SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB


(Mark One)
   [X]   Quarterly report under Section 13 or 15(d) of the Securities Exchange
         Act of 1934 for the quarterly period ended June 30, 2006.

   [ ]   Transition report under Section 13 or 15(d) of the Securities
         Exchange Act of 1934 for the transition period from to .


                        Commission file number: 000-29325


                             STAR ENERGY CORPORATION
                             -----------------------
        (Exact name of small business issuer as specified in its charter)


                NEVADA                               87-0643634
                ------                               ----------
   (State or other jurisdiction of                (I.R.S. Employer
    incorporation or organization)               Identification No.)



                 1403 East 900 South, Salt Lake City, Utah 84105
                 -----------------------------------------------
               (Address of principal executive office) (Zip Code)


                                 (801) 582-9609
                                 --------------
                         (Registrant's telephone number)


Check whether the registrant: (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.

                                  Yes X    No
                                     ---      ---

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act).

                                  Yes      No  X
                                      ---     ---


The number of outstanding shares of the registrant's common stock, $0.001 par
value (the only class of voting stock), as of August 11, 2006 was 31,562,500.

                                       1

<PAGE>



                                TABLE OF CONTENTS

                                     PART I

ITEM 1.  FINANCIAL STATEMENTS.............................................3

     Unaudited Balance Sheet as of June 30, 2006..........................4

     Unaudited Statement of Operations for the three and six months
     ended June 30, 2006 and 2005.........................................5

     Unaudited Statement of Cash Flows for the six months
     ended June 30, 2006 and 2005.........................................6

     Notes to the Unaudited Financial Statements..........................7

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS.............................8

ITEM 3.  CONTROLS AND PROCEDURES..........................................15

                                     PART II

ITEM 1.  LEGAL PROCEEDINGS................................................15

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES..........................15

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES..................................16

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS............16

ITEM 5.  OTHER INFORMATION................................................16

ITEM 6.  EXHIBITS.........................................................16

SIGNATURES................................................................17

INDEX TO EXHIBITS.........................................................18


                                       2

<PAGE>



PART I

ITEM 1.  FINANCIAL STATEMENTS

As used herein, the terms "Star," "we," "our", and "us" refer to Star Energy
Corporation, a Nevada corporation, unless otherwise indicated. In the opinion of
management, the accompanying unaudited financial statements included in this
Form 10-QSB reflect all adjustments (consisting only of normal recurring
accruals) necessary for a fair presentation of the results of operations for the
periods presented. The results of operations for the periods presented are not
necessarily indicative of the results to be expected for the full year.








                                       3
<PAGE>

                            STAR ENERGY CORPORATION
                                 BALANCE SHEETS

<TABLE>
<CAPTION>
                                                             June 30,  December 31,
                                                               2006       2005
                              ASSETS                       (Unaudited)  (Audited)
                                                           ----------  ----------
Current assets:
<S>                                                          <C>           <C>
 Cash                                                        $  2,998      13,975
 Accounts receivable                                            5,627       8,291
 Prepaid expense                                                 --         1,900
                                                             --------    --------

 Total current assets                                           8,625      24,166

Oil and gas properties, net (successful efforts method)        46,512      48,341
                                                             --------    --------

  Total assets                                               $ 55,137      72,507
                                                             ========    ========


               LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
 Accounts payable                                            $  7,152       1,565
 Note payable                                                  30,000        --
                                                             --------    --------

 Total current liabilities                                     37,152       1,565
                                                             --------    --------

Asset retirement obligation                                     1,347       1,327
                                                             --------    --------

Commitments and contingencies

Stockholders' equity:
   Preferred stock, $.001 par value, 5,000,000 shares
      authorized, no shares issued and outstanding               --          --
   Common stock, $.001 par value, 225,000,000 shares
      authorized, 31,562,500 shares issued and outstanding     31,563      31,563
   Additional paid-in capital                                  77,363      77,363
   Accumulated deficit                                        (92,288)    (39,311)
                                                             --------    --------

 Total stockholders' equity                                    16,638      69,615
                                                             --------    --------

  Total liabilities and stockholders' equity                 $ 55,137      72,507
                                                             ========    ========
</TABLE>


