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**UNITED        STATES**

**SECURITIES        AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

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**Form        10-QSB**

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**(Mark      One)**

**ý**
**      QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE      SECURITIES**

**EXCHANGE      ACT OF 1934**

**For      the quarterly period ended March 31, 2007**

**o**
**      TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE      SECURITIES**

**EXCHANGE      ACT OF 1934**

**For      the transition period from____________to____________**

**Commission      file number 000-27783**

**NATHANIEL      ENERGY CORPORATION**

| **Delaware**                                                                                 |   | **84-1572525**                                                     |
|----------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------|
| (State                or other jurisdiction of incorporation                or organization) |   | (I.R.S.                Employer Identification                No.) |

| **8001                South InterPort Blvd. Suite 260,                Englewood, Colorado** |   | **80112**                 |
|---------------------------------------------------------------------------------------------|--------|---------------------------|
|  (Address                of principal executive offices)                               |   | (Zip                Code) |

**      (303) 690-8300**

**Transitional      Small Business Disclosure Format (Check One)      Yes  **
**o**
**  No  **
**ý**

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Table          of Contents

**NATHANIEL      ENERGY CORPORATION**

|                          |                                                                                              |                                                                                                                                 |
|-------------------------------|---------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|
| **PART                  I.**  | FINANCIAL                  INFORMATION                                                            |                                                                                                                                 |
|                          |                                                                                              |                                                                                                                                 |
| Item                  1.      | Financial                  Statements (unaudited)                                                 |                                                                                                                                 |
|                          |                                                                                              |                                                                                                                                 |
|                          |                                                                                              | Condensed                  Consolidated Balance Sheets as of March 31, 2007 and                  December 31, 2006                   | F-1 |
|                          |                                                                                              |                                                                                                                                 |   |
|                          |                                                                                              | Condensed                  Consolidated Statements of Operations for the Three                  Months ended March 31, 2007 and 2006 | F-2 |
|                          |                                                                                              |                                                                                                                                 |   |
|                          |                                                                                              | Condensed                  Consolidated Statements of Cash Flows for the Three                  Months ended March 31, 2007 and 2006 | F-3 |
|                          |                                                                                              |                                                                                                                                 |   |
|                          |                                                                                              | Notes                  to Condensed Consolidated Financial                  Statements                                               | F-4 |
|                          |                                                                                              |                                                                                                                                 |
| Item                  2.      | Management’s                  Discussion and Analysis or Plan of                  Operation | 1                                                                                                                                    |
|                          |                                                                                              |                                                                                                                                 |
| Item                  3.      | Controls                  and Procedures                                                          | 4                                                                                                                                    |
|                          |                                                                                              |                                                                                                                                 |
|                          |                                                                                              |                                                                                                                                 |
| **PART                  II.** | OTHER                  INFORMATION                                                                | 4                                                                                                                                    |
|                          |                                                                                              |                                                                                                                                 |
| Item                  1.      | Legal                  Proceedings                                                                | 4                                                                                                                                    |
|                          |                                                                                              |                                                                                                                                 |
| Item                  2.      | Unregistered                  Sales of Equity Securities And Use of                  Proceeds     | 4                                                                                                                                    |
|                          |                                                                                              |                                                                                                                                 |
| Item                  3.      | Defaults                  Upon Senior Securities                                                  | 4                                                                                                                                    |
|                          |                                                                                              |                                                                                                                                 |
| Item                  4.      | Submission                  of Matters to a Vote of Security                  Holders             | 4                                                                                                                                    |
|                          |                                                                                              |                                                                                                                                 |
| Item                  5.      | Other                  Information                                                                | 4                                                                                                                                    |
|                          |                                                                                              |                                                                                                                                 |
| Item                  6.      | Exhibits                                                                                          | 4                                                                                                                                    |
|                          |                                                                                              |                                                                                                                                 |
|                          | Signatures                                                                                        | 5                                                                                                                                    |

