----

----

|   | 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) |   |
|--------|-----------------------------------------------|-----------------|--------|

----

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----

| ASSETS                                                                                                                           |
|----------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                             |   | June 30, |   |   | December 31, |   |
|                                                                                                                             |   | 2008 |   |   | 2007 |   |
|                                                                                                                             |   |   |   |   |   |   |
| CURRENT      ASSETS                                                                                                              |   |   |   |   |   |   |
|                                                                                                                             |   |   |   |   |   |   |
| Cash                                                                                                                             |   | $ | 11,656 |   |   | $ | 75,688 |   |
| Accounts      receivable                                                                                                         |   |   | 13,790 |   |   |   | 8,088 |   |
|                                                                                                                             |   |   |   |   |   |   |   |   |
| Total      Current Assets                                                                                                        |   |   | 25,446 |   |   |   | 83,776 |   |
|                                                                                                                             |   |   |   |   |   |   |   |   |
| OIL AND GAS      PROPERTIES USING FULL      COST ACCOUNTING                                                                      |   |   |   |   |   |   |   |   |
|                                                                                                                             |   |   |   |   |   |   |   |   |
| Properties      subject to amortization                                                                                          |   |   | 13,175 |   |   |   | 18,175 |   |
| Unproved      properties                                                                                                         |   |   | - |   |   |   | - |   |
|                                                                                                                             |   |   |   |   |   |   |   |   |
| Net      Oil and Gas Properties                                                                                                  |   |   | 13,175 |   |   |   | 18,175 |   |
|                                                                                                                             |   |   |   |   |   |   |   |   |
| OTHER      ASSETS                                                                                                                |   |   |   |   |   |   |   |   |
|                                                                                                                             |   |   |   |   |   |   |   |   |
| Investments      - Marketable Securities available for sale                                                                      |   |   | - |   |   |   | - |   |
|                                                                                                                             |   |   |   |   |   |   |   |   |
| Total      Other Assets                                                                                                          |   |   | - |   |   |   | - |   |
|                                                                                                                             |   |   |   |   |   |   |   |   |
| TOTAL      ASSETS                                                                                                                |   | $ | 38,621 |   |   | $ | 101,951 |   |
|                                                                                                                             |   |   |   |   |   |   |   |   |
| LIABILITIES AND      STOCKHOLDERS' EQUITY                                                                                        |
|                                                                                                                             |   |   |   |   |   |   |   |   |
| CURRENT      LIABILITIES                                                                                                         |   |   |   |   |   |   |   |   |
|                                                                                                                             |   |   |   |   |   |   |   |   |
|                                                                                                                             |   |   |   |   |   |   |   |   |
| Accounts      payable                                                                                                            |   | $ | 35,420 |   |   | $ | 4,211 |   |
| Notes      payable, related party                                                                                                |   |   | 23,658 |   |   |   | 23,658 |   |
|                                                                                                                             |   |   |   |   |   |   |   |   |
| Total      Current Liabilities                                                                                                   |   |   | 59,078 |   |   |   | 27,869 |   |
|                                                                                                                             |   |   |   |   |   |   |   |   |
| Total      Liabilities                                                                                                           |   |   | 59,078 |   |   |   | 27,869 |   |
|                                                                                                                             |   |   |   |   |   |   |   |   |
| Other      Commitments or Contingencies                                                                                          |   |   | - |   |   |   | - |   |
|                                                                                                                             |   |   |   |   |   |   |   |   |
| STOCKHOLDERS'      EQUITY                                                                                                        |   |   |   |   |   |   |   |   |
|                                                                                                                             |   |   |   |   |   |   |   |   |
| Common      stock, 100,000,000 shares authorized of $0.001par value, 61,335,984 shares      issued and outstanding, respectively |   |   | 61,337 |   |   |   | 61,337 |   |
| Capital      in excess of par value                                                                                              |   |   | 4,741,873 |   |   |   | 4,741,873 |   |
| Accumulated      other comprehensive income                                                                                      |   |   | (3,357 | ) |   |   | (3,356 | ) |
| Deficit      accumulated during the development stage                                                                            |   |   | (4,820,310 | ) |   |   | (4,725,772 | ) |
|                                                                                                                             |   |   |   |   |   |   |   |   |
| Total      Stockholders' Equity                                                                                                  |   |   | (20,457 | ) |   |   | 74,082 |   |
|                                                                                                                             |   |   |   |   |   |   |   |   |
| TOTAL      LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                  |   | $ | 38,621 |   |   | $ | 101,951 |   |

