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| Nevada                                                       |   | 91-1980526                                              |
|--------------------------------------------------------------|--------|---------------------------------------------------------|
| (Jurisdiction                    of Incorporation)           |   | (I.R.S.                    Employer Identification No.) |
|                                                         |   |                                                    |
| 604-700                    West Pender Street, Vancouver, BC |   | V6C                    1G8                              |
| (Address                    of principal executive offices)  |   | (Zip                    Code)                           |

**INTRODUCTION**

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*Page            -            1*

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**PART          I: FINANCIAL INFORMATION**

**Item          1.**
**Financial Statements.**

*Page              -              2*

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**TURNER        VALLEY OIL & GAS, INC.**

**CONSOLIDATED        FINANCIAL STATEMENTS**

**June        30, 2007**

*Page            -            3*

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| **TURNER                    VALLEY OIL & GAS, INC.**                                                                                                                                         |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A                    Development Stage Company)                                                                                                                                                 |
| Consolidated                    Balance Sheets                                                                                                                                                   |
|                                                                                                                                                                                                  |   |   |   |   |   |   |
| ASSETS                                                                                                                                                                                                |   |   |   |   |   |   |
|                                                                                                                                                                                                  |   | June                    30, |   |   | December                    31, |   |
|                                                                                                                                                                                                  |   | 2007 |   |   | 2006 |   |
|                                                                                                                                                                                                  |   | (Unaudited) |   |   |   |   |
| CURRENT                    ASSETS                                                                                                                                                                     |   |   |   |   |   |   |
|                                                                                                                                                                                                  |   |   |   |   |   |   |
| Cash                                                                                                                                                                                                  |   | $ | - |   |   | $ | - |   |
| Accounts                    receivable                                                                                                                                                                |   |   | 6,054 |   |   |   | 8,910 |   |
|                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
| Total                    Current Assets                                                                                                                                                               |   |   | 6,054 |   |   |   | 8,910 |   |
|                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
| OIL                    AND GAS PROPERTIES USING FULL COST ACCOUNTING                                                                                                                                  |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
| Properties                    subject to amortization                                                                                                                                                 |   |   | 23,177 |   |   |   | 28,177 |   |
| Unproved                    properties                                                                                                                                                                |   |   | 925,544 |   |   |   | 925,544 |   |
|                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
| Net                    Oil and Gas Properties                                                                                                                                                         |   |   | 948,721 |   |   |   | 953,721 |   |
|                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
| OTHER                    ASSETS                                                                                                                                                                       |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
| Investments                    - Marketable Securities available for sale                                                                                                                             |   |   | 167,511 |   |   |   | 604,349 |   |
|                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
| Total                    Other Assets                                                                                                                                                                 |   |   | 167,511 |   |   |   | 604,349 |   |
|                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
| TOTAL                    ASSETS                                                                                                                                                                       |   | $ | 1,122,286 |   |   | $ | 1,566,980 |   |
|                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
| LIABILITIES                    AND STOCKHOLDERS' EQUITY                                                                                                                                               |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
| CURRENT                    LIABILITIES                                                                                                                                                                |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
| Bank                    Overdraft                                                                                                                                                                     |   | $ | 16,055 |   |   |   | 3,397 |   |
| Accounts                    payable                                                                                                                                                                   |   |   | 400,410 |   |   | $ | 400,410 |   |
| Notes                    payable, related party                                                                                                                                                       |   |   | 23,658 |   |   |   | 23,658 |   |
|                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
| Total                    Current Liabilities                                                                                                                                                          |   |   | 440,123 |   |   |   | 427,465 |   |
|                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
| Total                    Liabilities                                                                                                                                                                  |   |   | 440,123 |   |   |   | 427,465 |   |
|                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
| Other                    Commitments or Contingencies                                                                                                                                                 |   |   | - |   |   |   | - |   |
|                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
| STOCKHOLDERS'                    EQUITY                                                                                                                                                               |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
| Common                      stock, 100,000,000 shares authorized of $0.001 par value,                      58,535,984 and 58,535,984 shares issued and outstanding,                      respectively |   |   | 58,537 |   |   |   | 58,537 |   |
| Capital                    in excess of par value                                                                                                                                                     |   |   | 4,697,173 |   |   |   | 4,697,173 |   |
| Accumulated                    other comprehensive income                                                                                                                                             |   |   | 87,973 |   |   |   | 495,283 |   |
| Deficit                    accumulated during the development stage                                                                                                                                   |   |   | (4,161,520 | ) |   |   | (4,111,478 | ) |
|                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
| Total                    Stockholders' Equity                                                                                                                                                         |   |   | 682,163 |   |   |   | 1,139,515 |   |
|                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
| TOTAL                    LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                         |   | $ | 1,122,286 |   |   | $ | 1,566,980 |   |

