UNITED
STATES
 SECURITIES
AND EXCHANGE COMMISSION
 Washington,
D.C. 20549
 
 FORM
10-Q
 
 (Mark
One)
 
 [ X
      ]
              Quarterly
      report under Section 13 or 15(d) of the Securities Exchange Act of
      1934
 
 For
      the quarterly period ended December 31,
2008
 
 [    ]
              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 Registrant as Specified in its
Charter)
  
 Colorado
              84-1028449(State
      or Other Jurisdiction of

                Incorporation
      or Organization)
              (I.R.S.
      Employer Identification No.)
 
 2050 South Oneida
      Street, Suite 106, Denver, Colorado
80224
 (Address
      of Principal Executive Offices, Including Zip
  Code)
 
 (303)
692-9468
 (Registrant’s
      Telephone Number, Including Area
Code)
 
 Indicate
by check mark whether the registrant (1) filed all reports required to be filed
by Section 13 or 15(d) of the Securities Exchange Act of 1934 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 large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting
company.  See the definitions of “large accelerated filer”,
“accelerated filer and “smaller reporting company” in Rule 12b-2 of the Exchange
Act.
 
 Large
accelerated filer [    ]               Accelerated
filer [    ]
 Non-accelerated
filer   [    ](Do
not check if a smaller reporting company)     
Smaller reporting company [ X
]
 
 Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act).
 Yes  [
]                      No  [X]
 
 State the
number of shares outstanding of each of the issuer’s classes of common equity,
as of the latest practicable date: 7,719,000 shares of common stock were
outstanding at February 12, 2009.
 Transitional
Small Business Disclosure Format (Check One):
 [ X ]
  
  MONUMENT
RESOURCES, INC. AND SUBSIDIARY
  INDEX
 
 Page NumberPART
      I.
                  FINANCIAL
      INFORMATIONItem
      1.
                  Condensed
      Consolidated Balance Sheets as of December
      31, 2008 and September 30, 2008.
                  2Condensed
      Consolidated Statements of Operations for the Three Months December
      31, 2008and
      2007.
                  4Condensed
      Consolidated Statements of Cash Flows for the Three Months December
      31, 2008and
      2007.
                  5Notes
      to Condensed Consolidated Financial Statements
                  6Item
      2.
                  Management’s
      Discussion and Analysis of Financial Condition and Results of
      Operations
                  12Item
      3.
                  Quantitative
      and Qualitative Disclosures about Market Risk.
                  14Item
      4.
                  Controls
      and Procedures
                  15PART
      II.
                  OTHER
      INFORMATION
                  16Item
      1.
                  Legal
      Proceedings
                  16Item
      1A.
                  Risk
      Factors
                  16Item
      2.
                  Unregistered
      Sales of Equity Securities and Use of Proceeds
                  16Item
      3.
                  Defaults
      Upon Senior Securities
                  16Item
      4.
                  Submission
      of Matters to a Vote of Security Holders
                  16Item
      5.
                  Other
      Information
                  16Item
      6.
                  Exhibits
                  16Signatures
                  17Exhibit
      Index
                  18
   
  Item 1.
Financial Statements.
 
 MONUMENT
RESOURCES, INC. AND SUBSIDIARY
 CONDENSED
CONSOLIDATED BALANCE SHEETS
 
 
 December
      31,
                                  
                                  
                                  September
      30,2008
                                  
                                  
                                  2008ASSETS
                                  
                                  (Unaudited)Current
      assetsCash and cash
      equivalents
                                  
                                  $
                                  53,533
                                  
                                  
                                  $
                                  204,613Marketable securities
      available-for-sale
                                  
                                  
                                  675,635
                                  
                                  
                                  
                                  666,949Accounts
    receivable
                                  
                                  
                                  50,424
                                  
                                  
                                  
                                  45,471Prepaid expenses and other
      assets
                                  
                                  
                                  8,469
                                  
                                  
                                  
                                  4,829Total
      current assets
                                  
                                  
                                  788,061
                                  
                                  
                                  
                                  921,862Proved
      and unproved oil and gasproperties, successful efforts
      methodnet of accumulated
      depletion
                                  
