----

----

**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**FORM      10-QSB**

| ý | QUARTERLY                REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF                1934 |
|--------|-----------------------------------------------------------------------------------------------------------------|

**August 31, 2007**

| o | TRANSITION                REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE                ACT |
|---|-----------------------------------------------------------------------------------------------|

**0-28627**

**PATCH      INTERNATIONAL INC.**

| **Nevada**                                                                    | **87-0393257**                                   |
|-------------------------------------------------------------------------------|--------------------------------------------------|
| (State                or other jurisdiction of incorporation or organization) | (IRS                Employer Identification No.) |

**Suite      300, 441 – 5th      Avenue S.W., Calgary, Alberta, Canada T2P 2V1**

**(403)      441-4390**

**Not      Applicable**

**34,025,724**
** **

**shares      of Common Stock, $.001 par value, as of October 12, 2007**

----

| **Patch                  International Inc.**                                                                            |   |                            |           |   |                     |   |
|--------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|----------------|--------|--------------------------|--------|
| **Consolidated                  Balance Sheets**                                                                         |   |                            |           |   |                     |   |
| ***(Unaudited)***                                                                                                        |   |                            |           |   |                     |   |
|                                                                                                                     |   | **August                  31,** |           |   | May                  31, |   |
| *(U.S.                  Dollars)*                                                                                        |   | **2007**                        |           |   | 2007                     |   |
| **ASSETS**                                                                                                               |   |                            |           |   |                     |   |
| Current                  Assets                                                                                          |   |                            |           |   |                     |   |
| Cash                  and cash equivalents                                                                               |   | **$**                           | **4,043,408**  |   |                     | $      | 6,590,466 |   |
| Accounts                  receivable                                                                                     |   | ** **                      | **336,238**    |   |                     |   | 18,966 |   |
| Due                  from related parties (Note 4)                                                                       |   | ** **                      | **1,010,845**  |   |                     |   | 1,009,697 |   |
| Prepaid                  expenses and other                                                                              |   | ** **                      | **72,608**     |   |                     |   | 71,480 |   |
| Total                  Current Assets                                                                                    |   | ** **                      | **5,463,099**  |   |                     |   | 7,690,609 |   |
|                                                                                                                     |   |                            |           |   |                     |   |   |   |
| Marketable                  securities (Note 5)                                                                          |   | ** **                      | **400,000**    |   |                     |   | 850,000 |   |
| Joint                  venture receivable (Note 6)                                                                       |   | ** **                      | **331,207**    |   |                     |   | 323,394 |   |
| Property                  and equipment                                                                                  |   | ** **                      | **103,615**    |   |                     |   | 98,916 |   |
| Oil                  and gas interests (successful efforts method) (Note 7)                                              |   | ** **                      | **38,441,037** |   |                     |   | 37,658,925 |   |
| Total                  Assets                                                                                            |   | **$**                           | **44,738,958** |   |                     | $      | 46,621,844 |   |
| **LIABILITIES                  AND STOCKHOLDERS' EQUITY**                                                                |   |                            |           |   |                     |   |   |   |
| Current                  Liabilities                                                                                     |   |                            |           |   |                     |   |   |   |
| Accounts                  payable and accrued liabilities                                                                |   | **$**                           | **1,334,848**  |   |                     | $      | 2,756,345 |   |
| Income                  tax payable                                                                                      |   | ** **                      | **2,747,035**  |   |                     |   | 2,785,763 |   |
| Due                  to related parties (Note 4)                                                                         |   | ** **                      | **1,000,000**  |   |                     |   | 1,000,000 |   |
| Total                  Current Liabilities                                                                               |   | ** **                      | **5,081,883**  |   |                     |   | 6,542,108 |   |
| Exchangeable                  shares (Note 8)                                                                            |   | ** **                      | **13,003,700** |   |                     |   | 20,150,772 |   |
| Special                  warrants (Note 9)                                                                               |   | ** **                      | **16,765,574** |   |                     |   | 26,505,862 |   |
| Asset                  retirement obligation (Note 10)                                                                   |   | ** **                      | **134,366**    |   |                     |   | 129,959 |   |
| Total                  Liabilities                                                                                       |   | ** **                      | **34,985,523** |   |                     |   | 53,328,701 |   |
| STOCKHOLDERS'                  EQUITY                                                                                    |   |                            |           |   |                     |   |   |   |
| Class                  A Preferred Voting Stock                                                                          |   | ** **                      | **-**          |   |                     |   | - |   |
| 1                  share authorized with par value of $0.01 per share;                                                   |   |                            |           |   |                     |   |   |   |
| 1                  share issued and outstanding                                                                          |   |                            |           |   |                     |   |   |   |
| Class                  B Preferred Voting Stock                                                                          |   | ** **                      | **-**          |   |                     |   | - |   |
| 10,000                  shares authorized with par value of $0.01 per share;                                             |   |                            |           |   |                     |   |   |   |
| 1                  share issued and outstanding                                                                          |   |                            |           |   |                     |   |   |   |
| Common                  Stock                                                                                            |   | ** **                      | **20,240**     |   |                     |   | 20,240 |   |
|                    25,000,000 common shares authorized with par value of $0.001 per                  share          |   |                            |           |   |                     |
|                    20,239,774 shares issued and outstanding                                                    |   |                            |           |   |                     |
| (excludes                  2,000 shares held in treasury (Note 11))                                                      |   |                            |           |   |                     |   |   |   |
| Additional                  paid-in capital                                                                              |   | ** **                      | **10,506,200** |   |                     |   | 10,111,507 |   |
| Stock                  subscriptions receivable                                                                          |   | ** **                      | **-**          |   |                     |   | (38,500 | ) |
| Accumulated                  other comprehensive income                                                                  |   | ** **                      | **777,395**    |   |                     |   | 837,870 |   |
| Deficit                                                                                                                  |   | ** **                      | **(1,550,400** | **)**  |                     |   | (17,637,974 | ) |
| Total                  Stockholders' Equity                                                                              |   | ** **                      | **9,753,435**  |   |                     |   | (6,706,857 | ) |
| Total                  Liabilities and Shareholders' Equity                                                              |   | **$**                           | **44,738,958** |   |                     | $      | 46,621,844 |   |
|                                                                                                                     |   |                            |           |   |                     |   |   |   |
| Future                  operations (Note 2)                                                                              |   |                            |           |   |                     |   |   |   |
| Commitments                  (Note 14)                                                                                   |   |                            |           |   |                     |   |   |   |
| Subsequent                  events (Note 15)                                                                             |   |                            |           |   |                     |   |   |   |
|                                                                                                                     |   |                            |           |   |                     |   |   |   |
| The                  accompanying notes are an integral part of these consolidated financial                  statements |   |                            |           |   |                     |
|                                                                                                                     |   |                            |           |   |                     |   |   |   |
|                                                                                                                     |   |                            |           |   |                     |   |   |   |

