**UNITED      STATES SECURITIES AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-QSB**

**Crafty      Admiral Enterprises, Ltd.**

**Nevada                                                                                                                                        88-0455809**

**Suite      601 - 1383 Marinaside Crescent**

**Vancouver,      BC, Canada V6Z 2W9**

**(604)      612-4847**

**None**

----

**TABLE      OF CONTENTS**

**Note      Regarding Forward-Looking Statements**

----

**PART      I - FINANCIAL INFORMATION**

***Item      1. Financial Information***

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**Crafty      Admiral Enterprises, Ltd.**

**(A      Development Stage Company)**

**30      June 2006**

----

**Crafty      Admiral Enterprises, Ltd.**

**(A      Development Stage Company)**

|                                                                         |   | **As                at 30****June                2006** |   | **As                at 31 December 2005****(Audited)** |
|------------------------------------------------------------------------------|--------|---------------------------------------------------------|--------|--------------------------------------------------------|
|                                                                         |   | **$**                                                   |   | **$**                                                  |
|                                                                         |   |                                                    |   |                                                   |
| **Assets**                                                                   |   |                                                    |   |                                                   |
|                                                                         |   |                                                    |   |                                                   |
| **Current**                                                                  |   |                                                    |   |                                                   |
| Cash                and cash equivalents                                     |   | 282,437                                                 |   | 17,531                                                 |
| Deposit                and prepaid expenses (Notes 3                and 11)  |   | 48,000                                                  |   | -                                                      |
|                                                                         |   |                                                    |   |                                                   |
|                                                                         |   | 330,437                                                 |   | 17,531                                                 |
|                                                                         |   |                                                    |   |                                                   |
| Oil                and gas property (Note 4)                                 |   | 642,006                                                 |   | -                                                      |
|                                                                         |   |                                                    |   |                                                   |
|                                                                         |   | 972,443                                                 |   | 17,531                                                 |
|                                                                         |   |                                                    |   |                                                   |
| **Liabilities**                                                              |   |                                                    |   |                                                   |
|                                                                         |   |                                                    |   |                                                   |
| **Current**                                                                  |   |                                                    |   |                                                   |
| Accounts                payable and accrued liabilities (Note 5)             |   | 2,200                                                   |   | 5,525                                                  |
| Convertible                debentures (Note 6)                               |   | 948,247                                                 |   | 20,475                                                 |
| Due                to related party (Note 7)                                 |   | 2,298                                                   |   | 2,298                                                  |
|                                                                         |   |                                                    |   |                                                   |
|                                                                         |   | 952,745                                                 |   | 28,298                                                 |
|                                                                         |   |                                                    |   |                                                   |
| **Stockholders’                equity**                                |   |                                                    |   |                                                   |
| **Capital                stock**                (Note 9)                     |   |                                                    |   |                                                   |
| Authorized                                                                   |   |                                                    |   |                                                   |
| 300,000,000                common shares, par value $0.001 and               |   |                                                    |   |                                                   |
| 50,000,000                preferred shares, par value $0.001                 |   |                                                    |   |                                                   |
| Issued                and outstanding                                        |   |                                                    |   |                                                   |
| 30                June 2006 - 46,000,000 common shares, par value $0.001     |   |                                                    |   |                                                   |
| 31                December 2005 - 42,000,000 common shares, par value $0.001 |   | 46,000                                                  |   | 42,000                                                 |
| **Additional                paid-in capital**                                |   | 91,200                                                  |   | 8,000                                                  |
| **Deficit,                accumulated during the development stage**         |   | (117,502)                                               |   | (60,767)                                               |
|                                                                         |   |                                                    |   |                                                   |
|                                                                         |   | 19,698                                                  |   | (10,767)                                               |
|                                                                         |   |                                                    |   |                                                   |
|                                                                         |   | 972,443                                                 |   | 17,531                                                 |

