| ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | **UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

Washington, D.C. 20549

** **                | ** **                                                                                |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------|
| ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | ** **                                                                                                   | **FORM 10-Q**

** **                                                                 | ** ** | ** ** |
| (Mark One)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | ** **                                                                                                   | ** **                                                                                | ** ** | ** ** |
| x  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF  THE SECURITIES EXCHANGE ACT OF 1934 

For the quarterly  period ended September 30, 2009

** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | ** **                                                                                                   | OR

** **                                                                            | ** ** | ** ** |
| o  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF  THE SECURITIES EXCHANGE 

ACT OF 1934  For the transition period from __________ to  ___________ 

** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | ** **                                                                                                   | **Commission File Number 333-141993**

** **                                         | ** ** | ** ** |
| ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | ** **                                                                                                   | **PETROCORP INC.**

(Name of small  business issuer in its charter)                       | ** ** | ** ** |
| **Delaware**

** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | ** **                                                                                                   | **20-5134664**

** **                                                                |
| (State or other jurisdiction of 

incorporation or organization)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | (I.R.S. Employer  Identification No.)                                                                        |
| ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | **1065 Dobbs Ferry Road**

**White Plains, New York  10607**

(Address of principal  executive offices) | ** **                                                                                |
| ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | ** **                                                                                                   |  

**(914) 674-4373**

(Issuer's telephone  number, including area code)

** ** | ** ** | ** ** |
|  

Indicate by check mark 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 o

 

Indicate by check mark whether the registrant is a large  accelerated filer, an accelerated filer, a non-accelerated filer or a smaller  reporting company filer.  See the definitions of “large accelerated filer,” “accelerated  filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

          Large accelerated filer o  Accelerated filer o  Non-accelerated Filer o   Smaller reporting company x

 

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

** ** |
| State the number of shares outstanding of each of the  issuer’s classes of common equity, as of the latest practicable date: 22,680,000  shares of common stock, par value $.0001 per share, as of October 31, 2009.

 

 

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                              |                                                                                           |  |  |  |  |  |

 

----

 

**PETROCORP INC.**

**REPORT ON FORM 10-Q**

**FOR THE QUARTERLY PERIODENDED SEPTEMBER 30, 2009**

 

 

| **CONTENTS**                                                                                           |
|--------------------------------------------------------------------------------------------------------|
|                                                                                                   |   |   |
| PART I – FINANCIAL  INFORMATION                                                                   |   | 3 |
|      Item 1 – Financial  Statements                                           |   | 3 |
|      Item 2 – Management’s  Discussion and Analysis or Plan of Operation |   | 8 |
|      Item 3 – Quantitative  and Qualitative Disclosures About Market Risk     |   | 12 |
|      Item 4T – Controls and  Procedures                                       |   | 13 |
| PART II – OTHER INFORMATION                                                                       |   | 13 |
|      Item 1 – Legal  Proceedings                                              |   | 13 |
|      Item 2 – Unregistered  Sales of Equity Securities and Use of Proceeds    |   | 13 |
|      Item 3 – Defaults Upon  Senior Securities                                |   | 13 |
|      Item 4 – Submission of  Matters to a Vote of Security Holders            |   | 13 |
|      Item 5 – Other  Information                                              |   | 13 |
|      Item 6 – Exhibits                                                        |   | 14 |

 

 

 

----

 