----

| **Patch                  International Inc.**                                                                            |   |                                             |           |   |   |   |
|--------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------|----------------|--------|--------|--------|
| **Consolidated                  Statements of Operations**                                                               |   |                                             |           |   |   |   |
| ***(Unaudited)***                                                                                                        |   | **Three                  Months Ended**          |           |
|                                                                                                                     |   | **August                  31**    |           |
| *(U.S.                  Dollars)*                                                                                        |   | **2007**                                         |           |   | 2006   |   |
| **Revenue**                                                                                                              |   |                                             |           |   |   |   |
| Oil                  and gas                                                                                             |   | **$**                                            | **5,063**      |   |   | $      | 4,306 |   |
| **Expenses**                                                                                                             |   |                                             |           |   |   |   |   |   |
| Oil                  and gas production and royalties                                                                    |   | ** **                                       | **21,231**     |   |   |   | 1,575 |   |
| General                  and administrative                                                                              |   | ** **                                       | **1,000,928**  |   |   |   | 718,552 |   |
| Interest                                                                                                                 |   | ** **                                       | **-**          |   |   |   | - |   |
| Depletion,                  depreciation, accretion and impairment of oil and gas                  property              |   | ** **                                       | **9,114**      |   |   |   | 14,735 |   |
| Dry                  hole costs                                                                                          |   | ** **                                       | **97,049**     |   |   |   | - |   |
| Geological                  and geophysical costs                                                                        |   | ** **                                       | **36,429**     |   |   |   | - |   |
| Total                  operating expenses                                                                                |   | ** **                                       | **1,164,751**  |   |   |   | 734,862 |   |
| Other                  income (expenses)                                                                                 |   |                                             |           |   |   |   |   |   |
| Interest                  and other                                                                                      |   | ** **                                       | **58,207**     |   |   |   | 40,842 |   |
| Financing                  costs (Note 9)                                                                                |   | ** **                                       | **(320,311**   | **)**  |   |   | - |   |
| Holding                  gain on exchangeable shares and special warrants (Notes 8 and                  9)               |   | ** **                                       | **17,207,671** |   |   |   | - |   |
| Holding                  loss on marketable securities (Note 5)                                                          |   | ** **                                       | **(462,772**   | **)**  |   |   | - |   |
| Gain                  on foreign exchange                                                                                |   | ** **                                       | **725,739**    |   |   |   | - |   |
| Gain                  on sale of marketable securities                                                                   |   | ** **                                       | **-**          |   |   |   | 969,599 |   |
| Total                  other income                                                                                      |   | ** **                                       | **17,208,534** |   |   |   | 1,010,441 |   |
| Income                  before discontinued operations                                                                   |   | ** **                                       | **16,048,846** |   |   |   | 279,885 |   |
| Discontinued                  operations (Note 12)                                                                       |   | ** **                                       | **-**          |   |   |   | 30,208 |   |
| Income                  before income taxes                                                                              |   | ** **                                       | **16,048,846** |   |   |   | 310,093 |   |
| Income                  taxes                                                                                            |   |                                             |           |   |   |   |   |   |
| Current                  income tax expense (reduction)                                                                  |   | ** **                                       | **(38,728**    | **)**  |   |   | 291,409 |   |
| Net                  income                                                                                              |   | ** **                                       | **16,087,574** |   |   |   | 18,684 |   |
| Other                  comprehensive loss (Note 13)                                                                      |   |                                             |           |   |   |   |   |   |
| Marketable                  securities:                                                                                  |   |                                             |           |   |   |   |   |   |
|   Reclassification                  to realized gain                                                           |   | ** **                                       | **-**          |   |   |   | (746,282 | ) |
|   Holding                  gain                                                                                |   | ** **                                       | **-**          |   |   |   | 663,282 |   |
| Increase                  (decrease) in unrealized gain on marketable securities                                         |   | ** **                                       | **-**          |   |   |   | (83,000 | ) |
| Foreign                  currency translation adjustment                                                                 |   | ** **                                       | **(60,475**    | **)**  |   |   | 32,528 |   |
| Other                  comprehensive loss                                                                                |   | ** **                                       | **(60,475**    | **)**  |   |   | (50,472 | ) |
| Comprehensive                  income (loss)                                                                             |   | **$**                                            | **16,027,099** |   |   | $      | (31,788 | ) |
|                                                                                                                     |   |                                             |           |   |   |   |   |   |
| Net                  income per share                                                                                    |   |                                             |           |   |   |   |   |   |
| Basic                                                                                                                    |   | **$**                                            | **0.79**       |   |   | $      | - |   |
| Diluted                                                                                                                  |   | **$**                                            | **0.36**       |   |   | $      | - |   |
| Weighted                  average number of common shares outstanding                                                    |   |                                             |           |   |   |   |   |   |
| Basic                                                                                                                    |   | ** **                                       | **20,240,000** |   |   |   | 14,243,000 |   |
| Diluted                                                                                                                  |   | ** **                                       | **45,052,000** |   |   |   | 14,243,000 |   |
|                                                                                                                     |   |                                             |           |   |   |   |   |   |
| The                  accompanying notes are an integral part of these consolidated financial                  statements |   |                                             |           |   |   |
|                                                                                                                     |   |                                             |           |   |   |   |   |   |

