| [ X      ] | Quarterly      report under Section 13 or 15(d) of the Securities Exchange Act of      1934 |
|------------|---------------------------------------------------------------------------------------------|

|   | For      the quarterly period ended June 30,2008 |
|--------|--------------------------------------------------|

| [    ] | 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 |
|--------|--------------------------------------------------------|

|   | (Exact      name of Registrant as Specified in itsCharter) |
|--------|------------------------------------------------------------|

| Colorado                                                                                               |  84-1028449                                |
|-------------------------------------------------------------------------------------------------------------|-------------------------------------------------|
|   (State      or Other Jurisdiction of         Incorporation      or Organization) |  (I.R.S.      Employer Identification No.) |
|                                                                                                        |                                            |

|   | 2050 South Oneida      Street, Suite 106, Denver, Colorado80224 |
|--------|-----------------------------------------------------------------|

|   | (Address      of Principal Executive Offices, Including Zip  Code) |
|--------|--------------------------------------------------------------------|

| (Registrant’s      Telephone Number, Including AreaCode) |
|----------------------------------------------------------------|

----

|                                  |                                                                                                                         | Page Number |
|---------------------------------------|------------------------------------------------------------------------------------------------------------------------------|-------------|
|                                  |                                                                                                                         |        |
| PART      I.                          | FINANCIAL      INFORMATION                                                                                                   |        |
|                                  |                                                                                                                         |        |
|     Item      1.  | Condensed      Consolidated Balance Sheets as of June 30, 2008 and September 30,      2007.                                  | 2-3         |
|                                  |                                                                                                                         |        |
|                                  | Condensed      Consolidated Statements of Operations for the Three Months and Nine Months      ended June 30, 2008 and 2007. | 4           |
|                                  |                                                                                                                         |        |
|                                  | Condensed      Consolidated Statements of Cash Flows for the Nine Months ended June 30,      2008 and 2007.                  | 5           |
|                                  |                                                                                                                         |        |
|                                  | Notes      to Condensed Consolidated Financial Statements                                                                    | 6           |
|                                  |                                                                                                                         |        |
|     Item      2.  | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations                        | 13          |
|                                  |                                                                                                                         |        |
|     Item      3.  | Quantitative      and Qualitative Disclosures about Market Risk.                                                             | 17          |
|              |                                                                                                                         |        |
|     Item      4.  | Controls      and Procedures                                                                                                 | 17          |
|                                  |                                                                                                                         |        |
|     Item      4T. | Controls      and Procedures                                                                                                 | 17          |
|                                  |                                                                                                                         |        |
| PART      II.                         | OTHER      INFORMATION                                                                                                       | 18          |
|                                  |                                                                                                                         |        |
|     Item      1.  | Legal      Proceedings                                                                                                       | 18          |
|                                  |                                                                                                                         |        |
|     Item      1A. | Risk      Factors                                                                                                            | 18          |
|                                  |                                                                                                                         |        |
|     Item      2.  | Unregistered      Sales of Equity Securities and Use of Proceeds                                                             | 18          |
|                                  |                                                                                                                         |        |
|     Item      3.  | Defaults      Upon Senior Securities                                                                                         | 18          |
|                                  |                                                                                                                         |        |
|     Item      4.  | Submission      of Matters to a Vote of Security Holders                                                                     | 18          |
|                                  |                                                                                                                         |        |
|     Item      5.  | Other      Information                                                                                                       | 19          |
|                                  |                                                                                                                         |        |
|     Item      6.  | Exhibits                                                                                                                     | 19          |
|                                  |                                                                                                                         |        |
|                                  | Signatures                                                                                                                   | 20          |
|                                  |                                                                                                                         |        |
|                                  | Exhibit      Index                                                                                                           | 21          |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | June      30, |      |   | September      30, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-----------|--------|--------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 2008          |      |   | 2007               |   |
| ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | (Unaudited)   |      |   |               |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |          |      |   |               |   |
| Current      assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |          |      |   |               |   |
| Cash and cash      equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $             | 253,144   |   |               | $      | 213,808 |   |
| Marketable securities      available-for-sale                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |          | 696,508   |   |               |   | 394,725 |   |
| Accounts    receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |          | 53,684    |   |               |   | 32,316 |   |
| Prepaid expenses and other      assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |          | 827       |   |               |   | 17,293 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |          |      |   |               |   |   |   |
| Total      current      assets                                                                                                                                                                                           |   |          | 1,004,163 |   |               |   | 658,142 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |          |      |   |               |   |   |   |
| Proved      and unproved oil and gas                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |          |      |   |               |   |   |   |
