----

----

| (Mark One)                                         |                                                                                   |
|----------------------------------------------------|----------------------------------------------------------------------------------------|
|                                               |                                                                                   |
| þ                                             | QUARTERLY REPORT UNDER SECTION      13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|                                               |                                                                                   |
| For the quarterly      period ended March 31, 2010 |
|                                               |                                                                                   |
| o                                                  | TRANSITION REPORT UNDER SECTION      13 OR 15(d) OF THE EXCHANGE ACT                   |

| CAMAC ENERGY    INC.                                    |
|---------------------------------------------------------|
| (Exact name of      issuer as specified in its charter) |

| Delaware                                                                    |   | 30-0349798                                    |
|--------------------------------------------------------------------------------------------|--------|-----------------------------------------------|
| (State or Other      Jurisdiction of Incorporation or      Organization)    |   | (I.R.S Employer      Identification      No.) |

| 250      East Hartsdale Ave.Hartsdale,      New York 10530 |
|------------------------------------------------------------|
| (Address of      principal executive offices)              |

| (914)      472-6070                    |
|----------------------------------------|
| (Issuer’s telephone      number) |

| Large accelerated filer    o                                                                                                                 |   | Accelerated filer       | þ |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------|--------|
| Non-accelerated filer      o Do not check if a smaller reporting company)   |   | Smaller reporting company         | o      |

| Class      of Securities           |   | Shares      Outstanding |
|------------------------------------|--------|-------------------------|
| Common      Stock, $.001 par value |   | 142,694,275             |

----

----

----

|                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Page   |   |
|-------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |
| CAUTIONARY      STATEMENT RELEVANT TO FORWARD-LOOKING INFORMATION |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 1      |   |
|                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |
| CERTAIN  DEFINED      TERMS                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 1      |   |
|                                                              |                                                                                                                                                                                        |   |   |   |   |
| PART      I                                                       | FINANCIAL      INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 2 |   |
|                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |
| Item      1.                                                      | Financial      Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 2 |   |
|                                                              | Condensed      Consolidated Balance Sheets as of March 31, 2010 (unaudited) and December      31, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | 2 |   |
|                                                              | Condensed      Consolidated Statements of Income (unaudited) for the three months ended      March 31, 2010 and 2009 and for                      the period from inception (August 25, 2005) through March 31,      2010                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 3 |   |
|                                                              | Condensed      Consolidated Statements of Comprehensive Income      (Loss)  (unaudited) for the three months ended March 31, 2010      and 2009 and for the period from inception (August 25, 2005) through March      31, 2010                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 4 |   |
|                                                              | Condensed      Consolidated Statement of  Equity (Deficiency) (unaudited) for      the period from inception (August 25, 2005) through March 31,      2010                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 5 |   |
|                                                              | Condensed      Consolidated Statements of Cash Flows  (unaudited) for the three      months ended March 31, 2010 and 2009 and for the period from inception      (August 25, 2005) through March 31, 2010                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | 7 |   |
|                                                              | Notes      to Condensed Consolidated Financial Statements (unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 8 |   |
| Item      2.                                                      | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 14 |   |
| Item      3.                                                      | Quantitative      and Qualitative Disclosures About Market Risk                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 21 |   |
| Item      4.                                                      | Controls      and Procedures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | 21 |   |
|                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |
| PART      II                                                      | OTHER      INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | 22 |   |
|                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |
| Item      1.                                                      | Legal      Proceedings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | 22 |   |
| Item      1A.                                                     | Risk      Factors                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 22 |   |
| Item      2.                                                      | Unregistered      Sales of Equity Securities and Use of Proceeds                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | 22 |   |
| Item      3.                                                      | Defaults      Upon Senior Securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 23 |   |
| Item      5.                                                      | Other      Information                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | 23 |   |
| Item      6.                                                      | Exhibits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | 23 |   |
|                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |
| SIGNATURES                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 24 |   |

----

|   | ● | Lack      of meaningful operating history, operating revenue or earnings      history. |
|--------|---------|----------------------------------------------------------------------------------------|

|   | ● | Dependence      on key personnel. |
|--------|---------|-----------------------------------|

|   | ● | Fluctuation      in quarterly operating results and seasonality in certain of our      markets. |
|--------|---------|-------------------------------------------------------------------------------------------------|

|   | ● | Possible      significant influence over corporate affairs by significant      stockholders. |
|--------|---------|----------------------------------------------------------------------------------------------|

|   | ● | Our      ability to enter into definitive agreements to formalize foreign energy      ventures and secure necessary exploitation  rights. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Our      ability to raise capital to fund ouroperations. |
|--------|---------|----------------------------------------------------------|

|   | ● | Our      ability to successfully integrate and operate acquired or newly formed      entities and multiple foreign energy ventures and      subsidiaries. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Competition      from large petroleum and other energyinterests. |
|--------|---------|------------------------------------------------------------------|

|   | ● | Changes      in laws and regulations that affect our operations and the energy industry      in general. |
|--------|---------|----------------------------------------------------------------------------------------------------------|

|   | ● | Risks      and uncertainties associated with exploration, development and production      of oil and gas, drilling and productionrisks. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Expropriation      and other risks associated with foreign  operations. |
|--------|---------|-------------------------------------------------------------------------|

|   | ● | Risks      associated with anticipated and ongoing third party pipeline construction      and transportation of oil and gas. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------|

|   | ● | The      lack of availability of oil and gas field goods and    services. |
|--------|---------|---------------------------------------------------------------------------|

|   | ● | Environmental      risks and changing economicconditions. |
|--------|---------|-----------------------------------------------------------|