**PART I – FINANCIAL INFORMATION**

##  

## Item 1 – Financial Statements

** **

**PETROCORP INC.**

**(An Exploration Stage Company)**

**Consolidated Balance Sheets**

** **

| **ASSETS**                                                                     |
|--------------------------------------------------------------------------------|
|                                                                           |   |   |   |   |   |   |
|                                                                           |   |        Sept. 30, |   |   Dec. 31, |
|                                                                           |   |   2009 |   | 2008 |
|                                                                           |   |     (Unaudited) |   |   |
| Current assets:                                                                |   |   |   |   |   |   |
|     Cash                                                        |   | $ | 144,164 |   | $ | 556,035 |
|     Revenue receivables                                         |   |   | 10,494 |   |   | 33,962 |
|                                                                           |   |   | 154,658 |   |   | 589,997 |
|                                                                           |   |   |   |   |   |   |
| Oil and gas properties  (successful efforts method):                           |   |   |   |   |   |   |
|     Developed                                                   |   |   | 524,685 |   |   | 304,053 |
|     Undeveloped                                                 |   |   | 1,625,535 |   |   | 1,189,840 |
|                                                                           |   |   | 2,150,220 |   |       | 1,493,893 |
|                                                                           |   |   |   |   |   |   |
| Other assets:                                                                  |   |   |   |   |   |   |
|     Marketable securities -  restricted                         |      |   | 250,000 |   |       | -- |
|                                                                           |   |   |   |   |   |   |
| Total assets                                                                   |   | $ | 2,554,878 |   | $ | 2,083,890 |
| ** **                                                                     |   |   |   |   |   |   |
| ** **                                                                     |   |   |   |   |   |   |
| **LIABILITIES AND STOCKHOLDERS’ EQUITY**                                  |
| ** **                                                                     |   |   |   |   |   |   |
| ** **                                                                     |   |   |   |   |   |   |
| Current liabilities:                                                           |   |   |   |   |   |   |
|     Accounts payable and  accrued expenses                      |   | $ | 185,650 |   | $ | 71,317 |
|     Notes payable to  majority stockholder                      |   |   | 1,499,975 |   |   | 734,058 |
|                                                                           |   |   | 1,685,625 |   |   | 805,375 |
|                                                                           |   |   |   |   |   |   |
| Stockholders’ equity:                                                     |   |   |   |   |   |   |
|     Preferred stock; $.0001  par value; 1,000,000 shares        |   |   |   |   |   |   |
|      authorized; none  issued or outstanding               |   |   | -- |   |   | -- |
|     Common stock; $.0001  par value; 100,000,000 shares         |   |   |   |   |   |   |
|      authorized; 22,680,000  shares issued and outstanding |   |   | 2,268 |   |   | 2,268 |
|     Additional paid-in  capital                                 |   |   | 1,853,077 |   |   | 1,711,182 |
|     Deficit accumulated  during the exploration stage           |   |   | (986,092) |   |   | (434,935) |
|                                                                           |   |   | 869,253 |   |   | 1,278,515 |
| ** **                                                                     |   |   |   |   |   |   |
| Total liabilities and  stockholders’ equity                               |   | $ | 2,554,878 |   | $ | 2,083,890 |

** **

See notes to the consolidated financial statements.

 

3

----

****

**PETROCORP INC.**

**(An Exploration Stage Company)**

## Consolidated Statements ofOperations

## (Unaudited)

 

|   |   |                                                                             |   |              |   |                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   | June 19, 2006 |
|--------|--------|----------------------------------------------------------------------------------|--------|-------------------|--------|----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------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----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|---------------|
|   |   |           Three  Months Ended  |   | Nine Months Ended |   |  (inception) to |  
 

 

                     Sept. 30,           

 

Sept. 30,

 

  Sept. 30,

 
 

 

2009

 

2008

 

2009

 

2008

 

2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Oil and gas

 

$

18,528 

 

$

7,241 

 

$

27,801 

 

$

7,241 

 

$

51,952 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Oil and gas 

 

 

31,004 

 

 

5,205 

 

 

88,361 

 

 

5,205 

 

 

107,199 

    Depletion, depreciation and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      amortization

 

 

7,500 

 

 

 

 

 

15,000 

 

 

 

 

 

19,821 

    Exploration

 

 

22,080 

 

 

964 

 

 

76,066 

 

 

964 

 

 

81,775 

    Impairment charge

 

 

 

 

 

 

 

 

41,998 

 

 

 

 

 

58,927 

    Salaries

 

 

30,000 

 

 

30,000 

 

 

90,000 

 

 

90,000 

 

 

220,000 

    Professional fees

 

 

131,176 

 

 

26,300 

 

 

194,339 

 

 

82,200 

 

 

371,307 

    General and administrative

 

 

5,701 

 

 

10,970 

 

 

21,853 

 

 

23,498 

 

 

83,697 

    Franchise taxes

 

  

 

 

  

(364)

 

 

164 

 

  

5,386 

 

  

9,150 

 

 

 

227,461 

 

  

73,075 

 

  

527,781 

 

  

207,253 

 

  

951,876 

Loss from operations

 

 

(208,933)

 

 

(65,834)

 

 

(499,980)

 

 

(200,012)

 

 

(899,924)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other expense (income):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Interest income

 

 

(53)

 

 

(272)

 

 

(718)

 

 

(272)

 

 

(2,436)

    Interest expense

 

  

21,025 

 

  

8,032 

 

 

51,895 

 

  

21,268 

 