    The accompanying notes are an integral part of these financial statements

                                       4
<PAGE>



                             STAR ENERGY CORPORATION
                  UNAUDITED CONDENSED STATEMENTS OF OPERATIONS


<TABLE>
<CAPTION>
                                             Three Months Ended              Six months ended
                                                   June 30,                      June 30,
                                        ----------------------------    ----------------------------
                                            2006            2005            2006            2005
                                        ------------    ------------    ------------    ------------

<S>                                     <C>                   <C>             <C>             <C>
Oil and gas revenues                    $     10,445          14,928          25,021          25,021
                                        ------------    ------------    ------------    ------------

Operating expenses:
   Production costs                            7,373          12,937          11,362          16,701
   Depletion and amortization expense            884           1,108           1,829           1,983
   General and administrative costs           46,394           6,051          64,807          15,541
                                        ------------    ------------    ------------    ------------

                                              54,651          20,096          77,998          34,225
                                        ------------    ------------    ------------    ------------

          Loss from operations               (44,206)         (5,168)        (52,977)         (9,204)


Provision for income taxes                      --              --              --              --
                                        ------------    ------------    ------------    ------------

          Net loss                      $    (44,206)         (5,168)        (52,977)         (9,204)
                                        ============    ============    ============    ============


Loss per common share -

   basic and diluted                    $       --              --              --              --
                                        ============    ============    ============    ============

Weighted average common shares -
  basic and diluted                       31,562,500       6,313,000      31,562,500       6,313,000
                                        ============    ============    ============    ============
</TABLE>


    The accompanying notes are an integral part of these financial statements

                                       5
<PAGE>



                             STAR ENERGY CORPORATION
                  UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS


                                                           Six months ended
                                                                June 30,
                                                          --------------------
                                                            2006        2005
                                                          --------    --------
Cash flows from operating activities:
   Net loss                                               $(52,977)     (9,204)
   Adjustments to reconcile net loss to net
      cash used in operating activities:
         Depletion and amortization                          1,829       1,983
         Accretion expense                                      20          32
         Decrease in:
          Accounts receivable                                2,664         441
          Prepaid expense                                    1,900       1,642
         Increase (decrease) in:
          Accounts payable                                   5,587        (560)
                                                          --------    --------

         Net cash used in operating activities             (40,977)     (5,666)
                                                          --------    --------

Cash flows from investing activities:                         --          --
                                                          --------    --------


Cash flows from financing activities:
 Proceeds from note payable                                 30,000        --
                                                          --------    --------

              Net cash provided by financing activities     30,000        --
                                                          --------    --------

         Net decrease in cash                              (10,977)     (5,666)

Cash, beginning of period                                   13,975      17,542
                                                          --------    --------

Cash, end of period                                       $  2,998      11,876
                                                          ========    ========





    The accompanying notes are an integral part of these financial statements

                                       6
<PAGE>

                             STAR ENERGY CORPORATION
                     NOTES TO UNAUDITED FINANCIAL STATEMENTS

                                  June 30, 2006


Note 1 - Basis of Presentation

The accompanying unaudited condensed financial statements have been prepared by
management in accordance with the instructions in Form 10-QSB and, therefore, do
not include all information and footnotes required by generally accepted
accounting principles and should, therefore, be read in conjunction with the
Company's Form 10-KSB for the year ended December 31, 2005, filed with the
Securities and Exchange Commission. These statements do include all normal
recurring adjustments which the Company believes necessary for a fair
presentation of the statements. The interim operations are not necessarily
indicative of the results to be expected for the full year ended December 31,
2006.

Note 2 - Note Payable

Note payable to an unrelated party is non-interest bearing, unsecured, and due
on demand.

Note 3 - Additional Footnotes Included By Reference

Except as indicated in Notes above, there have been no other material changes in
the information disclosed in the notes to the financial statements included in
the Company's Form 10-KSB for the year ended December 31, 2005, filed with the
Securities and Exchange Commission. Therefore, those footnotes are included
herein by reference.