**Nature      and Continuance of Operations **

**On      behalf of the Board:**

----

**Crafty      Admiral Enterprises, Ltd.**

**(A      Development Stage Company)**

|                                                                                                      |   | **For                the three month period ended 30 June 2006** |   | **For                the three month period ended 30 June 2005** |   |   **For                the six month period ended 30 June 2006** |   |   **For                the six month period ended 30 June 2005** |   | **For                the period from the date of inception on 6 March 2000 to 30 June                2006** |
|-----------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------|--------|------------------------------------------------------------------|--------|----------------------------------------------------------------------------|--------|----------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------|
|                                                                                                      |   | **$**                                                            |   | **$**                                                            |   | **$**                                                                      |   | **$**                                                                      |   | **$**                                                                                                       |
|                                                                                                      |   |                                                             |   |                                                             |   |                                                                       |   |                                                                       |   |                                                                                                        |
| **Expenses**                                                                                              |   |                                                             |   |                                                             |   |                                                                       |   |                                                                       |   |                                                                                                        |
| Interest                on convertible debentures (Note 6)                                                |   | 12,297                                                           |   | -                                                                |   |  12,772                                                               |   |  -                                                                    |   |  13,247                                                                                                |
| Management                fees (Notes 8 and 9)                                                            |   | 3,000                                                            |   | -                                                                |   |  6,000                                                                |   |  -                                                                    |   |  6,000                                                                                                 |
| Office                and miscellaneous                                                                   |   | 812                                                              |   | 44                                                               |   | 1,217                                                                      |   | 44                                                                         |   | 16,242                                                                                                      |
| Professional                fees                                                                          |   | 31,102                                                           |   | 4,779                                                            |   | 35,546                                                                     |   | 6,872                                                                      |   | 80,813                                                                                                      |
| Rent                (Notes 8 and 9)                                                                       |   | 600                                                              |   | -                                                                |   | 1,200                                                                      |   | -                                                                          |   | 1,200                                                                                                       |
|                                                                                                      |   |                                                             |   |                                                             |   |                                                                       |   |                                                                       |   |                                                                                                        |
| **Loss                for the period**                                                                    |   | 47,811                                                           |   | 4,823                                                            |   | 56,735                                                                     |   | 6,916                                                                      |   | 117,502                                                                                                     |
|                                                                                                      |   |                                                             |   |                                                             |   |                                                                       |   |                                                                       |   |                                                                                                        |
| **Basic                and diluted earnings per common share**                                            |   | (0.0010)                                                         |   | (0.0002)                                                         |   |   (0.0013)                                                       |   |   (0.0003)                                                       |   |                                                                                                        |
|                                                                                                      |   |                                                             |   |                                                             |   |                                                                       |   |                                                                       |   |                                                                                                        |
| **Weighted                average number of common shares used in per share                calculations** |   | 46,000,000                                                       |   | 21,000,000                                                       |   |    44,718,232                                               |   |    21,000,000                                               |   |                                                                                                        |