  

88,604 

 

 

 

20,972 

 

  

7,760 

 

  

51,177 

 

  

20,996 

 

  

86,168 

Loss before income taxes

 

 

(229,905)

 

 

(73,594)

 

 

(551,157)

 

 

(221,008)

 

 

(986,092)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

  

 

  

 

 

  

 

 

  

 

 

  

 

 

--

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(229,905)

 

$

(73,594)

 

$

(551,157)

 

$

(221,008)

 

$

(986,092)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per common share -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    basic and diluted

 

$

(0.01)

 

$

             **

 

$

(0.02)

 

$

(0.01)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    common shares outstanding -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    basic and diluted

 

  

22,680,000 

 

  

22,680,000 

 

  

22,680,000 

 

  

22,337,144 

 

 

 

 

** less than $.01 per share

 

See notes to the consolidated financial statements.

 

 

4

 

**PETROCORP INC.**

**(An Exploration Stage Company)**
Consolidated Statements of CashFlows(Unaudited)
 

 

 

 

 

 

 

 

 June19, 2006

 

 

Nine Months Ended

 

(inception) to

 

 

Sept. 30,

 

Sept. 30,

 

 

2009

 

2008

 

2009

 

 

 

 

 

 

 

 

 

 

Cash flows from operating  activities:

 

 

 

 

 

 

 

 

 

    Net loss

 

$

(551,157)

 

$

(221,008)

 

$

(986,092)

    Adjustments to  reconcile net loss to net

 

 

 

 

 

 

 

 

 

      cash used in  operating activities:

 

 

 

 

 

 

 

 

 

      Capital contribution

 

 

 

 

 

 

 

 

3,000 

      Depletion,  depreciation and amortization

 

 

15,000 

 

 

 

 

 

19,821 

      Exploration expenses

 

 

16,847 

 

 

 

 

 

16,847 

      Impairment charge

 

 

41,998 

 

 

 

 

 

58,927 

      Salary contribution

 

 

90,000 

 

 

90,000 

 

 

210,000 

      Interest contribution

 

 

51,895 

 

 

20,909 

 

 

88,245 

      Changes in operating  assets and liabilities:

 

 

 

 

 

 

 

 

 

        Revenue receivables

 

 

23,468 

 

 

(6,720)

 

 

(10,494)

        Accounts payable  and accrued expenses

 

 

114,333 

 

 

62,797 

 

   

185,650 

        State of Alaska  payable

 

 

 

 

  

(279,500)

 

 

--

        Net cash used in  operating activities

 

 

(197,616)

 

  

(333,522)

 

 

(414,096)

 

 

 

 

 

 

 

 

 

 

Cash flows from investing  activities:

 

 

 

 

 

 

 

 

 

    Acquisition of oil and  gas properties

 

       

(980,172)

 

 

(934,545)

 

 

(2,477,815)

    Purchase of equipment

 

 

 

 

   

 

 

   

(18,000)

        Net cash used in  investing activities

 

 

(980,172)

 

 

(934,545)

 

 

(2,495,815)

 

 

 

 

 

 

 

 

 

 

Cash flows from financing  activities:

 

 

 

 

 

 

 

 

 

    Proceeds from notes to  majority stockholder

 

  

792,469 

 

  

210,917 

 

  

1,616,527 

    Repayment of notes to  majority stockholder

 

  

(26,552)

 

  

(90,000)

 

  

(116,552)

    Proceeds from sale of  common stock

 

  

 

 

   

1,000,000 

 

  

1,554,100 

        Net cash provided  by financing activities

 

 

765,917 

 

 

1,120,917 

 

  

3,054,075 

 

 

 

 

 

 

 

 

 

 

Net (decrease) increase in  cash

 

 

(411,871)

 

 

(147,150)

 

 

144,164 

Cash at beginning of period

 

  

556,035 

 

  

827,755 

 

   

--

Cash at end of period

 

$

144,164 

 

$

680,605 

 

$

144,164 

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of  cash flow information:

 

 

 

 

 

 

 

 

 

    Cash paid for interest

 

 

 

 

 

 

 

$

359 

    Cash paid for taxes

 

 

 

 

 

 

 

$

--

Supplemental disclosure of  noncash investing and

 

 

 

 

 

 

 

 

 

    financing activities:

 

 

 

 

 

 

 

 

 

    Capital contribution

 

 

 

 

 

 

 

$

3,000 

    Salary contribution

 

$

90,000 

 

$

90,000 

 

$

210,000 

    Interest contribution

 

$

51,895 

 

$

20,909 

 

$

88,245 

 

See notes to the consolidated financial statements.