                                       7

<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS

This Management's Discussion and Analysis of Financial Condition and Results of
Operations and other parts of this report contain forward-looking statements
that involve risks and uncertainties. Forward-looking statements can also be
identified by words such as "anticipates," "expects," "believes," "plans,"
"predicts," and similar terms. Forward-looking statements are not guarantees of
future performance and our actual results may differ significantly from the
results discussed in the forward-looking statements. Factors that might cause
such differences include, but are not limited to, those discussed in the
subsections entitled "Forward-Looking Statements and Factors That May Affect
Future Results and Financial Condition" and "Risk Factors" below. The following
discussion should be read in conjunction with our financial statements and notes
thereto included in this report. Our fiscal year ends December 31.

Business

Star is an independent oil and natural gas producer involved in the exploration,
development, production and sale of gas derived from properties located in Webb
County, West Texas.

We currently realize production from a total of five oil and gas wells each with
a 15% working interest and a 12% net revenue interest. The wells are on five
separate parcels of land spread over 425 acres of the Galvan Ranch. Depth of the
producing intervals varies from 5,800 to 6,800 ft within the Olmos sand
reservoir. The producing interval within the Olmos sand reservoir where Star's
wells are located has an average thickness ranging from 75 to 100 feet with an
average porosity ranging from 10 to 14%.

On March 24, 2006 Star executed a letter of intent to acquire Terrabyte, LLC, an
oil and gas exploration company headquartered in Allegan, Michigan. Subsequent
to the three month period ended June 30, 2006, Star announced that the parties
had not been able to reach a mutually acceptable definitive agreement and had
ended all further negotiations.

Strategy

Star's short term strategy is to sustain a positive net cash flow from
operations and debt or equity placements. Net cash flow will then be used to
increase proved developed reserves and production. Star intends to focus on
implementing improved production practices and recovery techniques in its
efforts to sustain net cash flow from operations. Star believes that it can
achieve reserve and production growth through the improved exploitation of its
existing inventory of wells in Texas and through acquisition.

Once Star sustains positive net cash flow, its long term strategy is to pursue
selective acquisitions of additional oil or gas properties or exploration
projects. Star has considered opportunities located in proximity to its current
operations as well as other projects in North America.

Star's business development strategy is prone to significant risks and
uncertainties certain of which can have an immediate impact on its efforts to
sustain a positive net cash flow and deter future prospects of production
growth. Historically Star has not been able to generate sufficient cash flow
from operations or financing efforts to sustain operations or fund exploration
and development costs. Therefore, there can be no assurance that the wells
currently producing will provide sufficient cash flows to maintain operations or
that additional capital will be available to pursue our current strategy. Should
we be unable to generate sufficient cash flow from existing properties or
obtaining financing through alternative sources, Star may have to sell its
properties or interests in order to remain in operation.

                                       8
<PAGE>


Star's financial condition, results of operations and the carrying value of its
natural gas properties depends primarily upon the prices it receives for natural
gas production and the quantity of that production. Natural gas prices
historically have been volatile and are likely to continue to be volatile in the
future. This price volatility can immediately affect Star's available cash flow
which can in turn impact the availability of net cash flow for operations and
future capital expenditures. A drop in oil and natural gas prices could also
incur a write down of the carrying value of our properties as can a decrease in
production. Star's future success will depend on the level of gas prices and the
quantity of its production. Since production leads to the depletion of gas
reserves, Star's ability to develop or acquire additional economically
recoverable gas reserves is vital to its future success. Unless Star can obtain
such additional reserves, its current production will continue to decline which
will lead to a significant reduction in revenue.

Further, estimates of reserves and of future net revenue may vary substantially
depending, in part, on the assumptions made and may be subject to adjustment
either up or down in the future. Actual amounts of production, revenue, taxes,
development expenditures, operating expenses, and quantities of recoverable oil
and gas reserves to be encountered may vary substantially from the engineer's
estimates. Oil and gas reserve estimates are necessarily inexact and involve
matters of subjective and engineering judgment. If these estimates of
quantities, prices and costs prove inaccurate, and Star is unsuccessful in
increasing its producing gas wells, and/or declines in and instability of gas
prices occurs, then write downs in the capitalized costs associated with its gas
assets may be required. While Star believes that the estimated proved gas
reserves and estimated future net revenues are reasonable, there is no assurance
that certain revisions will not be made in the future.