----

|                                                      |   |                    |       |   |                  |   |       |                |   |   |       |   |   | From              |       |
|-----------------------------------------------------------|--------|-------------------------|------------|--------|-----------------------|--------|------------|---------------------|--------|--------|------------|--------|--------|-------------------|------------|
|                                                      |   |                    |       |   |                  |   |       |                |   |   |       |   |   | Inception      on |       |
|                                                      |   | For      the            |       |   | For      the          |   |       | April      21, 1999 |   |
|                                                      |   | Three      Months Ended |       |   | Six      months Ended |   |       | Through             |   |
|                                                      |   | June 30,           |       |   | June 30,         |   |       | June,      30       |   |
|                                                      |   | 2008                    |       |   | 2007                  |   |       | 2008                |   |   | 2007       |   |   | 2008              |       |
| REVENUE                                                   |   |                    |       |   |                  |   |       |                |   |   |       |   |   |              |       |
|                                                      |   |                    |       |   |                  |   |       |                |   |   |       |   |   |              |       |
| Royalties      received                                   |   | $                       | 2,285      |   |                  | $      | -          |                |   | $      | 3,741      |   |   | $                 | 401        |   |   | $ | 28,780 |   |
|                                                      |   |                    |       |   |                  |   |       |                |   |   |       |   |   |              |       |   |   |   |   |   |
| EXPENSES                                                  |   |                    |       |   |                  |   |       |                |   |   |       |   |   |              |       |   |   |   |   |   |
|                                                      |   |                    |       |   |                  |   |       |                |   |   |       |   |   |              |       |   |   |   |   |   |
| Cost      of production                                   |   |                    | -          |   |                  |   | -          |                |   |   | -          |   |   |              | -          |   |   |   | 51,753 |   |
| Depletion                                                 |   |                    | 2,500      |   |                  |   | 2,500      |                |   |   | 5,000      |   |   |              | 5,000      |   |   |   | 35,767 |   |
| Abandonment      of natural gas and oil property          |   |                    | -          |   |                  |   | -          |                |   |   | -          |   |   |              | -          |   |   |   | 525,544 |   |
| General      and administrative                           |   |                    | 13,403     |   |                  |   | 65,238     |                |   |   | 96,459     |   |   |              | 99,819     |   |   |   | 5,039,770 |   |
|                                                      |   |                    |       |   |                  |   |       |                |   |   |       |   |   |              |       |   |   |   |   |   |
| Total      Expenses                                       |   |                    | 15,903     |   |                  |   | 67,738     |                |   |   | 101,459    |   |   |              | 104,819    |   |   |   | 5,652,834 |   |
|                                                      |   |                    |       |   |                  |   |       |                |   |   |       |   |   |              |       |   |   |   |   |   |
| NET      OPERATING LOSS                                   |   |                    | (13,618    | )      |                  |   | (67,738    | )                   |   |   | (97,718    | )      |   |              | (104,418   | ) |   |   | (5,624,054 | ) |
|                                                      |   |                    |       |   |                  |   |       |                |   |   |       |   |   |              |       |   |   |   |   |   |
| OTHER      INCOME (EXPENSE)                               |   |                    |       |   |                  |   |       |                |   |   |       |   |   |              |       |   |   |   |   |   |
|                                                      |   |                    |       |   |                  |   |       |                |   |   |       |   |   |              |       |   |   |   |   |   |
| Gain      on sale of investments                          |   |                    |       |   |                  |   | 12,537     |                |   |   | -          |   |   |              | 54,376     |   |   |   | 798,510 |   |