----

**Crafty      Admiral Enterprises, Ltd.**

**(A      Development Stage Company)**

|                                                                                  | **For                the three month period ended****30                June 2006**  | **For                the three month period ended****30                June 2005**  | **For                the six month period ended****30                June 2006**  | **For                the six month period ended****30                June 2005**  | **For                the period from the date of inception on 6 March 2000 to 30 June                2006** |
|---------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------|
|                                                                                  |                                                                                     | **$**                                                                                    |                                                                                   | **$**                                                                                  |                                                                                                        | **$** |   | **$** |   | **$** |
|                                                                                  |                                                                                     |                                                                                     |                                                                                   |                                                                                   |                                                                                                        |   |   |   |   |   |
| **Cash                flows from operating activities**                               |                                                                                     |                                                                                     |                                                                                   |                                                                                   |                                                                                                        |   |   |   |   |   |
| Loss                for the period                                                    |                                                                                     | (47,811)                                                                                 |                                                                                   | (4,823)                                                                                |                                                                                                        | (56,735) |   | (6,916) |   | (117,502) |
| Adjustments                to reconcile loss to net cash used by operating activities |                                                                                     |                                                                                     |                                                                                   |                                                                                   |                                                                                                        |   |   |   |   |   |
| Accrued                interest on convertible debentures payable (Note 6)            |                                                                                     | 12,297                                                                                   |                                                                                   | -                                                                                      |                                                                                                        | 12,772 |   | - |   | 13,247 |
| Contributions                to capital by related party - expenses (Notes 8 and 9)   |                                                                                     | 3,600                                                                                    |                                                                                   | -                                                                                      |                                                                                                        | 7,200 |   | - |   | 7,200 |
| Changes                in operating assets and liabilities                            |                                                                                     |                                                                                     |                                                                                   |                                                                                   |                                                                                                        |   |   |   |   |   |
| Increase                in deposit and prepaid expenses (Note 3)                      |                                                                                     | (48,000)                                                                                 |                                                                                   | -                                                                                      |                                                                                                        | (48,000) |   | - |   | (48,000) |
| Increase                (decrease) in accounts payable and accrued liabilities        |                                                                                     | (5,514)                                                                                  |                                                                                   | 1,979                                                                                  |                                                                                                        | (3,325) |   | 2,922 |   | 2,200 |
|                                                                                  |                                                                                     |                                                                                     |                                                                                   |                                                                                   |                                                                                                        |   |   |   |   |   |
|                                                                                  |                                                                                     | (85,428)                                                                                 |                                                                                   | (2,844)                                                                                |                                                                                                        | (88,088) |   | (3,994) |   | (142,855) |
|                                                                                  |                                                                                     |                                                                                     |                                                                                   |                                                                                   |                                                                                                        |   |   |   |   |   |
| **Cash                flows from investing activities**                               |                                                                                     |                                                                                     |                                                                                   |                                                                                   |                                                                                                        |   |   |   |   |   |
| Purchase                of oil and gas property (Note 4)                              |                                                                                     | (642,006)                                                                                |                                                                                   | -                                                                                      |                                                                                                        | (642,006) |   | - |   | (642,006) |
|                                                                                  |                                                                                     |                                                                                     |                                                                                   |                                                                                   |                                                                                                        |   |   |   |   |   |
| **Cash                flows from financing activities**                               |                                                                                     |                                                                                     |                                                                                   |                                                                                   |                                                                                                        |   |   |   |   |   |
| Common                shares issued for cash                                          |                                                                                     | -                                                                                        |                                                                                   | -                                                                                      |                                                                                                        | 80,000 |   | - |   | 130,000 |
| Convertible                debentures (Note 6)                                        |                                                                                     | 915,000                                                                                  |                                                                                   | -                                                                                      |                                                                                                        | 915,000 |   | - |   | 935,000 |
| Increase                in due to related party                                       |                                                                                     | -                                                                                        |                                                                                   | -                                                                                      |                                                                                                        | - |   | - |   | 2,298 |
|                                                                                  |                                                                                     |                                                                                     |                                                                                   |                                                                                   |                                                                                                        |   |   |   |   |   |
|                                                                                  |                                                                                     | 915,000                                                                                  |                                                                                   | -                                                                                      |                                                                                                        | 995,000 |   | - |   | 1,067,298 |
|                                                                                  |                                                                                     |                                                                                     |                                                                                   |                                                                                   |                                                                                                        |   |   |   |   |   |
| **Increase                (decrease) in cash and cash equivalents**                   |                                                                                     | 187,566                                                                                  |                                                                                   | (2,844)                                                                                |                                                                                                        | 264,906 |   | (3,994) |   | 282,437 |
|                                                                                  |                                                                                     |                                                                                     |                                                                                   |                                                                                   |                                                                                                        |   |   |   |   |   |
| **Cash                and cash equivalents, beginning of period**                     |                                                                                     | 94,871                                                                                   |                                                                                   | 8,719                                                                                  |                                                                                                        | 17,531 |   | 9,869 |   | - |
|                                                                                  |                                                                                     |                                                                                     |                                                                                   |                                                                                   |                                                                                                        |   |   |   |   |   |
| **Cash                and cash equivalents, end of period**                           |                                                                                     | 282,437                                                                                  |                                                                                   | 5,875                                                                                  |                                                                                                        | 282,437 |   | 5,875 |   | 282,437 |