*Page            -            4*

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| **TURNER                    VALLEY OIL & GAS, INC.**           |
|----------------------------------------------------------------------------------------------------------------------|
| (A                    Development Stage Company)                                                                |
| Consolidated                    Statements of Operations and Comprehensive Income/(Loss)         |
| (Unaudited)                                                                                                     |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   | From |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   | Inception                    on |   |
|                                                                                                                 |   | For                    the |   |   | For                    the |   |   | April                    21, 1999 |   |
|                                                                                                                 |   | Three                    Months Ended |   |   | 6                    months Ended |   |   | Through |   |
|                                                                                                                 |   | June                    30, |   |   |   |   |   | June                    30, |   |   |   |   |   | June                    30, |   |
|                                                                                                                 |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |   | 2007 |   |
| REVENUE                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Royalties                    received                                                                                |   | $ | - |   |   | $ | 8,585 |   |   | $ | 401 |   |   | $ | 8,828 |   |   | $ | 21,275 |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| EXPENSES                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost                    of production                                                                                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 51,753 |   |
| Depletion                                                                                                            |   |   | 2,500 |   |   |   | 2,500 |   |   |   | 5,000 |   |   |   | 5,000 |   |   |   | 25,767 |   |
| General                    and administrative                                                                        |   |   | 65,238 |   |   |   | 44,036 |   |   |   | 99,819 |   |   |   | 335,404 |   |   |   | 4,794,997 |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                    Expenses                                                                                    |   |   | 67,738 |   |   |   | 46,536 |   |   |   | 104,819 |   |   |   | 340,404 |   |   |   | 4,872,517 |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET                    OPERATING LOSS                                                                                |   |   | (67,738 | ) |   |   | (37,951 | ) |   |   | (104,418 | ) |   |   | (331,576 | ) |   |   | (4,851,242 | ) |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER                    INCOME (EXPENSE)                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gain                    on sale of investments                                                                       |   |   | 12,537 |   |   |   | 237,825 |   |   |   | 54,376 |   |   |   | 60,161 |   |   |   | 693,014 |   |
| Interest                    expense                                                                                  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (3,292 | ) |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                    Other Income (Expense)                                                                      |   |   | 12,537 |   |   |   | 237,825 |   |   |   | 54,376 |   |   |   | 60,161 |   |   |   | 689,722 |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET                    PROFIT/(LOSS) BEFORE INCOME TAX                                                               |   | $ | (55,201 | ) |   | $ | 199,874 |   |   | $ | (50,042 | ) |   | $ | (271,415 | ) |   | $ | (4,161,520 | ) |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                    tax                                                                                        |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET                    PROFIT/(LOSS)                                                                                 |   | $ | (55,201 | ) |   | $ | 199,874 |   |   | $ | (50,042 | ) |   | $ | (271,415 | ) |   | $ | (4,161,520 | ) |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BASIC                    LOSS PER COMMON SHARE                                                                       |   | $ | (0.00 | ) |   | $ | 0.00 |   |   | $ | (0.00 | ) |   | $ | (0.00 | ) |   |   |   |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| WEIGHTED                      AVERAGE NUMBER OF COMMON SHARES OUTSTANDING                                            |   |   | 58,535,984 |   |   |   | 54,656,702 |   |   |   | 58,535,984 |   |   |   | 54,656,702 |   |   |   |   |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COMPREHENSIVE                    INCOME (LOSS)                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET                    LOSS                                                                                          |   | $ | (55,201 | ) |   | $ | (518,272 | ) |   | $ | (50,042 | ) |   | $ | (548,902 | ) |   | $ | (4,161,520 | ) |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER                    COMPREHENSIVE INCOME (LOSS)                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized                    Gain on Marketable Securities                                                          |   |   | 21,347 |   |   |   |   |   |   |   | (407,310 | ) |   |   | - |   |   |   | 92,058 |   |
| Foreign                    Currency Translation                                                                      |   |   | - |   |   |   | - |   |   |   | 725 |   |   |   | 2,367 |   |   |   | (4,085 | ) |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COMPREHENSIVE                    INCOME (LOSS)                                                                       |   | $ | (33,854 | ) |   | $ | (518,272 | ) |   | $ | (456,627 | ) |   | $ | (546,535 | ) |   | $ | (4,073,547 | ) |