** **

5

 

**PETROCORP INC.**

**(An Exploration Stage Company)**

**Notes to the ConsolidatedFinancial Statements**

**(Unaudited)**

** **

**1.  Basis of Presentation**

 

The accompanying unaudited consolidatedfinancial statements have been prepared in accordance with the accountingprinciples generally accepted in the United States of America for interimfinancial information and with the instructions to Form 10-Q and Article 10 ofRegulation S-X.  Accordingly, they do not include all of the information andfootnotes required by accounting principles generally accepted in the United States of America for annual financial statements.  In the opinion of management,all adjustments, consisting of normal recurring accruals considered necessaryfor a fair presentation, have been included.  Operating results for the three andnine months ended September 30, 2009 are not necessarily indicative of theresults that may be expected for the year ending December 31, 2009.  These financial statements should be read in conjunctionwith the financial statements of the Company for the year ended December 31,2008 and notes thereto contained in the Annual Report on Form 10-K of theCompany as filed with the United States Securities and Exchange Commission (the“SEC”) on April 9, 2009.

 

**2.  Exploration Stage Company**

 

The Company is an exploration stage companyas defined by section 915-10-20 of theFASB Accounting Standards Codification.  Although theCompany has recognized some nominal amount of revenue since inception, the Companyis devoting substantially all of its efforts on establishing the business andits planned principal operations have not yet commenced.  All losses sinceinception have been considered part of the Company’s exploration stageactivities.

** **

**3. Marketable Securities - Restricted**

** **

OnJune 12, 2009, the Company executed and held a closing under an Agreement and Planof Reorganization by and between Tamm Oil and Gas Corp (“TAMO”) and the Companywherein the Company exchanged the membership interest in its subsidiary UnionEnergy (Alberta) LLC, a Colorado limited liability company, which owns eightcontiguous sections (totaling 5,120 acres) of oil sands leases in the PeaceRiver Oil Sands Area of northern Alberta, Canada which were acquired for$250,000 in May 2008 for 1,000,000 restricted shares of TAMO’s common stock.  TAMO’sshares are traded on the OTCBB and the closing price on June 12, 2009 was $0.80per share.  The shares are restricted under the Securities Act and the Companydoes not have any registration rights.

** **

**4. Related Party Transactions**

** **

OnMarch 31, 2009, the Company purchased 171 oil and gas lease interests totaling3,827 gross (2,666 net) acres in Okfuskee and Okmulgee Counties, Oklahoma from CH4 Energy, Inc., a company controlled by Soladino Investments SA (“Soladino”)at a cost of $583,823.  The Company reimbursed Soladino for its historic costs(acreage) by issuing a secured, non-interest bearing note, payable on demandfor $583,823 and assumed responsibility for all further costs.  The leases areheld in the name of Frontier Land, Inc. as fiduciary trustee for the benefit ofthe Company’s subsidiary Petrocorp (Oklahoma) Inc.

6

 

**PETROCORP INC.**

**(An Exploration Stage Company)**

**Notes to theConsolidated Financial Statements**

**(Unaudited)**

** **

OnAugust 19, 2009, Soladino loaned the Company $182,094.  The note is secured,payable on demand and non-interest bearing.  At September 30, 2009, theCompany has $1,499,975 in secured, non-interest bearing notes (three), payableon demand with its majority stockholder, Soladino.

 

Duringthe three and nine month period ended September 30, 2009 the Company recordedinterest expense of $21,025 and $51,895, respectively.  Interest is computed atan implied rate of 6% and this amount was recorded as a capital contribution bythe Company.

** **

TheCompany was provided management services by its president, Mr. Fitzsimons, duringthe quarter at no cost.  The Company recorded the $30,000 estimated value ofthese services as compensation expense and as a capital contribution.  At March31, 2009, Mr. Fitzsimons had advanced the Company $26,552 which was repaid inApril, 2009.

 

**5. Subsequent Events**

 

TheCompany has evaluated all events that occurred after the balance sheet date throughNovember 16, 2009, the date when the financial statements were issued todetermine if they must be reported. Management of the Company has determinedthat there are certain reportable subsequent events to be disclosed as follows:

 

OnOctober 13, 2009, Soladino loaned the Company $100,000.  The note is secured, non-interestbearing and payable on demand.

