 31,600             |   |   |   | - |   |
| consulting agreement - director fees                   |   | 2/24/2010     |   |         | 450,000    |   |    |   | 450    |       |   |   | 35,550             |   |   |   | - |   |
| consulting agreement - director fees                   |   | 2/24/2010     |   |         | 150,000    |   |    |   | 150    |       |   |   | 11,850             |   |   |   | - |   |
| officer compensation - director fees                   |   | 2/24/2010     |   |         | 120,000    |   |    |   | 120    |       |   |   | 9,480              |   |   |   | - |   |
| Other comprehensive loss on available-for-             |   |     |   |         |  -    |   |    |   | -      |       |   |   |               |   |   |   |   |   |
| sale securities                                        |   |          |   |         | -          |   |    |   | -      |       |   |   | -                  |   |   |   | - |   |
| Amortize officer compensation                          |   |          |   |         | -          |   |    |   | -      |       |   |   | -                  |   |   |   | - |   |
| Net loss                                               |   |          |   |         | -          |   |    |   | -      |       |   |   | -                  |   |   |   | - |   |
| BALANCE April 30, 2010                                 |   |          |   |         | 17,375,539 |   |    |   | 17,376 |       |   |   | 2,219,708          |   |   |   | - |   |
| Recission of available-for-sale securities transaction |   |          |   |         | -          |   |    |   | -      |       |   |   | -                  |   |   |   | - |   |
| Amortize officer compensation                          |   |          |   |         | -          |   |    |   | -      |       |   |   | -                  |   |   |   | - |   |
| Convertible note payable forgiven by related party     |   | 12/3/2010     |   |         | -          |   |    |   | -      |       |   |   | 57,920             |   |   |   | - |   |
| Common stock issued for:                               |   |          |   |         |       |   |    |   |   |       |   |   |               |   |   |   |   |   |
| Consulting agreement                                   |   | 12/2/2010     |   |         | 850,000    |   |    |   | 850    |       |   |   | 7,650              |   |   |   | - |   |
| Conversion of convertible notes payable                |   | 12/5/2010     |   |         | 3,329,406  |   |    |   | 3,329  |       |   |   | 552,919            |   |   |   | - |   |
| Net loss                                               |   |          |   |         | -          |   |    |   | -      |       |   |   | -                  |   |   |   | - |   |
| BALANCE January 31, 2011                               |   |          |   |         | 21,554,945 |   |    | $      | 21,555 |       |   | $      | 2,838,197          |   |   | $ | - |   |