| properties, successful efforts      method                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |          |      |   |               |   |   |   |
| net of accumulated      depletion                                                                                                                                                |   |          | 659,712   |   |               |   | 653,790 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |          |      |   |               |   |   |   |
| Property      and equipment:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |          |      |   |               |   |   |   |
| Gas pipeline, net    of                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |          |      |   |               |   |   |   |
|   accumulated      depreciation                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |          | 206,406   |   |               |   | 225,799 |   |
| Property and equipment, net      of                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |          |      |   |               |   |   |   |
|   accumulated      depreciation                                                                                                                                        |   |          | 453,342   |   |               |   | 317,945 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |          |      |   |               |   |   |   |
| Net      property, equipment and      pipeline                                                                            |   |          | 659,748   |   |               |   | 543,744 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |          |      |   |               |   |   |   |
| Total      assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $             | 2,323,623 |   |               | $      | 1,855,676 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | June      30, |       |   | September      30, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|------------|--------|--------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 2008          |       |   | 2007               |   |
| LIABILITIES      AND STOCKHOLDERS’ EQUITY                                                                                                                                                                                                                                                                                                                                                                                       |   | (Unaudited)   |       |   |               |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |          |       |   |               |   |
| Current      liabilities                                                                                                                                                                                                                                                                                                                                                                                                              |   |          |       |   |               |   |
| Accounts payable and accrued      expenses                                                                                                                                                                                                                                                                                                                                                                                            |   | $             | 34,693     |   |               | $      | 36,866 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |          |       |   |               |   |   |   |
| Asset      retirement      obligation                                                                 |   |          | 113,185    |   |               |   | 113,185 |   |
| Total      liabilities                                                                                                                                                                                                                                                |   |          | 147,878    |   |               |   | 150,051 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |          |       |   |               |   |   |   |
| Stockholders’      equity:                                                                                                                                                                                                                                                                                                                                                                                                      |   |          |       |   |               |   |   |   |
| Preferred      Stock, no par value, authorized                                                                                                                                                                                                                                                                                                                                                                                        |   |          |       |   |               |   |   |   |
| 1,000,000 shares; none      issued                                                                --  |   |          |       |   |               |   |   |   |
| Common      Stock, no par value, authorized                                                                                                                                                                                                                                                                                                                                                                                           |   |          |       |   |               |   |   |   |
| 500,000,000 and 10,000,000      shares                                                                                                                                                                                                                                                                                                                                                                                                |   |          |       |   |               |   |   |   |
| respectively; 7,719,000 issued      and                                                                                                                                                                                                                                                                                                                                                                                               |   |          |       |   |               |   |   |   |
| outstanding at June 30, 2008;      5,319,000                                                                                                                                                                                                                                                                                                                                                                                          |   |          |       |   |               |   |   |   |
| issued and outstanding      at                                                                                                                                                                                                                                                                                                                                                                                                        |   |          |       |   |               |   |   |   |
| September 30,2007                                                                                                                                                                                                                                                                                                                                                                                                                     |   |          | 3,890,518  |   |               |   | 3,290,518 |   |
| Accumulated      (deficit)                                                                                                                                                                                                                                                                                                                                                                                                            |   |          | (1,710,446 | )      |               |   | (1,578,784 | ) |
| Unrealized      loss on investment in securities                                                                                                                                                                                                                                                                                                                                                                                      |   |          | (4,327     | )      |               |   | (6,109 | ) |
| Total      stockholders’      equity                                                                                                              |   |          | 2,175,745  |   |               |   | 1,705,625 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |          |       |   |               |   |   |   |
| Total      liabilities and stockholders’ equity                                                                                                                                                                                                                                                                                                                                                                                 |   | $             | 2,323,623  |   |               | $      | 1,855,676 |   |