| Rent      Received                                        |   |                    | 785        |   |                  |   |       |                |   |   | 3,178      |   |   |              | -          |   |   |   | 8,526 |   |
| Interest      expense                                     |   |                    | -          |   |                  |   | -          |                |   |   | -          |   |   |              | -          |   |   |   | (3,292 | ) |
|                                                      |   |                    |       |   |                  |   |       |                |   |   |       |   |   |              |       |   |   |   |   |   |
| Total      Other Income (Expense)                         |   |                    | 785        |   |                  |   | 12,537     |                |   |   | 3,178      |   |   |              | 54,376     |   |   |   | 803,744 |   |
|                                                      |   |                    |       |   |                  |   |       |                |   |   |       |   |   |              |       |   |   |   |   |   |
| NET      PROFIT/(LOSS) BEFORE INCOME TAX                  |   | $                       | (12,833    | )      |                  | $      | (55,201    | )                   |   | $      | (94,540    | )      |   | $                 | (50,042    | ) |   | $ | (4,820,310 | ) |
|                                                      |   |                    |       |   |                  |   |       |                |   |   |       |   |   |              |       |   |   |   |   |   |
| Income      tax                                           |   | $                       | -          |   |                  | $      | -          |                |   | $      | -          |   |   | $                 | -          |   |   | $ | - |   |
|                                                      |   |                    |       |   |                  |   |       |                |   |   |       |   |   |              |       |   |   |   |   |   |
| NET      PROFIT/(LOSS)                                    |   | $                       | (12,833    | )      |                  | $      | (55,201    | )                   |   | $      | (94,540    | )      |   | $                 | (50,042    | ) |   | $ | (4,820,310 | ) |
|                                                      |   |                    |       |   |                  |   |       |                |   |   |       |   |   |              |       |   |   |   |   |   |
| BASIC      LOSS PER COMMON SHARE                          |   | $                       | (0.00      | )      |                  | $      | (0.00      | )                   |   | $      | (0.00      | )      |   | $                 | (0.00      | ) |   |   |   |   |
|                                                      |   |                    |       |   |                  |   |       |                |   |   |       |   |   |              |       |   |   |   |   |   |
| WEIGHTED      AVERAGE NUMBER OF COMMON SHARES OUTSTANDING |   |                    | 61,335,984 |   |                  |   | 58,535,984 |                |   |   | 61,335,984 |   |   |              | 58,535,984 |   |   |   |   |   |
|                                                      |   |                    |       |   |                  |   |       |                |   |   |       |   |   |              |       |   |   |   |   |   |
| COMPREHENSIVE      INCOME (LOSS)                          |   |                    |       |   |                  |   |       |                |   |   |       |   |   |              |       |   |   |   |   |   |
|                                                      |   |                    |       |   |                  |   |       |                |   |   |       |   |   |              |       |   |   |   |   |   |
| NET      LOSS                                             |   | $                       | (12,833    | )      |                  | $      | (55,201    | )                   |   | $      | (94,540    | )      |   | $                 | (50,042    | ) |   | $ | (4,820,310 | ) |
|                                                      |   |                    |       |   |                  |   |       |                |   |   |       |   |   |              |       |   |   |   |   |   |
| OTHER      COMPREHENSIVE INCOME (LOSS)                    |   |                    |       |   |                  |   |       |                |   |   |       |   |   |              |       |   |   |   |   |   |
| Unrealized      Gain on Marketable Securities             |   |                    |       |   |                  |   | 21,347     |                |   |   | -          |   |   |              | (407,310   | ) |   |   | (725 | ) |
| Foreign      Currency Translation                         |   |                    | -          |   |                  |   | -          |                |   |   | -          |   |   |              | 725        |   |   |   | (3,357 | ) |
|                                                      |   |                    |       |   |                  |   |       |                |   |   |       |   |   |              |       |   |   |   |   |   |
| COMPREHENSIVE      INCOME (LOSS)                          |   | $                       | (12,833    | )      |                  | $      | (33,854    | )                   |   | $      | (94,540    | )      |   | $                 | (456,627   | ) |   | $ | (4,824,392 | ) |