----

|                                                   |   |         |    |   |          |   |   | Deficit     |   |   |       |   |
|--------------------------------------------------------|--------|--------------|---------|--------|---------------|--------|--------|-------------|--------|--------|------------|--------|
|                                                   |   |         |    |   | Accumulated   |   |   | Accumulated |   |   |       |   |
|                                                   |   | Prepaid      |    |   | Other         |   |   | During the  |   |   |       |   |
|                                                   |   | Officer      |    |   | Comprehensive |   |   | Development |   |   |       |   |
|                                                   |   | Compensation |    |   | Loss          |   |   | Stage       |   |   | Total      |   |
|                                                   |   |         |    |   |          |   |   |        |   |   |       |   |
| BALANCE April 30, 2009                                 |   | $            | (84,933 | )      |          | $      | -      |        |   | $      | (1,127,652 | )      |   | $ | (237,601 | ) |
| Common stock issued for:                               |   |         |    |   |          |   |   |        |   |   |       |   |   |   |   |   |
| consulting agreement                                   |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | 420,000 |   |
| consulting agreement                                   |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | 210,000 |   |
| oil and gas non-producing property                     |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | 126,000 |   |
| accounts payable                                       |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | 5,000 |   |
| consulting agreement                                   |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | 15,000 |   |
|                                                   |   |         |    |   |          |   |   |        |   |   |       |   |   |   |   |   |
| consulting agreement                                   |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | 15,000 |   |
| oil and gas producing property                         |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | 192,500 |   |
| consulting contract                                    |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | 183,000 |   |
| cash                                                   |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | 6,000 |   |
| consulting agreement                                   |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | 32,000 |   |
| consulting agreement - director fees                   |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | 36,000 |   |
| consulting agreement - director fees                   |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | 12,000 |   |
| officer compensation - director fees                   |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | 9,600 |   |
| Other comprehensive loss on available-for-             |   |         |    |   |          |   |   |        |   |   |       |   |   |   |   |   |
| sale securities                                        |   |         | -       |   |          |   | (1,000 | )           |   |   | -          |   |   |   | (1,000 | ) |
| Amortize officer compensation                          |   |         | 72,804  |   |          |   | -      |        |   |   | -          |   |   |   | 72,804 |   |
| Net loss                                               |   |         | -       |   |          |   | -      |        |   |   | (1,382,974 | )      |   |   | (1,382,974 | ) |
| BALANCE April 30, 2010                                 |   |         | (12,129 | )      |          |   | (1,000 | )           |   |   | (2,510,626 | )      |   |   | (286,671 | ) |
| Recission of available-for-sale securities transaction |   |         | -       |   |          |   | 1,000  |        |   |   | -          |   |   |   | 1,000 |   |
| Amortize officer compensation                          |   |         | 12,129  |   |          |   | -      |        |   |   | -          |   |   |   | 12,129 |   |
| Convertible note payable forgiven by related party     |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | 57,920 |   |
| Common stock issued for:                               |   |         |    |   |          |   |   |        |   |   |       |   |   |   |   |   |
| Consulting agreement                                   |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | 8,500 |   |
| Conversion of convertible notes payable                |   |         | -       |   |          |   | -      |        |   |   | -          |   |   |   | 556,248 |   |
| Net loss                                               |   |         | -       |   |          |   | -      |        |   |   | (415,457   | )      |   |   | (415,457 | ) |
| BALANCE January 31, 2011                               |   | $            | -       |   |          | $      | -      |        |   | $      | (2,926,083 | )      |   | $ | (66,331 | ) |