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Table          of Contents

**NathanielEnergy**

**Condensed      Consolidated Balance Sheet**

|                                                                                                                                     |  **March                  31,** |        | ** December                  31,** |     |
|------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------|-------------|-----------------------------------------|----------|
|                                                                                                                                     | ** 2007**                       |        |                                    | **2006** |   |
| ASSETS                                                                                                                                   |                                 |        |                                    |     |   |   |
|                                                                                                                                     |                                 |        |                                    |     |   |   |
| Current                  assets                                                                                                          |                                 |        |                                    |     |   |   |
| Cash                  and cash equivalents                                                                                               |                                 | 17,130      |                                    |     | 257,868 |   |
| Accounts                  receivable (note 2)                                                                                            |                                 | 71,383      |                                    |     | 121,276 |   |
| Prepaid                  expenses (note 3)                                                                                               |                                 | 11,748      |                                    |     | 40,277 |   |
|                                                                                                                                     |                                 |        |                                    |     |   |   |
| Total                  current assets                                                                                                    |                                 | 100,261     |                                    |     | 419,421 |   |
|                                                                                                                                     |                                 |        |                                    |     |   |   |
| Deposits                                                                                                                                 |                                 | 73,055      |                                    |     | 72,895 |   |
| Property                  and equipment, net of accumulated depreciation of $591,377 (note                  4)                           |                                 | 997,503     |                                    |     | 1,069,443 |   |
| Intangibles,                  net of accumulated amortization of $339,359 (note 5)                                                       |                                 | 167,409     |                                    |     | 193,423 |   |
|                                                                                                                                     |                                 |        |                                    |     |   |   |
| Total                  assets                                                                                                            | $                                    | 1,338,228   |                                    | $        | 1,755,182 |   |
|                                                                                                                                     |                                 |        |                                    |     |   |   |
| LIABILITIES                  AND (DEFICIENCY IN) STOCKHOLDERS' EQUITY                                                                    |                                 |        |                                    |     |   |   |
|                                                                                                                                     |                                 |        |                                    |     |   |   |
| Current                  liabilities                                                                                                     |                                 |        |                                    |     |   |   |
| Accounts                  payable and accrued liabilities                                                                                |                                 | 1,190,080   |                                    |     | 981,169 |   |
| Accrued                  compensation and payroll liabilities                                                                            |                                 | 9,587       |                                    |     | 39,917 |   |
| Accrued                  interest                                                                                                        |                                 | 9,773       |                                    |     | 12,035 |   |
| Notes                  payable and capital leases - current portion (note 6)                                                             |                                 | 132,947     |                                    |     | 162,814 |   |
|                                                                                                                                     |                                 |        |                                    |     |   |   |
| Total                  current liabilities                                                                                               |                                 | 1,342,388   |                                    |     | 1,195,935 |   |
|                                                                                                                                     |                                 |        |                                    |     |   |   |
| Long-term                  portion of notes payable (note 6)                                                                             |                                 | 34,638      |                                    |     | 41,923 |   |
|                                                                                                                                     |                                 |        |                                    |     |   |   |
| Total                  liabilities                                                                                                       |                                 | 1,377,026   |                                    |     | 1,237,858 |   |
|                                                                                                                                     |                                 |        |                                    |     |   |   |
| Commitments                  and contingencies                                                                                           |                                 | -           |                                    |     | - |   |
|                                                                                                                                     |                                 |        |                                    |     |   |   |
| (Deficiency                  in) stockholder's equity                                                                                    |                                 |        |                                    |     |   |   |
| Common                  stock, $0.001 par value; 200,000,000 shares authorized;                                                          |                                 |        |                                    |     |   |   |
| 90,731,596                  shares issued outstanding at March 31, 2007 and December 31, 2006                  (note                  8) |                                 | 90,731      |                                    |     | 90,731 |   |
| Additional                  paid-in capital                                                                                              |                                 | 60,702,446  |                                    |     | 60,702,446 |   |
| Common                  stock to be issued                                                                                               |                                 | 285         |                                    |     | 285 |   |
| Accumulated                  deficit                                                                                                     |                                 | (60,832,259 | )                                       |     | (60,276,138 | ) |
| Total                  (deficiency in) stockholder's equity                                                                              |                                 | (38,797     | )                                       |     | 517,324 |   |
|                                                                                                                                     |                                 |        |                                    |     |   |   |
| Total                  liabilities and (deficiency in) stockholders' equity                                                              | $                                    | 1,338,228   |                                    | $        | 1,755,182 |   |