 

 7

 
Item 2 – Management’s Discussion and Analysis orPlan of Operation
 

References to “Company”, “we”or “us” refer to Petrocorp Inc., unless the context requires otherwise.

 

Forward Looking Statements

 

Thefollowing is provided to supplement, and should be read in conjunction with,our financial statements and the accompanying notes included in our Form 10-Kas of December 31, 2008.  This report contains forward-looking statements andinformation relating to us that is based on the beliefs of our management aswell as assumptions made by, and information currently available to, ourmanagement. When used in this report, the words “anticipate”, “believe”,“estimate”, “expect”, “intend”, “plan” and similar expressions, as they relateto us or our management, are intended to identify forward-looking statements.These statements reflect management’s current view of us concerning futureevents and are subject to certain risks, uncertainties and assumptions,including among many others:

 

 

●

the  quality of our properties with regard to, among other things, the existence  of reserves in economic quantities;

 

●

uncertainties  about the estimates of reserves; 

 

 

●

our  ability to increase our production and oil and natural gas income through  exploration and development;

 

●

the  number of well locations to be drilled and the time frame within which they  will be drilled;

 

 

●

the  timing and extent of changes in commodity prices for natural gas and crude  oil;

 

●

domestic  demand for oil and natural gas; 

 

 

●

drilling  and operating risks; 

 

●

the  availability of equipment, such as drilling rigs and transportation  pipelines; 

 

 

●

changes  in our drilling plans and related budgets; 

 

●

the  adequacy of our capital resources and liquidity including, but not limited  to, access to additional borrowing capacity; and

 

 

●

risks  and uncertainties described in the Risk Factors section or elsewhere in our  Annual Report on Form 10-K.

 

Shouldone or more of these risks or uncertainties materialize or should theunderlying assumptions prove incorrect, actual outcomes and results coulddiffer materially from those indicated in the forward-looking statements.

 

Anyforward-looking statement speaks only as of the date on which such statement ismade, and we undertake no obligation to update any forward-looking statement orstatements to reflect events or circumstances after the date on which suchstatement is made or to reflect the occurrence of unanticipated events. Newfactors emerge from time to time and it is not possible for management topredict all of such factors, nor can it assess the impact of each factor on thebusiness or the extent to which any factor, or combination of factors, maycause actual results to differ materially from those contained in anyforward-looking statements.

 

 8

 

 

BusinessOverview

 

Petrocorp Inc. was incorporated on June19, 2006 under the laws of the State of Delaware.  Prior to September 2007, theCompany’s business model provided telephonic conferencing services tobusinesses, organizations and individuals in North America.  Due to capitalconstraints and because its executives could no longer serve the Companywithout compensation, the Company decided to change its business directions.

 

We are an exploration stage Company engaged in the acquisition,exploration and production, if warranted, development of prospective oil andgas properties.  We plan to conduct exploration work on each of our current andfuture properties in order to ascertain whether any of them possesscommercially exploitable quantities of oil and gas reserves.  The Company hassignificant lease holdings on the North Slope of Alaska, the Canadian Province of Quebec, permit applications pending in Italy and Netherlands, and oil and gas production in Oklahoma.

 

Our office is located at 1065 Dobbs Ferry Road, White Plains, NY 10607 and our telephone number is (914) 674-4373. Our web-site address is http://petrocorp.us.

** **

Planof Operation

*** ***

Our plan of operation is to conductexploration work on each of our current and future properties in order toascertain whether any of them possess commercially exploitable quantities ofoil and gas reserves. There is no assurance that a commercially viable oil andgas reserve exists on any of our current and future properties, and a greatdeal of further exploration will be required before a final evaluation as tothe economic feasibility for our future exploration is determined. To date, wedo not know if any economically viable oil and gas reserves exist on any of ourcurrent or future properties and there is no assurance that we will discoverany.

 

**            Alaska**

 

On October 25, 2007, Union Energy (Alaska) LLC (“UEA”), oursubsidiary, was the winning bidder for tracts 254, 258 and 259 in the NorthSlope Areawide 2007 Competitive Oil and Gas Lease Sale.  The leases, covering14,680 net acres, were issued on August 1, 2008, with a term of seven years andsubject to a 12.5% royalty interest infavor of the State of Alaska.  UEA paid a total of$380,021 to the State of Alaska in respect of the leases.  These tracts arecontiguous and the Company believes, based upon current available geologicaldata and maps from the public domain, to contain the Kavik gas field,discovered in 1969, which has been evaluated in detail by the U.S. Departmentof the Interior, U.S Geological Survey ("USGS").