*Page            -            5*

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| **Turner                    Valley Oil & Gas Corporation**                                                                       |
|-------------------------------------------------------------------------------------------------------------------------------------------|
| (A                    Development Stage Company)                                                                                     |
| Statement                    of Stockholders' Equity and Comprehensive Income                                                        |
| For                    the Six Months Ended June 30, 2007                                                                            |
| Unaudited                                                                                                                            |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   | Additional |   |   | Comprehensive |   |   | Retained |   |   | Subscription |   |
|                                                                                                                                      |   | Shares |   |   | Amount |   |   | Paid-in-Capital |   |   | Income/(Loss) |   |   | Earnings |   |   | Receivable |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                    at inception April 21, 1999                                                                                    |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued for services during 1999                                                                                 |   |   | 41,080 |   |   |   | 41 |   |   |   | 5,094 |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued for cash during 1999                                                                                     |   |   | 16,000 |   |   |   | 16 |   |   |   | 99,984 |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    loss for the period ended December 31, 1999                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (96,935 | ) |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                    at December 31, 1999                                                                                           |   |   | 57,080 |   |   |   | 57 |   |   |   | 105,078 |   |   |   | 0 |   |   |   | (96,935 | ) |   |   | 0 |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    Loss for the period ended December 31, 2000                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (27,242 | ) |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                    at December 31, 2000                                                                                           |   |   | 57,080 |   |   |   | 57 |   |   |   | 105,078 |   |   |   | 0 |   |   |   | (124,177 | ) |   |   | 0 |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    Loss for the period ended December 31, 2001                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (65,380 | ) |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                    at December 31, 2001                                                                                           |   |   | 57,080 |   |   |   | 57 |   |   |   | 105,078 |   |   |   | 0 |   |   |   | (189,557 | ) |   |   | 0 |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued for debt reduction during 2002                                                                           |   |   | 8,000 |   |   |   | 8 |   |   |   | 99,992 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued for services during 2002                                                                                 |   |   | 2,190,150 |   |   |   | 2,190 |   |   |   | 1,092,885 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    Loss for the period ended December 31, 2002                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (1,240,008 | ) |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                    at December 31, 2002                                                                                           |   |   | 2,255,230 |   |   |   | 2,255 |   |   |   | 1,297,955 |   |   |   | 0 |   |   |   | (1,429,565 | ) |   |   | 0 |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued for services at $.02 per share                                                                           |   |   | 1,500,000 |   |   |   | 1,500 |   |   |   | 298,500 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Rounding                    of shares from reverse split                                                                                  |   |   | 2,000 |   |   |   | 2 |   |   |   | (2 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued for accounts payalbe at $.05 Per share                                                                   |   |   | 8,000,000 |   |   |   | 8,000 |   |   |   | 392,000 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued for services at $.015 per share                                                                          |   |   | 31,729,200 |   |   |   | 31,729 |   |   |   | 444,209 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued for services at $.015 per share                                                                          |   |   | 9,487,504 |   |   |   | 9,488 |   |   |   | 132,825 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued pursuant to S-8 registration at $.05 per share                                                           |   |   | 2,000,000 |   |   |   | 2,000 |   |   |   | 98,000 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued pursuant to S-8 registration at $.05 per share                                                           |   |   | 650,000 |   |   |   | 650 |   |   |   | 31,850 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cancellation                    of Common Stock                                                                                           |   |   | (16,691,520 | ) |   |   | (16,692 | ) |   |   | (220,459 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued for cash at $.05 per share                                                                               |   |   | 3,000,000 |   |   |   | 3,000 |   |   |   | 147,000 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued for cash at $.30 per share                                                                               |   |   | 100,000 |   |   |   | 100 |   |   |   | 29,900 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued for cash at $.35 per share                                                                               |   |   | 528,570 |   |   |   | 529 |   |   |   | 184,471 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign                    