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Table          of Contents

**NathanielEnergy**

**Condensed      Consolidated Statements of Operations**

|                                                                                                           | **For                  the Three Months**  **Ended March 31,                  2007** |       | **For                  the Three Months Ended March 31, 2006**  |   |
|----------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------|------------|----------------------------------------------------------------------|--------|
| Revenues                                                                                                       | $                                                                                         | 208,197    |                                                                 | $      | 239,527 |   |
|                                                                                                           |                                                                                      |            |                                                                 |   |  |   |
| Cost                  of revenue                                                                               |                                                                                      | 339,227    |                                                                 |   | 210,447 |   |
|                                                                                                           |                                                                                      |            |                                                                 |   |  |   |
| Gross                  profit (loss)                                                                           |                                                                                      | (131,030   | )                                                                    |   | 29,080 |   |
|                                                                                                           |                                                                                      |            |                                                                 |   |  |   |
| Operating                  expenses:                                                                           |                                                                                      |            |                                                                 |   |  |   |
| Selling,                  general and administrative expenses                                                  |                                                                                      | 361,114    |                                                                 |   | 508,934 |   |
| Research                  and development                                                                      |                                                                                      | 68,776     |                                                                 |   | 28,201 |   |
|                                                                                                           |                                                                                      |       |                                                                 |   |   |   |
| Total                  operating expenses                                                                      |                                                                                      | 429,890    |                                                                 |   | 537,135 |   |
|                                                                                                           |                                                                                      |            |                                                                 |   |  |   |
| Loss                  from operations                                                                          |                                                                                      | (560,920   | )                                                                    |   | (508,055 | ) |
|                                                                                                           |                                                                                      |            |                                                                 |   |  |   |
| Other                  income (expense)                                                                        |                                                                                      |            |                                                                 |   |  |   |
| Interest                  income (expense)                                                                     |                                                                                      | (3,382     | )                                                                    |   | (104,685 | ) |
|                                                                                                           |                                                                                      |            |                                                                 |   |  |   |
| Loss                  from continuing operations before income taxes                                           |                                                                                      |            |                                                                 |   |  |   |
| and                  discontinued operations                                                                   |                                                                                      | (564,302   | )                                                                    |   | (612,740 | ) |
|                                                                                                           |                                                                                      |            |                                                                 |   |  |   |
|                                                                                                           |                                                                                      |            |                                                                 |   |  |   |
| Income                  from discontinued operations                                                           |                                                                                      | -          |                                                                 |   | 194,961 |   |
| Gain                  on sale of fixed assets                                                                  |                                                                                      | 8,181      |                                                                 |   |  |   |
| Gain                  on disposal of discontinued operations, net of tax                                       |                                                                                      | -          |                                                                 |   | 5,998,974 |   |
|                                                                                                           |                                                                                      |            |                                                                 |   |  |   |
| Net                  income (loss)                                                                             | $                                                                                         | (556,121   | )                                                                    | $      | 5,581,195 |   |
|                                                                                                           |                                                                                      |            |                                                                 |   |  |   |
| Loss                  per share from continuing operations, basic and diluted                                  | $                                                                                         | (0.01      | )                                                                    | $      | (0.01 | ) |
|                                                                                                           |                                                                                      |            |                                                                 |   |  |   |
| Income                  per share from discontinued operations, basic and diluted                              | $                                                                                         | -          |                                                                 | $      | - |   |
|                                                                                                           |                                                                                      |            |                                                                 |   |  |   |
| Income                  per share from disposal of discontinued operations, basic and                  diluted | $                                                                                         | 0.00       |                                                                 | $      | 0.07 |   |
|                                                                                                           |                                                                                      |            |                                                                 |   |  |   |
| Net                  income (loss) per share, basic and diluted                                                | $                                                                                         | (0.01      | )                                                                    | $      | 0.06 |   |
|                                                                                                           |                                                                                      |            |                                                                 |   |  |   |
| Weighted                  average common shares outstanding                                                    |                                                                                      | 90,731,596 |                                                                 |   | 90,698,263 |   |

