**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 **033-15528**
   **MONUMENT
                RESOURCES, INC.**
 (Exact
                name of Small Business Issuer as Specified in its Charter)
  
 **Colorado**
                      
                      **84-1028449**(State
                          or Other Jurisdiction of
                      
                      (I.R.S. Employer Identification No.)Incorporation
                          or Organization)
 
 
 
 **2050
                South Oneida Street, Suite 106, Denver, Colorado 80224**
 (Address
                of Principal Executive Offices, Including Zip Code)
   **(303)
                692-9468**
 (Issuer’s
                Telephone Number, Including Area Code)
 
  Check
                  whether the Issuer (1) filed all reports required to be filed by
                  Section 13 or
                  15(d) of the Exchange Act during the last 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
                    ]**
 State
                    the
                    number of shares outstanding of each of the issuer's classes
                    of common equity,
                    as of the latest practicable date: 5,319,000 shares outstanding
                    as of August 10,
                    2006.
 
 Transitional
                  Small Business Disclosure Format: Yes [ ]     
**No [ X ]**
 
 **MONUMENT
                RESOURCES, INC. AND SUBSIDIARY**
 **INDEX**
 
 
 Page
                          Number**PART
                            I.   **FINANCIAL
                            INFORMATION****Item
                            1.
                        Condensed
                            Consolidated Balance Sheets as of June 30, 2006 and September
                            30,
                            2005
                        2-3Condensed
                            Consolidated Statements of Operations for the Three Months
                            and Nine Months
                            ended June 30, 2006 and 2005
                        4Condensed
                            Consolidated Statements of Cash Flows for the Nine Months
                            ended June 30,
                            2006 and 2005
                        5Notes
                            to Condensed Consolidated Financial Statements
                        6Item
                            2.
                        Management’s
                            Discussion and Analysis of Financial Condition and Results
                            of
                            Operations
                        14Item
                            3.
                        Controls
                            and Procedures
                        16**PART
                            II.  **OTHER
                            INFORMATION****
                        18Signatures
                        19Exhibit
                            Index
                        20
 
 
 
 Item
                1.
                Financial Statements.
 
 
 **MONUMENT
                RESOURCES, INC. AND SUBSIDIARY**
 **CONDENSED
                CONSOLIDATED BALANCE SHEETS**
 June
                            30, 2006
                        
                        September
                            30, 2005(Unaudited)
                        
                        (Audited)**ASSETS**Current
                            assetsCash
                            and cash equivalents
                        
                        $
                        396,769
                        
                        $
                        654,987Marketable
                            securities available-for-sale
                        
                        
                        899,413
                        
                        
                        416,521Accounts
                            receivable
                        
                        
                        30,948
                        
                        
                        47,415Prepaid
                            expenses and other assets
                        
                        
                        550
                        
                        
                        60,599Total
                            current assets
                        
                        
                        1,327,680
                        
                        
                        1,179,522Mineral
                            property held for sale
                        
                        
                        -
                        
                        
                        28,706Proved
                            and unproved oil and gas properties, successfulefforts
                            method net of accumulated depletion
                        
                        
                        435,577
                        
                        
                        392,578Property
                            and equipment:Gas
                            pipeline, net of accumulated depreciation
                        
                        
                        231,636
                        
                        
                        223,864Property
                            and equipment, net of accumulated depreciation
                        
                        
                        113,666
                        
                        
                        94,207Net
                            property and equipment
                        
                        
                        345,302
                        
                        
                        318,071Total
                            assets
                        
                        $
                        2,108,559
                        
                        $
                        1,918,877
  See
                Notes
                to Condensed Consolidated Financial Statements.
 
 2
 
 Item
                1.  Financial
                Statements. (Continued)
 
 
 **MONUMENT
                RESOURCES, INC. AND SUBSIDIARY**
 **CONDENSED
                CONSOLIDATED BALANCE SHEETS**
 
 June
                            30, 2006
                        
                        September
                            30, 2005(Unaudited)
                        
                        (Audited)**LIABILITIES
                            AND STOCKHOLDERS’ EQUITY**Current
                            liabilitiesAccounts
                            payable and accrued expenses
                        
                        $
                        17,830
                        
                        $
                        33,104Asset
                            retirement obligation
                        
                        
                        29,001
                        
                        
                        29,001Total
                            liabilities
                        
                        
                        46,831
                        
                        
                        62,105Stockholders’
                            equity:Preferred
                            Stock, no par value, authorized 1,000,000 shares; none
                            issued
                        
                        
                        -
                        
                        
                        -Common
                            Stock, no par value, authorized 10,000,000 shares; 5,319,000
                            issued and
                          outstanding
                        
                        
                        3,290,518
                        
                        
                        3,290,518Accumulated
                            (deficit)
                        
                        
                        (1,207,429
                        )
                        
                        (1,426,771
                        )Unrealized
                            gain (loss) on investment in securities
                        
                        
                        (21,321
                        )
                        
                        (6,975
                        )Total
                            stockholders’ equity
                        
                        
                        2,061,768
                        
                        
                        1,856,772Total
                            liabilities and stockholders’ equity
                        
                        $
                        2,108,599
                        
                        $
                        1,918,877
 
 See
                Notes
                to Condensed Consolidated Financial Statements.
 
