**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 March 31,
                2007





[
                 ]
            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 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





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 of common stock were
      outstanding at May 7, 2007.





Transitional
      Small Business Disclosure Format (Check One): Yes
      __    No X

















**MONUMENT
      RESOURCES, INC. AND SUBSIDIARY**





**INDEX**





Page
                NumberPART
                I.
            FINANCIAL
                INFORMATIONItem
                1.
            Condensed
                Consolidated Balance Sheets as of March 31, 2007 and September 30,
                2006
                (Audited)
            2Condensed
                Consolidated Statements of Operations for the Three Months and Six
                Months
                ended March 31, 2007 and 2006
            4Condensed
                Consolidated Statements of Cash Flowsfor
                the Six Months ended March 31, 2007 and 2006
            5Notes
                to Condensed Consolidated Financial Statements
            6Item
                2.
            Management’s
                Discussion and Analysis of Financial Condition and Results of
                Operations
            13Item
                3.
            Controls
                and Procedures
            17PART
                II.
            OTHER
                INFORMATION
            18Signatures
            19Exhibit
                Index
            20


*-
          1
          -*


Item
      1.
      Financial Statements.








**MONUMENT
      RESOURCES, INC. AND SUBSIDIARY**


**CONDENSED
      CONSOLIDATED BALANCE SHEETS**








March
                31,
            
            September
                30,2007
            
            2006**ASSETS**
            
            (Unaudited)
            
            (Audited)Current
                assetsCash
                and cash equivalents
            
            $
            256,249
            
            $
            719,188Marketable
                securities, available-for-sale
            
            
            592,072
            
            
            410,158Accounts
                receivable
            
            
            5,069
            
            
            36,629Prepaid
                expenses and other assets
            
            
            39,762
            
            
            18,936Total
                current assets
            
            
            893,152
            
            
            1,184,911Proved
                and unproved oil and gasproperties,
                successful efforts methodnet of accumulated depletion
            
            
            601,494
            
            
            608,117Property
                and equipment:Gas
                pipeline, net ofaccumulated depreciation
            
            
            225,525
            
            
            232,657Property
                and equipment, net ofaccumulated depreciation
            
            
            226,098
            
            
            112,962Net
                property and equipment
            
            
            451,623
            
            
            345,619Total
                assets
            
            $
            1,946,269
            
            $
            2,138,647







See
      Notes
      to Condensed Consolidated Financial Statements.


*-
          2
          -*





Item
      1.  Financial
      Statements. (Continued)








**MONUMENT
      RESOURCES, INC. AND SUBSIDIARY**


**CONDENSED
      CONSOLIDATED BALANCE SHEETS (CONTINUED)**








March
                31,
            
            September
                30,2007
            
            2006**LIABILITIES
                AND STOCKHOLDERS’ EQUITY**
            
            (Unaudited)
            
            (Audited)Current
                liabilitiesAccounts
                payable and accrued expenses
            
            $
            28,547
            
            $
            61,829Asset
                retirement obligation
            
            
            80,947
            
            
            80,947Total
                liabilities
            
            
            109,494
            
            
            142,776Stockholders’
                equity:Preferred
                Stock, no par value, authorized1,000,000
                shares; none issued
            
            
            -
            
            
            -Common
                Stock, no par value, authorized10,000,000
                shares; 5,319,000 issuedand outstanding
            
            
            3,290,518
            
            
            3,290,518Accumulated
                (deficit)
            
            
            (1,444,981
            )
            
            (1,284,070
            )Unrealized
                (loss) on investment in securities
            
            
            (8,762
            )
            