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Table          of Contents

**NathanielEnergy**

**Condensed      Consolidated Statements of Cash Flows**

|                                                                   |   |  **For                  the Three Months  Ended March 31, 2007** |     |  **For                  the Three Months  Ended March 31, 2006** |   |
|------------------------------------------------------------------------|--------|----------------------------------------------------------------------------|----------|----------------------------------------------------------------------------|--------|
| Cash                  flows from operating activities:                 |   |                                                                       |     |                                                                       |   |   |   |
| Net                  Income (loss)                                     |   | $                                                                          | (556,121 | )                                                                          | $      | 5,581,195 |   |
| **Adjustments                  to reconcile net income (loss) to net** |   |                                                                       |     |                                                                       |   |   |   |
| **cash                  used in operating activities:**                |   |                                                                       |     |                                                                       |   |   |   |
| Depreciation                  and amortization                         |   |                                                                       | 89,972   |                                                                       |   | 108,859 |   |
| Income                  tax expense                                    |   |                                                                       | -        |                                                                       |   | 759,000 |   |
| Gain                  on sale of assets                                |   |                                                                       | (8,181   | )                                                                          |   | (5,998,974 | ) |
| Changes                  in assets and liabilities:                    |   |                                                                       |     |                                                                       |   |   |   |
| (Increase)                  decrease in assets:                        |   |                                                                       |     |                                                                       |   |   |   |
| Accounts                  receivable, net                              |   |                                                                       | 49,893   |                                                                       |   | (8,400 | ) |
| Prepaid                  expenses                                      |   |                                                                       | 28,529   |                                                                       |   | 44,727 |   |
| Other                  assets                                          |   |                                                                       | (160     | )                                                                          |   | (5,325 | ) |
| Increase                  (decrease) in liabilities:                   |   |                                                                       |     |                                                                       |   |   |   |
| Accounts                  payable and accrued liabilities              |   |                                                                       | 182,701  |                                                                       |   | 590,889 |   |
| Net                  effect on cash from discontinued operations       |   |                                                                       | -        |                                                                       |   | (1,277,957 | ) |
| **Net                  cash used in operating activities**             |   |                                                                       | (213,367 | )                                                                          |   | (205,986 | ) |
|                                                                   |   |                                                                       |     |                                                                       |   |   |   |
| Cash                  flows from investing activities:                 |   |                                                                       |     |                                                                       |   |   |   |
| Acquisition                  of minority interest                      |   |                                                                       | -        |                                                                       |   | (882,000 | ) |
| Proceeds                  from the sale of vehicle                     |   |                                                                       | 5,963    |                                                                       |   | - |   |
| Cash                  flows from discontinued operations               |   |                                                                       | -        |                                                                       |   | 15,767,484 |   |
| Equipment                  and intangible asset purchases              |   |                                                                       | (3,524   | )                                                                          |   | - |   |
| **Net                  cash provided by investing activities**         |   |                                                                       | 2,439    |                                                                       |   | 14,885,484 |   |
|                                                                   |   |                                                                       |     |                                                                       |   |   |   |
| Cash                  flows from financing activities:                 |   |                                                                       |     |                                                                       |   |   |   |
| Payments                  on debt                                      |   |                                                                       | (29,808  | )                                                                          |   | (3,408,772 | ) |
| Cash                  flows from discontinued operations               |   |                                                                       | -        |                                                                       |   | (8,892,151 | ) |
| **Net                  cash used in financing activities**             |   |                                                                       | (29,808  | )                                                                          |   | (12,300,923 | ) |
|                                                                   |   |                                                                       |     |                                                                       |   |   |   |
| Increase                  (decrease) in cash and cash equivalents      |   |                                                                       | (240,736 | )                                                                          |   | 2,378,575 |   |
|                                                                   |   |                                                                       |     |                                                                       |   |   |   |
| Cash                  and cash equivalents at beginning of period      |   |                                                                       | 257,868  |                                                                       |   | 260,032 |   |
|                                                                   |   |                                                                       |     |                                                                       |   |   |   |
| Cash                  and cash equivalents at end of period            |   | $                                                                          | 17,132   |                                                                       | $      | 2,638,607 |   |
|                                                                   |   |                                                                       |     |                                                                       |   |   |   |
| Supplemental                  disclosure of cash flow information:     |   |                                                                       |     |                                                                       |   |   |   |
|                                                                   |   |                                                                       |     |                                                                       |   |   |   |
| Cash                  paid during the period for:                      |   |                                                                       |     |                                                                       |   |   |   |
| Interest                                                               |   | $                                                                          | 5,365    |                                                                       | $      | 1,370,411 |   |
|                                                                   |   |                                                                       |     |                                                                       |   |   |   |
| Taxes                                                                  |   | $                                                                          | -        |                                                                       | $      | - |   |

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Table            of Contents

**Nathaniel        Energy Corporation**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**1.        Significant Accounting Policies and Nature of Operations:**

*Unaudited        Interim Financial Statements*

*Description        of Business*

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Table          of Contents

*Critical        Accounting Policies*

*Research        and Development*

*Property,        Plant and Equipment and Related Depreciation*

| Machinery                  and equipment | 5                  -                  15 years |
|------------------------------------------|------------------------------------------------|
| Buildings                                | 15                  years                      |
| Vehicles                                 | 5                  years                       |