Star believes that the immediate key to its ability to achieve profitably over
the near term is an increase in oil and gas production through exploration,
development or acquisition.

Results of Operations

During the six month period ended June 30, 2006, Star was engaged in evaluating
the operating efficiencies of the purchased wells, overseeing the operation of
its gas assets, and involved in negotiating and drafting the letter of intent
and an agreement pertaining to Star's former intention to acquire Terrabyte,
LLC.

The operation and maintenance of Star's gas operations is wholly dependent on
the services provided by Lewis. While the services provided by Lewis have proven
adequate, the fact that Star is dependent on the operations of a third party to
maintain its operations and produce revenue can restrict its ability to sustain
net income.


                                       9

<PAGE>
<TABLE>
<CAPTION>

------------------------------------------------------------ --- ----------- --- ----------- ------------ ------------
Six Months Ended June 30,                                           2006            2005       Change      % Change
------------------------------------------------------------ --- ----------- --- ----------- ------------ ------------
<S>                                                          <C>                  <C>        <C>          <C>
Average Daily Production
------------------------------------------------------------ --- ----------- --- ----------- ------------ ------------
   Oil (bbls/day)                                                         -               -            -           0%
------------------------------------------------------------ --- ----------- --- ----------- ------------ ------------
   Natural gas (mcf/day)                                                 18              21          (2)         -11%
------------------------------------------------------------ --- ----------- --- ----------- ------------ ------------
   Barrels of oil equivalent (boe/day)                                    3               4          (1)         -23%
------------------------------------------------------------ --- ----------- --- ----------- ------------ ------------
Profitability
------------------------------------------------------------ --- ----------- --- ----------- ------------ ------------
Petroleum and natural gas revenue                            $       25,021  $       25,021            -           0%
------------------------------------------------------------ --- ----------- --- ----------- ------------ ------------
Production and operating costs                                       11,362          16,701      (5,339)         -32%
------------------------------------------------------------ --- ----------- --- ----------- ------------ ------------
Field netback                                                        13,659           8,320        5,339          64%
------------------------------------------------------------ --- ----------- --- ----------- ------------ ------------
G&A                                                                  64,807          15,541       49,266         317%
------------------------------------------------------------ --- ----------- --- ----------- ------------ ------------
Financing                                                                 -               -            -           0%
------------------------------------------------------------ --- ----------- --- ----------- ------------ ------------
Loss before depletion, amortization & income taxes                 (51,148)         (7,221)     (43,927)         608%
------------------------------------------------------------ --- ----------- --- ----------- ------------ ------------
Depletion, depreciation and other charges                             1,829           1,983           70           4%
------------------------------------------------------------ --- ----------- --- ----------- ------------ ------------
Future income taxes                                                       -               -            -           0%
------------------------------------------------------------ --- ----------- --- ----------- ------------ ------------
Net earnings from operations                                 $     (52,977)  $      (9,204)     (43,773)         476%
------------------------------------------------------------ --- ----------- --- ----------- ------------ ------------
Profitability per boe
------------------------------------------------------------ --- ----------- --- ----------- ------------ ------------
Oil and gas revenue (average selling price)                           45.02           39.72         5.30          13%
------------------------------------------------------------ --- ----------- --- ----------- ------------ ------------
Production and operating costs                                        20.44           26.51       (6.07)         -23%
------------------------------------------------------------ --- ----------- --- ----------- ------------ ------------
Field netback ($/boe)                                                 24.58           13.21        11.37          86%
------------------------------------------------------------ --- ----------- --- ----------- ------------ ------------
Net earnings ($/boe)                                                (95.32)         (14.61)      (80.71)         552%
------------------------------------------------------------ --- ----------- --- ----------- ------------ ------------
Loss before depletion, amortization & income taxes ($/boe)          (92.03)         (11.46)      (80.57)         703%
------------------------------------------------------------ --- ----------- --- ----------- ------------ ------------
</TABLE>

Three and six month periods ended June 30, 2006 and 2005

Gross Revenue

Gross revenue for the three month period ended June 30, 2006 was $10,445 as
compared to $14,928 for the comparable period ended June 30, 2005, a decrease of
30%. Gross revenue for the six month period ended June 30, 2006 was $25,021 as
compared to $25,021 for the comparable period ended June 30, 2005. The decrease
in gross revenue over the comparative three month periods can be attributed to a
decrease in the prices realized for gas production over the respective periods.
Star expects to maintain relatively consistent gross revenues over future
periods due to gradual increases in gas prices which Star expects to offset
decreases in production.