 3
 
 Item
                1.  Financial
                Statements. (Continued)
   **MONUMENT
                RESOURCES, INC. AND SUBSIDIARY**
 **CONDENSED
                CONSOLIDATED STATEMENTS OF OPERATIONS**
 **(UNAUDITED)**
 
 Three
                            Months EndedJune
                            30,
                        
                        Nine
                            MonthsEnded June 30,2006
                        
                        2005
                        
                        2006
                        
                        2005RevenueOil
                            and gas sales
                        
                        $
                        66,126
                        
                        $
                        94,268
                        
                        $
                        396,791
                        
                        $
                        302,498Pipeline
                            income
                        
                        
                        30,911
                        
                        
                        31,529
                        
                        
                        115,038
                        
                        
                        111,425Total
                            revenue
                        
                        
                        97,037
                        
                        
                        125,797
                        
                        
                        511,829
                        
                        
                        413,923ExpensesOil
                            and gas operating expense
                        
                        
                        13,414
                        
                        
                        11,840
                        
                        
                        53,681
                        
                        
                        41,466Pipeline
                            operating expense
                        
                        
                        43,216
                        
                        
                        55,955
                        
                        
                        144,403
                        
                        
                        139,190General
                            and administrative
                        
                        
                        52,826
                        
                        
                        63,506
                        
                        
                        177,599
                        
                        
                        176,384Depletion,
                            depreciation and amortization
                        
                        
                        17,501
                        
                        
                        14,143
                        
                        
                        49,543
                        
                        
                        42,677Total
                            expenses
                        
                        
                        126,957
                        
                        
                        145,444
                        
                        
                        425,226
                        
                        
                        399,717Income
                            (loss) from operations
                        
                        
                        (29,920
                        )
                        
                        (19,647
                        )
                        
                        86,603
                        
                        
                        14,206Other
                            income and (expense)Gain
                            on sale of securities
                        
                        
                        -
                        
                        
                        47,913
                        
                        
                        -
                        
                        
                        47,788Gain
                            on sale of mineral interest
                        
                        
                        -
                        
                        
                        -
                        
                        
                        100,359
                        
                        
                        -Interest
                            and other
                        
                        
                        10,996
                        
                        
                        7,748
                        
                        
                        32,340
                        
                        
                        18,550Total
                            other income andexpense
                        
                        
                        10,996
                        
                        
                        55,661
                        
                        
                        132,699
                        
                        
                        66,338Net
                            income (loss)
                        
                        $
                        (18,924
                        )
                        $
                        36,014
                        
                        $
                        219,302
                        
                        $
                        80,544Basic
                            and diluted income (loss) per common share
                        
                        $
                        (.003
                        )
                        $
                        .01
                        
                        $
                        .04
                        
                        $
                        02Weighted
                            average number of shares outstanding,
                          basic and diluted
                        
                        
                        5,319,000
                        
                        
                        4,827,242
                        
                        
                        5,319,000
                        
                        
                        4,655,080
 
 See
                Notes
                to Condensed Consolidated Financial Statements.
 
 4
 
 Item
                1.  Financial
                Statements. (Continued)
 
 **MONUMENT
                RESOURCES, INC. AND SUBSIDIARY**
 **CONDENSED
                CONSOLIDATED STATEMENTS OF CASH FLOWS**
 **(UNAUDITED)**
  Nine
                            Months Ended June 30,2006
                        
                        2005Cash
                            flows from operating activities:Net
                            income
                        
                        $
                        219,302
                        
                        $
                        93,544Adjustment
                            to reconcile net income to net cash provided by operating
                            activities:Depreciation,
                            depletion and amortization
                        
                        
                        49,543
                        
                        
                        42,677(Gain)
                            on sale of property and investment securities
                        
                        
                        (100,359
                        )
                        
                        (47,788
                        )Change
                            in deferred tax asset
                        
                        
                        -
                        
                        
                        (13,000
                        )Changes
                            in operating assets and liabilities:(Increase)
                            decrease in prepaid expenses and other assets
                        
                        
                        60,049
                        
                        
                        (25,346
                        )(Increase)
                            decrease in accounts and other receivables
                        
                        
                        16,467
                        
                        
                        (34,775
                        )Increase
                            (decrease) in accounts payable and accrued expenses
                        
                        
                        (15,274
                        )
                        
                        3,940Net
                            cash flow provided by operations
                        
                        
                        229,728
                        
                        
                        19,252Cash
                            flows from investing activities:Proceeds
                            from
                            sale of mineral investment
                        
                        
                        129,065
                        
                        
                        -Proceeds
                            from
                            sale of investment securities
                        
                        
                        2,762
                        
                        
                        55,223Additions
                            to
                            oil and gas properties
                        
                        
                        (55,786
                        )
                        
                        (2,109
                        )Additions
                            to
                            property and equipment
                        
                        
                        (63,987
                        )
                        
                        (68,669
                        )Proceeds
                            from
                            sale of property and investment securities
                        
                        
                        -
                        
                        
                        50,316Purchase
                            of
                            investment securities
                        
                        
                        (500,000
                        )
                        
                        -Net
                            cash flows provided (used) by investing activities
                        
                        
                        (487,946
                        )
                        
                        34,761Cash
                            flows from financing activities:Proceeds
                            from
                            sale of common stock
                        
                        
                        -
                        
                        
                        122,500Net
                            increase (decrease) in cash
                        
                        
                        (258,218
                        )
                        
                        176,513Cash
                            and cash equivalents at beginning of period
                        
                        
                        654,987
                        
                        
                        51,397Cash
                            and cash equivalents at end of period
                        
                        $
                        396,769
                        
                        $
                        227,910Schedule
                            of Non-cash Investing Activities(Increase)
                            in unrealized (loss) on securities available for sale
                        
                        $
                        (14,346
                        )
                        $
                        (12,067
                        )Receivable
                            from exercise of stock options
                        
                        $
                        -
                        
                        $
                        20,000
  See
                Notes
                to Condensed Consolidated Financial Statements.
 