                                  
                                  699,723
                                  
                                  
                                  
                                  667,150Property
      and equipment:Gas pipeline, net
    ofaccumulated
      depreciation
                                  
                                  
                                  176,054
                                  
                                  
                                  
                                  182,105Property and equipment, net
      ofaccumulated
      depreciation
                                  
                                  
                                  459,853
                                  
                                  
                                  
                                  478,731Net
      property, equipment and pipeline
                                  
                                  
                                  635,907
                                  
                                  
                                  
                                  660,836Total
      assets
                                  
                                  $
                                  2,123,691
                                  
                                  
                                  $
                                  2,249,848
  See Notes
to Condensed Consolidated Financial Statements.
  -
2 -
  
 MONUMENT
RESOURCES, INC. AND SUBSIDIARY
 CONDENSED
CONSOLIDATED BALANCE SHEETS (CONTINUED)
 
 
 December
      31,
                                      
                                      
                                      September
      30,2008
                                      
                                      
                                      2008LIABILITIES
      AND STOCKHOLDERS’ EQUITY
                                      
                                      (Unaudited)Current
      liabilitiesAccounts payable and accrued
      expenses
                                      
                                      $
                                      29,081
                                      
                                      
                                      $
                                      64,145Asset
      retirement obligation
                                      
                                      
                                      104,917
                                      
                                      
                                      
                                      103,343Total
      liabilities
                                      
                                      
                                      133,998
                                      
                                      
                                      
                                      167,488Stockholders’
      equity:Preferred
      Stock, no par value, authorized1,000,000 shares; none
      issued
                                      
                                      
                                      -
                                      
                                      
                                      
                                      -Common
      Stock, no par value, authorized
                                      
                                      
                                      3,940,629
                                      
                                      
                                      
                                      3,938,149500,000,000 and 10,000,000
      sharesrespectively; 7,719,000 issued
      andoutstanding .Accumulated
      (deficit)
                                      
                                      
                                      (1,951,572
                                      )
                                      
                                      
                                      (1,847,801
                                      )Unrealized
      gain (loss) on investment in securities
                                      
                                      
                                      636
                                      
                                      
                                      
                                      (7,988
                                      )Total
      stockholders’ equity
                                      
                                      
                                      1,989,693
                                      
                                      
                                      
                                      2,082,360Total
      liabilities and stockholders’ equity
                                      
                                      $
                                      2,123,691
                                      
                                      
                                      $
                                      2,249,848
 
 See Notes
to Condensed Consolidated Financial Statements.
  -
3 -
  MONUMENT
RESOURCES, INC. AND SUBSIDIARY
 CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
 (UNAUDITED)
 
 
 Three
      Months Ended
                                    December
      31,2008
                                  
                                  
                                  2007RevenueOil and gas sales
                                  
                                  $
                                  35,448
                                  
                                  
                                  $
                                  34,732Pipeline revenue
                                  
                                  
                                  25,966
                                  
                                  
                                  
                                  10,166Total
      revenues
                                  
                                  
                                  61,414
                                  
                                  
                                  
                                  44,898ExpensesOil and gas operating
      expense
                                  
                                  
                                  22,017
                                  
                                  
                                  
                                  12,657Pipeline operating
      expense
                                  
                                  
                                  41,484
                                  
                                  
                                  
                                  36,335General and
      administrative
                                  
                                  
                                  77,153
                                  
                                  
                                  
                                  60,508Depletion, depreciation and
      amortization
                                  
                                  
                                  32,092
                                  
                                  
                                  
                                  23,508Total
      expenses
                                  
                                  
                                  172,746
                                  
                                  
                                  
                                  133,008(Loss)
      from operations
                                  
                                  
                                  (111,332
                                  )
                                  
                                  
                                  (88,110
                                  )Other
      income and (expense)Interest
      and other
                                  
                                  
                                  7,561
                                  
                                  
                                  
                                  8,710Net
      loss
                                  
                                  $
                                  (103,771
                                  )
                                  
                                  $
                                  (79,400
                                  )Basic
      and diluted loss per common share
                                  