            (10,577
            )Total
                stockholders’ equity
            
            
            1,836,775
            
            
            1,995,871Total
                liabilities and stockholders’ equity
            
            $
            1,946,269
            
            $
            2,138,647








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
              
              Six
                  MonthsEnded
                  March 31,
              
              Ended
                  March 31,2007
              
              2006
              
              2007
              
              2006RevenueOil
                  and gas sales
              
              $
              19,934
              
              $
              132,417
              
              $
              86,431
              
              $
              330,665Pipeline
                  income
              
              
              8,977
              
              
              41,984
              
              
              38,913
              
              
              84,127Total
                  revenue
              
              
              28,911
              
              
              174,401
              
              
              125,344
              
              
              414,792ExpensesOil
                  and gas operating expense
              
              
              12,747
              
              
              23,424
              
              
              35,902
              
              
              40,267Pipeline
                  operating expense
              
              
              61,013
              
              
              55,404
              
              
              109,736
              
              
              101,187General
                  and administrative
              
              
              57,112
              
              
              55,128
              
              
              119,768
              
              
              124,773Depletion,
                  depreciation and amortization
              
              
              24,877
              
              
              16,904
              
              
              42,965
              
              
              32,042Total
                  operating expenses
              
              
              155,749
              
              
              150,860
              
              
              308,371
              
              
              298,269Net
                  income (loss) from operations
              
              
              (126,838
              )
              
              23,541
              
              
              (183,027
              )
              
              116,523Other
                  income and (expense)(Loss)
                  on sale of securities
              
              
              (226
              )
              
              -
              
              
              (226
              )
              
              -Gain
                  on sale of mineral property
              
              
              -
              
              
              100,359
              
              
              -
              
              
              100,359Interest
                  income and other
              
              
              13,435
              
              
              9,085
              
              
              22,342
              
              
              21,344Net
                  income (loss)
              
              $
              (113,629
              )
              $
              132,985
              
              $
              (160,911
              )
              $
              238,226Basic
                  and diluted (loss) income per common share
              
              $
              (.02
              )
              $
              .03
              
              $
              (.03
              )
              $
              .04Weighted
                  average number of shares outstanding
              
              
              5,319,000
              
              
              5,319,000
              
              
              5,319,000
              
              
              5,319,000







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)**





Six
                Months Ended March 31,2007
            
            2006Cash
                flows from operating activities:Net
                income (loss)
            
            $
            (160,911
            )
            $
            238,226Adjustment
                to reconcile net income (loss) to netcash provided by (used in) operating activities:Depreciation,
                depletion and amortization
            
            
            42,965
            
            
            32,042(Gain)
                on sale of mineral property
            
            
            -
            
            
            (100,359
            )Loss
                on sale of securities
            
            
            226
            
            
            -Changes
                in operating assets and liabilities:(Increase)
                decrease in prepaid expenseand other assets
            
            
            (20,826
            )
            
            53,785Decrease
                (increase) in accounts receivable
            
            
            31,560
            
            
            (5,135
            )(Decrease)
                increase in accounts payableand accrued expenses
            
            
            (33,282
            )
            
            13,139Net
                cash flow provided by (used in) operations
            
            
            (140,268
            )
            
            231,698Cash
                flows from investing activities:Purchase
                of land
            
            
            (95,191
            )
            
            -Proceeds
                from sale of mineral investment
            
            
            -
            
            
            129,065Proceeds
                from sale of investment securities
            
            
            19,675
            
            
            2,710Additions
                to oil and gas properties
            
            
            (9,590
            )
            
            (675
            )Additions
                to equipment
            
            
            (37,565
            )
            
            (58,913
            )Purchase
                of investment securities
            
            
            (200,000
            )
            
            (500,000
            )Net
                cash flows (used in) investing activities
            
            
            (322,671
            )
            
            (427,813
            )Net
                decrease in cash and cash equivalents
            
            
            (462,939
            )
            
            (196,115
            )Cash
                and cash equivalents at beginning of period
            
            
            719,188
            
            
            654,987Cash
                and cash equivalents at end of period
            
            $
            256,249
            
            $
            458,872Schedule
                of Non-cash Investing ActivitiesDecrease
                (increase) in unrealized gain (loss)on
                securities available for sale
            
            $
            1,815
            
            $
            (10,581
            )








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,
      2006.