 5
 
 Item
                1.  Financial
                Statements (Continued).
  
  **MONUMENT
                RESOURCES, INC. AND SUBSIDIARY**
  **NOTES
                TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**
  
 **NOTE
                1 -- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
                POLICIES**
 
 **THE
                COMPANY**
 
 Monument
                Resources, Inc, (the “Company”) was organized under the laws of the State of
                Colorado on October 1, 1984. We are in the business of acquiring
                and brokering
                mineral and oil and gas properties and exploring, developing, and
                selling
                production from our gas properties. Our mineral property was in Montana.
                See
                Note 5 below. Our gas properties are in Leavenworth County, Kansas.
                We also
                operate a gas pipeline in conjunction with our Leavenworth gas
                wells.
 
 We
                have a
                substantial investment in oil and gas properties. We may not have
                sufficient
                capital to fully develop some of our gas properties, which would
                require
                additional investment. We have in the past relied on joint venture
                partners to
                supply most of the funds needed to explore or develop our properties,
                and may
                also rely on such partners for similar funding in the future. Our
                ability to
                obtain outside funding may be critical to our development efforts
                of some of our
                properties.
 
 **BASIS
                OF PRESENTATION**
 
 The
                accompanying condensed consolidated financial statements are unaudited.
                However,
                in the opinion of management, the accompanying condensed consolidated
                financial
                statements reflect all adjustments, consisting of only normal recurring
                adjustments, necessary for fair presentation. Interim results of
                operations are
                not necessarily indicative of results for subsequent interim periods
                or the
                remainder of the year. These financial statements should be read
                in conjunction
                with our Annual Report on Form 10-KSB for the year ended September
                30,
                2005.
 
 Except
                for the historical information contained in this Form 10-QSB, this
                Report
                contains forward-looking statements that involve risks and uncertainties.
                Our
                actual results could differ materially from those discussed in this
                Report.
                Factors that could cause or contribute to such differences include,
                but are not
                limited to, those discussed in this Report and in our Annual Report
                on Form
                10-KSB for the year ended September 30, 2005.
 
 **CONSOLIDATION**
 
 The
                accompanying condensed consolidated financial statements include
                the accounts of
                our Company, and our wholly owned Kansas subsidiary, COG Transmission
                Corporation. All inter-company transactions and balances have been
                eliminated in
                consolidation.
 
 6
 
 Item
                1.  Financial
                Statements (Continued).
  
 **REVENUE
                RECOGNITION**
 
 Sales
                of
                oil and gas production and pipeline income are recognized at the
                time of
                delivery of the product to the purchaser.
 
 **EARNINGS
                PER SHARE**
 
 We
                have
                adopted Statement of Financial Accounting Standards (“SFAS”) No. 128, addressing
                earnings per share. SFAS No. 128 established the methodology of calculating
                basic earnings per share and diluted earnings per share. The calculations
                differ
                by adding any instruments convertible to common stock (such as stock
                options,
                warrants, and convertible preferred stock) to weighted average shares
                outstanding when computing diluted earnings per share.
 
 There
                were no dilutive securities outstanding for the nine months ended
                June 30,
                2006.
 
 **MINERAL
                PROPERTIES**
 
 Costs
                of
                acquiring, exploring, and developing specific mineral properties
                are capitalized
                on a property-by-property basis until the commercial viability of
                each property
                is determined. When a property reaches the production stage, the
                related
                capitalized costs will be amortized, using the units of production
                method on the
                basis of periodic estimates of ore reserves. Proved and unproved
                mining
                properties are periodically assessed for impairment of value and
                any impairments
                are charged to operations at the time of impairment. Should a property
                be sold
                or abandoned, its capitalized costs are charged to operations and
                gain or loss
                recognized.
 
 **OIL
                AND GAS PROPERTIES**
 
 We
                follow
                the successful efforts method of accounting for our oil and gas activities.
                Under this method, costs associated with the acquisition, drilling
                and equipping
                of successful exploratory and development wells are capitalized.
                Geological and
                geophysical costs, delay rentals and drilling costs of unsuccessful
                exploratory
                wells are charged to expense as incurred. Depletion and depreciation
                of the
                capitalized costs for producing oil and gas properties are provided
                by the
                unit-of-production method based on proved oil and gas reserves. Undeveloped
                and
                unproved properties are periodically assessed for possible impairment
                due to
                unrecoverability of costs invested. Developed and proved properties
                are
                periodically assessed under the accounting rules of SFAS No. 144,
“Accounting
                for the Impairment and Disposal of Long-Lived Assets”. Cash received for partial
                conveyances of property interests is treated as a recovery of cost
                and no gain
                or loss is recognized.
  **INCOME
                TAXES**
 
 We
                have
                made no provision for income taxes for the nine-month period ended
                June 30, 2006
                since the pre-tax income will be offset by net operating loss carryforwards.
                We
                had approximately $1,368,062 of such carryforwards at June 30,
                2006.
 