 

On February 27, 2008, UEA was the winning bidder for tracts 922,923, 927, 988, 989, 990, 991, 992 and 925 in the State of Alaska North SlopeFoothills Areawide 2008 Competitive Oil and Gas Lease Sale. The leases,covering 9,600 net acres, were issued on September 1, 2008, with a term of 10years and subject to a 12.5% royaltyinterest in favor of the State of Alaska.  UEA paid atotal of $59,565 to the State of Alaska in respect of the leases.  These tractsare contiguous and the Company believes, based upon current availablegeological data and maps from the public domain, to contain the East Kurupa gas field, discovered by Texaco in 1976.  The USGS has been studying thepotential for unconventional over-pressured, continuous gas deposits in theColville basin that contains the Kurupa anticline and is now interpreting the East Kurupa well to have encountered a thick section of over-pressured gas in Brookianstrata.

 

The Alaska leases are in areas which the Company believes arepromising for gas production although the Company does not make anyrepresentations as to their future production, if any.  Furthermore, any gasrecovered from our Alaska leases will not be salable unless or until a proposed North Slope gas pipeline is completed.  We have retained Frontier Land Inc.(an established land firm and a member of the American Association ofProfessional Landmen) to conduct negotiations with other leaseholders regardingtheir acreage and to acquire other land interests within the vicinity of ourtracts.

 

9

 

**            Oklahoma**

 

OnAugust 12, 2008, the Company acquired from its President, James Fitzsimons, a50% working interest (41.25% net revenue interest) in the Snake Creek prospect,a 3,200 gross (3,022 net) acre gas development project located in northernOkmulgee County.  The Company reimbursed Mr. Fitzsimons for his historic costs(acreage and drilling) by issuing a secured, non-interest bearing note, payableon demand for $210,917 and assumed responsibility for all further costs.

 

OnNovember 30, 2008, the Company acquired from Mr. Fitzsimons, a 100% workinginterest (81.25% net revenue interest) in the Spanish Peak prospect, a 2,041gross (900 net) acre gas development project located in Okmulgee County,Oklahoma.  The Company reimbursed Mr. Fitzsimons for his historic costs(acreage) by issuing a secured, non-interest bearing note, payable on demandfor $173,141 and assumed responsibility for all further costs.

 

OnMarch 31, 2009, the Company purchased 171 oil and gas lease interests totaling3,827 gross (2,666 net) acres in Okfuskee and Okmulgee Counties, Oklahoma from CH4 Energy, Inc., a company controlled by Soladino Investments SA at a costof $583,823.  The Company reimbursed Soladino for its historic costs (acreage)by issuing a secured, non-interest bearing note, payable on demand for $583,823and assumed responsibility for all further costs.

 

The Company’s Okfuskee and Okmulgee County oil and gas leases arenear oil and gas fields with proved developed production and within the generalarea of the “Woodford shale play”.  We have retained Keith Summar (a member ofthe American Association of Petroleum Geologists) as a consultant to assist usin our Oklahoma operations.

* *

**            Quebec, Canada**

** **

On February 4, 2009, the Government of Quebec awarded the Companyseven oil and gas exploration licenses – 2009P462 to 2009PG468 – all located inthe St. Lawrence Lowlands area.  The seven Quebec licenses cover a total netsurface area of 114,045 hectares (281,593 acres) and have an initial term offive years.  The Company has committed to a five-year work program with minimumexpenditures of (expressed in Canadian dollars): $0.50 per hectare in the firstyear; $1.00 per hectare in the second year; $1.50 per hectare in the thirdyear; $2.00 per hectare in the fourth year; and $2.50 per hectare in the fifthyear.

 

**            Italy**

 

OnJanuary 20, 2009, the Government of Italy made the preliminary awards of thecompetitive oil and gas exploration licenses, “Fiorenzuola D'Arda” located inthe Po Valley and “Montottone” located in the Marche region, in favor of MacOil SpA, our subsidiary.  On March 24, 2009, the Government of Italy made thepreliminary award of the competitive oil and gas exploration license, “Melzo”located in the Po Valley, also in favor of Mac Oil SpA.  On September 17, 2009,the Government of Italy made the preliminary award of the competitive oil andgas exploration license, “San Grato” located in the Po Valley, again in favorof Mac Oil SpA. The four Italy licenses cover a net surface area of 132,900hectares (328,181 acres).