----

| PART I                                                                                                                                                                                   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| FINANCIAL      INFORMATION                                                                                                                                                               |   |
| ITEM      1.  FINANCIAL STATEMENTS                                                                                                                                             |   |   |   |   |   |   |
| CAMAC      Energy Inc. and Subsidiaries (Formerly      Pacific Asia Petroleum, Inc. and Subsidiaries) (A      Development Stage Company) Condensed      Consolidated Balance      Sheets |   |
|                                                                                                                                                                                     |   | As      of |   |   | As      of |   |
|                                                                                                                                                                                     |   | March      31, |   |   | December      31, |   |
|                                                                                                                                                                                     |   | 2010 |   |   | 2009 |   |
|                                                                                                                                                                                     |   | (Unaudited) |   |   |   |   |
| Assets                                                                                                                                                                                   |   |   |   |   |   |   |
| Current assets                                                                                                                                                                           |   |   |   |   |   |   |
| Cash      and cash equivalents                                                                                                                                                           |   | $ | 37,942,656 |   |   | $ | 3,602,110 |   |
| Short-term      investments                                                                                                                                                              |   |   | 252,590 |   |   |   | 1,735,397 |   |
| Accounts      receivable                                                                                                                                                                 |   |   | 51,994 |   |   |   | 68,771 |   |
| Prepaid      expenses                                                                                                                                                                    |   |   | 419,529 |   |   |   | 427,101 |   |
| Inventories                                                                                                                                                                              |   |   | 50,919 |   |   |   | 73,394 |   |
| Deposits                                                                                                                                                                                 |   |   | 30,057 |   |   |   | 35,262 |   |
| Advances                                                                                                                                                                                 |   |   | 15,229 |   |   |   | 5,121 |   |
|       Total      current assets                                                                                                                            |   |   | 38,762,974 |   |   |   | 5,947,156 |   |
|                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Non-current assets                                                                                                                                                                       |   |   |   |   |   |   |   |   |
| Property,      plant and equipment - at cost (net of accumulated depreciation and      amortization:                                                                                     |   |   |   |   |   |   |   |   |
|      March      31, 2010 - $231,330;  December 31, 2009 -    $181,765)                                                                                |   |   | 507,933 |   |   |   | 450,703 |   |
| Intangible      assets                                                                                                                                                                   |   |   | - |   |   |   | 384 |   |
| Investment      in long-term certificate of deposit                                                                                                                                      |   |   | - |   |   |   | 25,141 |   |
| Long-term      advances                                                                                                                                                                  |   |   | 33,010 |   |   |   | 33,015 |   |
| Investment      in nonsubsidiary - at fair value                                                                                                                                         |   |   | 316,538 |   |   |   | 478,255 |   |
| Deferred      charges                                                                                                                                                                    |   |   | 483,817 |   |   |   | 501,039 |   |
|                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Total      Assets                                                                                                                                                                        |   | $ | 40,104,272 |   |   | $ | 7,435,693 |   |
|                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Liabilities and Equity                                                                                                                                                                   |   |   |   |   |   |   |   |   |
| Current liabilities                                                                                                                                                                      |   |   |   |   |   |   |   |   |
| Accounts      payable                                                                                                                                                                    |   | $ | 404,222 |   |   | $ | 172,140 |   |
| Income      taxes payable                                                                                                                                                                |   |   | 18,728 |   |   |   | 12,801 |   |
| Accrued      contracting and development fees                                                                                                                                            |   |   | 86,819 |   |   |   | 920,486 |   |
| Accrued      personnel expenses                                                                                                                                                          |   |   | 190,492 |   |   |   | 367,957 |   |
| Accrued      and other liabilities                                                                                                                                                       |   |   | 333,007 |   |   |   | 563,781 |   |
|       Total      current liabilities                                                                                                                       |   |   | 1,033,268 |   |   |   | 2,037,165 |   |
|                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Equity                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
| Stockholders'      equity - CAMAC Energy Inc. and subsidiaries                                                                                                                           |   |   |   |   |   |   |   |   |
| Common      stock                                                                                                                                                                        |   |   |   |   |   |   |   |   |
|      Authorized      - 300,000,000 shares at $.001 par value; Issued and outstanding      -                                                                     |   |   |   |   |   |   |   |   |
|       52,653,818      at March 31, 2010;  43,037,596 at December 31,    2009                                                                     |   |   | 52,654 |   |   |   | 43,038 |   |
| Preferred      stock                                                                                                                                                                     |   |   |   |   |   |   |   |   |
|      Authorized      - 50,000,000 shares at $.001 par value;                                                                                                    |   |   |   |   |   |   |   |   |
|      Issued      - 23,708,952 as of March 31, 2010 and December 31, 2009                                                                                        |   |   |   |   |   |   |   |   |
|      Outstanding      - none as of March 31, 2010 and December 31, 2009                                                                                         |   |   | - |   |   |   | - |   |
| Paid-in      capital                                                                                                                                                                     |   |   | 63,189,351 |   |   |   | 26,034,871 |   |
| Deficit      accumulated during the development stage                                                                                                                                    |   |   | (23,632,019 | ) |   |   | (20,457,442 | ) |
| Other      comprehensive income                                                                                                                                                          |   |   | (73,876 | ) |   |   | 91,572 |   |
|     Total      stockholders' equity - CAMAC Energy Inc. and subsidiaries                                                                                             |   |   | 39,536,110 |   |   |   | 5,712,039 |   |
| Noncontrolling      interests deficit                                                                                                                                                    |   |   | (465,106 | ) |   |   | (313,511 | ) |
|      Total      equity                                                                                                                                          |   |   | 39,071,004 |   |   |   | 5,398,528 |   |
|                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Total      Liabilities and Equity                                                                                                                                                        |   | $ | 40,104,272 |   |   | $ | 7,435,693 |   |
|                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| The      accompanying notes to the unaudited condensed consolidated financial      statements are an integral part of this statement.                                                    |   |