 7
 
 Item
                1.  Financial
                Statements (Continued).
  
 **INVESTMENT
                IN SECURITIES**
 
 We
                follow
                SFAS No. 115, “Accounting for Certain Investments in Debt and Equity
                Securities,” in accounting for our security investments. In accordance with SFAS
                No. 115, our investment in securities has been classified as available-for-sale
                because they are being held for an indefinite period of time. Under
                the
                available-for-sale classification, the securities are recorded as
                an asset at
                current market value on the balance sheet with an equal amount representing
                unrealized gains and losses recorded as a component of stockholders’ equity. The
                current market value is derived from published newspaper quotations
                as of the
                end of each quarter. At the time of sale, a gain or loss is recognized
                in the
                statement of operations using the cost basis of securities sold as
                determined by
                specific identification.
 
 **COMPREHENSIVE
                INCOME**
 
 We
                have
                adopted SFAS No. 130, “Reporting Comprehensive Income”, which establishes
                standards for reporting comprehensive income. This pronouncement
                requires that
                all items recognized under accounting standards as components of
                comprehensive
                income, as defined in the pronouncement, be reported in a financial
                statement
                that is displayed with the same prominence as other financial statements.
                Comprehensive income includes changes in equity during a period,
                except those
                resulting from investments by owners and distributions to owners.
                Under
                comprehensive income, we report unrealized gains and losses on investments
                in
                debt and equity securities as changes in equity. ****
 
 **ASSET
                RETIREMENT OBLIGATIONS**
 
 We
                have
                adopted SFAS No. 143, “Accounting for Asset Retirement Obligations”. SFAS No.
                143 addresses financial accounting and reporting for obligations
                associated with
                the retirement of tangible long-lived assets and the associated asset
                retirement
                costs. We have adopted SFAS No. 143 and recorded our estimated obligations.
                Quarterly accretion is not material.
 
 **STOCK
                BASED COMPENSATION**
 
 We
                have
                adopted SFAS Standards No. 148, "Accounting for Stock-Based Compensation
                -
                Transition and Disclosure” - an amendment of FASB Statement No. 123.  SFAS
                No. 148 amends No. SFAS 123, "Accounting for Stock-Based Compensation"
                to
                provide alternative methods of transition for a voluntary change
                to the fair
                value based method of accounting for stock-based employee compensation.  In
                addition, SFAS No. 148 amends the disclosure requirements of SFAS
                No. 123 to
                require prominent disclosures in both annual and interim financial
                statements
                about the method of accounting for stock-based employee compensation
                and the
                effect of the method used on reported results.  Going forward we will apply
                the new rules that apply to stock-based compensation as set out in
                SFAS
                123(R).
 
 8
 
 Item
                1.  Financial Statements (Continued).
  
 **RECENT
                ACCOUNTING PRONOUNCEMENTS**
 
 ***FASB
                151 - Inventory Costs***
 
 In
                November 2004, the FASB issued FASB Statement No. 151, which revised
                ARB No. 43,
                relating to inventory costs. This revision is to clarify the accounting
                for
                abnormal amounts of idle facility expense, freight, handling costs
                and wasted
                material (spoilage). This Statement requires that these items be
                recognized as a
                current period charge regardless of whether they meet the criterion
                specified in
                ARB 43. In addition, this Statement requires the allocation of fixed
                production
                overheads to the costs of conversion be based on normal capacity
                of the
                production facilities. This Statement became effective for financial
                statements
                for fiscal years beginning after June 15, 2005. Management believes
                this
                Statement has not had any and will not have any material impact on
                our financial
                statements.
 
 ***FASB
                153 - Exchanges of Non-monetary Assets***
 
 In
                December 2004, the FASB issued FASB Statement No. 153. This Statement
                addresses
                the measurement of exchanges of non-monetary assets. The guidance
                in APB Opinion
                No. 29, “Accounting for Non-monetary Transactions”, is based on the principle
                that exchanges of non-monetary assets should be measured based on
                the fair value
                of the assets exchanged. The guidance in that Opinion, however, included
                certain
                exceptions to that principle. This Statement amends Opinion 29 to
                eliminate the
                exception for non-monetary exchanges of similar productive assets
                and replaces
                it with a general exception for exchanges of non-monetary assets
                that do not
                have commercial substance. A non-monetary exchange has commercial
                substance if
                the future cash flows of the entity are expected to change significantly
                as a
                result of the exchange. This Statement is effective for financial
                statements for
                fiscal years beginning after June 15, 2005. Earlier application is
                permitted for
                non-monetary asset exchanges incurred during fiscal years beginning
                after the
                date this Statement is issued. Management believes this Statement
                has not had
                and will have no impact on our financial statements.
 