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, 2006.





**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 six months ended March 31,
      2007
      or 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. In February 2006, we sold
      our mineral properties for $140,000, recognizing a gain of approximately
      $100,000 in the six-month period ended March 31, 2006.





**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.





*-
            7
            -*





Item
      1.  Financial
      Statements (Continued).





**INCOME
      TAXES**





We
      have
      made no provision for income taxes for the six-month periods ended March 31,
      2007 and 2006, since the pre-tax income will be offset by net operating loss
      carryforwards. We had approximately $1,485,825 and $1,559,704 of such
      carryforwards at March 31, 2007 and 2006, respectively.





**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.











*-
            8
            -*





Item
      1.  Financial Statements (Continued).





**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).





**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 six months ended March 31, 2007 and 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 oil and gas segment totaled $86,431, or 100% of our
      revenues for the six months ended March 31, 2007 as compared to $330,665, or
      100% for the six months ended March 31, 2006.





*-
            9
            -*





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 six months ended March 31, 2007 and 2006 is as
      follows:




Oil
                and Gas
            
            Pipeline
            
            Mining
            
            Corporate
            
            ConsolidatedRevenues2007
            
            $
            86,431
            
            $
            38,913
            
            $
            --
            
            $
            22,117
            
            $
            147,4612006
            
            
            330,665
            
            
            84,127
            
            
            100,359
            
            
            21,344
            
            
            536,495Net
                Income (Loss)2007
            
            $
            26,294
            
            $
            (89,203
            )
            $
            --
            
            $
            (98,002
            )
            $
            (160,911
            )2006
            
            
            276,281
            
            
            (34,193
            )
            
            100,359
            
            
            (104,221
            )
            
            238,226Depreciation,
                Depletionand
                Valuation Chargedto
                Identifiable Assets2007
            
            $
            24,235
            
            $
            18,380
            
            $
            --
            
            $
            350
            
            $
            42,9652006
            
            
            14,117
            
            
            17,133
            
            
            --
            
            
            792
            
            
            32,042Capital
                Expenditures2007
            
            $
            16,816
            
            $
            125,286
            
            $
            --
            
            $
            245
            
            $
            142,3472006
            
            
            675
            
            
            58,913
            
            
            --
            
            
            --
            
            
            59,588Segment
                information as of March 31, 2007 compared to September 30, 2006 is
                as
                follows.Identifiable
                AssetsMarch
                31, 2007
            
            $
            715,105
            
            $
            364,673
            
            $
            --
            
            $
            866,491
            
            $
            1,946,269September
                30, 2006
            
            
            675,005
            
            
            313,731
            
            
            --
            
            
            1,149,911
            
            
            2,138,647




**NOTE
      4 -- OIL AND GAS ACTIVITIES**





**KANSAS
      GAS PROJECT -- LEAVENWORTH COUNTY, KANSAS**





During
      the quarter ended December 31, 2006, we purchased for $95,000 a 7+ acre parcel
      of land which will be utilized as a new compressor site. The actual construction
      and relocation of the compressor will be completed during the 2007 calendar
      year. We also completed a workover on one of the two wells we purchased in
      August 2006. We plan to continue a modest workover program on our existing
      gas
      wells to recomplete them in the upper McClouth and other gas zones.





During
      the quarter ended March 31, 2007, we had to curtail our gas production for
      the
      entire months of February and March 2007. This curtailment was a result of
      a
      requirement by our gas purchaser to install an additional control valve and
      a
      line separator to better monitor our gas quality. The equipment required was
      difficult to obtain and was not installed until April 10, 2007. The cost of
      the
      new valve and separator, including installation, was approximately $22,000.
      However, the lost gas production for February and March 2007 is estimated at
      12,000





*-
            10
            -*





Item
      1.  Financial Statements (Continued).