----

| CAMAC      Energy Inc. and Subsidiaries                                                                                               |   |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|
| (Formerly      Pacific Asia Petroleum, Inc. and Subsidiaries)                                                                         |   |
| (A      Development Stage Company)                                                                                                    |   |
| Condensed      Consolidated Statements of Income                                                                                      |   |
| (Unaudited)                                                                                                                           |   |
|                                                                                                                                  |   |   |   |   |   |   |   |   |   |
|                                                                                                                                  |   |   |   |   |   |   |   | For      the period |   |
|                                                                                                                                  |   |   |   |   |   |   |   | from      inception |   |
|                                                                                                                                  |   | For      the three months |   |   | (August      25, 2005) |   |
|                                                                                                                                  |   | ended      March 31, |   |   | through |   |
|                                                                                                                                  |   | 2010 |   |   | 2009 |   |   | 3/31/2010 |   |
| Revenues                                                                                                                              |   |   |   |   |   |   |   |   |   |
| Chemical      sales                                                                                                                   |   | $ | 69,987 |   |   | $ | - |   |   | $ | 125,395 |   |
| Services                                                                                                                              |   |   | 6,672 |   |   |   | - |   |   |   | 18,066 |   |
|                                                                                                                                  |   |   | 76,659 |   |   |   | - |   |   |   | 143,461 |   |
| Costs and OperatingExpenses                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation                                                                                                                          |   |   | 49,177 |   |   |   | 26,157 |   |   |   | 268,588 |   |
| All      other costs and operating expenses                                                                                           |   |   | 3,345,976 |   |   |   | 2,912,868 |   |   |   | 24,786,770 |   |
|      Total      costs and operating expenses                                                                 |   |   | 3,395,153 |   |   |   | 2,939,025 |   |   |   | 25,055,358 |   |
|                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      Loss                                                                                                                   |   |   | (3,318,494 | ) |   |   | (2,939,025 | ) |   |   | (24,911,897 | ) |
|                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Other Income (Expense)                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      income                                                                                                                  |   |   | 4,544 |   |   |   | 21,294 |   |   |   | 1,083,686 |   |
| Interest      expense                                                                                                                 |   |   | - |   |   |   | - |   |   |   | (939 | ) |
| Other      income                                                                                                                     |   |   | - |   |   |   | - |   |   |   | 27,849 |   |
| Other      expense                                                                                                                    |   |   | (201 | ) |   |   | - |   |   |   | (1,098 | ) |
|     Total      Other Income                                                                                       |   |   | 4,343 |   |   |   | 21,294 |   |   |   | 1,109,498 |   |
|                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss before income taxes and                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|     noncontrolling      interests                                                                                 |   |   | (3,314,151 | ) |   |   | (2,917,731 | ) |   |   | (23,802,399 | ) |
| Income      tax expense                                                                                                               |   |   | (8,220 | ) |   |   | (6,435 | ) |   |   | (99,703 | ) |
|                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss                                                                                                                         |   |   | (3,322,371 | ) |   |   | (2,924,166 | ) |   |   | (23,902,102 | ) |
| Less:      Net loss - noncontrolling interests                                                                                        |   |   | 147,794 |   |   |   | 1,815 |   |   |   | 270,083 |   |
|                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Loss – CAMAC Energy Inc.                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|     and      Subsidiaries                                                                                         |   | $ | (3,174,577 | ) |   | $ | (2,922,351 | ) |   | $ | (23,632,019 | ) |
|                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss per common share - CAMAC                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
|      Energy      Inc. common stockholders -                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
|  basic      and diluted                                                                                                          |   | $ | (0.07 | ) |   | $ | (0.07 | ) |   |   |   |   |
|                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average number of common                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
|      shares      outstanding, basic and diluted                                                              |   |   | 46,844,272 |   |   |   | 40,378,963 |   |   |   |   |   |
|                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                  |   |
| The      accompanying notes to the unaudited condensed consolidated financial      statements are an integral part of this statement. |   |

----

| CAMAC      Energy Inc. and Subsidiaries                                                                                                               |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (Formerly      Pacific Asia Petroleum, Inc. and Subsidiaries)                                                                                         |   |
| (A      Development Stage Company)                                                                                                                    |   |
| Condensed      Consolidated Statements of Comprehensive Income (Loss)                                                                                 |   |
| (Unaudited)                                                                                                                                           |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                  |   |   |   |   |   |   |   | For      the period |   |
|                                                                                                                                                  |   |   |   |   |   |   |   | from      inception |   |
|                                                                                                                                                  |   | For      the three months |   |   | (August      25, 2005) |   |
|                                                                                                                                                  |   | ended      March 31, |   |   | through |   |
|                                                                                                                                                  |   | 2010 |   |   | 2009 |   |   | 3/31/2010 |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |   |
| Net      loss                                                                                                                                         |   | $ | (3,322,371 | ) |   | $ | (2,924,166 | ) |   | $ | (23,902,102 | ) |
| Other      comprehensive income (loss) -                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
|       pre-tax      and net of tax:                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
|           Currency      translation adjustment                                                      |   |   | (7,279 | ) |   |   | (911 | ) |   |   | 166,058 |   |
|            Unrealized      gain (loss) on                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
|              investments      in securities                                          |   |   | (161,717 | ) |   |   | - |   |   |   | (236,362 | ) |
| Total      other comprehensive income (loss)                                                                                                          |   |   | (168,996 | ) |   |   | (911 | ) |   |   | (70,304 | ) |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive      income (loss)                                                                                                                      |   |   | (3,491,367 | ) |   |   | (2,925,077 | ) |   |   | (23,972,406 | ) |
| Less:      Comprehensive (income) loss -                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
|      Noncontrolling      interests' share:                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
|          Net      loss plus pre-tax and net of                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
|          tax      other comprehensive (income)         loss |   |   | 151,322 |   |   |   | 1,900 |   |   |   | 266,512 |   |
| Comprehensive      income (loss) -                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| CAMAC      Energy Inc. and Subsidiaries                                                                                                               |   | $ | (3,340,045 | ) |   | $ | (2,923,177 | ) |   | $ | (23,705,894 | ) |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| The      accompanying notes to the unaudited condensed consolidated financial      statements are an integral part of this statement.                 |   |

----

| CAMAC      Energy Inc.                                                                  |   |
|-----------------------------------------------------------------------------------------|--------|
| (Formerly      Pacific Asia Petroleum, Inc.)                                            |   |
| (A      Development Stage Company)                                                      |   |
| Condensed      Statement of Equity (Deficiency)                                         |   |
| For      the period from inception (August 25, 2005) through March 31, 2010 (Unaudited) |   |