----

| **Patch                  International Inc.**                                                                            |   |                                             |            |   |   |   |
|--------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------|-----------------|--------|--------|--------|
| **Consolidated                  Statements of Cash Flows**                                                               |   |                                             |            |   |   |   |
| ***(Unaudited)***                                                                                                        |   |                                             |            |   |   |   |
|                                                                                                                     |   | **Three                  Months Ended**          |            |
| *(U.S.                  Dollars)*                                                                                        |   | **August                  31**    |            |
|                                                                                                                     |   | **2007**                                         |            |   | 2006   |   |
| **Operating                  Activities**                                                                                |   |                                             |            |   |   |   |
| Net                  income                                                                                              |   | **$**                                            | **16,087,574**  |   |   | $      | 18,684 |   |
| Adjustment                  of items not involving cash                                                                  |   |                                             |            |   |   |   |   |   |
| Depletion,                  depreciation, accretion and impairment of oil and gas                  property              |   | ** **                                       | **9,114**       |   |   |   | 25,356 |   |
| General                  and administrative                                                                              |   | ** **                                       | **-**           |   |   |   | 64,924 |   |
| Stock-based                  compensation                                                                                |   | ** **                                       | **394,787**     |   |   |   | 213,461 |   |
| Financing                  costs                                                                                         |   | ** **                                       | **320,311**     |   |   |   | - |   |
| Holding                  gain on exchangeable shares and special warrants                                                |   | ** **                                       | **(17,207,671** | **)**  |   |   | - |   |
| Gain                  on sale of marketable securities                                                                   |   | ** **                                       | **-**           |   |   |   | (969,599 | ) |
| Holding                  loss on marketable securities                                                                   |   | ** **                                       | **462,772**     |   |   |   | - |   |
| Gain                  on foreign exchange                                                                                |   | ** **                                       | **(725,739**    | **)**  |   |   | - |   |
| Gain                  on dilution                                                                                        |   | ** **                                       | **-**           |   |   |   | - |   |
| Non-controlling                  interest in net loss                                                                    |   | ** **                                       | **-**           |   |   |   | (7,760 | ) |
| (Increase)                  decrease in accounts receivable                                                              |   | ** **                                       | **(325,085**    | **)**  |   |   | 14,582 |   |
| Increase                  in prepaid expenses and other                                                                  |   | ** **                                       | **(1,128**      | **)**  |   |   | (10,130 | ) |
| Increase                  in due to related parties                                                                      |   | ** **                                       | **(1,148**      | **)**  |   |   | (14,734 | ) |
| Increase                  (decrease) in accounts payable and accrued liabilities                                         |   | ** **                                       | **(1,421,497**  | **)**  |   |   | 48,230 |   |
| Increase                  (decrease) in income taxes payable                                                             |   | ** **                                       | **(38,728**     | **)**  |   |   | 291,409 |   |
| Net                  cash used in continuing operations                                                                  |   | ** **                                       | **(2,446,438**  | **)**  |   |   | (325,577 | ) |
| Discontinued                  operations                                                                                 |   | ** **                                       | **-**           |   |   |   | (8,548 | ) |
| Net                  cash used in operating activities                                                                   |   | ** **                                       | **(2,446,438**  | **)**  |   |   | (334,125 | ) |
| Investing                  Activities                                                                                    |   |                                             |            |   |   |   |   |   |
| Purchase                  of equipment                                                                                   |   | ** **                                       | **(9,906**      | **)**  |   |   | - |   |
| Oil                  and gas interests                                                                                   |   | ** **                                       | **(188,071**    | **)**  |   |   | (1,359,416 | ) |
| Proceeds                  on sale of marketable securities                                                               |   | ** **                                       | **-**           |   |   |   | 969,599 |   |
| Net                  cash used in investing activities                                                                   |   | ** **                                       | **(197,977**    | **)**  |   |   | (389,817 | ) |
| Financing                  Activities                                                                                    |   |                                             |            |   |   |   |   |   |
| Proceeds                  from common stock                                                                              |   | ** **                                       | **-**           |   |   |   | 203,000 |   |
| Acquisition                  of treasury stock                                                                           |   | ** **                                       | **-**           |   |   |   | (4,755 | ) |
| Net                  cash provided by financing activities                                                               |   | ** **                                       | **-**           |   |   |   | 198,245 |   |
| Effect                  of exchange rate changes on cash                                                                 |   | ** **                                       | **97,357**      |   |   |   | (2,423 | ) |
| Change                  in cash and cash equivalents for the period                                                      |   | ** **                                       | **(2,547,058**  | **)**  |   |   | (528,120 | ) |
| Cash                  and cash equivalents, beginning of period                                                          |   | ** **                                       | **6,590,466**   |   |   |   | 4,473,444 |   |
| Cash                  and cash equivalents, end of period                                                                |   | **$**                                            | **4,043,408**   |   |   | $      | 3,945,324 |   |
| **CASH                  AND CASH EQUIVALENTS CONSISTS OF:**                                                              |   |                                             |            |   |   |   |   |   |
| Cash                  in bank                                                                                            |   | ** **                                       | **97,882**      |   |   |   | 3,945,324 |   |
| Term                  deposits                                                                                           |   | ** **                                       | **3,945,526**   |   |   |   | - |   |
|                                                                                                                     |   | **$**                                            | **4,043,408**   |   |   | $      | 3,945,324 |   |
| **SUPPLEMENTAL                  CASH FLOW INFORMATION**                                                                  |   |                                             |            |   |   |   |   |   |
| Taxes                  paid                                                                                              |   | **$**                                            | **-**           |   |   | $      | - |   |
| Interest                  paid                                                                                           |   | **$**                                            | **-**           |   |   | $      | 12,631 |   |
|                                                                                                                     |   |                                             |            |   |   |   |   |   |
| The                  accompanying notes are an integral part of these consolidated financial                  statements |   |                                             |            |   |   |