Net Income/Loss

Net loss for the three month period ended June 30, 2006 was $44,206 as compared
to net loss of $5,168 for the comparable period ended June 30, 2005, an increase
of 755%. Net loss for the six month period ended June 30, 2006 was $52,977 as
compared to net loss of $9,204 for the comparable period ended June 30, 2005, an
increase of 476%. The increase of net loss over the comparative three and six
month periods can be primarily attributed to an increase in general and
administrative expenses. Star expects to decrease net losses over future
periods.

                                       10
<PAGE>

Expenses

General and administrative expenses for the three month period ended June 30,
2006 increased to $46,394 from $6,051 for the comparable period ended June 30,
2005, an increase of 667%. General and administrative expenses for the six month
period ended June 30, 2006 increased to $64,807 from $15,541 for the comparable
period ended June 30, 2005, an increase of 317%. The increases in general
administrative expenses over the three and six month comparative periods are
primarily attributed to costs associated with the intended acquisition of
Terrabyte, LLC which included a $25,000 deposit paid to Terrabyte, LLC during
the current period. Star anticipates that general and administrative expenses
will decrease over future periods.

Production costs for the three month period ended June 30, 2006 decreased to
$7,373 from $12,937 for the comparable period ended June 30, 2005, a decrease of
43%. Production costs for the six month period ended June 30, 2006 decreased to
$11,362 from $16,701 for the comparable period ended June 30, 2005, a decrease
of 32%. Direct production expenses include the cost of maintaining the wells,
access roads, miscellaneous expenses for soap, solvent, gasoline or electricity
and expenses such as those incurred in swabbing, dozer work or rig time. The
decrease in production costs over the three and six month comparative periods
can be attributed to a decrease in maintenance expenses incurred by Lewis. Star
expects that productions costs will remain relatively consistent in future
periods.

Depletion expenses for the three month periods ended June 30, 2006, and June 30,
2005 were $884 and $1,108 respectively. Depletion expenses for the six month
periods ended June 30, 2006 and June 30, 2005 were $1,829 and $1,983
respectively.

Income Tax Expense (Benefit)

Star has an income tax benefit resulting from operations that will offset any
operating profit.

Impact of Inflation

Star believes that inflation has had a negligible effect on operations over the
past three years. Star believes that it can offset inflationary increases in
maintenance costs by increasing revenue and improving operating efficiencies.

Liquidity and Capital Resources

Cash flow used in operations for the six month period ended June 30, 2006 was
$40,977 as compared to cash used in operations of $5,666 for the comparable
period ended June 30, 2005. The increase in cash flow used in operations over
the comparative six month periods is primarily attributed to the increase in net
loss due to an increase in general and administrative costs associated with the
intended acquisition of Terrabyte, LLC. Star may continue to use cash flow in
operations in future periods.

Cash flow used in investing activities for the six month period ended June 30,
2006 was $0 as compared to $0 for the six month period ended June 30, 2005.

Cash flow provided by financing activities was $30,000 for the six month period
ended June 30, 2006 as compared to cash flow provided by financing activities of
$0 for the six month period ended June 30, 2005. The cash flow provided by
financing activities in the current period is attributed to a note payable.

                                       11
<PAGE>

Star has a working capital deficit of $28,527 as of June 30, 2006 and has funded
its cash needs since inception with revenues generated from operations, debt
instruments and private placements. Anticipated cash flow may be sufficient to
fund operations in 2006. However there can be no assurance that Star will
generate sufficient cash flows to fund operations. Star had no lines of credit
or other bank financing arrangements as of June 30, 2006. Since any earnings, if
realized, are anticipated to be reinvested in operations, cash dividends are not
expected to be paid in the foreseeable future. Commitments for future capital
expenditures were not material at year-end.

Star has no defined benefit plan or contractual commitment with any of its
officers or directors.

Star has no current plans for the purchase or sale of any plant or equipment.