|                      |   | CAMAC      Energy Inc. Stockholders        |   |              |   |   |                          |   |   |
|---------------------------|--------|--------------------------------------------|--------|-------------------|--------|--------|-------------------------------|--------|--------|
|                      |   | No.      ofCommonShares$.001      parvalue |   |              |   |   |                          |   |   |   | No.      ofPreferredShares$.001      parvalue |   |   |   |   |   |   |   |   | DeficitAccumulatedDuring      theDevelopmentStage |   |   | OtherCompre-hensiveIncome(Loss) |   |   |   |   |   |   |   |
|                      |   |                                       |   |              |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                      |   |                                       |   |              |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | TotalEquity(Deficiency) |   |
|                      |   |                                       |   |              |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |   | Non-controllingInterests |   |
|                      |   |                                       |   | Common      Stock |   |   | Subscriptions      Receivable |   |   |   |   | Preferred      Stock |   |   | Paid-inCapital |   |   |   |
|                      |   |                                       |   |              |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance - August 25, 2005 |   |                                       |   |              |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| Issued for cash                                                                             |   |   | 1,852,320  |   |   |   | 1,852  |   |   |   | -       |   |   |   | -           |   |   |   | -       |   |   |   | 10,148     |   |   |   |       |   |   |   | -       |   |   |   | -       |   |   |   | 12,000     |   |
|---------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|--------|--------|--------|--------|---------|--------|--------|--------|-------------|--------|--------|--------|---------|--------|--------|--------|------------|--------|--------|--------|------------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|------------|--------|
| Subscriptions                                                                               |   |   | 3,451,680  |   |   |   | 3,452  |   |   |   | (28,000 | )      |   |   | -           |   |   |   | -       |   |   |   | 24,548     |   |   |   |       |   |   |   | -       |   |   |   | -       |   |   |   | -          |   |
| Net      loss                                                                               |   |   | -          |   |   |   | -      |   |   |   | -       |   |   |   | -           |   |   |   | -       |   |   |   | -          |   |   |   | (51,344    | )      |   |   | -       |   |   |   | -       |   |   |   | (51,344    | )      |
| Balance      - December 31, 2005                                                            |   |   | 5,304,000  |   |   |   | 5,304  |   |   |   | (28,000 | )      |   |   | -           |   |   |   | -       |   |   |   | 34,696     |   |   |   | (51,344    | )      |   |   | -       |   |   |   | -       |   |   |   | (39,344    | )      |
| Subscriptions      paid                                                                     |   |   | -          |   |   |   | -      |   |   |   | 28,000  |   |   |   | -           |   |   |   | -       |   |   |   | -          |   |   |   | -          |   |   |   | -       |   |   |   | -       |   |   |   | 28,000     |   |
| Issued      for fees and services                                                           |   |   | -          |   |   |   | -      |   |   |   | -       |   |   |   | 1,829,421   |   |   |   | 1,829   |   |   |   | 195,776    |   |   |   | -          |   |   |   | -       |   |   |   | -       |   |   |   | 197,605    |   |
| Issued      for cash                                                                        |   |   | -          |   |   |   | -      |   |   |   | -       |   |   |   | 8,161,802   |   |   |   | 8,162   |   |   |   | 4,215,262  |   |   |   | -          |   |   |   | -       |   |   |   | -       |   |   |   | 4,223,424  |   |
| Subsidiary      paid-in capital additions                                                   |   |   | -          |   |   |   | -      |   |   |   | -       |   |   |   | -           |   |   |   | -       |   |   |   | -          |   |   |   | -          |   |   |   | -       |   |   |   | 359,410 |   |   |   | 359,410    |   |
| Amortization      of options fair value                                                     |   |   | -          |   |   |   | -      |   |   |   | -       |   |   |   | -           |   |   |   | -       |   |   |   | 29,065     |   |   |   |       |   |   |   | -       |   |   |   | -       |   |   |   | 29,065     |   |
| Currency      translation                                                                   |   |   | -          |   |   |   | -      |   |   |   | -       |   |   |   | -           |   |   |   | -       |   |   |   | -          |   |   |   |       |   |   |   | 19,228  |   |   |   | -       |   |   |   | 19,228     |   |
| Net      loss                                                                               |   |   | -          |   |   |   | -      |   |   |   | -       |   |   |   | -           |   |   |   | -       |   |   |   | -          |   |   |   | (1,086,387 | )      |   |   | -       |   |   |   | (1,220  | )      |   |   | (1,087,607 | )      |
| Balance      - December 31, 2006                                                            |   |   | 5,304,000  |   |   |   | 5,304  |   |   |   | -       |   |   |   | 9,991,223   |   |   |   | 9,991   |   |   |   | 4,474,799  |   |   |   | (1,137,731 | )      |   |   | 19,228  |   |   |   | 358,190 |   |   |   | 3,729,781  |   |
| Issued      for services - pre-merger                                                       |   |   | 600,032    |   |   |   | 600    |   |   |   | -       |   |   |   | 117,729     |   |   |   | 118     |   |   |   | 334,594    |   |   |   | -          |   |   |   | -       |   |   |   | -       |   |   |   | 335,312    |   |
| Shares      retained by original stockholders in merger -      5/7/07                       |   |   | 468,125    |   |   |   | 468    |   |   |   | -       |   |   |   | -           |   |   |   | -       |   |   |   | 83,323     |   |   |   | -          |   |   |   | -       |   |   |   | -       |   |   |   | 83,791     |   |
| Shares      issued to ADS members in merger - 5/7/07                                        |   |   | 9,850,000  |   |   |   | 9,850  |   |   |   | -       |   |   |   | 13,600,000  |   |   |   | 13,600  |   |   |   | 15,453,957 |   |   |   | -          |   |   |   | -       |   |   |   | -       |   |   |   | 15,477,407 |   |
| Post-merger      acquisition costs and adjustments                                          |   |   | -          |   |   |   | -      |   |   |   | -       |   |   |   | -           |   |   |   | -       |   |   |   | (291,093   | )      |   |   |       |   |   |   | -       |   |   |   | -       |   |   |   | (291,093   | )      |
| Automatic      conversion of Preferred Shares - 6/5/07                                      |   |   | 23,708,952 |   |   |   | 23,709 |   |   |   | -       |   |   |   | (23,708,952 | )      |   |   | (23,709 | )      |   |   | -          |   |   |   | -          |   |   |   | -       |   |   |   | -       |   |   |   | -          |   |
| Issued      for services, compensation cost of stock options and      restricted stock |   |   | -          |   |   |   | -      |   |   |   | -       |   |   |   | -           |   |   |   | -       |   |   |   | 195,442    |   |   |   | -          |   |   |   | -       |   |   |   | -       |   |   |   | 195,442    |   |
| Subsidiary      paid-in capital additions                                                   |   |   | -          |   |   |   | -      |   |   |   | -       |   |   |   | -           |   |   |   | -       |   |   |   | -          |   |   |   |       |   |   |   | -       |   |   |   | 40,020  |   |   |   | 40,020     |   |
| Currency      translation                                                                   |   |   | -          |   |   |   | -      |   |   |   | -       |   |   |   | -           |   |   |   | -       |   |   |   | -          |   |   |   |       |   |   |   | 108,833 |   |   |   | 3,961   |   |   |   | 112,794    |   |
| Net      loss                                                                               |   |   | -          |   |   |   | -      |   |   |   | -       |   |   |   | -           |   |   |   | -       |   |   |   | -          |   |   |   | (2,383,684 | )      |   |   | -       |   |   |   | (7,077  | )      |   |   | (2,390,761 | )      |
| Balance      - December 31, 2007                                                            |   |   | 39,931,109 |   |   |   | 39,931 |   |   |   | -       |   |   |   | -           |   |   |   | -       |   |   |   | 20,251,022 |   |   |   | (3,521,415 | )      |   |   | 128,061 |   |   |   | 395,094 |   |   |   | 17,292,693 |   |
| Issued      on exercise of warrants                                                         |   |   | 79,671     |   |   |   | 80     |   |   |   | -       |   |   |   | -           |   |   |   | -       |   |   |   | (83        | )      |   |   |       |   |   |   | -       |   |   |   | -       |   |   |   | (3         | )      |
| Vesting      of restricted stock                                                            |   |   | 76,400     |   |   |   | 76     |   |   |   | -       |   |   |   | -           |   |   |   | -       |   |   |   | (76        | )      |   |   | -          |   |   |   | -       |   |   |   | -       |   |   |   | -          |   |
| Cancellation      of restricted stock                                                       |   |   | (10,400    | )      |   |   | (10    | )      |   |   |    |   |   |   |        |   |   |   |    |   |   |   | 10         |   |   |   | -          |   |   |   |    |   |   |   | -       |   |   |   | -          |   |
| Compensation      cost of stock options and restricted stock                                |   |   | -          |   |   |   | -      |   |   |   | -       |   |   |   | -           |   |   |   | -       |   |   |   | 1,355,590  |   |   |   | -          |   |   |   | -       |   |   |   | -       |   |   |   | 1,355,590  |   |
| Issued      for services                                                                    |   |   | 15,000     |   |   |   | 15     |   |   |   | -       |   |   |   | -           |   |   |   | -       |   |   |   | 137,985    |   |   |   | -          |   |   |   | -       |   |   |   | -       |   |   |   | 138,000    |   |
| Issued      for acquisition of Navitas Corporation                                          |   |   | 450,005    |   |   |   | 450    |   |   |   | -       |   |   |   | -           |   |   |   | -       |   |   |   | 8,176,141  |   |   |   | -          |   |   |   | -       |   |   |   | -       |   |   |   | 8,176,591  |   |
| Acquired      on acquisition of Navitas Corporation                                         |   |   | (480,000   | )      |   |   | (480   | )      |   |   | -       |   |   |   | -           |   |   |   | -       |   |   |   | (8,178,624 | )      |   |   |       |   |   |   | -       |   |   |   | -       |   |   |   | (8,179,104 | )      |
| Currency      translation                                                                   |   |   | -          |   |   |   | -      |   |   |   | -       |   |   |   | -           |   |   |   | -       |   |   |   | -          |   |   |   |       |   |   |   | 101,799 |   |   |   | 3,289   |   |   |   | 105,088    |   |
| Net      loss                                                                               |   |   | -          |   |   |   | -      |   |   |   | -       |   |   |   | -           |   |   |   | -       |   |   |   | -          |   |   |   | (5,446,649 | )      |   |   | -       |   |   |   | (11,968 | )      |   |   | (5,458,617 | )      |
| Balance      - December 31, 2008                                                            |   |   | 40,061,785 |   |   |   | 40,062 |   |   |   | -       |   |   |   | -           |   |   |   | -       |   |   |   | 21,741,965 |   |   |   | (8,968,064 | )      |   |   | 229,860 |   |   |   | 386,415 |   |   |   | 13,430,238 |   |