----

| **Patch                  International Inc.**                   |   |                             |   |   |                          |   |   |    |   |   |          |   |   |          |   |   |       |   |       |                           |   |   |      |   |
|--------------------------------------------------------------------------------|--------|----------------------------------|--------|--------|-------------------------------|--------|--------|---------|--------|--------|---------------|--------|--------|---------------|--------|--------|------------|--------|------------|--------------------------------|--------|--------|-----------|--------|
| **Consolidated                  Statements of Stockholders' Equity (Deficit)** |   |                             |   |   |                          |   |   |    |   |   |          |   |   |          |   |   |       |   |       |
| ***(Unaudited)***                                                              |   |                             |   |   |                          |   |   |    |   |   |          |   |   |          |   |   |       |   |       |                           |   |   |      |   |   |   |   |
|                                                                           |   |                             |   |   |                          |   |   |    |   |   |          |   |   |          |   |   |       |   |       | Accumulated                    |   |   |      |   |
|                                                                           |   |                             |   |   |                          |   |   |    |   |   |          |   |   | Additional    |   |   | Stock      |   |       | Other                          |   |   | Retained  |   |   | Total |   |
|                                                                           |   | Preferred                  Stock |   |   | Common                  Stock |   |   | Paid-in |   |   | Subscriptions |   |   | Comprehensive |   |   | Earnings   |   |       | Stockholders'                  |   |
|                                                                           |   | Shares                           |   |   | Amount                        |   |   | Shares  |   |   | Amount        |   |   | Capital       |   |   | Receivable |   |       | Income                  (Loss) |   |   | (Deficit) |   |   | Equity |   |
| Balance,                  May 31, 2006                                         |   |                             | -      |   |                          | $      | -      |    |   |   | 15,163,112    |   |   | $             | 15,163 |   |       | $      | 3,335,380  |                           |   | $      | -         |   |   | $ | 7,352,558 |   |   | $ | 987,862 |   |   | $ | 11,690,963 |   |
| Stock                  options exercised for cash                              |   |                             | -      |   |                          | $      | -      |    |   |   | 1,590,000     |   |   | $             | 1,590  |   |       | $      | 1,144,410  |                           |   | $      | (38,500   | )      |   | $ | - |   |   | $ | - |   |   | $ | 1,107,500 |   |
| Common                  stock issued by private placement                      |   |                             | -      |   |                          | $      | -      |    |   |   | 3,240,000     |   |   | $             | 3,240  |   |       | $      | 2,601,229  |                           |   | $      | -         |   |   | $ | - |   |   | $ | - |   |   | $ | 2,604,469 |   |
| Acquisition                  of treasury stock and cancelled                   |   |                             | -      |   |                          | $      | -      |    |   |   | (3,588        | )      |   | $             | (3     | )      |       | $      | (1,127     | )                              |   | $      | -         |   |   | $ | - |   |   | $ | (3,624 | ) |   | $ | (4,754 | ) |
| Acquisition                  of treasury stock                                 |   |                             | -      |   |                          | $      | -      |    |   |   | (2,000        | )      |   | $             | (2     | )      |       | $      | (1,553     | )                              |   | $      | -         |   |   | $ | - |   |   | $ | - |   |   | $ | (1,555 | ) |
| Share                  issuance costs                                          |   |                             | -      |   |                          | $      | -      |    |   |   | -             |   |   | $             | -      |   |       | $      | (102,922   | )                              |   | $      | -         |   |   | $ | - |   |   | $ | - |   |   | $ | (102,922 | ) |
| Stock-based                  compensation                                      |   |                             | -      |   |                          | $      | -      |    |   |   | 252,250       |   |   | $             | 252    |   |       | $      | 3,136,090  |                           |   | $      | -         |   |   | $ | - |   |   | $ | - |   |   | $ | 3,136,342 |   |
| Accumulated                  other comprehensive income                        |   |                             | -      |   |                          | $      | -      |    |   |   | -             |   |   | $             | -      |   |       | $      | -          |                           |   | $      | -         |   |   | $ | (6,514,688 | ) |   | $ | - |   |   | $ | (6,514,688 | ) |
| Net                  loss for the year                                         |   |                             | -      |   |                          | $      | -      |    |   |   | -             |   |   | $             | -      |   |       | $      | -          |                           |   | $      | -         |   |   | $ | - |   |   | $ | (18,622,212 | ) |   | $ | (18,622,212 | ) |
| Balance,                  May 31, 2007                                         |   |                             | -      |   |                          | $      | -      |    |   |   | 20,239,774    |   |   | $             | 20,240 |   |       | $      | 10,111,507 |                           |   | $      | (38,500   | )      |   | $ | 837,870 |   |   | $ | (17,637,974 | ) |   | $ | (6,706,857 | ) |
| Recovery                  of stock subscriptons receivable                     |   |                             | -      |   |                          | $      | -      |    |   |   | -             |   |   |          | -      |   |       |   | -          |                           |   |   | 38,500    |   |   |   | - |   |   |   | - |   |   |   | 38,500 |   |
| Share                  issuance costs                                          |   |                             | -      |   |                          | $      | -      |    |   |   | -             |   |   |          | -      |   |       |   | (94        | )                              |   |   | -         |   |   |   | - |   |   |   | - |   |   |   | (94 | ) |
| Stock-based                  compensation                                      |   |                             | -      |   |                          | $      | -      |    |   |   | -             |   |   |          | -      |   |       |   | 394,787    |                           |   |   | -         |   |   |   | - |   |   |   | - |   |   |   | 394,787 |   |
| Accumulated                  other comprehensive income                        |   |                             | -      |   |                          | $      | -      |    |   |   | -             |   |   |          | -      |   |       |   | -          |                           |   |   | -         |   |   |   | (60,475 | ) |   |   | - |   |   |   | (60,475 | ) |
| Net                  income for the period                                     |   |                             | -      |   |                          | $      | -      |    |   |   | -             |   |   |          | -      |   |       |   | -          |                           |   |   | -         |   |   |   | - |   |   |   | 16,087,574 |   |   |   | 16,087,574 |   |
| Balance,                  August 31, 2007                                      |   |                             | -      |   |                          |   | -      |    |   |   | 20,239,774    |   |   |          | 20,240 |   |       |   | 10,506,200 |                           |   |   | -         |   |   |   | 777,395 |   |   |   | (1,550,400 | ) |   |   | 9,753,435 |   |
|                                                                           |   |                             |   |   |                          |   |   |    |   |   |          |   |   |          |   |   |       |   |       |                           |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

**1.           BASIS        OF PRESENTATION**

**2.           FUTURE        OPERATIONS**

**3.           RECENT        PRONOUNCEMENTS**

*“The Fair Value Option for Financial Assets and Financial        Liabilities—Including an Amendment of FASB Statement No. 115.”*

*Fair Value        Measurements*

----

**4.           DUE        TO/FROM RELATED PARTIES**

| a) | Related                  parties include former and current directors and officers and companies                  with common management and directorships.  Related party                  accounts are unsecured with no fixed terms of interest.  At                  August 31, 2007, $1,010,845 (May 31, 2007 - $1,009,697) was due                  from                  related parties, of which $1,006,877 is due from two current directors                  of                  the Company. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b) | An                  officer and the then sole director of the Company earned a fee                  of                  $1,000,000 for the facilitation of the acquisition of the Firebag                  Oil                  Sands Project contained in 1289307 Alberta Ltd. (as disclosed in                  Note                  8(b)) by the Company.  These properties were previously owned by                  a company controlled by this officer who was at the time the sole                  director                  of the Company.  The timing of this payment is subject to                  certain conditions as set out in an agreement between the                  parties. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**5.           MARKETABLE        SECURITIES**

|                                                                        |   | Market                  Value    |    |
|-----------------------------------------------------------------------------|--------|----------------------------------|---------|
|                                                                        |   | August                  31, 2007 |    |
| 50,000,000                  ordinary shares -- Great Northern Oilsands Inc. |   | $                                | 400,000 |   |