**NOTE
      4 -- OIL AND GAS ACTIVITIES (CONTINUED)**





**KANSAS
      GAS PROJECT -- LEAVENWORTH COUNTY, KANSAS ( CONTINUED)**





to
      15,000
      MCF resulting in approximately $75,000 to $100,000 in lost revenue, thus
      resulting in the substantial net loss for the quarter ended March 31, 2007.





In
      addition, we entered into a new gas purchase contract. The new contract is
      for a
      5 year term starting June 1, 2007, with an additional 5 year contingent option.
      The contract terms are similar to the previous contract and does not provide
      for
      a minimum gas volume purchase. Thus, we will most likely not be able to sell
      all
      our available gas production during the summer months.





**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 six months ended March 31, 2007 and 2006,
      in our Accumulated Other Comprehensive Income balance and the components of
      our
      comprehensive income.





**Six
      months ended March 31, 2007**


Accumulated
                other comprehensive (loss) at September 30, 2006
            
            $
            (10,577
            )Change
                in unrealized (loss) on securities held for sale
            
            
            1,815Accumulated
                other comprehensive (loss) at March 31, 2007
            
            $
            (8,762
            )





**Six
      months ended March 31, 2006**


Accumulated
                other comprehensive income (loss) at September 30, 2005
            
            $
            (6,975
            )Change
                in unrealized (loss) on securities held for sale
            
            
            (10,581
            )Accumulated
                other comprehensive income (loss) at March 31, 2006
            
            $
            (17,556
            )








*-
            11
            -*





Item
      1.  Financial Statements (Continued).





**NOTE
      7 -- SUBSEQUENT EVENTS** :





In
      May,
      2007 we entered into a new gas purchase contract with our gas purchaser. The
      term is for 5 years starting June 1, 2007. The general terms of the contract
      are
      similar to the previous contract and does not provide for a minimum gas volume
      purchase which most likely will result in our not being able to sell all of
      our
      available gas production during the summer months. The Gas Purchase Agreement
      is
      attached as Exhibit 10.1.








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            12
            -*





**Item
        2.** **MANAGEMENT’S
        DISCUSSION AND ANALYSIS OF**  **FINANCIAL
        CONDITION**  **AND
        RESULTS OF OPERATIONS (CONTINUED).**


**LIQUIDITY
      AND CAPITAL RESOURCES**





At
      March
      31, 2007, our current assets were $893,152 and current liabilities were $28,547
      and we had working capital of $864,605 compared to current assets of $1,184,911
      at September 30, 2006 and current liabilities of $61,829 at September 30, 2006,
      resulting in working capital at September 30, 2006 of $1,123,082. Our working
      capital decreased $258,477, or about 23%. This decrease was primarily the result
      of the purchase for $95,000 of a 7+ acre parcel of land to be used as a
      compressor site and the net loss for the six months ended March 31, 2007 of
      $160,911.





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 a
      decrease in the average sales price received for our gas and our inability
      to
      sell gas for February and March 2007, revenue from our gas and pipeline sales
      decreased for the three months ended March 31, 2007 when compared to the same
      period in 2006. Gas production decreased from 27,195 MCF for the three month
      period ending March 31, 2006 to 5,985 MCF for the three month period ending
      March 31, 2007. This decrease of 21,210 MCF was a result of the curtailment
      of
      production due to a requirement by our gas purchaser to install an additional
      control valve and line separator to better monitor our gas quality. The price
      received for our natural gas decreased from an average of $7.26 per MCF for
      the
      three months ended March 31, 2006 compared to an average of $5.40 per MCF for
      the three months ended March 31, 2007, a 26% decrease. Gas sales decreased
      85%,
      or $112,483, from $132,417 to $19,934 for the three months ended March 31,
      2006
      and 2007, respectively due to the significant decrease in natural gas prices
      and
      curtailment of production. Pipeline sales were $8,977 for the three months
      ended
      March 31, 2007 and $41,984 for the three months ended March 31, 2006, a decrease
      of $33,007, or 79%. Again, this decrease was due to the lower natural gas prices
      and curtailment of production.