----

| CAMAC      Energy Inc.                                                                  |   |
|-----------------------------------------------------------------------------------------|--------|
| (Formerly      Pacific Asia Petroleum, Inc.)                                            |   |
| (A      Development Stage Company)                                                      |   |
| Condensed      Statement of Equity (Deficiency) - Continued                             |   |
| For      the period from inception (August 25, 2005) through March 31, 2010 (Unaudited) |

|   |   | CAMAC      Energy Inc. Stockholders        |   |              |   |   |                          |   |   |
|--------|--------|--------------------------------------------|--------|-------------------|--------|--------|-------------------------------|--------|--------|
|   |   | No.      ofCommonShares$.001      parvalue |   |              |   |   |                          |   |   |   | No.      ofPreferredShares$.001      parvalue |   |   |   |   |   |   |   |   | DeficitAccumulatedDuring      theDevelopmentStage |   |   | OtherCompre-hensiveIncome(Loss) |   |   |   |   |   |   |   |
|   |   |                                       |   |              |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |   |                                       |   |              |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | TotalEquity(Deficiency) |   |
|   |   |                                       |   |              |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |   | Non-controllingInterests |   |
|   |   |                                       |   | Common      Stock |   |   | Subscriptions      Receivable |   |   |   |   | Preferred      Stock |   |   | Paid-inCapital |   |   |   |
|   |   |                                       |   |              |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| Balance      - December 31, 2008                                   |   |   | 40,061,785 |   |   |   | 40,062 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 21,741,965 |   |   |   | (8,968,064  | )      |   |   | 229,860 |   |   |   | 386,415  |   |   |   | 13,430,238  |   |
|--------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|--------|--------|--------|--------|---|--------|--------|--------|---|--------|--------|--------|---|--------|--------|--------|------------|--------|--------|--------|-------------|--------|--------|--------|---------|--------|--------|--------|----------|--------|--------|--------|-------------|--------|
| Issued      on exercise of warrants and options                    |   |   | 238,811    |   |   |   | 239    |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 13,705     |   |   |   | -           |   |   |   | -       |   |   |   | -        |   |   |   | 13,944      |   |
| Exchanged      for stock of Sino Gas & Energy Holdings Limited |   |   | 970,000    |   |   |   | 970    |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 551,930    |   |   |   | -           |   |   |   | -       |   |   |   | -        |   |   |   | 552,900     |   |
| Vesting      of restricted stock                                   |   |   | 738,000    |   |   |   | 738    |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (738       | )      |   |   | -           |   |   |   | -       |   |   |   | -        |   |   |   | -           |   |
| Compensation      cost of stock options and restricted stock       |   |   | -          |   |   |   | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,432,006  |   |   |   |        |   |   |   | -       |   |   |   | -        |   |   |   | 2,432,006   |   |
| Issued      for services                                           |   |   | 1,029,000  |   |   |   | 1,029  |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,052,071  |   |   |   | -           |   |   |   | -       |   |   |   | -        |   |   |   | 1,053,100   |   |
| Adjustments      to noncontrolling interests in subsidiary equity  |   |   | -          |   |   |   | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 243,932    |   |   |   | -           |   |   |   | (21     | )      |   |   | (597,751 | )      |   |   | (353,840    | )      |
| Currency      translation                                          |   |   | -          |   |   |   | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | -          |   |   |   |        |   |   |   | (63,622 | )      |   |   | (151     | )      |   |   | (63,773     | )      |
| Unrealized      gain (loss) on investments in securities           |   |   | -          |   |   |   | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | -          |   |   |   |        |   |   |   | (74,645 | )      |   |   | -        |   |   |   | (74,645     | )      |
| Net      loss                                                      |   |   | -          |   |   |   | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | -          |   |   |   | (11,489,378 | )      |   |   | -       |   |   |   | (102,024 | )      |   |   | (11,591,402 | )      |