 ***FASB
                123 (revised 2004) - Share-Based Payments***
 
 In
                December 2004, the FASB issued a revision to FASB Statement No. 123,
“Accounting
                for Stock Based Compensation” *.* This
                Statement supersedes APB Opinion No. 25, “Accounting for Stock Issued to
                Employees”, and its related implementation guidance. This Statement establishes
                standards for the accounting for transactions in which an entity
                exchanges its
                equity instruments for goods or services. It also addresses transactions
                in
                which an entity incurs liabilities in exchange for goods or services
                that are
                based on the fair value of the entity's equity instruments or that
                may be
                settled by the issuance of those equity instruments. This Statement
                focuses
                primarily on accounting for transactions in which an entity obtains
                employee
                services in share-based payment transactions. This Statement does
                not change the
                accounting guidance for share-based payment transactions with parties
                other than
                employees provided in Statement 123 as originally issued and EITF
                Issue No.
                96-18, "Accounting for Equity Instruments That Are Issued to Other
                Than
                Employees for Acquiring, or in Conjunction with Selling, Goods or
                Services."
                This Statement does not address the accounting for employee share
 
 9
 
 Item
                1.  Financial Statements (Continued).
  
 ***FASB
                123 (revised 2004) - Share-Based Payments (Continued)***
 
 ownership
                plans, which are subject to AICPA Statement of Position 93-6, Employers'
                Accounting for Employee Stock Ownership Plans *.*
 
 A
                public
                entity will initially measure the cost of employee services received
                in exchange
                for an award of liability instruments based on its current fair value;
                the fair
                value of that award will be re-measured subsequently at each reporting
                date
                through the settlement date. Changes in fair value during the requisite
                service
                period will be recognized as compensation cost over that period.
 
 The
                grant-date fair value of employee share options and similar instruments
                will be
                estimated using the option-pricing models adjusted for the unique
                characteristics of those instruments (unless observable market prices
                for the
                same or similar instruments are available).
 
 Excess
                tax benefits, as defined by this Statement, will be recognized as
                an addition to
                paid-in-capital. Cash retained as a result of those excess tax benefits
                will be
                presented in the statement of cash flows as financing cash inflows.
                The
                write-off of deferred tax assets relating to unrealized tax benefits
                associated
                with recognized compensation cost will be recognized as income tax
                expense
                unless there are excess tax benefits from previous awards remaining
                in paid-in
                capital to which it can be offset.
 
 The
                notes
                to the financial statements will disclose information to assist users
                of
                financial information to understand the nature of share-based payment
                transactions and the effects of those transactions on the financial
                statements.
 
 The
                effective date for public entities that do not file as small business
                issuers
                will be as of the beginning of the first interim or annual reporting
                period that
                begins after June 15, 2005. For public entities that file as small
                business
                issuers the effective date will be as of the beginning of the first
                interim or
                annual reporting period that begins after December 15, 2005. Management
                has
                complied with this Statement as of the effective date.
  
 **NOTE
                2 -- ESTIMATES AND RISKS**
 
 The
                oil
                and gas industry is subject, by its nature, to environmental hazards
                and cleanup
                costs for which we carry liability insurance. At this time, we know
                of no
                substantial costs from environmental accidents or events for which
                we may be
                currently liable. In addition, our oil and gas business makes us
                vulnerable to
                changes in wellhead prices of crude oil and natural gas. Such prices
                have been
                volatile in the past and can be expected to be volatile in the future.
                By
                definition, proved reserves are based on current oil and gas prices.
                Price
                declines reduce the estimated proved reserves and increase annual
                amortization
                expense (which is based on proved reserves).
 
 10
 
 Item
                1.  Financial Statements (Continued).
  
 **NOTE
                3 -- SEGMENT INFORMATION**
 
 We
                operate in three industry segments within the United States: (1)
                oil and gas
                exploration and development, (2) gas transmission pipeline and (3)
                mineral
                exploration and development.
 
 Identified
                assets by industry are those assets that are used in our operations
                in each
                industry. Corporate assets are principally cash, investment securities,
                furniture, and fixtures.
 
 We
                have
                adopted SFAS No. 131, which requires the presentation of descriptive
                information
                about reportable segments which is consistent with that made available
                to us in
                order to assess performance.
 
 Our
                oil
                and gas segment derives its revenues from the sale of oil and gas.
                Our mining
                segment received its revenues primarily from the sale of a mineral
                venture that
                we had originated. We sold our mineral venture on February 24, 2006.
                See Note 5.  Corporate
                income is primarily derived from interest income on our funds held
                in money
                market accounts and the sale of government backed bonds. Our pipeline
                segment
                derives revenue from the sale, transportation and compression of
                our gas in
                Leavenworth County, Kansas.
 
 During
                the nine months ended June 30, 2006, we had no inter-segment revenues.
                The
                accounting policies applied by each segment are the same as those
                we use in
                general.
 
 Net
                sales
                to one customer of our gas transmission pipeline segment totaled
                $396,791, or
                100% of our revenues for the nine months ended June 30, 2006.
 
 11
 
 Item
                1.  Financial Statements (Continued).
   There
                have been no differences from our last annual report in the bases
                of measuring
                segment profit or loss. There have been no material changes in the
                amount of
                assets for any of our operating segments since our last annual
                report.
 