*Long-Lived        Assets*

*Revenue        Recognition*

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Table            of Contents

*Net        Income (Loss) Per Common Share*

*Use        of Estimates*

**2.**
**Accounts        Receivable**

**3.        Prepaid Expenses**

| Prepaid                  expenses  | $      | 2,087  |
|------------------------------------|--------|--------|
| Prepaid                  insurance |   | 9,661  |
|                               | $      | 11,748 |

**4.        Furniture and Equipment**

| Prepaid                    expenses  | $      | 2,087  |
|--------------------------------------|--------|--------|
| Prepaid                    insurance |   | 9,661  |
|                                 | $      | 11,748 |

**4.          Furniture and Equipment**

|                                                  | **March                    31, 2007** |
|-------------------------------------------------------|---------------------------------------|
| Machinery                    and equipment            | $                                     | 1,160,536 |   |
| Buildings                                             |                                  | 43,578 |   |
| Vehicles                                              |                                  | 17,719 |   |
| Land                                                  |                                  | 51,082 |   |
| Furniture,                    fixtures, and equipment |                                  | 186,542 |   |
| Improvements                                          |                                  | 129,423 |   |
|                                                  |                                  | 1,588,880 |   |
| Less:                    Accumulated depreciation     |                                  | (591,377 | ) |
| Net                    book value                     | $                                     | 997,503 |   |

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Table          of Contents

**5.        Intellectual Property**

| Patents                  (at cost)                 | $      | 207,429  |   |
|----------------------------------------------------|--------|----------|--------|
| Blueprints                  and engineering design |   | 299,339  |   |
|                                               |   | 506,768  |   |
| Less:                  Accumulated Amortization    |   | (339,359 | )      |
| Intangible                  assets, net            | $      | 167,409  |   |

**6.        Notes Payable**

|                                                                                                                                                                                                                                                 | **2007** |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
| 15%                  promissory notes payable to individuals, due on demand                                                                                                                                                                          | $        | 17,000 |   |
|                                                                                                                                                                                                                                                 |     |  |   |
| Non-interest                  bearing unsecured promissory note due upon receipt of payments                  from                  the Cologna Veneta, Italy thermal Gasifier TM project owner at 20% of                  amount received |     | 70,000 |   |
|                                                                                                                                                                                                                                                 |     |  |   |
| 4.5%                  installment note, secured by equipment, monthly payments of $2,531                  principal and interest through June 2007                                                                                                   |     | 7,675 |   |
|                                                                                                                                                                                                                                                 |     |  |   |
| 10.59%                  installment note, secured by equipment, monthly payments of $3,231                  principaland                  interest through February 2007                                                                             |     | 17,062 |   |
|                                                                                                                                                                                                                                                 |     |  |   |
| 9.89%                  capital lease, secured by software, monthly payments of $1,595                  principal                  andinterest                  through September 2008                                                                |     | 28,441 |   |
|                                                                                                                                                                                                                                                 |     |  |   |
| 15%                  installment notes for insurance premium financing                                                                                                                                                                               |     | 1,350 |   |
|                                                                                                                                                                                                                                                 |     |  |   |
| 3.35%                  installment note, secured by equipment, monthly payments of $905                  principaland                  interest through September 2009                                                                               |     | 26,057 |   |
|                                                                                                                                                                                                                                                 |     |  |   |
| Total                  debt:                                                                                                                                                                                                                         |     | 167,585 |   |
|                                                                                                                                                                                                                                                 |     |  |   |
| Current                  portion:                                                                                                                                                                                                                    |     | (132,947 | ) |
|                                                                                                                                                                                                                                                 |     |  |   |
| Long-term                  portion:                                                                                                                                                                                                                  | $        | 34,638 |   |