----

|                                                                                                 |   |   |     |   |   |   |     | Inception                   |   |
|------------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|----------|-----------------------------|--------|
|                                                                                                 |   |   |     |   |   |   |     | (August 18, 2006) |   |
|                                                                                                 |   |   |     |   |   |   |     | through                     |   |
|                                                                                                 |   |   |     |   |   |   |     | January 31,                 |   |
|                                                                                                 |   | 2011   |     |   | 2010   |   |     | 2011                        |   |
|                                                                                                 |   |   |     |   |   |   |     |                        |   |
| Operating activities                                                                                 |   |   |     |   |   |   |     |                        |   |
| Net loss                                                                                             |   | $      | (415,457 | )      |   | $      | (647,695 | )                           |   | $ | (2,926,083 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities:                          |   |   |     |   |   |   |     |                        |   |   |   |   |
| Depreciation and amortization                                                                        |   |   | 1,530    |   |   |   | 4,860    |                        |   |   | 16,116 |   |
| Non-cash compensation                                                                                |   |   | 266,254  |   |   |   | 394,728  |                        |   |   | 1,413,791 |   |
| Bad debt expense                                                                                     |   |   | 7,828    |   |   |   | 10,000   |                        |   |   | 99,243 |   |
| Asset impairment                                                                                     |   |   | 46,894   |   |   |   | 108,000  |                        |   |   | 910,714 |   |
| Changes in operating assets and liabilities:                                                         |   |   |     |   |   |   |     |                        |   |   |   |   |
| Accounts receivable                                                                                  |   |   | 321      |   |   |   | (17,406  | )                           |   |   | (96,057 | ) |
| Interest accrued on loan to related party                                                            |   |   | -        |   |   |   | (900     | )                           |   |   | (900 | ) |
| Prepaid expenses and other assets                                                                    |   |   | 5,982    |   |   |   | (864     | )                           |   |   | 510 |   |
| Accounts payable                                                                                     |   |   | 41,060   |   |   |   | 59,476   |                        |   |   | 315,114 |   |
| Accrued interest - related parties                                                                   |   |   | 36,680   |   |   |   | 36,190   |                        |   |   | 86,578 |   |
| Accrued expenses                                                                                     |   |   | 9        |   |   |   | -        |                        |   |   | 9 |   |
| Related party advances for working capital                                                           |   |   | -        |   |   |   | 16,100   |                        |   |   | 2,000 |   |
| Oil and gas proceeds due others                                                                      |   |   | (4,622   | )      |   |   | -        |                        |   |   | 368 |   |
| Advances from joint interest owners                                                                  |   |   | (1,226   | )      |   |   | 10,133   |                        |   |   | (9,643 | ) |
| Net cash from (used in) operating activities                                                         |   |   | (14,747  | )      |   |   | (27,378  | )                           |   |   | (188,240 | ) |
| Investing activities                                                                                 |   |   |     |   |   |   |     |                        |   |   |   |   |
| Payments for oil and natural gas properties and equipment                                            |   |   | (4,893   | )      |   |   | (95      | )                           |   |   | (166,311 | ) |
| Cash received in excess of cash paid in reverse acquisition of North American Energy Resources, Inc. |   |   | -        |   |   |   | -        |                        |   |   | 119,830 |   |
| Loan to related party                                                                                |   |   | -        |   |   |   | -        |                        |   |   | (19,993 | ) |
| Proceeds from sale of oil and gas properties                                                         |   |   | -        |   |   |   | -        |                        |   |   | 7,500 |   |
| Payments for pipeline                                                                                |   |   | -        |   |   |   | -        |                        |   |   | (7,500 | ) |
| Net cash used in investing activities                                                                |   |   | (4,893   | )      |   |   | (95      | )                           |   |   | (66,474 | ) |
| Financing activities                                                                                 |   |   |     |   |   |   |     |                        |   |   |   |   |
| Loan proceeds                                                                                        |   |   | 17,500   |   |   |   | -        |                        |   |   | 66,250 |   |
| Shareholder contribution                                                                             |   |   | -        |   |   |   | -        |                        |   |   | 50,000 |   |
| Loans from related parties                                                                           |   |   | -        |   |   |   | -        |                        |   |   | 113,350 |   |
| Sale of common stock                                                                                 |   |   | -        |   |   |   | -        |                        |   |   | 26,000 |   |
| Net cash provided by financing activities                                                            |   |   | 17,500   |   |   |   | -        |                        |   |   | 255,600 |   |
| Net increase in cash and cash equivalents                                                            |   |   | (2,140   | )      |   |   | (27,473  | )                           |   |   | 886 |   |
| Cash and cash equivalents, beginning of period                                                       |   |   | 3,026    |   |   |   | 27,966   |                        |   |   | - |   |
| Cash and cash equivalents, end of period                                                             |   | $      | 886      |   |   | $      | 493      |                        |   | $ | 886 |   |