 Segment
                information for the nine months ended June 30, 2006 and 2005 is as
                follows:
 Oil
                            and Gas
                        
                        Pipeline
                        
                        Mining
                        
                        Corporate
                        
                        ConsolidatedRevenues2006
                        
                        
                        $
                        396,791
                        
                        $
                        115,038
                        
                        $
                        100,359
                        
                        $
                        32,340
                        
                        $
                        644,5282005
                        
                        
                        
                        302,498
                        
                        
                        111,425
                        
                        
                        --
                        
                        
                        66,338
                        
                        
                        480,261Net
                            Income (Loss)2006
                        
                        
                        $
                        321,130
                        
                        $
                        (56,365
                        )
                        $
                        100,359
                        
                        $
                        (145,822
                        )
                        $
                        219,3022005
                        
                        
                        
                        238,821
                        
                        
                        (47,043
                        )
                        
                        --
                        
                        
                        (111,234
                        )
                        
                        80,544Identifiable
                            Assets2006
                        
                        
                        $
                        494,255
                        
                        $
                        313,286
                        
                        $
                        --
                        
                        $
                        1,301,018
                        
                        $
                        2,108,5592005
                        
                        
                        
                        512,514
                        
                        
                        303,254
                        
                        
                        28,706
                        
                        
                        709,769
                        
                        
                        1,554,243Depreciation,
                              Depletionand Valuation Charged to Identifiable
                              Assets2006
                        
                        
                        $
                        21,980
                        
                        $
                        27,000
                        
                        $
                        --
                        
                        $
                        563
                        
                        $
                        49,5432005
                        
                        
                        
                        22,211
                        
                        
                        19,278
                        
                        
                        --
                        
                        
                        1,188
                        
                        
                        42,677Capital
                            Expenditures2006
                        
                        
                        $
                        55,786
                        
                        $
                        62,513
                        
                        $
                        --
                        
                        $
                        1,474
                        
                        $
                        119,7732005
                        
                        
                        
                        2,109
                        
                        
                        68,669
                        
                        
                        --
                        
                        
                        --
                        
                        
                        70,778
   **NOTE
                4 -- OIL AND GAS ACTIVITIES**
 
 **KANSAS
                GAS PROJECT -- LEAVENWORTH COUNTY, KANSAS**
 
 During
                the nine months ended June 30, 2006, we completed approximately three
                miles of
                gas pipeline necessary to complete the connection of two new gas
                wells. These
                wells are currently producing and had a positive impact on our current
                and
                future gas production volumes. During the next quarter we also plan
                to workover
                a number of existing gas wells and re-complete them in the upper
                McClouth gas
                zone.
 
 12
 
 Item
                1.  Financial
                Statements (Continued).
   **NOTE
                5 -- MINERAL ACTIVITIES**
 
 **DOBLER
                GOLD MINE PROSPECT -- BROADWAY COUNTY, MONTANA**
 
 On
                January 15, 2006, we entered into a contract to sell the Dobler Mine
                property in
                Broadway County, Montana for $140,000 less a 61⁄2% commission and other closing
                costs. The sale of the mine was closed on February 24, 2006. We recognized
                a
                gain on the sale of $100,359.
  
 **NOTE
                6 -- COMPREHENSIVE INCOME (LOSS)**
 
 Comprehensive
                income is the total of net income and all other non-owner changes
                in equity.
                Comprehensive income includes our net income and the change in unrealized
                gain
                (loss) on available for sale investments. We report the unrealized
                gain on the
                investment in securities in our Condensed Consolidated Balance Sheet.
                The table
                below details the changes during the nine months ended June 30, 2006
                and 2005,
                in our Accumulated Other Comprehensive Income balance and the components
                of our
                comprehensive income.
 
 **Nine
                months ended June 30, 2006**
 Accumulated
                          other comprehensive (loss) at September 30, 2005
                      
                      $
                      (6,975
                      )Change
                          in unrealized (loss) on securities held for sale
                      
                      
                      (14,346
                      )Accumulated
                          other comprehensive (loss) at June 30, 2006
                      
                      $
                      (21,321
                      )
  
 **Nine
                months ended June 30, 2005**
 Accumulated
                          other comprehensive income at September 30, 2004
                      
                      $
                      16,047Change
                          in unrealized gain on securities held for sale
                      
                      
                      (12,067
                      )Accumulated
                          other comprehensive income at June 30, 2005
                      
                      $
                      3,980
 
 
 
 13
 
 **Item
                        2.**
                      **MANAGEMENT’S
                          DISCUSSION AND ANALYSIS OF****FINANCIAL
                          CONDITION****AND
                          RESULTS OF OPERATIONS.**
 ****
  **LIQUIDITY
                AND CAPITAL RESOURCES**
 
 At
                June
                30, 2006, our current assets were $1,327,680 and current liabilities
                were
                $17,830 and we had working capital of $1,309,850 compared to current
                assets of
                $1,179,522 at September 30, 2005 and current liabilities of $33,104
                at September
                30, 2005, resulting in working capital at September 30, 2005 of $1,146,418.
                Our
                working capital increased $163,432, or about 14%. This increase in
                working
                capital is primarily due to the sale of mineral interests and
                earnings.
 
 At
                the
                present time, our primary source of cash for operations and exploration
                is our
                current working capital, cash that can be raised by selling our investment
                in
                U.S. government sovereign agency securities and other corporate bonds
                and funds
                derived from our oil and gas operations. We have in the past, and
                plan in the
                future, to rely on joint venture partners or equity funding to supply
                some of
                the funds needed to evaluate and develop our properties. Any inability
                we may
                have to raise additional capital through a stock offering, to liquidate
                our
                securities holdings or obtain third party funding may limit development
                of most
                of our properties.
 