| Balance      - December 31, 2009                                                                                                      |   |   | 43,037,596 |   |   | $      | 43,038 |   |   | $      | - |   |   |   | - |   |   | $      | -      |   |   | $      | 26,034,871 |   |   |   | (20,457,442 | )      |   | $      | 91,572   |   |   | $      | (313,511 | )      |   | $  | 5,398,528  |   |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|--------|--------|--------|--------|---|--------|--------|--------|---|--------|--------|--------|--------|--------|--------|--------|------------|--------|--------|--------|-------------|--------|--------|--------|----------|--------|--------|--------|----------|--------|--------|---------|------------|--------|
| Issued      on exercise of warrants and options                                                                                       |   |   | 267,300    |   |   |   | 267    |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   | 152,797    |   |   |   | -           |   |   |   | -        |   |   |   | -        |   |   |    | 153,064    |   |
| Vesting      of restricted stock                                                                                                      |   |   | 82,500     |   |   |   | 82     |   |   |   | - |   |   |   | - |   |   |   | -      |   |   |   | (82        | )      |   |   | -           |   |   |   | -        |   |   |   | -        |   |   |    | -          |   |
| Common      stock issued for cash,  net of issuance costs                                                                   |   |   | 9,146,922  |   |   |   | 9,147  |   |   |   | - |   |   |   | - |   |   |   | -      |   |   |   | 35,130,865 |   |   |   | -           |   |   |   | -        |   |   |   | -        |   |   |    | 35,140,012 |   |
| Compensation      cost of stock options and restricted stock                                                                          |   |   | -          |   |   |   | -      |   |   |   | - |   |   |   | - |   |   |   | -      |   |   |   | 1,323,747  |   |   |   | -           |   |   |   | -        |   |   |   | -        |   |   |    | 1,323,747  |   |
| Issued      for services                                                                                                              |   |   | 119,500    |   |   |   | 120    |   |   |   | - |   |   |   | - |   |   |   | -      |   |   |   | 546,900    |   |   |   | -           |   |   |   | -        |   |   |   | -        |   |   |    | 547,020    |   |
| Adjustments      to noncontrolling interests in subsidiary equity                                                                     |   |   | -          |   |   |   | -      |   |   |   | - |   |   |   | - |   |   |   | -      |   |   |   | 253        |   |   |   | -           |   |   |   | 20       |   |   |   | (273     | )      |   |    | -          |   |
| Currency      translation                                                                                                             |   |   | -          |   |   |   | -      |   |   |   | - |   |   |   | - |   |   |   | -      |   |   |   | -          |   |   |   | -           |   |   |   | (3,751   | )      |   |   | (3,528   | )      |   |    | (7,279     | )      |
| Unrealized      gain (loss) on investments in securities                                                                              |   |   | -          |   |   |   | -      |   |   |   | - |   |   |   | - |   |   |   | -      |   |   |   | -          |   |   |   | -           |   |   |   | (161,717 | )      |   |   | -        |   |   |    | (161,717   | )      |
| Net      loss                                                                                                                         |   |   | -          |   |   |   | -      |   |   |   | - |   |   |   | - |   |   |   | -      |   |   |   | -          |   |   |   | (3,174,577  | )      |   |   | -        |   |   |   | (147,794 | )      |   |    | (3,322,371 | )      |
| Balance      - March 31, 2010                                                                                                         |   |   | 52,653,818 |   |   | $      | 52,654 |   |   | $      | - |   |   |   | - |   |   | $      | -      |   |   | $      | 63,189,351 |   |   | $      | (23,632,019 | )      |   | $      | (73,876  | )      |   | $      | (465,106 | )      |   | $       | 39,071,004 |   |
|                                                                                                                                  |   |
|                                                                                                                                  |   |
| The      accompanying notes to the unaudited condensed consolidated financial      statements are an integral part of this statement. |   |