**Supplemental        Disclosures with Respect to Cash Flows **

----

**Crafty      Admiral Enterprises, Ltd.**

**(A      Development Stage Company)**

|                                                                                             | **Number                of shares issued** | **Share                Capital** | **Additional                Paid-in Capital** | **Deficit                accumulated during the development stage** | **Stockholders’                equity** |
|--------------------------------------------------------------------------------------------------|--------------------------------------------|----------------------------------|-----------------------------------------------|---------------------------------------------------------------------|-----------------------------------------------|
|                                                                                             |                                       |                             |                                          | **$**                                                               |                                          | **$** |   | **$** |   | **$** |
|                                                                                             |                                       |                             |                                          |                                                                |                                          |   |   |   |   |   |
| **Balance                at 6 March 2000**                                                       |                                       | -                                |                                          | -                                                                   |                                          | - |   | - |   | - |
| Issuance                of common stock                                                          |                                       | 2,000,000                        |                                          | 2,000                                                               |                                          | 1,000 |   | - |   | 3,000 |
| Loss                for the year                                                                 |                                       | -                                |                                          | -                                                                   |                                          | - |   | (2,291) |   | (2,291) |
|                                                                                             |                                       |                             |                                          |                                                                |                                          |   |   |   |   |   |
| **Balance                at 31 December 2000**                                                   |                                       | 2,000,000                        |                                          | 2,000                                                               |                                          | 1,000 |   | (2,291) |   | 709 |
| Issuance                of common stock                                                          |                                       | 5,000,000                        |                                          | 5,000                                                               |                                          | 42,000 |   | - |   | 47,000 |
| Loss                for the year                                                                 |                                       | -                                |                                          | -                                                                   |                                          | - |   | (10,571) |   | (10,571) |
|                                                                                             |                                       |                             |                                          |                                                                |                                          |   |   |   |   |   |
| **Balance                at 31 December 2001**                                                   |                                       | 7,000,000                        |                                          | 7,000                                                               |                                          | 43,000 |   | (12,862) |   | 37,138 |
| Loss                for the year                                                                 |                                       | -                                |                                          | -                                                                   |                                          | - |   | (12,097) |   | (12,097) |
|                                                                                             |                                       |                             |                                          |                                                                |                                          |   |   |   |   |   |
| **Balance                at 31 December 2002**                                                   |                                       | 7,000,000                        |                                          | 7,000                                                               |                                          | 43,000 |   | (24,959) |   | 25,041 |
| Loss                for the year                                                                 |                                       | -                                |                                          | -                                                                   |                                          | - |   | (11,019) |   | (11,019) |
|                                                                                             |                                       |                             |                                          |                                                                |                                          |   |   |   |   |   |
| **Balance                at 31 December 2003**                                                   |                                       | 7,000,000                        |                                          | 7,000                                                               |                                          | 43,000 |   | (35,978) |   | 14,022 |
| 3                for 1 forward split                                                             |                                       | 14,000,000                       |                                          | 14,000                                                              |                                          | (14,000) |   | - |   | - |
| Loss                for the year                                                                 |                                       | -                                |                                          | -                                                                   |                                          | - |   | (6,451) |   | (6,451) |
|                                                                                             |                                       |                             |                                          |                                                                |                                          |   |   |   |   |   |
| **Balance                at 31 December 2004**                                                   |                                       | 21,000,000                       |                                          | 21,000                                                              |                                          | 29,000 |   | (42,429) |   | 7,571 |
| 2                for 1 forward split - 30 September 2005                                         |                                       | 21,000,000                       |                                          | 21,000                                                              |                                          | (21,000) |   | - |   | - |
| Net                loss for the year                                                             |                                       | -                                |                                          | -                                                                   |                                          | - |   | (18,338) |   | (18,338) |
|                                                                                             |                                       |                             |                                          |                                                                |                                          |   |   |   |   |   |
| **Balance                at 31 December 2005**                                                   |                                       | 42,000,000                       |                                          | 42,000                                                              |                                          | 8,000 |   | (60,767) |   | (10,767) |
| Common                shares issued for cash ($0.02 per share) - 27 February                2006 |                                       | 4,000,000                        |                                          | 4,000                                                               |                                          | 76,000 |   | - |   | 80,000 |
| Contributions                to capital by related party - expenses (Notes 8 and 9)              |                                       | -                                |                                          | -                                                                   |                                          | 7,200 |   | - |   | 7,200 |
| Net                loss for the period                                                           |                                       | -                                |                                          | -                                                                   |                                          | - |   | (56,735) |   | (56,735) |
|                                                                                             |                                       |                             |                                          |                                                                |                                          |   |   |   |   |   |
| **Balance                at 30 June 2006**                                                       |                                       | 46,000,000                       |                                          | 46,000                                                              |                                          | 91,200 |   | (117,502) |   | 19,698 |

----

**Crafty      Admiral Enterprises, Ltd.**

**(A      Development Stage Company)**

**30      June      2006                                                                                                                                                                                                                                                                                                      **