----

|                                                                                                                      |   |   |    |   |   |   |    | Inception                   |   |
|---------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|-----------------------------|--------|
|                                                                                                                      |   |   |    |   |   |   |    | (August 18, 2006) |   |
|                                                                                                                      |   |   |    |   |   |   |    | through                     |   |
|                                                                                                                      |   |   |    |   |   |   |    | January 31,                 |   |
|                                                                                                                      |   | 2011   |    |   | 2010   |   |    | 2011                        |   |
| Supplemental cash flow information                                                                                        |   |   |    |   |   |   |    |                        |   |
| Cash paid for interest and income taxes:                                                                                  |   |   |    |   |   |   |    |                        |   |
| Interest                                                                                                                  |   | $      | -       |   |   | $      | -       |                        |   | $ | 1,094 |   |
| Income taxes                                                                                                              |   |   | -       |   |   |   | -       |                        |   |   | - |   |
| Non-cash investing and financing activities:                                                                              |   |   |    |   |   |   |    |                        |   |   |   |   |
| Common stock issued for:                                                                                                  |   |   |    |   |   |   |    |                        |   |   |   |   |
| Notes receivable                                                                                                          |   | $      | -       |   |   | $      | -       |                        |   | $ | 76,000 |   |
| Oil and gas properties                                                                                                    |   |   | -       |   |   |   | -       |                        |   |   | 303,670 |   |
| Interest in pipeline                                                                                                      |   |   | -       |   |   |   | -       |                        |   |   | 100,000 |   |
| Loans to shareholders assumed                                                                                             |   |   | -       |   |   |   | -       |                        |   |   | (371,000 | ) |
| Advance from joint interest participant assumed                                                                           |   |   | -       |   |   |   | -       |                        |   |   | (8,670 | ) |
|                                                                                                                      |   | $      | -       |   |   | $      | -       |                        |   | $ | 100,000 |   |
| Acquisition of North American Energy Resources, Inc. in reverse acquisition:                                              |   |   |    |   |   |   |    |                        |   |   |   |   |
| Assets acquired, other than cash                                                                                          |   | $      | -       |   |   | $      | -       |                        |   | $ | - |   |
| Liabilities assumed                                                                                                       |   |   | -       |   |   |   | -       |                        |   |   | (30,170 | ) |
|                                                                                                                      |   |   | -       |   |   |   | -       |                        |   |   | (30,170 | ) |
| Common stock issued                                                                                                       |   |   | -       |   |   |   | -       |                        |   |   | 150,000 |   |
| Cash received in excess of cash paid                                                                                      |   | $      | -       |   |   | $      | -       |                        |   | $ | 119,830 |   |
|                                                                                                                      |   |   |    |   |   |   |    |                        |   |   |   |   |
| Exchange of joint interest receivable for oil and natural gas properties                                                  |   | $      | -       |   |   |   | 15,752  |                        |   | $ | 53,068 |   |
| Convertible note payable and accrued interest exchanged for 1,000 shares of North American Exploration, Inc. common stock |   |   | -       |   |   |   | -       |                        |   |   | 35,530 |   |
| Common stock options granted                                                                                              |   |   | -       |   |   |   | -       |                        |   |   | 205,096 |   |
| Common stock options cancelled                                                                                            |   |   | -       |   |   |   | -       |                        |   |   | 188,005 |   |
| Common stock issued for:                                                                                                  |   |   |    |   |   |   |    |                        |   |   |   |   |
| Convertible notes payable                                                                                                 |   |   | 556,248 |   |   |   | -       |                        |   |   | 556,248 |   |
| Consulting agreements                                                                                                     |   |   | -       |   |   |   | 813,000 |                        |   |   | 902,600 |   |
| Unevaluated oil and natural gas properties                                                                                |   |   | -       |   |   |   | 126,000 |                        |   |   | 126,000 |   |
| Proven oil and natural gas properties                                                                                     |   |   | -       |   |   |   | 192,500 |                        |   |   | 192,500 |   |
| Accounts payable                                                                                                          |   |   | -       |   |   |   | 5,000   |                        |   |   | 106,183 |   |
| Chief executive officer compensation                                                                                      |   |   | -       |   |   |   | -       |                        |   |   | 155,200 |   |
| Credit balance transferred from accounts receivable to accounts payable                                                   |   |   | -       |   |   |   | 1,068   |                        |   |   | 1,068 |   |
| Accounts receivable applied as payment on note payable to related party                                                   |   |   | -       |   |   |   | 4,572   |                        |   |   | 4,572 |   |
| Option exercises paid by reducing note payable related party                                                              |   |   | -       |   |   |   | -       |                        |   |   | 75,250 |   |
| Advance from shareholder converted to note                                                                                |   |   | -       |   |   |   | -       |                        |   |   | 2,000 |   |
| Participant advance converted to accounts payable                                                                         |   |   | -       |   |   |   | -       |                        |   |   | 31,829 |   |
| Accounts payable converted to convertible note payable                                                                    |   |   | 38,678  |   |   |   | -       |                        |   |   | 38,678 |   |
| Covertible note payable and accrued interest forgiven by related party                                                    |   |   | 57,920  |   |   |   | -       |                        |   |   | 57,920 |   |

----

| NOTE 1: | ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
|---------|-------------------------------------------------------------|