----

|                                                                                                              |   | Three      Months |      |   | Nine      Months |   |
|-------------------------------------------------------------------------------------------------------------------|--------|-------------------|-----------|--------|------------------|--------|
|                                                                                                              |   | Ended June 30,    |      |   | Ended June 30,   |   |
|                                                                                                              |   | 2008              |      |   | 2007             |   |   | 2008 |   |   | 2007 |   |
| Revenue                                                                                                           |   |              |      |   |             |   |   |   |   |   |   |   |
| Oil and gas sales                                                                                                 |   | $                 | 110,346   |   |             | $      | 56,427 |   |   | $ | 221,511 |   |   | $ | 142,858 |   |
| Pipeline income                                                                                                   |   |              | 24,272    |   |             |   | 17,831 |   |   |   | 58,993 |   |   |   | 56,744 |   |
|                                                                                                              |   |              |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Total revenue                                                                                                     |   |              | 134,618   |   |             |   | 74,258 |   |   |   | 280,504 |   |   |   | 199,602 |   |
|                                                                                                              |   |              |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Expenses                                                                                                          |   |              |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Oil and gas operating      expense                                                                                |   |              | 16,673    |   |             |   | 14,943 |   |   |   | 42,676 |   |   |   | 50,845 |   |
|     Pipeline      operating expense                                                           |   |              | 42,676    |   |             |   | 42,592 |   |   |   | 116,958 |   |   |   | 152,328 |   |
| General and      administrative                                                                                   |   |              | 78,055    |   |             |   | 49,163 |   |   |   | 191,618 |   |   |   | 168,931 |   |
| Depletion, depreciation and      amortization                                                                     |   |              | 34,177    |   |             |   | 24,217 |   |   |   | 82,463 |   |   |   | 67,182 |   |
|                                                                                                              |   |              |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Total expenses                                                                                                    |   |              | 171,581   |   |             |   | 130,915 |   |   |   | 433,715 |   |   |   | 439,286 |   |
|                                                                                                              |   |              |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| (Loss)      from operations                                                                                       |   |              | (36,963   | )      |             |   | (56,657 | ) |   |   | (153,211 | ) |   |   | (239,684 | ) |
|                                                                                                              |   |              |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Other      income and (expense)                                                                                   |   |              |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
|     Loss      on sale of securities                                                           |   |              | -         |   |             |   | - |   |   |   | - |   |   |   | (226 | ) |
|     Interest and      other                                                                   |   |              | 7,530     |   |             |   | 8,974 |   |   |   | 21,549 |   |   |   | 31,316 |   |
|                                                                                                              |   |              |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Total other income and      expense              |   |              | 7,530     |   |             |   | 8,974 |   |   |   | 21,549 |   |   |   | 31,090 |   |
|                                                                                                              |   |              |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss                                                                                                     |   | $                 | (29,433   | )      |             | $      | (47,683 | ) |   | $ | (131,662 | ) |   | $ | (208,594 | ) |
| Basic      and diluted loss per common share                                                                      |   | $                 | (.00      | )      |             | $      | (.01 | ) |   | $ | (.02 | ) |   | $ | ( .04 | ) |
|                                                                                                              |   |              |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average number of shares outstanding                                                                |   |              | 7,719,000 |   |             |   | 5,319,000 |   |   |   | 6,352,577 |   |   |   | 5,319,000 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | Nine Months Ended June 30, |     |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------|----------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 2008                       |     |   | 2007 |   |
| Cash      flows from operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                       |     |   |   |   |
| Net      loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | $                          | (131,662 | ) |   | $ | (208,594 | ) |
| Adjustment      to reconcile net loss to net cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                       |     |   |   |   |   |   |
|    used      in operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                       |     |   |   |   |   |   |
|  Depreciation, depletion and      amortization                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                       | 82,463   |   |   |   | 67,182 |   |
|  Loss on sale of      securities                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                       | -        |   |   |   | 226 |   |
| Changes      in operating assets and liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                       |     |   |   |   |   |   |
| (Increase) decrease in prepaid      expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                       |     |   |   |   |   |   |
|      and      other assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                       | 16,466   |   |   |   | (19,357 | ) |
| Increase in accounts      and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                       |     |   |   |   |   |   |
|     other      receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                       | (21,368  | ) |   |   | (2,901 | ) |
| Decrease in accounts      payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                       |     |   |   |   |   |   |
|     and      accrued      expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                       | (2,173   | ) |   |   | (42,877 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                       |     |   |   |   |   |   |
| Net      cash flows used in      operations                                                                                                                     |   |                       | (56,274  | ) |   |   | (206,321 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                       |     |   |   |   |   |   |
| Cash      flows from investing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                       |     |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                       |     |   |   |   |   |   |
| Purchase      of      land                                                                                    -                                                                                                                                                                                                                 |   |                       | -        |   |   |   | (95,191 | ) |
| Proceeds      from sale of investment securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                       | 199,999  |   |   |   | 19,675 |   |
| Additions      to oil and gas properties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                       | (23,547  | ) |   |   | (11,727 | ) |
| Additions      to equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                       | (180,842 | ) |   |   | (88,616 | ) |
| Purchase      of investment      securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                       | (500,000 | ) |   |   | (200,000 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                       |     |   |   |   |   |   |
| Net      cash flows used in investing      activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                       | (504,390 | ) |   |   | (375,859 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                       |     |   |   |   |   |   |
| Cash      flows from financing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                       |     |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                       |     |   |   |   |   |   |
| Proceeds      from sale of common stock in private                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                       |     |   |   |   |   |   |
|    placement                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                       | 600,000  |   |   |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                       |     |   |   |   |   |   |
| Net      cash flows provided by financing      activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                       | 600,000  |   |   |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                       |     |   |   |   |   |   |
| Net      increase (decrease) in cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                       | 39,336   |   |   |   | (582,180 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                       |     |   |   |   |   |   |
| Cash      and cash equivalents at beginning of      period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                       | 213,808  |   |   |   | 719,188 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                       |     |   |   |   |   |   |
| Cash      and cash equivalents at end of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $                          | 253,144  |   |   | $ | 137,008 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                       |     |   |   |   |   |   |
| Schedule of Non-cash      Investing Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                       |     |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                       |     |   |   |   |   |   |
| Decrease      (increase) in unrealized loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                       |     |   |   |   |   |   |
| on securities available for      sale                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | $                          | 1,782    |   |   | $ | (2,802 | ) |