**6.           JOINT        VENTURE RECEIVABLE**

**7.           OIL        AND GAS INTERESTS**

|                                                                            |   | August                  31, |       |   | May                  31, |   |
|---------------------------------------------------------------------------------|--------|-----------------------------|------------|--------|--------------------------|--------|
| **OIL                  AND GAS INTERESTS -- SUCCESSFUL EFFORTS METHOD**         |   | 2007                        |       |   | 2007                     |   |
| Balance                  beginning of the period                                |   | $                           | 37,658,925 |   |                     | $      | 2,964,017 |   |
| Expenditures                  and acquisitions                                  |   |                        | 197,978    |   |                     |   | 48,457,902 |   |
| Foreign                  currency translation adjustment                        |   |                        | 717,612    |   |                     |   | 2,108,970 |   |
| Dispositions                                                                    |   |                        | -          |   |                     |   | (2,651,277 | ) |
| Depletion,                  depreciation and impairment of oil and gas property |   |                        | -          |   |                     |   | (5,087,858 | ) |
| Dry                  well and abandoned interests                               |   |                        | (97,049    | )      |                     |   | (5,664,773 | ) |
| Geological                  and geophysical costs                               |   |                        | (36,429    | )      |                     |   | (2,468,056 | ) |
| Balance                  end of the period                                      |   | $                           | 38,441,037 |   |                     | $      | 37,658,925 |   |

----

**7.           OIL        AND GAS INTERESTS (Continued)**

**8.           ACQUISITIONS**

| a) | The                  Company entered into a Share Exchange Agreement dated December                  1, 2006                  with Damascus Energy Inc. (“Damascus”), whereby the Company would acquire                  100% of the issued and outstanding share capital of                  Damascus.  The transaction closed on December 15, 2006, and is                  accounted for using the purchase method.  By acquiring Damascus                  the Company received the right to earn up to an 80% working interest                  in                  the Dover Oil Sands Project.    Under the terms of the                  Share Exchange Agreement, because the Company did not have enough                  authorized shares to effect the transaction, Patch Energy Inc.                  (“Energy”)                  acquired all of the issued and outstanding common shares of Damascus                  (18,852,978 common shares) in consideration for one share of Class                  A                  Preferred Voting Stock of the Company and 9,426,489 shares of Series                  A                  Preferred Stock of Energy (the “Exchangeable Shares”) that are                  exchangeable for 9,426,489 shares of the Company’s common                  stock.  The Exchangeable Shares will be exchanged when the                  Company has increased its authorized common stock, however no recourse                  exists should approval not be received by the Company allowing                  for the                  conversion of the Exchangeable Shares into the Company’s common                  stock.  The shares were valued at $1.32, based upon the market                  price of the Company’s common shares at the closing date of the                  transaction.  During the current fiscal year adjustments may be                  made to finalize the purchase price equation.  The president of                  Damascus, who was also a director of Energy prior to the acquisition,                  was                  appointed to serve as a director of the Company.  During the                  year ended May 31, 2007 a director of Energy received $244,840                  (CAD$283,019) in connection with the                  acquisition. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Accounts                  receivable                                                                                                                                                                                                 |   | $      | 279,368    |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|
| Oil                  and gas interests                                                                                                                                                                                               |   |   | 23,475,628 |   |
| Accounts                  payable and accrued liabilities                                                                                                                                                                            |   |   | (7,597,054 | )      |
| Other                  current liabilities                                                                                                                                                                                           |   |   | (427,871   | )      |
| Asset                  retirement obligation                                                                                                                                                                                         |   |   | (73,534    | )      |
| Deferred                  income taxes                                                                                                                                                                                               |   |   | (3,213,572 | )      |
|                                                                                                                                                                                                                                 |   |   |       |   |
| Paid                  by issuance of 9,426,489 shares of Series A preferred stock of                  Patch                  Energy Inc., and 1 share of Class A preferred voting stock of Patch                  International Inc. |   | $      | 12,442,965 |   |

----

| **8.** | **ACQUISITIONS                  (Continued)** |
|--------|-----------------------------------------------|

| b) | The                  Company entered into a Share Exchange Agreement dated December                  21, 2006                  with 1289307 Alberta Ltd. (“1289307”), whereby the Company would acquire                  100% of the issued and outstanding share capital of                  1289307.  The transaction closed on January 16, 2007, and is                  accounted for using the purchase method.  By acquiring 1289307                  the Company received the right to earn up to a 75% working interest                  in the                  Firebag Oil Sands Project.  Under the terms of the Share                  Exchange Agreement, because the Company did not have enough authorized                  shares to effect the transaction, Energy acquired all of the issued                  and                  outstanding common shares of 1289307 (500,000 common shares) in                  consideration for one share of Class B Preferred Voting Stock of                  the                  Company and 500,000 shares of Energy that are exchangeable for                  500,000                  shares of the Company’s common stock.  The Exchangeable Shares                  will be exchanged when the Company has increased its authorized                  common                  stock, however no recourse exists should approval not be received                  by the                  Company allowing for the conversion of the Exchangeable Shares                  into the                  Company’s common stock.  The shares were valued at $1.32, based                  upon the market price of the Company’s common shares at the closing date                  of the transaction.  During the current fiscal year adjustments                  may be made to finalize the purchase price                  equation. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Accounts                  receivable                               |   |   | $      | 1          |   |
|-------------------------------------------------------------------------|--------|--------|--------|------------|--------|
| Oil                  and gas interests                   |   |   |   | 5,417,197  |   |
| Other                  current liabilities               |   |   |   | (4,417,197 | )      |
| Promissory                  note payable -- Note 4(b)    |   |   |   | (1,000,000 | )      |
|                                                     |   |   |   |       |   |
| Purchase                  price                                    |   |   | $      | 1          |   |