**1.      Nature and Continuance of Operations**

*Accounting      and Reporting by Development Stage Enterprises*

----

**Crafty      Admiral Enterprises, Ltd.**

**(A      Development Stage Company)**

**30      June      2006                                                                                                                                                                                                                                                                                                            **

**2.      Significant Accounting Policies**

**Basis      of presentation**

**Cash      and cash equivalents**

**Financial      instruments**

**Derivative      financial instruments**

----

**Crafty        Admiral Enterprises, Ltd.**

**(A        Development Stage Company)**

**30        June        2006                                                                                                                                                                                                                                                                                                            **

**Income      taxes**

*Accounting      for Income Taxes*

**Basic      and diluted net loss per share**

*Earnings      per Share*

**Comprehensive      loss**

*Reporting      Comprehensive Income*

----

**Crafty      Admiral Enterprises, Ltd.**

**(A      Development Stage Company)**

**30      June      2006                                                                                                                                                                                                                                                                                                          **

**Oil      and gas property**

*Accounting      for the Impairment or Disposal of Long-Lived Assets*

**Segments      of an enterprise and related information**

*Disclosures      about Segments of an Enterprise and Related Information*
*Financial      Reporting for Segments of a Business Enterprise*

----

**Crafty      Admiral Enterprises, Ltd.**

**(A      Development Stage Company)**

**30      June      2006                                                                                                                                                                                                                                                                                                      **

**Start-up      expenses**

*Reporting      the Costs of Start-up Activities*

**Foreign      currency translation**

*Foreign      Currency Translation*

**Use      of estimates**

**Reclamation      costs**

----

**Crafty        Admiral Enterprises, Ltd.**

**(A        Development Stage Company)**

**30        June 2006                                                                                                                                                                                                                                                                                       **

**Recent      accounting pronouncements**

*Accounting      for Servicing of Financial Assets*

*Accounting      for Certain Hybrid Financial Instruments*
*Accounting      for Derivative Instruments and Hedging Activities*
*Accounting      for Transfers and Servicing of Financial Assets and Extinguishments of      Liabilities*

**Comparative      figures**

**3.      Deposit and Prepaid Expenses**

----

**Crafty        Admiral Enterprises, Ltd.**

**(A        Development Stage Company)**

**30        June        2006                                                                                                                                                                                                                                                                                                            **

**4.      Exploration Property**

**Tombaugh      Farms Property - St. Francis County, Arkansas**

|                                                            |   | **Balance                at 30 June 2006** |   | **Balance                at 31 December 2005** |
|-----------------------------------------------------------------|--------|--------------------------------------------|--------|------------------------------------------------|
|                                                            |   | **$**                                      |   | **$**                                          |
| Oil                and gas properties consist of the following: |   |                                       |   |                                           |
| Undeveloped                properties                           |   | 642,006                                    |   | -                                              |
|                                                            |   |                                       |   |                                           |
|                                                            |   | 642,006                                    |   | -                                              |

|                                  |   | **During                the three month period ended 30 June 2006** |   | **During                the three month period ended 30 June 2005** |
|---------------------------------------|--------|---------------------------------------------------------------------|--------|---------------------------------------------------------------------|
|                                  |   | **$**                                                               |   | **$**                                                               |
|                                  |   |                                                                |   |                                                                |
| Acquisition                - unproved |   | 642,006                                                             |   | -                                                                   |
| Development                           |   | -                                                                   |   | -                                                                   |
| Exploration                           |   | -                                                                   |   | -                                                                   |
|                                  |   |                                                                |   |                                                                |
|                                  |   | 642,006                                                             |   | -                                                                   |

**5.      Accounts Payable and Accrued Liabilities**

----

**Crafty      Admiral Enterprises, Ltd.**

**(A      Development Stage Company)**

**30      June      2006                                                                                                                                                                                                                                                                                                         **