Currency Translation                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (1,718 | ) |   |   |   |   |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    Loss for the period ended December 31, 2003                                                                        |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   |   |   |   |   | (1,137,760 | ) |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                    at December 31, 2003                                                                                           |   | ** ** | **42,560,984** |   |   | ** ** | **42,561** |   |   | ** ** | **2,836,249** |   |   | ** ** | **(1,718** | **)** |   | ** ** | **(2,567,325** | **)** |   | ** ** | **0** |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued pursuant to S-8 registration at $.20 per share                                                           |   |   | 932,500 |   |   |   | 933 |   |   |   | 185,567 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued pursuant to S-8 registration at $.08 per share                                                           |   |   | 1,597,500 |   |   |   | 1,598 |   |   |   | 126,202 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued pursuant to S-8 registration at $.08 per share                                                           |   |   | 1,000,000 |   |   |   | 1,000 |   |   |   | 79,000 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued pursuant to S-8 registration at $.11 per share                                                           |   |   | 85,000 |   |   |   | 85 |   |   |   | 9,265 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 9/30/2004                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued pursuant to S-8 registration at $ .20 per share                                                          |   |   | 1,385,000 |   |   |   | 1,385 |   |   |   | 275,615 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued for Cash at $.05 per share                                                                               |   |   | 975,000 |   |   |   | 975 |   |   |   | 47,775 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Subscription                    Recievable                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (48,750 | ) |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign                    Currency Translation                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   | ** ** | **(2,367** | **)** |   |   |   |   |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    Loss for the period ended December 31, 2004                                                                        |   | ** ** | **0** |   |   | ** ** | **0** |   |   | ** ** | **0** |   |   | ** ** | **0** |   |   | ** ** | **(784,001** | **)** |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                    at December 31, 2004                                                                                           |   | ** ** | **48,535,984** |   |   | ** ** | **48,537** |   |   | ** ** | **3,559,673** |   |   | ** ** | **(4,085** | **)** |   | ** ** | **(3,351,325** | **)** |   | ** ** | **(48,750** | **)** |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued pursuant to S-8 registration at $.13 per share                                                           |   |   | 2,850,000 |   |   |   | 2,850 |   |   |   | 367,650 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued pursuant to S-8 registration at $.13 per                    share  at $.13 per share |   |   | 2,000,000 |   |   |   | 2,000 |   |   |   | 258,000 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign                    Currency Translation                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (725 | ) |   |   |   |   |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Subscription                    Recievable                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 48,750 |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    Loss for the period ended  December 31, 2005                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (472,917 | ) |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Balance                    at December 31, 2005**                                                                                       |   | ** ** | **53,385,984** |   |   | ** ** | **53,387** |   |   | ** ** | **4,185,323** |   |   | ** ** | **(4,810** | **)** |   | ** ** | **(3,824,242** | **)** |   | ** ** | **0** |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued pursuant to S-8 registration at $.13 per share                                                           |   |   | 2,000,000 |   |   |   | 2,000 |   |   |   | 258,000 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued pursuant to S-8 registration at $.08 per share                                                           |   |   | 1,600,000 |   |   |   | 1,600 |   |   |   | 126400 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued pursuant to S-8 registration at $.08 per share                                                           |   |   | 1,450,000 |   |   |   | 1,450 |   |   |   | 114,550 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued under Rule 144 at $0.13 per share                                                                        |   |   | 100,000 |   |   |   | 100 |   |   |   | 12,900 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    Income for the year ended December 31, 2006                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 500,093 |   |   |   | (287,236 | ) |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Balance                    as at December 31, 2006**                                                                                    |   | ** ** | **58,535,984** |   |   | ** ** | **58,537** |   |   | ** ** | **4,697,173** |   |   | ** ** | **495,283** |   |   | ** ** | **(4,111,478** | **)** |   | ** ** | **0** |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revaluation                    of investment in Win                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (407,310 | ) |   |   |   |   |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    Income/(loss) for the quarter ended June 30, 2007                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | -50,042 |   |   |   |   |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                    as at June 30, 2007                                                                                            |   | ** ** | **58,535,984** |   |   | ** ** | **58,537** |   |   | ** ** | **4,697,173** |   |   | ** ** | **87,973** |   |   | ** ** | **(4,161,520** | **)** |   | ** ** | **0** |   |