|                                                                               |   | Issued |      |   | Issue                  Price |   |   |   | $      |   |
|------------------------------------------------------------------------------------|--------|--------|-----------|--------|------------------------------|--------|--------|--------|--------|--------|
|                                                                               |   |   |      |   |                         |   |   |   |   |   |
| Exchangeable                  shares:                                              |   |   |      |   |                         |   |   |   |   |   |
| Issued                  on acquisition of Damascus (Note 8(a))                     |   |   | 9,426,489 |   |                         | $      | 1.32   |   |   |   | 12,442,965 |   |
| Issued                  in conjunction with the acquisition of 1289307 (Note 8(b)) |   |   | 500,000   |   |                         | $      | 1.32   |   |   |   | 660,000 |   |
|                                                                               |   |   | 9,926,489 |   |                         |   |   |   |   |   | 13,102,965 |   |
| Fair                  value adjustment -- Exchangeable shares                      |   |   | -         |   |                         |   |   |   |   |   | 7,047,807 |   |
| Balance,                  May 31, 2007                                             |   |   | 9,926,489 |   |                         |   |   |   |   |   | 20,150,772 |   |
| Fair                  value adjustment -- Exchangeable shares                      |   |   | -         |   |                         |   |   |   |   |   | (7,147,072 | ) |
| Balance,                  August 31, 2007                                          |   |   | 9,926,489 |   |                         |   |   |   |   |   | 13,003,700 |   |

----

**9.           SPECIAL        WARRANTS AND FLOW-THROUGH SPECIAL WARRANTS**

|                                                                |   | Issued |       |   | Issue                  Price |   |   |   | $      |   |
|---------------------------------------------------------------------|--------|--------|------------|--------|------------------------------|--------|--------|--------|--------|--------|
| Special                  Warrants                                   |   |   | 8,302,000  |   |                         | $      | 1.50   |   |   |   | 12,453,000 |   |
| Flow-through                  Special Warrants                      |   |   | 4,653,750  |   |                         | $      | 1.65   |   |   |   | 7,678,687 |   |
|                                                                |   |   |       |   |                         |   |   |   |   |   | 20,131,687 |   |
| Less:  Commissions                  and professional fees |   |   | -          |   |                         |   |   |   |   |   | (1,372,654 | ) |
| Net                  proceeds                                       |   |   |       |   |                         |   |   |   |   |   | 18,759,033 |   |
| Agent’s                  Warrants                             |   |   | 762,645    |   |                         |   |   |   |   |   | 334,391 |   |
| Bonus                  warrants                                     |   |   | 166,040    |   |                         |   |   |   |   |   | 298,872 |   |
|                                                                |   |   | 13,884,435 |   |                         |   |   |   |   |   | 19,392,296 |   |
| Fair                  value adjustments:                            |   |   |       |   |                         |   |   |   |   |   |   |   |
| Special                  Warrants and Flow-through Special Warrants |   |   | -          |   |                         |   |   |   |   |   | 7,113,196 |   |
| Agent’s                  Warrants                             |   |   | -          |   |                         |   |   |   |   |   | (37,819 | ) |
| Bonus                  Warrants                                     |   |   | -          |   |                         |   |   |   |   |   | 38,189 |   |
| Balance,                  May 31, 2007                              |   |   | 13,884,435 |   |                         |   |   |   |   |   | 26,505,862 |   |

----

**9.           SPECIAL        WARRANTS AND FLOW-THROUGH SPECIAL WARRANTS (Continued)**

|                                                                  |   | Issued |       |   | Issue                    Price |   |   |   | $      |   |
|-----------------------------------------------------------------------|--------|--------|------------|--------|--------------------------------|--------|--------|--------|--------|--------|
| Agent’s                    warrants                             |   |   | -          |   |                           |   |   |   |   |   | 320,311 |   |
| Fair                    value adjustments:                            |   |   |       |   |                           |   |   |   |   |   |   |   |
| Special                    Warrants and Flow-through Special Warrants |   |   | -          |   |                           |   |   |   |   |   | (9,663,210 | ) |
| Agent’s                    Warrants                             |   |   | -          |   |                           |   |   |   |   |   | (119,549 | ) |
| Bonus                    Warrants                                     |   |   | -          |   |                           |   |   |   |   |   | (277,841 | ) |
| Balance,                    August 31, 2007                           |   |   | 13,884,435 |   |                           |   |   |   |   |   | 16,765,573 |   |

**10.           ASSET        RETIREMENT OBLIGATIONS**

|                                                            |   | For                    the three months                    ended August                    31,                    2007 |    |   | For                    the year ended                    May                    31,                    2007 |   |
|-----------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------|---------|--------|-------------------------------------------------------------------------------------------------------------|--------|
| Beginning                    Asset Retirement Obligation        |   | $                                                                                                                      | 129,959 |   |                                                                                                        | $      | 34,379 |   |
|     Liabilities                    incurred |   |                                                                                                                   | -       |   |                                                                                                        |   | - |   |
|     Liabilities                    acquired |   |                                                                                                                   | -       |   |                                                                                                        |   | 73,534 |   |
|     Revisions                               |   |                                                                                                                   | 2,052   |   |                                                                                                        |   | 20,858 |   |
|     Accretion                               |   |                                                                                                                   | 2,355   |   |                                                                                                        |   | 1,188 |   |
| Total                    Asset Retirement Obligations           |   | $                                                                                                                      | 134,366 |   |                                                                                                        | $      | 129,959 |   |

**11.           STOCK-BASED        COMPENSATION**

|                                          |   | For                  the three months ended |      |   | For                  the year ended |   |
|-----------------------------------------------|--------|---------------------------------------------|-----------|--------|-------------------------------------|--------|
|                                          |   | August                  31, 2007            |      |   | May                  31, 2007       |   |
|                                          |   |                                        |      |   | Weighted                            |   |   |   |   |   | Weighted |   |
| ***Stock                  Options***          |   |                                        |      |   | Average                             |   |   |   |   |   | Average |   |
|                                          |   | Number                  of Options          |      |   | Exercise                  Price     |   |   | Number                  of Options |   |   | Exercise                  Price |   |
| Balance,                  beginning of period |   |                                        | 3,225,000 |   |                                | $      | 1.40 |   |   |   | 2,272,500 |   |   | $ | 0.75 |   |
| Granted                                       |   |                                        | 40,000    |   |                                |   | 2.32 |   |   |   | 4,265,000 |   |   |   | 1.33 |   |
| Expired                                       |   |                                        | -         |   |                                |   | - |   |   |   | (300,000 | ) |   |   | 0.39 |   |
| Forfeited                                     |   |                                        | -         |   |                                |   | - |   |   |   | (672,500 | ) |   |   | 0.60 |   |
| Cancelled                                     |   |                                        | -         |   |                                |   | - |   |   |   | (750,000 | ) |   |   | 1.20 |   |
| Exercised                                     |   |                                        | -         |   |                                |   | - |   |   |   | (1,590,000 | ) |   |   | 0.72 |   |
| Balance,                  end of period       |   |                                        | 3,265,000 |   |                                | $      | 1.41 |   |   |   | 3,225,000 |   |   | $ | 1.40 |   |