**6.      Conver**
**tible      Debentures**
** **

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   | **Balance                at 30 June 2006** |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   | **$**                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |                                       |
| Issued                in September 2005, the convertible debentures bear interest at a                rate of                9.5% per annum on any unpaid principle balances, are unsecured, and                have                no fixed terms of repayment. The holders of the convertible debentures                have the right to convert any portion of the unpaid principle and/or                accrued interest into restricted common shares of the Company at                any time                within twenty-four months from the issue date on the basis of $0.02                per                common share for each dollar of principle and/or interest due and                payable.                The balance of $21,425 outstanding at 30 June 2006 consists of principle                and unpaid accrued interest of $20,000 and $1,425                respectively.                                                                                                                                                                                                                                                                                                   |   |   |   | 21,425                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |                                       |
| Issued                in April 2006, the convertible debenture bears interest at a rate                of 10%                per annum on any unpaid principle balance, is secured by a general                charge                on the assets of the Company, and has no fixed terms of repayment.                The                holder of the convertible debenture has the right to convert any                portion                of the unpaid principle and/or accrued interest at any time within                thirty-six months for the issue date, on the basis of $1.00 per unit                where                a unit consists of one common share and one warrant to purchase one                common                share of the Company for $1.75 for a period of twenty-four months                from the                date of conversion. The balance of $510,685 outstanding at 30 June                2006                consists of principle and unpaid accrued interest of $500,000 and                $10,685                respectively.                                                                                                                     |   |   |   | 510,685                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |                                       |
| Issued                in June 2006, the convertible debenture bears interest at a rate                of 10%                per annum on any unpaid principle balance, is secured by a general                charge                on the assets of the Company, and has repayment terms wherein the                principle and accrued interest shall be due the later of (i) sixty                days                after the date the convertible debenture was issued or (ii) upon                the                lenders written demand for repayment. The holder of the convertible                debenture has the right to convert any portion of the unpaid principle                and/or accrued interest into common shares of the Company at any                time and                from time to time prior to the maturity date on the basis of $0.70                per                share for each dollar of principle and/or interest due and payable.                The                balance of $416,137 outstanding at 30 June 2006 consists of principle                and                unpaid accrued interest of $415,000 and $1,137                respectively. |   |   |   | 416,137                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   | 948,247                                    |

----

**Crafty      Admiral Enterprises, Ltd.**

**(A      Development Stage Company)**

**30      June      2006                                                                                                                                                                                                                                                                                                          **

**7.      Due to Related Part****y**

**8.      Related Party Transactions**
** **

**9.      Capital Stock**
** **

**Authorized**

| **·  ** | 300,000,000              common shares with a par value of $0.001 |
|------------------------|-------------------------------------------------------------------|

| **        ·  ** | 50,000,000              preferred shares with a par value of              $0.001 |
|------------------------------------------------------------------------|----------------------------------------------------------------------------------|

**Issued      and outstanding**

----

**Crafty      Admiral Enterprises, Ltd.**

**(A      Development Stage Company)**

**30      June      2006                                                                                                                                                                                                                                                                                                        **

| **2.  ** | **Income              Taxes** |
|--------------------|-------------------------------|

|                                                                |   | **For                the three month period ended 30 June 2006** |   | **For                the three month period ended 30 June 2005** |
|---------------------------------------------------------------------|--------|------------------------------------------------------------------|--------|------------------------------------------------------------------|
|                                                                |   | **$**                                                            |   | **$**                                                            |
| -                                                                   |   |                                                             |   |                                                             |
| Deferred                tax asset attributable to:                  |   |                                                             |   |                                                             |
| Current                operations                                   |   | 16,256                                                           |   | 1,640                                                            |
| Contributions                to capital by related party - expenses |   | (1,224)                                                          |   | -                                                                |
| Less:                Change in valuation allowance                  |   | (15,032)                                                         |   | (1,640)                                                          |
|                                                                |   |                                                             |   |                                                             |
| Net                refundable amount                                |   | -                                                                |   | -                                                                |

|                                             |   | **As                at 30 June 2006** |   | **As                at 31 December 2005****(Audited)** |
|--------------------------------------------------|--------|---------------------------------------|--------|--------------------------------------------------------|
|                                             |   | **$**                                 |   | **$**                                                  |
|                                             |   |                                  |   |                                                   |
| Net                operating loss carry forward  |   | 110,302                               |   | 60,767                                                 |
|                                             |   |                                  |   |                                                   |
| Statutory                federal income tax rate |   | 34%                                   |   | 34%                                                    |
| Effective                income tax rate         |   | 0%                                    |   | 0%                                                     |
|                                             |   |                                  |   |                                                   |
| Deferred                tax asset                |   | 37,503                                |   | 20,661                                                 |
| Less:                Valuation allowance         |   | (37,503)                              |   | (20,661)                                               |
|                                             |   |                                  |   |                                                   |
| Net                deferred tax asset            |   | -                                     |   | -                                                      |