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Table          of Contents

**7.        Business Segments**

|                                                   | **Fuel****Processing** |      | **Renewable                      Energy and EfW** |   | **Discontinued****Operations** |   | **Total** |   |
|--------------------------------------------------------|------------------------|-----------|---------------------------------------------------|--------|--------------------------------|--------|-----------|--------|
| Revenue                                                | $                      | 208,197   |                                              | $      | -                              |   | $         | -      |   | $ | 208,197 |   |
| Depreciation                      and amortization     | $                      | 63,957    |                                              | $      | 26,015                         |   | $         | -      |   | $ | 89,972 |   |
| Net                      income (loss)                 | $                      | (524,866  | )                                                 | $      | (31,255                        | )      | $         | -      |   | $ | (556,121 | ) |
| Capital                      expenditures              | $                      | 3,524     |                                              | $      | -                              |   | $         | -      |   | $ | 3,524 |   |
| Total                      assets as of March 31, 2007 | $                      | 1,223,578 |                                              | $      | 114,650                        |   | $    | -      |   | $ | 1,338,228 |   |

|                                               | **Fuel****Processing** |      | **Alternate****Energy** |   | **Discontinued****Operations** |   | **Total** |
|----------------------------------------------------|------------------------|-----------|-------------------------|--------|--------------------------------|--------|-----------|
| Revenue                                            | $                      | 239,527   |                    | $      | -                              |   | $         | - |   | $ | 239,527 |
| Depreciation                  and amortization     | $                      | 83,914    |                    | $      | 24,945                         |   | $         | - |   | $ | 108,859 |
| Net                  income (loss)                 | $                      | 5,575,654 |                    | $      | (189,420                       | )      | $         | 194,961 |   | $ | 5,581,195 |
| Total                  assets as of March 31, 2006 | $                      | 1,826,211 |                    | $      | 275,449                        |   | $         | 11,805,293 |   | $ | 13,906,953 |

**8.        Stockholder’s Equity**

**9.        Subsequent Events**

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Table          of Contents

**Item        2. Management’s Discussion and Analysis of Results of        Operations.**

**FORWARD        LOOKING STATEMENTS**

| ·   | Our                ability to raise capital necessary to implement our business                plan. |
|--------------------|------------------------------------------------------------------------------------------------------|

| ·   | Our                ability to finance and complete planned projects and facilities                upgrades. |
|--------------------|-------------------------------------------------------------------------------------------------------------|

| ·   | Our                ability to execute our business plan and commercialize the Thermal                GasifierTM technology, including building Thermal GasifiersTM that meet                customers’ specifications and that meet local regulatory environmental and                permit requirements. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our                ability to enter into agreements or relationships with municipalities                and                commercial and industrial businesses in connection with the                commercialization of our Thermal                GasifierTM. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Risks                related to dependency on a small number of                customers. |
|--------------------|-------------------------------------------------------------------------------------------|

| ·   | Our                ability to satisfy our customers’expectations. |
|--------------------|-------------------------------------------------------------------------|

| ·   | Our                ability to employ and retain qualified management and                employees. |
|--------------------|----------------------------------------------------------------------------------------------------|

| ·   | Changes                in government regulations which are applicable to our                business. |
|--------------------|-------------------------------------------------------------------------------------------------------|

| ·   | The                availability of a consistent, economically viable, and sustainable                waste                stream supply to fuel the Thermal GasifierTM                operations. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Changes                in the demand for our products and services, including the impact                from                changes in governmental regulation and funding for alternative                energy. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The                degree and nature of our competition, including the reliability and                pricing of traditional energy sources, economic viability of other                alternative energy sources such as wind and solar                power. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our                ability to pay debt service on loans as they come                due. |
|--------------------|------------------------------------------------------------------------------------------|

| ·   | Our                ability to generate sufficient cash to pay our                creditors. |
|--------------------|---------------------------------------------------------------------------------------------|

| ·   | Disruption                in the economic and financial conditions primarily from the impact                of                terrorist attacks in the United States and overseas, threats of future                attacks, police and military activities and other disruptive worldwide                political events. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table            of Contents

**Company        Overview**

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Table            of Contents

**Results        of Operations**

*Revenue        *

*Cost        of Goods Sold*

*Sales,        General, and Administrative Expenses*

*Interest        expense*

*Net        Income (Loss)*

**Liquidity        and Capital Resources**

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Table            of Contents

**Item        3. Controls and Procedures**

**PART        2: 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.**

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Table          of Contents

**SIGNATURES**

**NATHANIEL        ENERGY CORPORATION**

| Date:                  May 15,                  2007 |   |
|------------------------------------------------------|--------|
|                                                 |   |
|                                                 |   |
|                                                 | By:    | */s/   Brad                  E.                  Bailey                                                * |
|                                                 |   | Brad                  E. BaileyChief                  Executive Officer(Principal                  financial officer)Nathaniel                  Energy Corporation |

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