Star has no current plans to make any changes in the number of employees.

Critical Accounting Policies and Estimates

Accounting for Oil and Gas Property Costs. As more fully discussed in Note 1 to
the Financial Statements included with Star's Form 10-KSB for the year ended
December 31, 2005, Star (i) follows the successful efforts method of accounting
for the costs of its gas properties, (ii) amortizes such costs using the units
of production method, and (iii) evaluates its proven properties for impairment
whenever events or changes in circumstances indicate that their net book value
may not be recoverable. Adverse changes in conditions (primarily gas price
declines) could result in permanent write-downs in the carrying value of gas
properties as well as non-cash charges to operations that would not affect cash
flows.

Estimates of Proved Oil and Gas Reserves. An independent petroleum engineer
annually estimates Star's proven reserves. Reserve engineering is a subjective
process that is dependent upon the quality of available data and the
interpretation thereof. In addition, subsequent physical and economic factors
such as the results of drilling, testing, production and product prices may
justify revision of such estimates. Therefore, actual quantities, production
timing, and the value of reserves may differ substantially from estimates. A
reduction in proved reserves would result in an increase in depreciation,
depletion and amortization expense.

Estimates of Asset Retirement Obligations. In accordance with SFAS No 143, Star
makes estimates of future costs and the timing thereof in connection with
recording its future obligations to plug and abandon wells. Estimated
abandonment dates will be revised in the future based on changes to related
economic lives, which vary with product prices and production costs. Estimated
plugging costs may also be adjusted to reflect changing industry experience.
Increases in operating costs and decreases in product prices would increase the
estimated amount of the obligation and increase depreciation, depletion and
amortization expense. Cash flows would not be affected until costs to plug and
abandon were actually incurred.

Forward Looking Statements and Factors That May Affect Future Results and
Financial Condition

The statements contained in sections titled "Management's Discussion and
Analysis", with the exception of historical facts, are forward looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995, which reflect our current expectations and beliefs regarding our future
results of operations, performance, and achievements. These statements are
subject to risks and uncertainties and are based upon assumptions and beliefs
that may or may not materialize. These forward looking statements include, but
are not limited to, statements concerning:

                                       12
<PAGE>

      o     the sufficiency of existing capital resources;
      o     our ability to raise additional capital to fund cash requirements
            for future operations;
      o     our ability to maintain sufficient energy reserves to fund and
            maintain operations;
      o     uncertainties related to Star's future business prospects with
            possible future acquisitions;
      o     the volatility of the stock market; and o general economic
            conditions.

We wish to caution readers that Star's operating results are subject to various
risks and uncertainties that could cause our actual results to differ materially
from those discussed or anticipated in this report. We also wish to advise
readers not to place any undue reliance on the forward looking statements
contained in this report, which reflect our beliefs and expectations only as of
the date of this report. We assume no obligation to update or revise these
forward looking statements to reflect new events or circumstances or any changes
in our beliefs or expectations, other that is required by law.

Risks Related to Our Business

Our future operating results are highly uncertain. Before deciding to invest in
us or to maintain or increase your investment, you should carefully consider the
risks described below, in addition to the other information contained in this
annual report. If any of these risks actually occur, our business, financial
condition or results of operations could be seriously harmed. In that event, the
market price for our common stock could decline and you may lose all or part of
your investment.

We have a history of significant operating losses and such losses may continue
in the future.

Since our inception in 1999, our expenses have often exceeded our income,
resulting in losses and an accumulated deficit of $39,311 at December 31, 2005,
which accumulated deficit increased to $92,288 at June 30, 2006. We may continue
to incur operating losses as revenues are likely to decline from depleted gas
resources and expenses are likely to increase with aging wells. Our only
expectation of future profitability is dependent upon our ability to acquire
additional production revenue through exploration, development or acquisition.
Star's success in this endeavor can in no way be assured.

Natural gas prices are volatile. Any substantial decrease in prices would
adversely affect our financial results.