Interest
      and other revenue decreased to $13,209 for the three months ended March 31,
      2007
      from $109,444 for the three months ended March 31, 2006. This decrease of
      $96,235 was due to the sale of our mineral property in Montana for a gain of
      approximately $100,000 in the period ended March 31, 2006. Oil and gas operating
      costs decreased $10,677, or 46% from $23,424 to $12,747 when comparing the
      three
      months ended March 31, 2006 to March 31, 2007. This decrease was primarily
      due
      to our decreased production. Pipeline operating costs were $61,013 for the
      three
      months ended March 31, 2007 and $55,404 for the three months ended





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            13
            -*





**Item
      2.** **MANAGEMENT’S
      DISCUSSION AND ANALYSIS OF**  **FINANCIAL
      CONDITION**  **AND
      RESULTS OF OPERATIONS (CONTINUED).**





**RESULTS
      OF OPERATIONS (CONTINUED)**





March
      31,
      2006, an increase of $5,609, or 10%. Pipeline costs increased due mainly to
      increased costs associated with adverse weather conditions in Kansas and the
      expense of installing the new monitoring equipment and shut-off valve required
      by our gas purchaser.





General
      and administrative expenses totaled $57,112 for the three months ended March
      31,
      2007, compared to $55,128 for the three-month period ended March 31, 2006.
      This
      increase of $1,984, or 4%, in general and administrative costs was primarily
      due
      to an increase in legal fees.





A
      net
      loss of $113,629 was recorded for the three months ended March 31, 2007 as
      compared to a net income of $132,985 for the same period ended March 31, 2006.
      This decrease of $246,614 was primarily the result of lower gas volumes and
      prices for the period ended March 31, 2007 and a gain on the sale of our mineral
      property of $100,359 for the period ended March 31, 2006.





Due
      to a
      decrease in the average sales price received for our gas and our inability
      to
      sell gas for February and March 2007, revenue from our gas and pipeline sales
      decreased for the six months ended March 31, 2007 when compared to the same
      period in 2006. Gas production decreased from 55,301 MCF for the six month
      period ending March 31, 2006 to 25,942 MCF for the six month period ending
      March
      31, 2007. This decrease of 29,359 MCF was a result of the curtailment of
      production due to a requirement by our gas purchaser to install an additional
      control valve and line separator to better monitor our gas quality, see Note
      4.
      The price received for our natural gas decreased from an average of $8.55 per
      MCF for the six months ended March 31, 2006 compared to an average of $5.41
      per
      MCF for the six months ended March 31, 2007, a 37% decrease. Gas sales decreased
      74%, or $244,234, from $330,665 to $86,431 for the six months ended March 31,
      2006 and 2007, respectively due to the significant decrease in natural gas
      prices and curtailment of production. Pipeline sales were $38,913 for the six
      months ended March 31, 2007 and $84,127 for the six months ended March 31,
      2006,
      a decrease of $45,214, or 54%. Again, this decrease was due to the lower natural
      gas prices and curtailment of production.





Interest
      and other revenue decreased to $22,116 for the six months ended March 31, 2007
      from $121,703 for the six months ended March 31, 2006. This decrease of $99,587
      was due to the sale of our mineral property in Montana for a gain of
      approximately $100,000 in the period ended March 31, 2006. Oil and gas operating
      costs decreased $4,365, or 11% from $40,267 to $35,902 when comparing the six
      months ended March 31, 2006 to March 31, 2007. This decrease was primarily
      due
      to our decreased production. Pipeline operating costs were $109,736 for the
      six
      months ended March 31, 2007 and $101,187 for the six months ended March 31,
      2006, an increase of $8,549, or 8%. Pipeline costs increased due mainly to
      increased costs associated with adverse weather conditions in Kansas and the
      expense of installing the new monitoring equipment and shut-off valve required

      by our gas purchaser.