----

----

----

----

| §   | 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 atall. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | 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. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                                                                                                                                                      | Oil and      Gas          | Pipeline                              | Corporate                                                            | Consolidated                          |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------|---------------------------------------|----------------------------------------------------------------------|---------------------------------------|
| Revenues                                                                                                                                                                                                                                                                                  |                      |                                  |                                                                 |                                  |
| 2008                                                                                                                                                                                                                                                                                      | $  221,511      | $    58,993       | $      21,549                                                        | $  302,053                  |
| 2007                                                                                                                                                                                                                                                                                      | 142,858                   | 56,744                                | 31,316                                                               | 230,918                               |
|                                                                                                                                                                                                                                                                                      |                      |                                  |                                                                 |                                  |
| Net      Income (Loss)                                                                                                                                                                                                                                                                    |                      |                                  |                                                                 |                                  |
| 2008                                                                                                                                                                                                                                                                                      | $      141,892            | $(102,461)                            | $(171,093)                                                           | $   (131,662)          |
| 2007                                                                                                                                                                                                                               | 55,634                    | (125,364)                             | (138,864)                                                            | (208,594)                             |
|                                                                                                                                                                                                                                                                                      |                      |                                  |                                                                 |                                  |
| Depreciation,      Depletion                                                                                                                                                                                                                                                              |                      |                                  |                                                                 |                                  |
| and      Valuation Charged                                                                                                                                                                                                                                                                |                      |                                  |                                                                 |                                  |
| to      Identifiable Assets                                                                                                                                                                                                                                                               |                      |                                  |                                                                 |                                  |
| 2008                                                                                                                                                                                                                                                                                      | $   36,943 | $     44,496 | $    1,024                                       | $     82,463 |
| 2007                                                                                                                                                                                                                                                                                      | 36,379                    | 29,780                                | 1,023                                                                | 67,182                                |
|                                                                                                                                                                                                                                                                                      |                      |                                  |                                                                 |                                  |
| Capital      Expenditures                                                                                                                                                                                                                                                                 |                      |                                  |                                                                 |                                  |
| 2008                                                                                                                                                                                                                                                                                      | $  23,547       | $  180,843                  | $           - | $  204,390                  |
| 2007                                                                                                                                                                                                                               | 11,727                    | 183,562                               | 245                                                                  | 195,534                               |
|                                                                                                                                                                                                                                                                                      |                      |                                  |                                                                 |                                  |
| Segment      information as of June 30, 2008 compared to September 30, 2007 is as      follows.                                                                                                                                                                                           |                      |                                  |                                                                 |                                  |
|                                                                                                                                                                                                                                                                                      |                      |                                  |                                                                 |                                  |
| Identifiable      Assets                                                                                                                                                                                                                                                                  |                      |                                  |                                                                 |                                  |
| June 30, 2008                                                                                                                                                                                                                                                                             | $915,070                  | $456,587                              | $  951,966                                                 | $2,323,623                            |
| September 30,      2007                                            | 724,531                   | 502,809                               | 628,336                                                              | 1,855,676                             |