Star's future financial condition, results of operations and the carrying value
of its natural gas properties depend primarily upon the prices it receives for
natural gas production. Natural gas prices historically have been volatile and
are likely to continue to be volatile in the future. Star's cash flow from
operations is highly dependent on the prices that it receives for natural gas.
This price volatility also affects the amount of Star's cash flow available for
capital expenditures and its ability to borrow money or raise additional
capital. The prices for natural gas are subject to a variety of additional
factors that are beyond Star's control. These factors include:

- the level of consumer demand for natural gas;
- the domestic supply of natural gas;
- domestic governmental regulations and taxes;
- the price and availability of alternative fuel sources;
- weather conditions;
- market uncertainty;

                                       13
<PAGE>

These factors and the volatility of the energy markets generally make it
extremely difficult to predict future natural gas price movements with any
certainty. Declines in natural gas prices would not only reduce revenue, but
could reduce the amount of natural gas that Star can produce economically and,
as a result, could have a material adverse effect on its financial condition,
results of operations and reserves. Should the natural gas industry experience
significant price declines, Star may, among other things, be unable to meet its
financial obligations.

Star's future performance depends on its ability to find or acquire additional
oil or natural gas reserves.

Unless Star successfully replaces the reserves that it produces, the defined
reserves will decline, resulting in a decrease in natural gas production and
lower revenues and cash flows from operations. Star has historically obtained
reserves through acquisitions. The business of exploring for, developing or
acquiring reserves is capital intensive. Star may not be able to obtain the
necessary capital to acquire additional oil or natural gas reserves as cash
flows from operations are reduced, and access to external sources of capital is
unavailable. Should Star not make significant capital expenditures it will not
be able to maintain its current production rates and expenses will overtake
revenue which may lead to a cessation of operations.

The results of our operations are wholly dependent on the production and
maintenance efforts of Lewis.

The operation and maintenance of Star's natural gas operations is wholly
dependent on an independent local operator, Lewis. While the services provided
by Lewis in the past have proven adequate for the successful operation of Star's
natural gas wells, the fact that Star is dependent on operations of a third
party to produce revenue from its natural gas assets could restrict its ability
to generate a net profit on operations.

The market for our stock is limited and our stock price may be volatile.

The market for our common stock has been limited due to low trading volume and
the small number of brokerage firms acting as market makers. Because of the
limitations of our market and volatility of the market price of our stock,
investors may face difficulties in selling shares at attractive prices when they
want to. The average daily trading volume for our stock has varied significantly
from week to week and from month to month, and the trading volume often varies
widely from day to day.

We may incur significant expenses as a result of being quoted on the Over the
Counter Bulletin Board, which may negatively impact our financial performance.

We may incur significant legal, accounting and other expenses as a result of
being listed on the Over the Counter Bulletin Board. The Sarbanes-Oxley Act of
2002, as well as related rules implemented by the Commission has required
changes in corporate governance practices of public companies. We expect that
compliance with these laws, rules and regulations, including compliance with
Section 404 of the Sarbanes-Oxley Act of 2002 as discussed in the following risk
factor, may substantially increase our expenses, including our legal and
accounting costs, and make some activities more time-consuming and costly. As a
result, there may be a substantial increase in legal, accounting and certain
other expenses in the future, which would negatively impact our financial
performance and could have a material adverse effect on our results of
operations and financial condition.

                                       14
<PAGE>

Our internal controls over financial reporting may not be considered effective,
which could result in a loss of investor confidence in our financial reports and
in turn have an adverse effect on our stock price.

Pursuant to Section 404 of the Sarbanes-Oxley Act of 2002, beginning with our
annual report for the year ending December 31, 2007, we may be required to
furnish a report by our management on our internal controls over financial
reporting. Such report will contain, among other matters, an assessment of the
effectiveness of our internal controls over financial reporting as of the end of
the year, including a statement as to whether or not our internal controls over
financial reporting are effective. This assessment must include disclosure of
any material weaknesses in our internal controls over financial reporting
identified by management. The report will also contain a statement that our
independent registered public accounting firm has issued an attestation report
on management's assessment of internal controls. If we are unable to assert that
our internal controls are effective as of December 31, 2007, or if our
independent registered public accounting firm is unable to attest that our
management's report is fairly stated or they are unable to express an opinion on
our management's evaluation or on the effectiveness of our internal controls,
investors could lose confidence in the accuracy and completeness of our
financial reports, which in turn could cause our stock price to decline.