----

**11.           STOCK-BASED        COMPENSATION (Continued)**

**12.           DISCONTINUED        OPERATIONS**

|                                                               |                                                                                                                                                                                                          | Three                  Months Ended                                                                                                                                                                           |
|--------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                               |                                                                                                                                                                                                          | August                  31                                                                                                                                                                                    |
|                                                               |                                                                                                                                                                                                          | 2007                                                                                                                                                                                                          | 2006 |
|                                                               |                                                                                                                                                                                                          | **$**                                                                                                                                                                                                         | $ |
| Revenue:                                                           |                                                                                                                                                                                                          |                                                                                                                                                                                                          |
|                                                               | Oil                       and Gas                                                                                                                                                                             |                                                  - |                                                                43,315 |
| Expenses                                                           |                                                  - |                                               13,107              |
| Net                  operating income from discontinued operations |                                 -             |                                               30,208              |

**13.           OTHER        COMPREHENSIVE INCOME / (LOSS)**

|                                                                    |   | For                  the three months ended |       |
|-------------------------------------------------------------------------|--------|---------------------------------------------|------------|
|                                                                    |   | August                  31, 2007            |       |
|                                                                    |   | Before                  Tax Amount          |       |   | Tax                  (Expense) or                  Benefit |   |   | Net-of-Tax                  Amount |   |
| Foreign                  currency translation adjustment                |   | $                                           | (60,475    | ) |   | $ | - |   |   | $ | (60,475 | ) |
| Other                  comprehensive loss                               |   | $                                           | (60,475    | ) |   | $ | - |   |   | $ | (60,475 | ) |
|                                                                    |   |                                        |       |   |   |   |   |   |   |   |   |   |
|                                                                    |   | For                  the three months ended |       |
|                                                                    |   | August                  31, 2006            |       |
|                                                                    |   | Before                  Tax Amount          |       |   | Tax                  (Expense) or                  Benefit |   |   | Net-of-Tax                  Amount |   |
| Marketable                  securities:                                 |   |                                        |       |   |   |   |   |   |   |   |   |   |
| Decrease                  in unrealized gain on marketable securities   |   | $                                           | (1,066,112 | ) |   | $ | 319,830 |   |   | $ | (746,282 | ) |
| Holding                  gain                                           |   |                                        | 947,653    |   |   |   | (284,371 | ) |   |   | 663,282 |   |
| (Decrease)                  in unrealized gain on marketable securities |   |                                        | (118,459   | ) |   |   | 35,459 |   |   |   | (83,000 | ) |
| comprehensive                  income                                   |   |                                        |       |   |   |   |   |   |   |   |   |   |
| Foreign                  currency translation adjustment                |   |                                        | 32,528     |   |   |   | - |   |   |   | 32,528 |   |
| Other                  comprehensive income (loss)                      |   | $                                           | (85,931    | ) |   | $ | 35,459 |   |   | $ | (50,472 | ) |

**14.           COMMITMENTS**

----

**15.           SUBSEQUENT        EVENTS**

----

**Item      2.   Management’s Discussion and Analysis or Plan of      Operation**

**Accounting      Policies**

**Results      of Operations**

***Three      Months Ended August 31, 2007.***

----

**Liquidity      and Capital Resources**

----

**Plan      of Operation**

**Forward-Looking      Statements**

**Item      3.  Controls And Procedures**

----

**PART      II - OTHER INFORMATION**

**Item      1.  Legal Proceedings**

**Item      2.  Unregistered Sales of Equity Securities and Use of      Proceeds**

**Item      3.  Defaults Upon Senior Securities**

**Item      4.  Submission of Matters to a Vote of Security      Holders**

**Item      5.  Other Information**

**Item      6.  Exhibits**

| **Regulation****S-B                Number** | **Exhibit**                                                                                                                                                                                                                            |
|---------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.1                                         | Arrangement                Agreement made among Praxis Pharmaceuticals Inc. and Patch Energy                Inc.                dated as of October 20, 2003 (1)                                                                       |
| 2.2                                         | Articles                of Merger Merging Praxis Pharmaceuticals Inc., a Utah Corporation,                into                Patch International Inc., a Nevada Corporation (2)                                                       |
| 2.3                                         | Share                Exchange Agreement among the shareholders of Damascus Energy Inc.,                Patch                Energy Inc., Patch International Inc., and Damascus Energy Inc. dated                December 15, 2006 (3) |
| 2.4                                         | Share                Exchange Agreement among the shareholders of 1289307 Alberta Ltd.,                Patch                Energy Inc., Patch International Inc., and 1289307 Alberta Ltd. dated                January 16, 2007 (4)  |