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| Accumulated      other comprehensive loss at September 30, 2007 |   | $      | (6,109 | )      |
|-----------------------------------------------------------------|--------|--------|--------|--------|
|                                                            |   |   |   |   |
| Change      in unrealized loss on securities held for sale      |   |   | 1,782  |   |
|                                                            |   |   |   |   |
| Accumulated      other comprehensive loss at June 30, 2008      |   | $      | (4,327 | )      |

| Accumulated      other comprehensive loss at September 30, 2006 |   | $      | (10,577 | )      |
|-----------------------------------------------------------------|--------|--------|---------|--------|
|                                                            |   |   |    |   |
| Change      in unrealized loss on securities held for sale      |   |   | (2,802  | )      |
|                                                            |   |   |    |   |
| Accumulated      other comprehensive loss at June 30, 2007      |   | $      | (13,379 | )      |

| # of Option Shares  | Option Type | Option Price per Share | Date Vested       | Expiration Date   |
|---------------------|-------------|------------------------|-------------------|-------------------|
| 300,000   | Directors   | $      .30             | July      1, 2008 | July      1, 2013 |
| 50,000              | Officers    | $      .30             | July      1, 2008 | July      1, 2013 |
| 50,000              | Officers    | $      .30             | July      1, 2009 | July      1, 2013 |
| 50,000              | Officers    | $      .30             | July      1, 2010 | July      1, 2013 |
| 25,000              | Employee    | $      .25             | July      1, 2008 | July      1, 2013 |
| 25,000              | Employee    | $      .25             | July      1, 2009 | July      1, 2013 |
| 25,000              | Employee    | $      .25             | July      1, 2010 | July      1, 2013 |

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| ITEM      1.  | LEGAL      PROCEEDINGS.                                                                                                                       |   |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|
|          |                                                                                                                                          |   |
|          | None                                                                                                                                          |   |
|          |                                                                                                                                          |   |
| ITEM      1A. | RISK      FACTORS.                                                                                                                            |   |
|          |                                                                                                                                          |   |
|          | See      our annual report on Form 10-KSB for the fiscal year ended September 30,      2007 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                                                                                                                                          |   |
|          |                                                                                                                                          |   |
|          | (a)      We held an annual meeting of shareholders on June 27,2008.                                                                           |   |
|          | (b)      The following directors were nominated and elected with the following      votes:                                                    |   |

|   |                 | FOR       | AGAINST | ABSTAIN |   |
|--------|----------------------|-----------|---------|---------|--------|
|   |                 |      |    |    |   |
|   | A.G.      Foust      | 6,000,717 | -0-     | 162,939 |   |
|   | John      J. Womack  | 6,000,717 | -0-     | 162,939 |   |
|   | James      J. Benner | 6,000,717 | -0-     | 162,939 |   |

| (a)   | Three      additional proposals were submitted to our  shareholders: |
|-----------------|----------------------------------------------------------------------|

| (i)   | proposal      to increase our authorized common stock from 10 million to 500 million      shares; |
|-----------------|---------------------------------------------------------------------------------------------------|

| (ii)   | proposal      to approve our 2008 Stock Option Incentive Plan;  and |
|------------------|---------------------------------------------------------------------|

| (iii)   | proposal      to ratify Gordon, Hughes and Banks, LLP as our independent registered      public accounting firm. |
|-------------------|------------------------------------------------------------------------------------------------------------------|

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|                             | FOR       | AGAINST                                                   | ABSTAIN | BROKER                                                    |
|----------------------------------|-----------|-----------------------------------------------------------|---------|-----------------------------------------------------------|
|                             |      |                                                      |    | NON-VOTES                                                 |
| Proposal      (Increase Capital) | 5,637,955 | 515,701                                                   | 10,000  |          -0- |
| Proposal      (Option Plan)      | 5,227,315 | 408,072                                                   | 30,000  | 498,269                                                   |
| Proposal      (Auditors)         | 6,153,656 |               -0- | 10,000  |               -0- |

|   | Exhibit      31.1--Certification of the Chief Executive and Financial Officer under      Section 302 of the Sarbanes-Oxley Act of2002. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------|

|   | Exhibit      32.1--Certification of the Chief Executive and Financial Officer under      Section 906 of the Sarbanes-Oxley Act of2002. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------|

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|                             | MONUMENT      RESOURCES, INC.(Registrant) |                                                                                                |
|----------------------------------|-------------------------------------------|-----------------------------------------------------------------------------------------------------|
|                             |                                      |                                                                                                |   |
| Date:  August 12, 2008 | By:                                       | /s/ A.G. Foust                                                                                 |   |
|                             |                                      | A.G. Foust, President(Chief      Executive Officer, PrincipalFinancial      and Accounting Officer) |   |
|                             |                                      |                                                                                                |   |
|                             |                                      |                                                                                                |   |

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| EXHIBIT |                                                                                                                  |
|---------|-----------------------------------------------------------------------------------------------------------------------|
| NUMBER  | DESCRIPTION                                                                                                           |
|    |                                                                                                                  |
| 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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