ITEM 3.  CONTROLS AND PROCEDURES

Star's chief executive officer and Star's chief financial officer are
responsible for establishing and maintaining disclosure controls and procedures
for Star.

(a) Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including
our principal executive officer and principal financial officer, we evaluated
the effectiveness of the design and operation of our disclosure controls and
procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities
Exchange Act of 1934 ("Exchange Act"), as of June 30, 2006. Based on this
evaluation, our principal executive officer and our principal financial officer
concluded that, as of the end of the period covered by this report, our
disclosure controls and procedures were effective and adequately designed to
ensure that the information required to be disclosed by us in the reports we
submit under the Exchange Act is recorded, processed, summarized and reported
within the time periods specified in the applicable rules and forms and that
such information was accumulated and communicated to our chief executive officer
and chief financial officer, in a manner that allowed for timely decisions
regarding required disclosure.

(b) Changes in Internal Controls

During the period ended June 30, 2006, there has been no change in internal
control over financial reporting that has materially affected, or is reasonably
likely to materially affect our internal control over financial reporting.

PART II

ITEM 1.  LEGAL PROCEEDINGS

None.

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES

None.

                                       15


<PAGE>

ITEM 3.  DEFAULTS ON SENIOR SECURITIES

None.

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

None.

ITEM 5.  OTHER INFORMATION

None.

ITEM 6.  EXHIBITS

Exhibits required to be attached by Item 601 of Regulation S-B are listed in the
Index to Exhibits on page 18 of this Form 10-QSB, and are incorporated herein by
this reference.




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<PAGE>


                                   SIGNATURES

In accordance with the requirements of the Securities Exchange Act of 1934, the
registrant caused this report to be signed on its behalf by the undersigned,
hereunto duly authorized, this 11th day of August, 2006.


STAR ENERGY CORPORATION


/s/ Marcus Segal
-----------------------------
Marcus Segal
Chief Executive Officer and Director


/s/ Ruairidh Campbell
-----------------------------
Ruairidh Campbell
Chief Financial Officer, Principal Accounting Officer and Director













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<PAGE>

                                INDEX TO EXHIBITS

Exhibit   Page
No.        No.    Description
--         --     -----------

3(i)(a)    *      Articles of Incorporation of Star (incorporated by
                  reference from the Form 10-SB filed with the Securities
                  and Exchange Commission on February 3, 2000).

3(i)(b)    *      Amended Articles of Incorporation of Star
                  (incorporated by reference from the Form 10-KSB filed
                  with the Securities and Exchange Commission on March 11,
                  2003).

3(ii)      *      Bylaws of Star (incorporated by reference from the
                  Form 10-SB filed with the Securities and Exchange
                  Commission on February 3, 2000).

10(i)      *      Assignment and Bill of Sale between Star and Monument
                  Resources, Inc. in connection with that acquisition of
                  the Galvan Ranch wells interest (incorporated by
                  reference from the Form 10-QSB filed with the Securities
                  and Exchange Commission on July 17, 2003).

14         *      Code of Ethics adopted March 1, 2004 (incorporated by
                  reference from the 10-KSB filed with the Securities and
                  Exchange Commission on April 14, 2004).

31(a)      19     Certification of the Chief Executive Officer pursuant
                  to Rule 13a-14 of the Securities and Exchange Act of
                  1934, as amended, as adopted pursuant to Section 302 of
                  the Sarbanes-Oxley Act of 2002.

31(b)      20     Certification of the Chief Financial Officer pursuant
                  to Rule 13a-14 of the Securities and Exchange Act of
                  1934, as amended, as adopted pursuant to Section 302 of
                  the Sarbanes-Oxley Act of 2002.

32(a)      21     Certification of the Chief Executive Officer pursuant
                  to 18 U.S.C. Section 1350 as adopted pursuant to Section
                  906 of the Sarbanes-Oxley Act of 2002.

32(b)      22     Certification of the Chief Financial Officer pursuant
                  to 18 U.S.C. Section 1350 as adopted pursuant to Section
                  906 of the Sarbanes-Oxley Act of 2002.

      *     Incorporated by reference from previous filings of Star.



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