 

10

 

TheCompany also has two competitive oil and gas exploration license applicationspending awaiting adjudication by the Ministry of Economic Development in Italy covering a net surface area of 98,332 hectares (242,982 acres).

 

            **Netherlands**

 

TheCompany has one license application pending covering a net surface area of45,037 hectares (111,288 acres).

 

Internationally,we have retained Daniele Albisetti and Christian Ceppi (members of the SwissGeological Society, the Società Geologica Italiana (Italian Geological Society)and the Geological Association of Canada) as consultants to assist us in ouroperations.

 

Resultsof Operations

 

ThreeMonths Ended September 30, 2009 Compared to Three Months Ended September 30,2008

 

For the quarter ended September 30,2009, we had revenues of $18,528, oil and gas exploration costs of $60,584 andincurred a loss of $223,155, as compared to revenues of $7,241 oil and gasexploration costs of $6,169 and a loss of $73,594 in 2008.  During the 2009 quarter, the Company paidcompensation to its President of $30,000 which was recorded as a capitalcontribution by the Company and professional fees of $131,176, which relatedprimarily to the development of the Company’s business plan and costsassociated with being a public company, as compared to $26,300 for the 2008quarter.  Also during the 2009 quarter, the Company paid general andadministrative expenses of $5,701, which included rent, telephone and otheroffice costs, as compared to $10,970 for the 2008 quarter.  Interest expense of$21,025 was computed on the majority stockholder loans at an implied rate of 6%and this amount was recorded as a capital contribution by the Company duringthe quarter.

 

NineMonths Ended September 30, 2009 Compared to Nine Months Ended September 30,2008

 

Duringthe nine months ended September 30, 2009, we incurred a net loss of $551,157compared to a net loss of $221,008 for the 2008 period.  During the nine monthsended September 30, 2009, the Company paid compensation and professional feesof $284,339, which related primarily to the development of the Company’sbusiness plan and costs associated with being a public company, as compared to$172,200 for the 2008 period.  Also during the nine months ended September 30,2009, the Company paid general and administrative expenses of $21,853, whichincluded rent, telephone and other office costs, as compared to $23,498 for the2008 period.  During the nine months ended September 30, 2009 interest expenseof $51,895 was computed on the majority stockholder loans at an implied rate of6% and this amount was recorded as a capital contribution by the Company duringthe period.

 

Liquidityand Capital Resources

 

OurCompany's principal cash requirements are for exploration expenses which weanticipate will rise as we proceed to determine the feasibility of developingour current or future property interests.  As of September 30, 2009, we hadcash of $144,164 and deficit working capital of $41,486.  Our net cash providedby financing activities during the period from our inception to September 30,2009 was $3,054,075.

 

OnMarch 31, 2009, the Company purchased 171 oil and gas lease interests totaling3,827 gross (2,666 net) acres in Okfuskee and Okmulgee Counties, Oklahoma from CH4 Energy, Inc., a company controlled by Soladino Investments SA (“Soladino”)at a cost of $583,823.  The Company reimbursed Soladino for its historic costs(acreage) by issuing a secured, non-interest bearing note, payable on demandfor $583,823 and assumed responsibility for all further costs.

*** ***

11

 

OnAugust 19, 2009, Soladino loaned the Company $182,094.  The note is secured,payable on demand and none interest bearing.  At September 30, 2009, theCompany has $1,499,975 in secured, non-interest bearing notes (three), payableon demand with its majority stockholder Soladino.  The notes aresecured by the Company’s oil and gas leases and its other assets.

 

OnOctober 13, 2009, Soladino loaned the Company $100,000.  The note is secured,payable on demand and none interest bearing.  We anticipate that additionalfunding will be provided in the form of equity financing from the sale of ourcommon stock or loans from directors or majority shareholder. We cannot provideinvestors with any assurance that additional funds will be raised.  Currently,we do not have any arrangements in place for future equity financings.

*** ***

Critical Accounting Policies

Financial Reporting Release No. 60 of the SEC encouragesall companies to include a discussion of critical accounting policies ormethods used in the preparation of the financial statements.  There are nocurrent revenue generating activities that give rise to significant assumptionsor estimates.  Our most critical accounting policies relate to the accountingand disclosure of related party transactions.  Our financial statements filed aspart of our December 31, 2008 Annual Report on Form 10-K include a summary ofthe significant accounting policies and methods used in the preparation of ourfinancial statements.