                                  $
                                  (.01
                                  )
                                  
                                  $
                                  (.01
                                  )Weighted
      average number of shares outstanding
                                  
                                  
                                  7,719,000
                                  
                                  
                                  
                                  5,319,000
 
 See Notes
to Condensed Consolidated Financial Statements.
  -
4 -
  MONUMENT
RESOURCES, INC. AND SUBSIDIARY
 CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
 (UNAUDITED)
 
  Three
      Months Ended
                                                                                    December
      31,2008
                                                                                  
                                                                                  
                                                                                  2007Cash
      flows from operating activities:Net
      loss
                                                                                  
                                                                                  $
                                                                                  (103,771
                                                                                  )
                                                                                  
                                                                                  $
                                                                                  (79,400
                                                                                  )Adjustment
      to reconcile net loss to net cashused
      in operating activities:Depreciation, depletion and amortization
                                                                                  
                                                                                  
                                                                                  32,090
                                                                                  
                                                                                  
                                                                                  
                                                                                  23,508Stock compensation
                                                                                  
                                                                                  
                                                                                  2,480
                                                                                  
                                                                                  
                                                                                  
                                                                                  -Changes
      in operating assets and liabilities:(Increase) decrease in prepaid expensesand other assets
                                                                                  
                                                                                  
                                                                                  (3,640
                                                                                  )
                                                                                  
                                                                                  
                                                                                  4,781(Increase) in accounts andother receivables
                                                                                  
                                                                                  
                                                                                  (4,953
                                                                                  )
                                                                                  
                                                                                  
                                                                                  (6,726
                                                                                  )Increase (decrease) in accounts payableand accrued
      expenses
                                                                                  
                                                                                  
                                                                                  (35,064
                                                                                  )
                                                                                  
                                                                                  
                                                                                  335Net
      cash flows (used in)
      operations
                                                                                  
                                                                                  
                                                                                  (112,858
                                                                                  )
                                                                                  
                                                                                  
                                                                                  (57,502
                                                                                  )Cash
      flows from investing activities:Purchase
      marketable securities
                                                                                  
                                                                                  
                                                                                  (62
                                                                                  )
                                                                                  
                                                                                  
                                                                                  -Additions
      to oil and gas properties
                                                                                  
                                                                                  
                                                                                  (38,160
                                                                                  )
                                                                                  
                                                                                  
                                                                                  -Additions
      to equipment
                                                                                  
                                                                                  
                                                                                  -
                                                                                  
                                                                                  
                                                                                  
                                                                                  (34,656
                                                                                  )Net
      cash flows (used in) investing
      activities
                                                                                  
                                                                                  
                                                                                  (38,222
                                                                                  )
                                                                                  
                                                                                  
                                                                                  (34,656
                                                                                  )Net
      (decrease) in cash and cash equivalents
                                                                                  
                                                                                  
                                                                                  (151,080
                                                                                  )
                                                                                  
                                                                                  
                                                                                  (92,158
                                                                                  )Cash
      and cash equivalents at beginning of period
                                                                                  
                                                                                  
                                                                                  204,613
                                                                                  
                                                                                  
                                                                                  
                                                                                  213,808Cash
      and cash equivalents at end of period
                                                                                  
                                                                                  $
                                                                                  53,533
                                                                                  
                                                                                  
                                                                                  $
                                                                                  121,650Schedule of Non-cash Investing
      ActivitiesDecrease
      (increase) in unrealized losson securities available for sale
                                                                                  
                                                                                  $
                                                                                  (8,624
                                                                                  )
                                                                                  
                                                                                  $
                                                                                  4,323
 See Notes
to Condensed Consolidated Financial Statements
  -
5 -
  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 oil and gas properties.  Our oil and 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 and
the private placement of common stock 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-K for the year ended September 30,
2008.
 
 Except
for the historical information contained in this Form 10-Q, 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-K for the year ended September 30, 2008.
 
 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.
 
 REVENUE
RECOGNITION
 
 Sales of
oil and gas production and pipeline income are recognized at the time of
delivery of the product to the purchaser.
  -
6 -
  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.  As of December 31, 2008 all warrants outstanding were
excluded from earnings per share as their effects would be
anti-dilutive.
 