----

----

| NOTE 2: | RELATED PARTY TRANSACTIONS |
|--------------|----------------------------|

|                                        |   |   |   |
|---------------------------------------------|--------|--------|--------|
| Clinton W. Coldren, Chief Executive Officer |   | $      | 21,081 |   |
| Alan G. Massara, Chief Financial Officer    |   |   | 825    |   |
|                                        |   | $      | 21,906 |   |

| NOTE 3: | STOCKHOLDER’S EQUITY |
|--------------|----------------------------|

----

|   | 1. | Certificate #1 for 10,000,000 warrants with a strike price of $0.025 per share must be exercised within one year of the date Executive Team begins collecting salaries from the Company, |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Certificate #2 for 10,000,000 warrants with a strike price of $0.04 per share and a Term of 5 years from the vesting date, and |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | Certificate #3 for 10,000,000 warrants with a strike price of $0.055 per share and a Term of 5 years from the vesting date. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------|

|   | 1. | Certificate #1 vests immediately, Certificate #2 shall vest upon execution of Certificate #1 and Certificate #3 shall vest upon execution of Certificate #1. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | All Warrants may vest early if the Company has revenue of $12,500,000 total for two consecutive quarters and records a pre-tax net profit for the two quarters and other conditions including change in control, termination, etc. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | The Warrant Certificates may be allocated among the Executive Team as they so determine. |
|--------|----|------------------------------------------------------------------------------------------|

|   | 4. | The Warrants shall be registered in the first registration statement the Company files, subject to legal counsel approval. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------|

----

| NOTE 4:  | PREPAID EXPENSES |
|--------------------|------------------|

|                                                                          |   | January 31, |   |   | April 30, |   |
|-------------------------------------------------------------------------------|--------|------------------|--------|--------|----------------|--------|
|                                                                          |   | 2011             |   |   | 2009           |   |
| Current asset                                                                 |   |             |   |   |           |   |
| Stockholder relations firm                                                    |   | $                | -      |   |           | $      | 168,000 |   |
| Consulting firm assisting with listing common stock on the Frankfort Exchange |   |             | -      |   |           |   | 68,625 |   |
| Administrative management                                                     |   |             | 500    |   |           |   | 9,500 |   |
| Other prepaid expense                                                         |   |             | 11,723 |   |           |   | 4,608 |   |
|                                                                          |   | $                | 12,223 |   |           | $      | 250,733 |   |
| Component of stockholders' deficit                                            |   |             |   |   |           |   |   |   |
| Chief executive officer compensation                                          |   | $                | -      |   |           | $      | 12,129 |   |

| NOTE 5:  | CONVERTIBLE NOTES PAYABLE |
|--------------------|---------------------------|

|                                                 |   |      |     |   | Accrued  |   |
|------------------------------------------------------|--------|-----------|----------|--------|----------|--------|
|                                                 |   | Principal |     |   | Interest |   |
|                                                 |   |      |     |   |     |   |
| Balance, April 30, 2010                              |   | $         | 510,476  |   |     | $      | 49,618 |   |
| Additions before conversion                          |   |      | 17,500   |   |     |   | 36,574 |   |
| Convertible note forgiven                            |   |      | (53,618  | )      |     |   | (4,302 | ) |
| Conversion of convertible notes and accrued interest |   |      | (474,358 | )      |     |   | (81,890 | ) |
| Sub-total                                            |   |      | -        |   |     |   | - |   |
| Exchange of accounts payable for convertible note    |   |      | 38,678   |   |     |   | - |   |
| Interest accrued                                     |   |      | -        |   |     |   | 106 |   |
| Balance, January 31, 2011                            |   | $         | 38,678   |   |     | $      | 106 |   |

----

| ITEM 2: | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
|---------|---------------------------------------------------------------------------------------|

|           |   | 2011   |   |   | 2010   |   |
|----------------|--------|--------|--------|--------|--------|--------|
|           |   |   |   |   |   |   |
| Oil production |   | $      | -      |   |   | $      | 2,263 |   |
| Gas production |   |   | 322    |   |   |   | - |   |
| Total revenue  |   | $      | 322    |   |   | $      | 2,263 |   |

|                                                                     |   | 2011   |   |   | 2010   |   |
|--------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                                     |   |   |   |   |   |   |
| Oil and natural gas production taxes                                     |   | $      | 23     |   |   | $      | 163 |   |
| Oil and natural gas production expenses                                  |   |   | 171    |   |   |   | 2,138 |   |
| Depreciation and amortization                                            |   |   | 52     |   |   |   | 1,620 |   |
| Non-cash compensation                                                    |   |   | 53,500 |   |   |   | 152,076 |   |
| Other general and administrative expense, net of operator's overhead fee |   |   | 23,672 |   |   |   | 2,656 |   |
| Total                                                                    |   | $      | 77,418 |   |   | $      | 158,653 |   |