 

Off-BalanceSheet Arrangements

 

Wehave never entered into any off-balance sheet financing arrangements and havenot formed any special purpose entities. We have not guaranteed any debt orcommitments of other entities or entered into any options on non-financialassets.

** **

**Item3.  Quantitative and Qualitative Disclosures About Market Risk**

 

Theinformation called for by this item is not required as we are a smallerreporting company.

** **

**Item4T.  Controls and Procedures**

 

Our Chief Executive Officer and Chief FinancialOfficer performed an evaluation of the effectiveness of our disclosure controlsand procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as ofthe end of the period covered by this Quarterly Report on Form 10-Q. Disclosurecontrols and procedures include, without limitation, controls and proceduresdesigned to ensure that information required to be disclosed by us in thereports that we file or submit under the Exchange Act is recorded, processed,summarized and reported, within the time periods specified in the Securitiesand Exchange Commission’s rules and forms, and is accumulated and communicatedto our management, including our principal executive and principal financialofficers, or persons performing similar functions, as appropriate to allowtimely decisions regarding required disclosure.  Based on that evaluation, ourChief Executive Officer and Chief Financial Officer concluded that, as of September30, 2009, our disclosure controls and procedures were ineffective at thereasonable assurance level due to the two (2) material weaknesses describedbelow:

 

(i) We do not have written documentation of ourinternal control policies and procedures.  Written documentation of keyinternal controls over financial reporting is a requirement of Section 404 ofthe Sarbanes-Oxley Act which is applicable to us for the year ending December31, 2008.  Management evaluated the impact of our failure to have writtendocumentation of our internal controls and procedures on our assessment of ourdisclosure controls and procedures and has concluded that the controldeficiency that resulted represented a material weakness.

 

12

 

(ii) We do not have sufficient segregation of dutieswithin accounting functions, which is a basic internal control.  Due to oursize and nature, segregation of all conflicting duties may not always bepossible and may not be economically feasible.  However, to the extentpossible, the initiation of transactions, the custody of assets and therecording of transactions should be performed by separate individuals.  Managementevaluated the impact of our failure to have segregation of duties on ourassessment of our disclosure controls and procedures, and concluded that thecontrol deficiency that resulted represented a material weakness.

 

It should be noted that any system of controls,however well designed and operated, can provide only reasonable and notabsolute assurance that the objectives of the system are met.  In addition, thedesign of any control system is based in part upon certain assumptions aboutthe likelihood of certain events. Because of these and other inherentlimitations of control systems, there can be no assurance that any design willsucceed in achieving its stated goals under all potential future conditions,regardless of how remote.

 

**Changes in Internal Control over Financial Reporting**

 

There were no changes in the Company’s internalcontrol over financial reporting that occurred during the third quarter of 2009that have materially affected, or are reasonably likely to materially affect,the Company’s internal control over financial reporting as such term is definedin Rule 13a-15 and 15d-15 of the Exchange Act.

 

 
PART II –OTHER INFORMATION
 
Item 1 – LegalProceedings
 

TheCompany is not currently a party to any legal proceedings.

 
Item 2 – Unregistered Sales of Equity Securities andUse of Proceeds
 

None.

 
Item 3 – Defaults UponSenior Securities
 

None.

 
Item 4 – Submission ofMatters to a Vote of Security Holders
 

None.

 
Item 5 – OtherInformation
 

None.

 

13

 
Item 6 – Exhibits
 

Thefollowing documents are filed as part of this Report.

 

**Exhibit Number**

**Exhibit Description**

31.1

Rule 13a-14(a)/15d-14(a)  Certification by the Principal Executive Officer.  **

31.2

Rule 13a-14(a)/15d-14(a)  Certification by the Principal Financial Officer.  **

32.1

Section 1350 Certification by the  Principal Executive Officer.  **

32.2

Section 1350 Certification by the  Principal Financial Officer.  **

 

** Filed herewith

 

 

**SIGNATURE**

 

 

In accordance with the requirements of the SecuritiesExchange Act of 1934, as amended, the registrant caused this Report on Form10-Q to be signed on its behalf by the undersigned, thereunto duly authorized.

 

                                                                                           **PETROCORP INC.**

 

Date:November 16, 2009

                                                                                            By:  /s/  James Fitzsimons

        James Fitzsimons, President

 
****
 

 

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