 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 un-recoverability 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.
 
 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 market
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.
 
 FAIR
VALUE OF FINANCIAL INSTRUMENTS
 
 Our
financial instruments consist of cash and cash equivalents, accounts receivable
and accounts payable. The fair market value of these financial instruments
approximates or is equal to the book value.
 
 In
the first quarter of fiscal year 2009, we adopted Statement of Financial
Accounting Standard (SFAS) No. 157, “Fair Value Measurement” (SFAS No. 157) as
amended by FASB Statement of Position (FSP) FAS 157-1 and FSP FAS 157-3. SFAS
No. 157 defines fair value, establishes a framework for measuring fair value,
and enhances fair value measurement disclosure. FSP FAS 157-3 delays, until the
first quarter of fiscal year 2010, the effective date for SFAS 157 for all
non-financial assets and non-financial liabilities, except those that are
recognized or disclosed at fair value in the financial statements on a recurring
basis (at least annually).
  -
7 -
  
 
 The
following table provides information regarding the source of data used by us to
develop fair value measurements:
 
 Description
                            
                            December
      31, 2008
                            
                            
                            Quoted
      Prices in Active Markets for Identical Assets
                              (Level
      1)
                            
                            Significant
                              other
                              Observable
      Inputs
                              
                              (Level
      2)
                            
                            Significant
                              Unobservable
      Inputs
                              
                              
                              (Level
      3)Cash
      and cash equivalents
                            
                            $
                            53,533
                            
                            
                            $
                            53,533Trading
      Securities
                            
                            
                            675,635
                            
                            
                            
                            675,635Total
                            
                            $
                            729,168
                            
                            
                            $
                            729,168
 
 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.(See Note
6.)
 
 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 under SFAS 143 are reflected in the accompanying balance
sheets.
 
 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).
 
  -
8 -
  In evaluating our business, readers of
this report should carefully consider the following factors in addition to the
other information presented in this report and in our other reports filed with
the SEC that advise interested parties of the risks and factors that may affect
our business.  As noted elsewhere herein, the future conduct of our
business and discussions of possible future activities is dependent upon a
number of factors, and there can be no assurance that we will be able to conduct
our operations as contemplated herein.  These risks include, but are
not limited to:
 
 §
              The
      fact that we are reliant on a single gas purchaser under an agreement that
      requires us to maintain certain quality
  standards.
 §
              The
      possibility that our gas transmission facilities and equipment may
      experience mechanical difficulties and breakdowns substantially curtailing
      our gas deliverability.
 §
              Severe
      weather conditions are typical in our area of operations and may cause
      interruptions of our ability to produce and/or deliver gas to our
      purchaser.
 §
              Our
      limited financial resources may impede our ability to maintain gas
      deliveries at current levels and our ability to increase such
      levels.
 §
              The
      possibility that the described operations, reserves, or development,
      re-completion or production activities will not be completed, continued or
      realized on economic terms, if at
all.
 §
              The
      development and production of oil and gas enterprises attendant with high
      risk, including the risk of fluctuating prices for oil and natural
      gas.
 §
              Not
      developing adequate reserves despite expending large sums of
      money.
 §
              Test
      results and reserve estimates may not be
  accurate.
 §
              The
      possibility that the estimates on which we are relying are inaccurate and
      that unknown or unexpected future events may occur that will tend to
      reduce our ability to operate successfully, if at
  all.
 §
              Although
      we currently do not have active operations in the mining segment, mining
      exploration and mining have inherent risks including the environment, low
      prices for commodities, competition from better financed companies and the
      risk of failure in either exploration or mining.  There is no
      assurance we will be able to compete successfully in the exploration and
      mining business should that course of action be
  undertaken.
 
 See our Annual Report on Form 10-K for
the fiscal year ended September 30, 2008 for additional risk
factors.
 
 NOTE
3 -- SEGMENT INFORMATION
 
 We operate in two industry segments
within the United States: (1) oil and gas exploration and development, and (2) a
gas transmission pipeline.
 