----

| CAMAC      Energy Inc.                                                                                                                       |   |
|----------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (Formerly      Pacific Asia Petroleum, Inc. and Subsidiaries)                                                                                |   |
| (A      Development Stage Company)                                                                                                           |   |
| Condensed      Consolidated Statements of Cash Flows                                                                                         |   |
| For      the three months ended March 31, 2010 and 2009,                                                                                     |   |
| and      for the period from inception (August 25, 2005) to March 31,      2010                                                         |   |
| (Unaudited)                                                                                                                                  |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |   |
|                                                                                                                                         |   | Three      monthsended |   |   | Three      monthsended |   |   | For      the periodfrom inception(August 25,      2005) |   |
|                                                                                                                                         |   | March      31, |   |   | March      31, |   |   | through |   |
|                                                                                                                                         |   | 2010 |   |   | 2009 |   |   | March      31, 2010 |   |
| Cash      flows from operating activities                                                                                                    |   |   |   |   |   |   |   |   |   |
| Net      loss - CAMAC Energy Inc. and Subsidiaries                                                                                           |   | $ | (3,174,577 | ) |   | $ | (2,922,351 | ) |   | $ | (23,632,019 | ) |
|                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Adjustments      to reconcile net loss to cash                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
| used      in operating activities:                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
|       Interest      income on long-term advances                                                               |   |   | - |   |   |   | - |   |   |   | (188,987 | ) |
|       Currency      transaction (gain) loss                                                                    |   |   | (3,046 | ) |   |   | 1,029 |   |   |   | 24,969 |   |
|       Stock      and options compensation expense                                                              |   |   | 1,498,636 |   |   |   | 354,645 |   |   |   | 7,206,621 |   |
|       Noncontrolling      interest in net loss                                                                 |   |   | (147,794 | ) |   |   | (1,815 | ) |   |   | (270,084 | ) |
|       Depreciation      expense                                                                                |   |   | 49,177 |   |   |   | 26,157 |   |   |   | 268,588 |   |
|       Impairment      of assets adjustment                                                                     |   |   | - |   |   |   | - |   |   |   | 493,006 |   |
|       Changes      in current assets and current                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|          liabilities:                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
|             (Increase)      decrease in accounts and other receivables           |   |   | 16,777 |   |   |   | - |   |   |   | (51,994 | ) |
|             (Increase)      decrease in inventories                              |   |   | 22,475 |   |   |   | - |   |   |   | (50,919 | ) |
|             (Increase)      decrease in advances                                 |   |   | (10,108 | ) |   |   | 94 |   |   |   | (15,229 | ) |
|             (Increase)      decrease in deposits                                 |   |   | 15,395 |   |   |   | 6,202 |   |   |   | (19,867 | ) |
|             (Increase)      decrease in prepaid expenses                         |   |   | 7,572 |   |   |   | 47,780 |   |   |   | (60,052 | ) |
|              Increase      in accounts payable                              |   |   | 172,082 |   |   |   | 901,864 |   |   |   | 329,071 |   |
|              Increase      (decrease) in income tax and accrued liabilities |   |   | (773,979 | ) |   |   | 639,325 |   |   |   | 435,504 |   |
| Net      cash used in operating activities                                                                                                   |   |   | (2,327,390 | ) |   |   | (947,070 | ) |   |   | (15,531,392 | ) |
|                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      flows from investing activities                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      sales (purchases) of available for sale securities                                                                                  |   |   | 1,507,948 |   |   |   | (180,000 | ) |   |   | (227,449 | ) |
| Purchase      of long-term certificate of deposit                                                                                            |   |   | - |   |   |   | - |   |   |   | (25,000 | ) |
| (Increase)      decrease in long-term advances and deferred charges                                                                          |   |   | (82,300 | ) |   |   | - |   |   |   | (408,049 | ) |
| Additions      to property, plant and equipment                                                                                              |   |   | (106,814 | ) |   |   | (50,071 | ) |   |   | (957,653 | ) |
| Net      cash provided by (used in) investing activities                                                                                     |   |   | 1,318,834 |   |   |   | (230,071 | ) |   |   | (1,618,151 | ) |
|                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      flows from financing activities                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Payment      and proceeds of notes payable                                                                                                   |   |   | - |   |   |   | - |   |   |   | (5,000 | ) |
| Increase      in noncontrolling interest investment in subsidiary                                                                            |   |   | - |   |   |   | - |   |   |   | 399,430 |   |
| Increase      in long-term advances to noncontrolling interest    stockholder                                                                |   |   | - |   |   |   | - |   |   |   | (400,507 | ) |
| Proceeds      from exercise of stock options and warrants                                                                                    |   |   | 153,064 |   |   |   | - |   |   |   | 167,008 |   |
| Decrease      in subscriptions receivable                                                                                                    |   |   | - |   |   |   | - |   |   |   | 28,000 |   |
| Issuance      of common stock net of issuance costs                                                                                          |   |   | 35,200,012 |   |   |   | - |   |   |   | 54,871,104 |   |
| Net      cash provided by financing activities                                                                                               |   |   | 35,353,076 |   |   |   | - |   |   |   | 55,060,035 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Effect      of exchange rate changes on cash                                                                                                 |   |   | (3,974 | ) |   |   | (1,847 | ) |   |   | 32,164 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      increase (decrease) in cash and cash equivalents                                                                                    |   |   | 34,340,546 |   |   |   | (1,178,988 | ) |   |   | 37,942,656 |   |
| Cash      and cash equivalents at beginning of period                                                                                        |   |   | 3,602,110 |   |   |   | 10,515,657 |   |   |   | - |   |
| Cash      and cash equivalents at end of period                                                                                              |   | $ | 37,942,656 |   |   | $ | 9,336,669 |   |   | $ | 37,942,656 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Supplemental      disclosures of cash flow information                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      paid                                                                                                                           |   | $ | - |   |   | $ | - |   |   | $ | 939 |   |
| Income      taxes paid                                                                                                                       |   | $ | 2,292 |   |   | $ | - |   |   | $ | 75,882 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Supplemental      schedule of non-cash investing and                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|    financing      activities                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Common      and preferred stock issued for services and fees                                                                                 |   | $ | 547,020 |   |   | $ | - |   |   | $ | 2,271,037 |   |
| Common      stock issued for stock of nonsubsidiary                                                                                          |   | $ | - |   |   | $ | 552,900 |   |   | $ | 552,900 |   |
| Issuance      costs paid as warrants issued                                                                                                  |   | $ | 456,832 |   |   | $ | - |   |   | $ | 1,386,309 |   |
| Warrants      exercised for common stock                                                                                                     |   | $ | - |   |   | $ | - |   |   | $ | (3 | ) |
| Decrease      to long-term advances to noncontrolling interest    stockholder                                                                |   | $ | - |   |   | $ | - |   |   | $ | 353,840 |   |
| Disposition      of partial interest in a subsidiary                                                                                         |   | $ | - |   |   | $ | - |   |   | $ | 243,911 |   |
| Decrease      in noncontrolling interest investment in subsidiary                                                                            |   | $ | - |   |   | $ | - |   |   | $ | (597,751 | ) |
|                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| The      accompanying notes to the unaudited condensed consolidated financial      statements are an integral part of this statement.        |   |

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|                                                     |   | March      31, 2010 |   |   | December      31, 2009 |   |
|----------------------------------------------------------|--------|---------------------|--------|--------|------------------------|--------|
|  Unfinished      chemicals                |   | $                   | 28,618 |   |                   | $      | 51,097 |   |
|  Finished      chemicals                       |   |                | 22,301 |   |                   |   | 22,297 |   |
|    Total      chemicals inventories  |   | $                   | 50,919 |   |                   | $      |  73,394 |   |

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|                                                                     |   | As      originally  reported  |          |                            | Effect      of acquisition |   |         | Pro      forma      |   |
|--------------------------------------------------------------------------|--------|----------------------------------------------|---------------|---------------------------------|----------------------------|--------|--------------|---------------------|--------|
|                                                                     |   |                                         |          |                            |                       |   |         |                |   |
| Current      assets                                            |   | $                                            | 38,763        |                            |                       | $      | ( 8,597 | )    |   | $ | 30,166 |   |
| Non-current      assets                                             |   |                                         |  1,341   |                            |                       |   | 395,316      |                |   |   |  396,657 |   |
| Total      assets                                              |   | $                                            |  40,104  |                            |                       | $      | 386,719      |                |   | $ | 426,823 |   |
|                                                                     |   |                                         |          |                            |                       |   |         |                |   |   |   |   |
| Current      liabilities                                            |   | $                                            | 1,033         |                            |                       | $      | 14,536       |                |   | $ | 15,569 |   |
| Equity                                                                   |   |                                         |          |                            |                       |   |         |                |   |   |   |   |
| Common  stock      and paid-in capital                    |   |                                         | 63,242        |                            |                       |   | 372,183      |                |   |   | 435,425 |   |
| All other      stockholders’ deficit      |   |                                         | ( 23,706 | )                          |                       |   | -            |                |   |   | (      23,706 | ) |
| Total stockholders’      equity           |   |                                         | 39,536        |                            |                       |   | 372,183      |                |   |   | 411,719 |   |
| Noncontrolling      interests deficit                     |   |                                         | ( 465    | )      |                       |   | -            |                |   |   | ( 465 | ) |
| Total liabilities      and equity               |   | $                                            | 40,104        |                            |                       | $      | 386,719      |                |   | $ | 426,823 |   |