----

|             |   | 2011   |   |   | 2010   |   |
|------------------|--------|--------|--------|--------|--------|--------|
|             |   |   |   |   |   |   |
| Interest income  |   | $      | -      |   |   | $      | 300 |   |
| Interest expense |   |   | (5,500 | )      |   |   | (12,036 | ) |
| Total            |   | $      | (5,500 | )      |   | $      | (11,736 | ) |

|           |   | 2011   |   |   | 2010   |   |
|----------------|--------|--------|--------|--------|--------|--------|
|           |   |   |   |   |   |   |
| Oil production |   | $      | 4,044  |   |   | $      | 5,851 |   |
| Gas production |   |   | 322    |   |   |   | - |   |
| Total revenue  |   | $      | 4,366  |   |   | $      | 5,851 |   |

----

|                                                                     |   | 2011   |    |   | 2010   |   |
|--------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                                     |   |   |    |   |   |   |
| Oil and natural gas production taxes                                     |   | $      | 312     |   |   | $      | 421 |   |
| Oil and natural gas production expenses                                  |   |   | 8,568   |   |   |   | 11,105 |   |
| Depreciation and amortization                                            |   |   | 1,530   |   |   |   | 4,860 |   |
| Asset impairment                                                         |   |   | 46,894  |   |   |   | 108,000 |   |
| Non-cash compensation                                                    |   |   | 266,254 |   |   |   | 394,728 |   |
| Bad debt expense                                                         |   |   | 7,828   |   |   |   | 10,000 |   |
| Other general and administrative expense, net of operator's overhead fee |   |   | 51,757  |   |   |   | 89,142 |   |
| Total                                                                    |   | $      | 383,143 |   |   | $      | 618,256 |   |

|             |   | 2011   |    |   | 2010   |   |
|------------------|--------|--------|---------|--------|--------|--------|
|             |   |   |    |   |   |   |
| Interest income  |   | $      | -       |   |   | $      | 900 |   |
| Interest expense |   |   | (36,680 | )      |   |   | (36,190 | ) |
| Total            |   | $      | (36,680 | )      |   | $      | (35,290 | ) |

----

----

| ITEM 3: | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
|---------|------------------------------------------------------------|

| ITEM 4T:  | CONTROLS AND PROCEDURES |
|---------------------|-------------------------|

----

| ITEM 1:  | LEGAL PROCEEDINGS |
|--------------------|-------------------|

| ITEM 1A:  | RISK FACTORS |
|---------------------|--------------|

| 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 SECURITY HOLDERS. |
|--------------|------------------------------------------------------|

| ITEM 5: | OTHER INFORMATION. |
|--------------|--------------------|

| ITEM 6:  | EXHIBITS |
|--------------------|----------|

| Exhibit 31.1 |         | Certification pursuant to 18 U.S.C. Section 1350 Section 302 of the Sarbanes-Oxley Act of 2002 - Chief Executive Officer |
|-------------------|--------------|--------------------------------------------------------------------------------------------------------------------------|
|              |         |                                                                                                                     |
| Exhibit 31.1      |         | Certification pursuant to 18 U.S.C. Section 1350 Section 302 of the Sarbanes-Oxley Act of 2002 - Chief Financial Officer |
|              |         |                                                                                                                     |
| Exhibit 32.1      |         | Certification pursuant to 18 U.S.C. Section 1350 Section 906 of the Sarbanes-Oxley Act of 2002 - Chief Executive Officer |
|              |         |                                                                                                                     |
| Exhibit 32.1      |    | Certification pursuant to 18 U.S.C. Section 1350 Section 906 of the Sarbanes-Oxley Act of 2002 - Chief Financial Officer |

----

|                            |               | NORTH AMERICAN ENERGY RESOURCES, INC. |
|---------------------------------|--------------------|---------------------------------------|
|                            |               |                                  |
| Date:  March 14, 2011 |               |                                  |
|                            |               |                                  |
|                            | By: /s/  | Alan G. Massara                       |
|                            |               | President and Chief Financial Officer |

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