 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.   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.
  -
9 -
  
 During the three months ended December
31, 2008 and 2007, 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 $61,414, or 100% of our revenues for the three months
ended December 31, 2008 as compared to $38,448, or 86% for the three months
ended December 31, 2007.
 
 There have been no differences from our
last Annual Report on Form 10-K 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 three months ended December 31, 2008 and 2007 is as
follows:
 
 Oil and Gas
                          
                          
                          Pipeline
                          
                          
                          Corporate
                          
                          
                          ConsolidatedRevenues2008
                          
                          $
                          35,448
                          
                          
                          $
                          25,966
                          
                          
                          $
                          7,561
                          
                          
                          $
                          68,9752007
                          
                          
                          34,732
                          
                          
                          
                          10,166
                          
                          
                          
                          8,710
                          
                          
                          
                          53,608Net
      Income (Loss)2008
                          
                          $
                          (6,870
                          )
                          
                          $
                          (26,422
                          )
                          
                          $
                          (70,479
                          )
                          
                          $
                          (103,771
                          )2007
                          
                          
                          12,181
                          
                          
                          
                          (37,924
                          )
                          
                          
                          (53,657
                          )
                          
                          
                          (79,400
                          )Depreciation,
      Depletionand
      Valuation Chargedto
      Identifiable Assets2008
                          
                          $
                          20,302
                          
                          
                          $
                          10,904
                          
                          
                          $
                          886
                          
                          
                          $
                          32,0922007
                          
                          
                          9,895
                          
                          
                          
                          11,754
                          
                          
                          
                          1,859
                          
                          
                          
                          23,508Capital
      Expenditures2008
                          
                          $
                          38,160
                          
                          
                          $
                          -0-
                          
                          
                          $
                          -0-
                          
                          
                          $
                          38,1602007
                          
                          
                          -
                          
                          
                          
                          34,656
                          
                          
                          
                          -
                          
                          
                          
                          34,656
 
 Segment
information as of December 31, 2008 compared to September 30, 2008 is as
follows.
 
 Identifiable
      AssetsDecember 31, 2008
                  
                  $
                  952,251
                  
                  
                  $
                  419,690
                  
                  
                  $
                  751,750
                  
                  
                  $
                  2,123,691September 30,
2008
                  
                  
                  929,147
                  
                  
                  
                  435,162
                  
                  
                  
                  885,539
                  
                  
                  
                  2,249,848
 
 NOTE
4 -- OIL AND GAS ACTIVITIES
 
 KANSAS
GAS PROJECT -- LEAVENWORTH COUNTY, KANSAS
 
 During the quarter ended December 31,
2008, we completed the workover of two existing gas wells which were recompleted
in new productive zones.  These recompletions enabled us to maintain
our production level at from 200-230 MCF per day.
  -
10 -
  NOTE
5 – SHAREHOLDERS’ EQUITY
 
 Under a
Unit Purchase Agreement dated March 5, 2008, we sold 2,400,000 Units, each Unit
consisting of one share of common stock and one common stock purchase warrant,
at $0.25 per Unit, for a total of $600,000 in proceeds, including 400,000 Units
to one of our officers (see Item 2. “Liquidity and Capital Resources page 12).
Each warrant entitles the holder to purchase one share of common stock at an
exercise price of $0.40 per share through March 4, 2010.  The shares
of common stock and the shares underlying the warrants contain certain
registration rights.
 
 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
Sheets.  The table below details the changes during the three months
ended December 31, 2008 and 2007, in our Accumulated Other Comprehensive Income
balance and the components of our comprehensive income.
 