----

|  **Regulation****S-B                Number** |  **Exhibit**                                                                                                                                                                                                                                           |
|---------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1                                               | Articles                of Incorporation, as amended (5)                                                                                                                                                                                                         |
| 3.2                                               | Bylaws                (5)                                                                                                                                                                                                                                        |
| 3.3                                               | Certificate                of Change Pursuant to NRS 78.209 (6)                                                                                                                                                                                                  |
| 3.4                                               | Certificate                of Change Pursuant to NRS 78.209 (7)                                                                                                                                                                                                  |
| 3.5                                               | Certificate                of Amendment to Articles of Incorporation (8)                                                                                                                                                                                         |
| 4.1                                               | Certificate                of Designation of Class A Preferred Voting Stock (3)                                                                                                                                                                                  |
| 4.2                                               | Certificate                of Designation of Class B Preferred Voting Stock (4)                                                                                                                                                                                  |
| 4.3                                               | Form                of Non-Flow-Through Special Warrant Certificate (9)                                                                                                                                                                                          |
| 4.4                                               | Form                of Flow-Through Special Warrant Certificate (9)                                                                                                                                                                                              |
| 4.5                                               | Form                of Bonus Warrant Certificate (9)                                                                                                                                                                                                             |
| 4.6                                               | Form                of Agent Warrant Certificate (9)                                                                                                                                                                                                             |
| 10.1                                              | Management                services agreement with David Stadnyk dated May 1, 2005                (5)                                                                                                                                                             |
| 10.2                                              | Change                of Control Agreement with David Stadnyk dated May 1, 2005                (5)                                                                                                                                                               |
| 10.3                                              | 2006                Stock Option Plan (10)                                                                                                                                                                                                                       |
| 10.4                                              | Exchange                and Voting Trust Agreement among Patch International Inc., Patch                Energy                Inc., 1286664 Alberta Ltd., and the shareholders of Damascus Energy                Inc.                dated December 15, 2006 (3) |
| 10.5                                              | Support                Agreement among Patch International Inc., Patch Energy Inc., and                1286664                Alberta Ltd. dated December 15, 2006 (3)                                                                                           |
| 10.6                                              | Farmout                Agreement Between Damascus Energy Inc. and Bounty Developments Ltd.                dated                November 30, 2006 (11)                                                                                                            |
| 10.7                                              | Exchange                and Voting Trust Agreement among Patch International Inc., Patch                Energy                Inc., 1286664 Alberta Ltd., and the shareholders of 1289307 Alberta                Ltd.                dated January 16, 2007 (4)  |
| 10.8                                              | Support                Agreement among Patch International Inc., Patch Energy Inc., and                1286664                Alberta Ltd. dated January 16, 2007 (4)                                                                                            |
| 10.9                                              | Farmout                Agreement dated December 12, 2006 (4)                                                                                                                                                                                                     |
| 10.10                                             | Conveyance                Agreement among 1289307 Alberta Ltd and 1286664 Alberta Ltd. dated                December 21, 2006 (4)                                                                                                                                |
| 10.11                                             | Demand                Promissory Note issued by 1289307 Alberta Ltd to 1286664 Alberta                Ltd.                dated December 21, 2006 (4)                                                                                                            |
| 10.12                                             | Amending                Agreement between Bounty Developments Ltd., 1286664 Alberta Ltd.,                and                Damascus Energy Inc. dated January 22, 2007 (4)                                                                                      |
| 10.13                                             | Agency                Agreement among Patch International Inc., Canaccord Capital Corporation                and Wellington West Capital Markets Inc. dated February 27, 2007                (9)                                                                 |
| 10.14                                             | Amending                Agreement between Bounty Developments Ltd., 1286664 Alberta Ltd.,                and                Damascus Energy Inc. dated February 20, 2007 (11)                                                                                    |
| 10.15                                             | Amending                Agreement between Bounty Developments Ltd. and 1286664 Alberta Ltd.,                dated                April 16, 2007 (11)                                                                                                             |
| 10.16                                             | Confirmation                of Earning between Damascus Energy Inc. and Bounty Developments Ltd.                dated                April 16, 2007 (11)                                                                                                         |
| 16                                                | Letter                from Morgan & Company dated March 8, 2007 (12)                                                                                                                                                                                         |
| 31.1                                              | Rule                13a-14(a) Certification of Principal Executive Officer                                                                                                                                                                                       |
| 31.2                                              | Rule                13a-14(a) Certification of Principal Financial Officer                                                                                                                                                                                       |
| 32.1                                              | Certification                Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section                906 of                the Sarbanes-Oxley Act of 2002                                                                                               |
| 32.2                                              | Certification                Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section                906 of                the Sarbanes-Oxley Act of                2002                                                                                |

| (1)   |                  Incorporated by reference to the exhibits filed with the registrant’s                current report on Form 8-K dated March 15, 2004, filed March 19,                2004. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (2)   |                  Incorporated by reference to the exhibit filed with the registrant’s                current report on Form 8-K dated June 15, 2004, filed June 15,                2004. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   |                  Incorporated by reference to the exhibits filed with the registrant’s                current report on Form 8-K dated December 15, 2006, filed December                26,                2006. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   |                  Incorporated by reference to the exhibits filed with the registrant’s                current report on Form 8-K dated January 16, 2007, filed February                6,                2007. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)   |                  Incorporated by reference to the exhibits filed with the registrant’s                annual report on Form 10-KSB for the fiscal year ended May 31, 2005,                filed                September 14, 2005. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6)   |                  Incorporated by reference to the exhibits filed with the registrant’s                current report on Form 8-K dated July 8, 2005, filed July 19,                2005. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7)   |                  Incorporated by reference to the exhibits filed with the registrant’s                current report on Form 8-K dated March 14, 2006, filed March 14,                2006. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8)   |                  Incorporated by reference to the exhibit filed with the registrant’s                current report on Form 8-K dated September 14, 2007, filed September                17,                2007. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (9)   |                  Incorporated by reference to the exhibits filed with the registrant’s                current report on Form 8-K dated February 27, 2007, filed March 1,                2007. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (10)   |                  Incorporated by reference to the exhibits filed with the registrant’s                annual report on Form 10-KSB for the fiscal year ended May 31, 2006,                filed                August 24, 2006. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (11)   |                  Incorporated by reference to the exhibits filed with the registrant’s                quarterly report on Form 10-QSB for the quarter ended February 28,                2007,                filed April 30, 2007. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (12)   |                  Incorporated by reference to the exhibits filed with the registrant’s                current report on Form 8-K dated March 3, 2007, filed March 9,                2007. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (13)   |                  Incorporated by reference to the exhibits filed with the registrant’s                registration statement on Form SB-2 filed May 9,                2007. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**SIGNATURES**

|                                             | **PATCH                INTERNATIONAL INC.**                                                               |
|--------------------------------------------------|-----------------------------------------------------------------------------------------------------------|
|                                             |                                                                                                      |
| Date:  October                12, 2007 | By:           /s/                Jason G. Dagenais |
|                                             | Jason                G. Dagenais, Chief                Operating Officer                                  |
|                                             |                                                                                                      |
| Date:  October                12, 2007 | By:           /s/                Thomas K. Rouse   |
|                                             | Thomas                K. Rouse, Chief Financial                Officer                                    |

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