*Page            -            6*

----

| **TURNER                      VALLEY OIL & GAS, INC.**                   |   |
|------------------------------------------------------------------------------|--------|
| (A                      Development Stage Company)                           |   |
| Consolidated                      Statements of Cash Flows                   |   |
| (Unaudited)                                    |   |
|                                                                         |   |   |   |   |   |   |   | From |   |
|                                                                         |   |   |   |   |   |   |   | Inception                      on |   |
|                                                                         |   |   |   |   |   |   |   | April                      21, 1999 |   |
|                                                                         |   | For                      the 6 months Ended |   |   | Through |   |
|                                                                         |   | June                      30,    |   |   | June                      30, |   |
|                                                                         |   | 2007 |   |   | 2006 |   |   | 2007 |   |
|                                                                         |   |   |   |   |   |   |   |   |   |
| CASH                      FLOWS FROM OPERATING ACTIVITIES:                   |   |   |   |   |   |   |   |   |   |
|                                                                         |   |   |   |   |   |   |   |   |   |
| Net                      loss                                                |   | $ | (50,042 | ) |   | $ | (271,414 | ) |   | $ | (4,161,520 | ) |
| Adjustments                      to reconcile net loss to net cash           |   |   |   |   |   |   |   |   |   |   |   |   |
|   used                      in operating activities:               |   |   |   |   |   |   |   |   |   |   |   |   |
| Depletion                                                                    |   |   | 5,000 |   |   |   | 5,000 |   |   |   | 25,767 |   |
| Loss                      on abandonment of property                         |   |   | - |   |   |   | - |   |   |   | 25,481 |   |
| Gain                      on sale of Investment                              |   |   | (54,736 | ) |   |   | (66,328 | ) |   |   | (703,515 | ) |
| Common                      stock issued for services rendered               |   |   | - |   |   |   | 260,000 |   |   |   | 4,241,960 |   |
| Non-cash                      Effect from Foreign Currency Translation       |   |   | - |   |   |   | 725 |   |   |   | (4,080 | ) |
| Changes                      in operating assets and liabilities:            |   |   |   |   |   |   |   |   |   |   |   |   |
| Increase                      (Decrease) in bank Overdraft                   |   |   | 16,055 |   |   |   | - |   |   |   | 16,055 |   |
| Increase                      (Decrease) in accounts receivable              |   |   | 2,857 |   |   |   | (7,291 | ) |   |   | (2,135 | ) |
| Increase                      (Decrease) in accounts payable - related Party |   |   |   |   |   |   | - |   |   |   | 23,659 |   |
| Increase                      in accounts payable and accrued expenses       |   |   | - |   |   |   | 54,726 |   |   |   | 301,189 |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                      Cash Used in Operating Activities                   |   |   | (80,866 | ) |   |   | (24,582 | ) |   |   | (237,139 | ) |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH                      FLOWS FROM INVESTING ACTIVITIES:                   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds                      from sale of investments                       |   |   | 80,866 |   |   |   | 74,972 |   |   |   | 861,647 |   |
| Investing                      in new Oil & Gas working interests        |   |   | - |   |   |   | (126,203 | ) |   |   | (825,544 | ) |
| Expenditures                      for oil and gas property development       |   |   |   |   |   |   | - |   |   |   | (312,714 | ) |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                      Cash Used in Investing Activities                   |   |   | 80,866 |   |   |   | (51,231 | ) |   |   | (276,611 | ) |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH                      FLOWS FROM FINANCING ACTIVITIES:                   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds                      from issuance of common stock                  |   |   | - |   |   |   | - |   |   |   | 465,000 |   |
| Receipt                      of subscription receivable                      |   |   | - |   |   |   | - |   |   |   | 48,750 |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                      Cash Provided by Financing Activities               |   |   | - |   |   |   | - |   |   |   | 513,750 |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| NET                      INCREASE (DECREASE) IN CASH                         |   |   | - |   |   |   | (75,813 | ) |   |   | - |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH                      AND CASH EQUIVALENTS AT BEGINNING OF PERIOD        |   |   | - |   |   |   | 78,848 |   |   |   | - |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH                      AND CASH EQUIVALENTS AT END OF PERIOD              |   | $ | - |   |   | $ | 3,035 |   |   | $ | - |   |