 Three months ended December
31, 2008
 Accumulated
      other comprehensive loss at September 30, 2008
                  
                  $
                  (7,988
                  )Change
      in unrealized loss on securities held for sale
                  
                  
                  8,624Accumulated
      other comprehensive income at December 31, 2008
                  
                  $
                  636
 Three months ended December
31, 2007
 Accumulated
      other comprehensive loss at September 30, 2007
                    
                    $
                    (6,109
                    )Change
      in unrealized loss on securities held for sale
                    
                    
                    4,323Accumulated
      other comprehensive loss at December 31, 2007
                    
                    $
                    (1,786
                    )
 
 
 NOTE
7--SUBSEQUENT EVENTS
 
 In a letter agreement dated
January 1, 2009, we agreed to purchase for $5,000 in cash and 150,000 shares of
our common restricted stock the 2.5% overriding royalty which was conveyed to
our consulting engineer, in a Letter Agreement dated July 10, 2001. That Letter
Agreement became null and void effective January 1, 2009.
 
 Our engineer will continue providing
services on a month-to-month basis for a monthly consulting fee of $1,000 and
$50 per hour for any time spent over 20 hours per month.  Also, he
will be paid $250 per day plus expenses whenever he is away from Denver on
business requested by us.
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11 -
  Item 2.MANAGEMENT’S DISCUSSION
AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
 
 LIQUIDITY
AND CAPITAL RESOURCES
 
 At December 31, 2008, our current
assets were $788,061 and current liabilities were $133,998 and we had working
capital of $654,063 compared to current assets of $921,862 and current
liabilities of $167,488 at September 30, 2008, resulting in working capital at
September 30, 2008 of $754,374.  Our working capital decreased
$100,311, or about 13%.  This decrease in working capital is due to
the capital invested in recompleting wells of approximately $38,000 and our net
loss for the three months ended December 31, 2008 of approximately
$100,000.
 
 Effective March 5, 2008, we sold
2,000,000 unregistered common shares of stock to an unaffiliated party and
400,000 shares of common stock to our president.  The price was $0.25
per share, which included warrants to buy an additional unregistered common
share of stock for each share purchased.  The warrant exercise price
is $0.40 per share and exercisable over two years.  The total funds we
received for the sale was $600,000.  We are using these funds to
re-complete some of our existing gas wells in Leavenworth County, Kansas and
acquire additional gas wells and oil and gas leases in the Leavenworth County
area.  Refer to our report on Form 8-K which was filed with the
Securities and Exchange Commission on March 6, 2008.
 
 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
 
 Three
Months Ended December 31, 2008 vs. 2007
 
 Gas production increased from 6,647 MCF
for the three month period ending December 31, 2007 to 18,350 MCF for the three
month period ending December 31, 2008.  This increase of 11,703 MCF
was a result of selling gas for the full three months ended December 31, 2008
compared to not being able to sell gas from October 8, 2007 to December 3, 2007
due to the moving of our compressor during that period.  The price
received for our natural gas decreased from an average of $5.78 per MCF for the
three months December 31, 2007 to an average of $3.69 per MCF for the three
months ended December 31, 2008, a 36% decrease.  Oil and gas sales
increased 2%, or $716, from $34,732 to $35,448 for the three months ended
December 31, 2007 and 2008, respectively.  This modest increase is due
to increased production offset by a decrease in gas sales prices for the same
period.  Pipeline sales were $25,966 for the three months ended
December 31, 2008 and $10,166 for the three months ended December 31, 2007, an
increase of $15,800, or 155%.  This increase was due to the increased
production in the three months ended December 31, 2008.
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12 -
  Interest and other revenue decreased to
$7,561 for the three months ended December 31, 2008 from $8,710 for the three
months ended December 31, 2007. This decrease of $1,149 was due to the decrease
in the rates we are currently able to receive on our bond
investments.  Oil and gas operating costs increased $9,360, or 74%
from $12,657 to $22,017 when comparing the three months ended December 31, 2007
to December 31, 2008.  This increase was primarily due to repairs
associated with the well recompletions we are doing and the increased costs by
virtue of not being shut down during the quarter ended December 31,
2008.  Pipeline operating costs were $41,484 for the three months
ended December 31, 2008 and $36,335 for the three months ended December 31,
2007, an increase of $5,149, or 14% due to a full quarter of
operations.
 
 General and administrative expenses
totaled $77,153 for the three months ended December 31, 2008, compared to
$60,508 for the three-month period ended December 31, 2007.  This
increase of $16,645, or 28%, in general and administrative costs was primarily
due to the hiring of a Vice President of Operations for the 2008 period and an
insurance refund in the 2007 period.
 