*-
            14
            -*





**Item
        2.** **MANAGEMENT’S
        DISCUSSION AND ANALYSIS OF**  **FINANCIAL
        CONDITION**  **AND
        RESULTS OF OPERATIONS (CONTINUED).**


**RESULTS
      OF OPERATIONS (CONTINUED)**





General
      and administrative expenses totaled $119,768 for the six months ended March
      31,
      2007, compared to $124,773 for the six-month period ended March 31, 2006. The
      decrease of $5,005, or 4%, in general and administrative costs was primarily
      due
      to a decrease in consulting fees.





A
      net
      loss of $160,911 was recorded for the six months ended March 31, 2007 as
      compared to a net income of $238,226 for the same period ended March 31, 2006.
      This decrease of $399,137 was primarily the result of lower gas volumes and
      prices for the period ended March 31, 2007 and a gain on the sale of our mineral
      property of $100,359 for the period ended March 31, 2006.





Cumulative
      unrealized losses of $8,762 on investment in securities have been recorded
      in
      equity as of March 31, 2007 which compares to an accumulated loss of $10,577
      as
      of September 30, 2006. This decrease of $1,815 is a result of fluctuations
      in
      market value of our investment securities.





**CONTRACTUAL
      OBLIGATIONS**





We
      have
      no contractual obligations as of March 31, 2007.





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 2007 is $10,000 and was paid in January 2007. We do not intend
      on
      renewing the lease beyond 2007.





We
      recently purchased a new compressor site and will install a new compressor
      on
      this site in calendar year 2007. We estimate that the new compressor and
      compressor site will payout in approximately 3-4 years. In addition, we are
      required under our new gas contract to install modern metering and gas quality
      control equipment at the new compressor site. The estimated cost for this
      equipment is $75,000-$85,000.





**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.








*-
            15
            -*





**Item
      2.**  **MANAGEMENT’S
      DISCUSSION AND ANALYSIS OF** **FINANCIAL
      CONDITION** **AND
      RESULTS OF OPERATIONS (CONTINUED).**





**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. 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.





*-
            16
            -*





**Item
      2.**  **MANAGEMENT’S
      DISCUSSION AND ANALYSIS OF** **FINANCIAL
      CONDITION** **AND
      RESULTS OF OPERATIONS (CONTINUED).**





**Oil
      and Gas Properties (Continued)** :





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.





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.





.





*-
            17
            -*





**MONUMENT
      RESOURCES, INC. AND SUBSIDIARY**





**PART
      II -- OTHER INFORMATION**





ITEM
      1.  LEGAL
      PROCEEDINGS.




N/A





ITEM
      2. UNREGISTERED
      SALES OF EQUITY SECURITIES AND
      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





Filed
      herewith are the following exhibits:


Exhibit
                  10.1--
              Gas
                  Purchase Contract with ATMOS Energy Corp., Inc. effective June
                  1,
                  2007.rbanes-Oxley Act of 2002.Exhibit
                  31.1--
              Certification
                  of the Chief Executive and Financial Officer under Section 302
                  of the
                  Sarbanes-Oxley Act of 2002Exhibit
                  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:
              May 7, 2007
            By:
            /s/ A.G.
              FoustA.G. Foust, President

              (Chief
                Executive Officer, Principal
              Financial
                and Accounting Officer) and
              a
                Director





*-
            19
            -*





**EXHIBIT
      INDEX**





EXHIBIT


NUMBER DESCRIPTION





10.1  Gas
      Purchase
      Contract with ATMOS Energy Corp., Inc. effective June 1, 2007.





31.1  Certification
      of
      Chief Executive and Financial Officer under Section 302 of the Sarbanes-Oxley
      Act of 2002.





32.1  Certification
      of
      Chief Executive and Financial Officer under Section 906 of the Sarbanes-Oxley
      Act of 2002.









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          20
          -*