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**Crafty      Admiral Enterprises, Ltd.**

**(A      Development Stage Company)**

**30      June      2006                                                                                                                                                                                                                                                                                                          **

**11.      Commitments**

| a)   | On              13 June 2006, the Company entered into an agreement to purchase an              existing lease agreement on a mineral, oil and gas property lease located              in St. Francis County, Arkansas (the “Vegas Property”). The terms of the              agreement require the Company to make an initial deposit of $43,000              (paid), pay a prepaid lease payment of $436,257 on the as yet to be              decided closing date and the payment of royalty payments of 18.75%              on oil              and other liquid hydrocarbons produced, saved, and sold. The agreement              provides the Company with the option to extend the lease for five              additional years on the same terms (Note              3). |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | On              9 June 2006, the Company entered into an agreement to purchase an existing              lease agreement on an oil, gas, and mineral lease property located              in St.              Francis County, Arkansas (the “Double R Property”). The terms of the              agreement require the Company to make a prepaid lease payment of $252,000              on the as yet to be decided closing date and the payment of royalty              payments of 20% on oil and other liquid hydrocarbons produced, saved,              and              sold. The agreement provides the Company with the option to extend              the              lease for five additional years on the same              terms. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | On              13 June 2006, the Company entered into an agreement to purchase an              existing lease agreement on an oil, gas, and mineral lease property              located in St. Francis County, Arkansas (the “Wheatley Property”). The              terms of the agreement require the Company to make a prepaid lease              payment              of $785,178 on the as yet to be decided closing date and the payment              of              royalty payments on oil and other liquid hydrocarbons produced, saved,              and              sold. The agreement provides the Company with the option to extend              the              lease for five additional years on the same              terms. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**12.         **
**Supplemental      Disclosure with Respect to Cash Flows**
** **

|                                                      |   | **For                the period from the date of inception on 6 March 2000 to 30 June                2006** |   | **For                the three month period ended****30                June 2006** |   | **For                the three month period ended****30                June 2005** |
|-----------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------|
|                                                      |   | **$**                                                                                                       |   | **$**                                                                              |   | **$**                                                                              |
|                                                      |   |                                                                                                        |   |                                                                               |   |                                                                               |
| Cash                paid during the year for interest     |   | -                                                                                                           |   | -                                                                                  |   | -                                                                                  |
| Cash                paid during the year for income taxes |   | -                                                                                                           |   | -                                                                                  |   | -                                                                                  |

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**ITEM      2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF      OPERATION**

***General***

***Results      of Operations***

***Three      Months Ended June 30, 2006 compared to the Three Months Ended June 30,      2005***

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***Liquidity      and Capital Resources***

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***Plan      of Operation***

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***Off-Balance      Sheet Arrangements***

**ITEM      3. CONTROLS AND PROCEDURES**

***Critical      Accounting Policies***

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**PART      II - OTHER INFORMATION**

**ITEM      1A. RISK FACTORS**

***Oil      and natural gas prices are volatile. Any substantial decrease in market prices      would adversely affect our financial results.***

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***Our      exploration operations are subject to inherent risks, some of which are beyond      our control. These risks may not be fully covered under insurance policies.      We      are currently investigating the prices and coverage available for insurance      protection on our proposed exploration and development      operations.***

|   |    |                                                                                                        |
|--------|---------|-------------------------------------------------------------------------------------------------------------|
|   | • | personal                injury or loss of life;                                                             |
|   |    |                                                                                                        |
|   | • | damage                to or destruction of property, equipment and the                environment; and |
|   |    |                                                                                                        |
|   | • | suspension                of operations.                                                                    |

***We      are subject to federal, state and local regulations regarding issues of health,      safety and protection of the environment. Under these regulations, we may become      liable for penalties, damages or costs of remediation. Any changes in laws      and/or government regulations in the industry could increase our costs of doing      business.***

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***We      may not be able to grow successfully through future acquisitions or successfully      manage future growth, and we may not be able to effectively integrate the      businesses we do acquire.***

**ITEM      2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF      PROCEEDS**

**ITEM      6. EXHIBITS AND REPORTS ON FORM 8-K**

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**SIGNATURES**

**Crafty      Admiral Enterprises, Ltd.,  **

**27**