 **RESULTS
                OF OPERATIONS**
 
 Due
                to an
                increase in the average sales price received for our gas, revenue
                from our gas
                and pipeline sales increased for the nine months ended June 30, 2006
                when
                compared to the same period in 2005. Gas production increased from
                74,283 MCF
                for the period ending June 30, 2005 to 74,901 MCF for the period
                ending June 30,
                2006. This slight increase of 618 MCF (less than 1%) was a result
                of the
                addition of two new producing wells. The price received for our natural
                gas
                increased from an average of $4.45 per MCF for the nine months ended
                June 30,
                2005 compared to an average of $5.30 per MCF for the nine months
                ended June 30,
                2006, a 19% increase. Gas sales increased 31%, or $94,293, from $302,498
                to
                $396,791. Pipeline sales were $115,038 for the nine months ended
                June 30, 2006
                and $111,425 for the nine months ended June 30, 2005, an increase
                of $3,613, or
                3%.
 
 Interest
                and other revenue increased to $132,699 for the nine months ended
                June 30, 2006
                from $66,338 for the nine months ended June 30, 2005 primarily due
                to the sale
                of our mineral property. Oil and gas operating costs increased $12,215,
                or 29%
                from $41,466 to $53,681 when comparing the nine months ended June
                30, 2005 to
                June 30, 2006. Pipeline operating costs were $139,190 for the nine
                months ended
                June 30, 2005 and $144,403 for the nine months ended June 30, 2006,
                an increase
                of $5,213, or 4%. The increases are due to the addition of two producing
                wells
                and start up costs incurred in our new pipeline addition.
 
 General
                and administrative expenses totaled $177,599 for the nine months
                ended June 30,
                2006, compared to $176,384 for the nine-month period ended June 30,
                2005. The
                increase of $1,215, or 1%, in general and administrative costs was
                primarily due
                to increased legal, accounting and audit fees.
 
 14
 **Item
                        2.**
                      **MANAGEMENT’S
                          DISCUSSION AND ANALYSIS OF****FINANCIAL
                          CONDITION****AND
                          RESULTS OF OPERATIONS
                           (CONTINUED).** ****
 **RESULTS
                OF OPERATIONS (CONTINUED)**
 
 We
                recorded an unrealized loss of $21,321 on investment in securities
                for the nine
                months ended June 30, 2006 which compares to a loss of $6,975 as
                of September
                30, 2005. This increase of $14,346 is a result of fluctuations in
                market value
                of our investment securities.
 
 **CONTRACTUAL
                OBLIGATIONS**
 
 We
                have
                no contractual obligations as of June 30, 2006.
 
 We
                lease
                our corporate offices in Denver, Colorado on a month-to-month basis.
                Yearly
                payments under the lease are $12,456.
 
 We
                have
                an operating lease on a gas compressor that we use in our pipeline
                operation.
                The lease is renewable on a month-to-month basis at a rate of $3,345
                per month
                or $40,140 per year.
 
 We
                also
                lease a compressor site from a third party. We can cancel the lease
                upon thirty
                days written notice. The lease payment for the calendar year 2006
                is $10,000 and
                was paid in January 2006. If we elect to continue the lease in 2007,
                the lease
                payment for that year will be $10,000.
 
 **CRITICAL
                ACCOUNTING POLICIES AND ESTIMATES**
 
 We
                believe the following critical accounting policies affect our more
                significant
                judgments and estimates used in the preparation of our Consolidated
                Financial
                Statements.
 
 **Reserve
                Estimates** :
 
 Our
                estimates of oil and natural gas reserves, by necessity, are projections
                based
                on geological and engineering data, and there are uncertainties inherent
                in the
                interpretation of such data as well as the projection of future rates
                of
                production and the timing of development expenditures. Reserve engineering
                is a
                subjective process of estimating underground accumulations of oil
                and natural
                gas that are difficult to measure. The accuracy of any reserve estimate
                is a
                function of the quality of available data, engineering and geological
                interpretation and judgment. Estimates of economically recoverable
                oil and
                natural gas reserves and future net cash flows necessarily depend
                upon a number
                of variable factors and assumptions, such as historical production
                from the area
                compared with production from other producing areas, the assumed
                effects of
                regulations by governmental agencies and assumptions governing future
                oil and
                natural gas prices, future operating costs, severance and excise
                taxes,
                development costs and workover and remedial costs, all of which may
                in fact vary
                considerably from actual results. For these reasons, estimates of
                the
                economically recoverable quantities of oil and natural gas attributable
                to any
                particular group of properties, classifications of such reserves
                based on risk
                of recovery, and estimates of the future net cash flows expected
                there from may
                vary substantially.
 
 15
  **Item
                        2.**
                      **MANAGEMENT’S
                          DISCUSSION AND ANALYSIS OF****FINANCIAL
                          CONDITION****AND
                          RESULTS OF OPERATIONS
                           (CONTINUED).**
 **Reserve
                Estimates** **** **(Continued** **):**
 
 Any
                significant variance in the assumptions could materially affect the
                estimated
                quantity and value of the reserves, which could affect the carrying
                value of our
                oil and gas properties and/or the rate of depletion of the oil and
                gas
                properties. Actual production, revenues and expenditures with respect
                our
                reserves will likely vary from estimates, and such variances may
                be material.
 