----

----

----

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|   | ● | Focusing      on projects that play to the expertise of our management    team; |
|--------|---------|---------------------------------------------------------------------------------|

|   | ● | Leveraging      our productive asset base and capabilities to develop    value; |
|--------|---------|---------------------------------------------------------------------------------|

|   | ● | Actively      managing our assets and ongoing operations while attempting to limit      capital exposure; |
|--------|---------|-----------------------------------------------------------------------------------------------------------|

|   | ● | Enlisting      external resources and talent as necessary to operate/manage our      properties during peak operations;and |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------|

|   | ● | Implementing      an exit strategy with respect to each project with a view to maximizing      asset values and returns |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------|

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----

| Costs      and Operating Expenses |   |   |   |
|-----------------------------------|--------|--------|--------|

|                                                                  |   |                    |      |
|-----------------------------------------------------------------------|--------|-------------------------|-----------|
|                                                                  |   | Three      months ended |      |
|                                                                  |   | March      31,          |      |
|                                                                  |   | 2010                    |      |   | 2009 |   |
| Description                                                           |   |                    |      |   |   |   |
| Salaries      and cash bonus                                          |   | $                       | 697,848   |   |   | $ | 545,667 |   |
| Consulting      and PSC management fees                               |   |                    | 402,483   |   |   |   | 404,557 |   |
| Stock-based      compensation                                         |   |                    | 1,323,747 |   |   |   | 354,645 |   |
| Exploratory                                                           |   |                    | 21,341    |   |   |   | 1,157,465 |   |
| Legal      fees                                                       |   |                    | 56,010    |   |   |   | 62,045 |   |
| Travel,      meals and entertainment                                  |   |                    | 67,918    |   |   |   | 57,846 |   |
| Payroll      taxes                                                    |   |                    | 81,818    |   |   |   | 51,350 |   |
| Rent                                                                  |   |                    | 57,840    |   |   |   | 42,085 |   |
| Auditing                                                              |   |                    | 101,495   |   |   |   | 87,391 |   |
| Depreciation                                                          |   |                    | 49,177    |   |   |   | 26,157 |   |
| All      other                                                        |   |                    | 535,476   |   |   |   | 149,817 |   |
|      Total      Costs and Operating Expenses |   | $                       | 3,395,153 |   |   | $ | 2,939,025 |   |

| ● |   | Salaries and cash      bonus:  The increase of $152,181 ($697,848 versus      $545,667) resulted from an increase in the number of employees and      increased compensation associated with activity in      China.                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|---------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| ● |   | Consulting and PSC management      fees:  The decrease of $2,074 ($402,483 versus $404,557)      was due to an increase of $174,889  in consulting fees payable      as vested equity compensation and  a decrease of      $176,963  in cash consulting fees. The increase in consulting      payable as equity was related  to public relations work      and  EORP activities.   The decrease in cash      consulting of $176,963 was principally due to      decreased  management  consulting fees relative to      Zijinshan  and other operations in  China. |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| ● |   | Stock-based      compensation:  The increase of $969,102 ($1,323,747      versus $354,645) reflects a larger number and value of restricted stock      and stock option awards subject to amortization in 2010 versus      2009.  The 2010 amount includes $376,775 as a result of      accelerating the vesting dates of certain awards previously granted to the      Company’s former Executive Vice President, who retired effective January      15, 2010.                                                                                                                                                                                   |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| ● |   | Exploratory:  The      decrease of $1,136,124 ($21,341 versus $1,157,465) reflects decreased      seismic and drilling activity for Zijinshan in  2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| ● |   | Legal      fees:  The decrease of $6,035 ($56,010 versus $62,045)      was not significant.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| ● |   | Travel, meals, and      entertainment:  The increase of $10,072 ($67,918 versus      $57,846) was principally due to the increase in travel in connection with      the acquisition of the economic interest in the PSC with respect to the      Oyo Field.                                                                                                                                                                                                                                                                                                                                                                                                       |

----

| ●       |   | Payroll taxes: The increase of $30,468 ($81,818 versus      $51,350) was principally due to an  increase in compensation      paid to U.S.  employees.                                                                                        |
|---------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |   |                                                                                                                                                                                                                                                    |
| ●       |   | Rent: The increase of $15,755 ($57,840 versus      $42,085) was principally due to increased expense in      China.                                                                                                                                     |
|          |   |                                                                                                                                                                                                                                                    |
| ●  |   | Auditing: The increase of $14,104      ($101,495 versus $87,391) was due to increased auditor involvement from      expanded operations.                                                                                                                |
|          |   |                                                                                                                                                                                                                                                    |
| ●       |   | Depreciation:  The increase of $23,020 ($49,177 versus      $26,157) was due to increased depreciable gross      assets.                                                                                                                      |
|          |   |                                                                                                                                                                                                                                                    |
| ●       |   | All other: The increase of $385,659 ($535,476 versus      $149,817) was principally due to NYSE Amex listing fees,  EORP      operations that have not yet generated significant revenues, and increased      investor relations    activity. |

----

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| Exhibit      Number |   | Description                                                                                                                                                                                 |
|---------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                |   |                                                                                                                                                                                        |
| 31.1                |   | Certification      of the Registrant’s Principal Executive Officer under Exchange Act Rule      15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of      2002. |
|                |   |                                                                                                                                                                                        |
| 31.2                |   | Certification      of the Registrant’s Principal Financial Officer under Exchange Act Rule      15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of      2002. |
|                |   |                                                                                                                                                                                        |
| 32.1                |   | Certification      of the Registrant’s Principal Executive Officer under 18 U.S.C. Section      1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of      2002.      |
|                |   |                                                                                                                                                                                        |
| 32.2                |   | Certification      of the Registrant’s Principal Financial Officer under 18 U.S.C. Section      1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of      2002.      |

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|                                             | CAMAC      ENERGY INC. |                                       |
|--------------------------------------------------|------------------------|--------------------------------------------|
|                                             |                   |                                       |   |
| Dated:      May 14, 2010     | By:                    |  /s/      Frank C. Ingriselli         |   |
|                                             |                   | Frank      Ingriselli                      |   |
|                                             |                   | President      and Chief Executive Officer |   |
|                                             |                   |                                       |   |

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