 A net loss of $103,771 was recorded for
the three months ended December 31, 2008 as compared to a net loss of $79,400
for the same period ended December 31, 2007.  This increased loss of
$24,371 was primarily the result of lower gas prices and increased recompletion
efforts.
 
 CONTRACTUAL
OBLIGATIONS
 
 We have no contractual obligations as
of December 31, 2008.
 
 We lease our corporate offices in
Denver, Colorado on a month-to-month basis.  Yearly payments under the
lease are $12,456.
 
 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 Condensed 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
  -
13 -
  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.
 
 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.QUANTITATIVE AND
QUANTITATIVE DISCLOSURE ABOUT MARKET RISK
 
 As a crude oil and natural gas
producer, our revenue, cash flow from operations, other income and
profitability, reserve values, access to capital and future rate of growth are
substantially dependent upon the prevailing prices of crude oil and natural
gas.  Declines in commodity prices will materially adversely effect
our financial condition, liquidity, ability to obtain financing and operation
results.  Lower commodity prices may reduce the amount of crude oil
and natural gas that we can produce economically.  Prevailing prices
for such commodities are subject to wide fluctuation in response to relatively
minor changes in supply and demand and a variety of additional factors beyond
our control, such as global, political and economic
conditions.  Historically, prices received for crude oil and natural
gas production have been volatile and unpredictable, and such volatility is
expected to continue.  Most of our production is sold at market
prices.  Generally, if the commodity indexes fall, the price that we
receive for our production will also decline.  Therefore, the amount
of revenue that we realize is partially determined by factors beyond our
control.
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14 -
   
 Item
4.   CONTROLS AND PROCEDURES
 
 As of the
end of the period covered by this report, we conducted an evaluation, under the
supervision and with the participation of our principal executive and financial
officer, of our disclosure controls and procedures (as defined in Rules
13a-15(e) and 15d-15(e)) under the Securities Exchange Act of 1934 (the
“Exchange Act”).  Based on this evaluation, the principal executive
and financial officer concluded that our disclosure controls and procedures are
effective to ensure that information required to be disclosed by us in reports
that we file or submit under the Exchange Act is recorded, processed, summarized
and reported within the time periods specified in Securities and Exchange
Commission rules and forms.  There was no change in our internal
control over financial reporting during our most recently completed fiscal
quarter that has materially affected or is reasonably likely to materially
affect our internal control over financial reporting.
 
 In
connection with the audit of the year ended September 30, 2008, there were no
“Reportable Events” within the meaning of Item 304(a)(1)(v) of Regulation
S-K.
 
  -
15 -
  MONUMENT
RESOURCES, INC. AND SUBSIDIARY
 
 PART
II -- OTHER INFORMATION
 
 ITEM
1. LEGAL
PROCEEDINGS.
 
 None
 
 ITEM
1A.        RISK FACTORS.
  See our Annual Report on Form 10-K for the fiscal year ended September 30, 2008
and the various risks described in Part I hereof.
 
 ITEM
2. UNREGISTERED SALES
OF EQUITY SECURITIES
 AND USE OF PROCEEDS.
 
 None
 
 ITEM
3. DEFAULTS UPON SENIOR
SECURITIES.
 
 None
 
 ITEM
4. SUBMISSION OF
MATTERS TO A VOTE OF SECURITY HOLDERS.
 
 None
 
 ITEM
5. OTHER
INFORMATION.
 
 None
 
 ITEM
6. EXHIBITS
 
 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.
 
  -
16 -
  
 
 SIGNATURES
 
 Pursuant to the requirements of the
Securities Exchange Act of 1934, the Registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly
authorized.
   MONUMENT
      RESOURCES, INC.
                  (Registrant)Date:  February 12,
    2009
                By:
                /s/ A.G. FoustA.G. Foust, President

                  (Chief
      Executive Officer, PrincipalFinancial
      and Accounting Officer)
   -
17 -
  EXHIBIT
INDEX
 
 
 EXHIBIT
                  NUMBER
                DESCRIPTION31.1
                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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