 Many
                factors will affect actual net cash flows, including:
 
 · The
                amount
                and timing of actual production;
 · Supply
                and
                demand for natural gas;
 · Curtailments
                or increases in consumption by natural gas purchasers; and
 · Changes
                in
                governmental regulations or taxation.
 
 **Oil
                and Gas Properties** :
 
 We
                follow
                the successful efforts method of accounting for acquisition, exploration,
                development and production of its oil and gas properties. Under this
                method, all
                direct costs of acquisition, exploration and development are capitalized
                with
                respect to producing wells and non-producing development wells. Direct costs
                with respect to non-producing exploratory wells are charged to operations.
                Geological and geophysical costs and lease rentals are expensed as
                incurred.
                Costs to acquire interests in leases are capitalized and are either
                transferred
                to producing properties when the properties become productive or
                expensed when
                the interests are surrendered. Developed and proved properties are
                periodically
                assessed under the accounting rules of Statement of Financial Accounting
                Standards (“SFAS”) No.144, “Accounting for the Impairment or Disposal of
                Long-Lived Asset”. Under SFAS No. 144, the Company evaluates annually the
                carrying value of long-lived assets and long-lived assets to be disposed
                of and
                certain identifiable intangibles related to those assets for potential
                impairment.
 
 Unproved
                oil and gas properties represent undeveloped lease acreage held for
                development
                and are recorded at cost. An impairment allowance for unproved properties
                is
                determined on a property-by-property basis under the accounting rules
                of SFAS
                No.19, “Financial Accounting and Reporting by Oil and Gas Producing Companies”.
 
 **Item
                3.** **CONTROLS AND PROCEDURES**
 
 Our
                management evaluated, with the participation of our chief executive
                and
                financial officer, the effectiveness of our disclosure controls and
                procedures
                as of the end of the period covered by this report. Based on that
                evaluation,
                the chief executive and financial officer concluded that our disclosure
                controls
                and procedures are effective to ensure that information required
                to be disclosed
                by us in the reports that we file or submit under the Securities
                Exchange Act of
                1934 is recorded, processed, summarized and reported within the time
                periods
                specified in the Securities and Exchange Commission’s rules and
                forms.
 
 
 16
 
 **Item
                3.  CONTROLS AND
                PROCEDURES (CONTINUED)**
   There
                were no changes in our internal control over financial reporting
                that occurred
                during our last fiscal quarter that have materially affected, or
                are reasonably
                likely to materially affect, our internal control over financial
                reporting.
 
 We
                have
                held preliminary discussions with our independent accountants with
                respect to
                our future compliance with Section 404 of the Sarbanes-Oxley Act
                of 2002. We
                understand the Securities and Exchange Commission is considering
                certain relief
                measures for small business issuers. In the meantime, we intend to
                continue our
                discussions with our independent accountants to determine whether
                we have, and
                wish to devote, the management and financial resources required to
                comply with
                the referenced Section 404. If not, we may elect to suspend our reporting
                obligations under the Securities Exchange Act of 1934.
 
 17
 
 **MONUMENT
                RESOURCES, INC. AND SUBSIDIARY**
 
 **PART
                II -- OTHER INFORMATION**
 
 ITEM
                1.LEGAL
                PROCEEDINGS.
 
 N/A
 
 ITEM
                2.UNREGISTERED
                SALES OF EQUITY SECURITIESAND
                USE
                OF PROCEEDS.
 
 N/A
 
 ITEM
                3.DEFAULTS
                UPON
                SENIOR SECURITIES.
 
 N/A
 
 ITEM
                4.SUBMISSION
                OF
                MATTERS TO A VOTE OF SECURITY HOLDERS.
 
 N/A
 
 ITEM
                5.OTHER
                INFORMATION.
 
 N/A
 
 ITEM
                6.EXHIBITS
 
 Exhibit
                          31.1
                      Certification
                          of the Chief Executive and Financial Officer under Section
                          302 of the
                        Sarbanes-OxleyAct
                          of 2002.
 
 Exhibit
                          32.1
                      Certification
                          of the Chief Executive and Financial Officer under Section
                          906 of the
                        Sarbanes-Oxley
                          Act of 2002.
 
 
 
 18
 
  **SIGNATURES**
 
 In
                accordance with the requirements of the Exchange Act, the Registrant
                caused this
                report to be signed on its behalf by the undersigned, thereunto duly
                authorized.
  **MONUMENT
                          RESOURCES, INC.**
                        (Registrant)Date: August
                        10, 2006
                      By:
                      /s/ A.G.
                        FoustA.G. Foust, PresidentChief
                          Executive Officer, PrincipalFinancial
                          and Accounting Officer anda
                          Director
 19
  **EXHIBIT
                INDEX**
   **EXHIBIT**
                        **NUMBER**
                      
                      **DESCRIPTION**Exhibit 31.1
                      
                      Certification of the Chief Executive and Financial
                          Officer
                          under Section 302 of the Sarbanes-Oxley
                        Act
                          of
                          2002.Exhibit 32.1
                      
                      Certification of the Chief Executive and Financial
                        Officer
                        under Section 906 of the Sarbanes-Oxley Act of
                        2002.
 
 
  
 20