| **TURNER                      VALLEY OIL & GAS, INC.**             |
|------------------------------------------------------------------------|
| (A                      Development Stage Company)                |
| Consolidated                      Statements of Cash Flows (Continued) |
|                                                                   |   |   |   |   |   |   |   |   |   |
|                                                                   |   |   |   |   |   |   |   | From |   |
|                                                                   |   |   |   |   |   |   |   | Inception                      on |   |
|                                                                   |   |   |   |   |   |   |   | April                      21, 1999 |   |
|                                                                   |   | For                      the Six Months |   |   | Through |   |
|                                                                   |   | June                      30,    |   |   | June                      30, |   |
|                                                                   |   | 2007 |   |   | 2006 |   |   | 2007 |   |
|                                                                   |   |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL                      CASH FLOW INFORMATION                |   |   |   |   |   |   |   |   |   |
|                                                                   |   |   |   |   |   |   |   |   |   |
| CASH                      PAID FOR:                                    |   |   |   |   |   |   |   |   |   |
|                                                                   |   |   |   |   |   |   |   |   |   |
| Interest                                                               |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Income                      taxes                                      |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| NON-CASH                      FINANCING ACTIVITIES                     |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                      stock issued for services rendered         |   | $ | - |   |   | $ | 260,000 |   |   | $ | 3,709,460 |   |
| Common                      stock issued for retirement of payables    |   | $ | - |   |   | $ | - |   |   | $ | 532,500 |   |

*Page              -              7*

----

**Item          2. **
**Discussionand          Analysis          or Plan of Operation.**

| **(A)  ** | **PLAN                        OF OPERATION.** |
|---------------------|-----------------------------------------------|

| **(B)  ** | **DISCUSSION                        AND                        ANALYSIS OF FINANCIAL CONDITION AND RESULTS                        OF** **OPERATIONS.** |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

**The            Strachan Property**

*Page              -              8*

----

**The            Strachan Property – Leduc region**

|  | 1) | In                      the spacing unit for the Earning Well, a 1.500% interest in                      the petroleum                      and natural gas below the base of the Mannville excluding natural                      gas in                      the Leduc formation, and a 3.00% interest in the natural gas                      in the Leduc                      formation before payout subject to payment of an Overriding                      Royalty which                      is convertible upon payout at the Royalty Owners option to                      50% of our                      interest. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 2) | A                      1.200% interest in the rights below the base line of the Shunda                      formation                      in Section 10,Township 38, Range                      9W5M |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 3) | A                      0.966% interest in the rights below the base of the Shunda                      formation in                      sections 15 & 16,Township 38,Range 9W5M, down to the base of the                      deepest formation penetrated. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Page                -                9*

----

**Mississippi**
**            Prospect**

**General            & Administrative Costs**

**Liquidity**

*Page              -              10*

----

**PART          II: OTHER INFORMATION**

**Item          1. **
**Legal Proceedings. **

**Item          2. **
**Changes in Securities. **

**Item          3. **
**Defaults on Senior Securities.**

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

**Item          5. **
**Other Information. None.**

**Item          6.**
** Exhibits and Reports on Form          8-K**

**Exhibit            31.**
** Section 302 Certification**

**Exhibit            32.**
** Certification Pursuant TO 18 USC Section            1350**

*Page              -              11*

----

**SIGNATURES**

**Turner**
**Valley**
**          Oil and Gas, Inc.**

| /s/Kulwant                      Sandher                                      |         | /s/Donald                      Jackson Wells      |         | /s/Joseph                      Kane       |
|------------------------------------------------------------------------------|--------------|---------------------------------------------------|--------------|-------------------------------------------|
| Kulwant                      Sandher President                    / CFO |    | Donald                      Jackson Wellsdirector |    | Joseph                      Kane director |

----