----

|                                                                                                                                 |   |   |        |   |   |   |    | 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 payable 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                                                                    |   |   | 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 |   |
|                                                                                                                                 |   |   |        |   |   |   |    |            |   |   |          |   |   |     |    |   |         |    |   |   |   |   |   |   |
| Realization      of unrealized gains on investments Foreign currency      transalationIssuance of S-8 stock for services at    $0.01 |   |   | 1,500,000   |   |   |   | 1,500   |            |   |   | 13,500        |   |   |     |    |   |         |    |   |   |   |   |   |   |
|                                                                                                                                 |   |   |        |   |   |   |    |            |   |   |          |   |   |     |    |   |         |    |   |   |   |   |   |   |
| Issuance      of S-8 stock for services at $0.025                                                                                    |   |   | 1,300,000   |   |   |   | 1,300   |            |   |   | 31,200        |   |   |     |    |   |         |    |   |   |   |   |   |   |
|                                                                                                                                 |   |   |        |   |   |   |    |            |   |   |          |   |   |     |    |   |         |    |   |   |   |   |   |   |
| Net      Income/(loss) for the year ended December 31, 2007                                                                     |   |   |        |   |   |   |    |            |   |   |          |   |   |     |    |   |         |    | (614,292 | ) |   |   |   |   |
|                                                                                                                                 |   |   |        |   |   |   |    |            |   |   |          |   |   |     |    |   |         |    |   |   |   |   |   |   |
| Balance      as at December 31, 2007                                                                                            |   |   | 61,335,984  |   |   |   | 61,337  |            |   |   | 4,741,873     |   |   |     | (3,357  | )      |         |    | (4,725,770 | ) |   |   |   |   |
|                                                                                                                                 |   |   |        |   |   |   |    |            |   |   |          |   |   |     |    |   |         |    |   |   |   |   |   |   |
|                                                                                                                                 |   |   |        |   |   |   |    |            |   |   |          |   |   |     |    |   |         |    |   |   |   |   |   |   |
| Net      Income/(loss) for the quarter ended June 30, 2008                                                                      |   |   |        |   |   |   |    |            |   |   |          |   |   |     |    |   |         |    | -94,540 |   |   |   |   |   |
|                                                                                                                                 |   |   |        |   |   |   |    |            |   |   |          |   |   |     |    |   |         |    |   |   |   |   |   |   |
| Balance      as at June 30, 2008                                                                                                |   |   | 61,335,984  |   |   |   | 61,337  |            |   |   | 4,741,873     |   |   |     | (3,357  | )      |         |    | (4,820,310 | ) |   |   | 0 |   |

----

|                                                                                  |   |                        |    |   |          |   |    | From                     |   |
|---------------------------------------------------------------------------------------|--------|-----------------------------|---------|--------|---------------|--------|---------|--------------------------|--------|
|                                                                                  |   |                        |    |   |          |   |    | Inception      on        |   |
|                                                                                  |   |                        |    |   |          |   |    | April 21,      1999 |   |
|                                                                                  |   | For      the 6 months Ended |    |   | Through       |   |
|                                                                                  |   | June 30,               |    |   | June 30, |   |
|                                                                                  |   | 2008                        |    |   | 2007          |   |    | 2008                     |   |
|                                                                                  |   |                        |    |   |          |   |    |                     |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES:                                            |   |                        |    |   |          |   |    |                     |   |
|                                                                                  |   |                        |    |   |          |   |    |                     |   |
| Net      loss                                                                         |   | $                           | (94,540 | )      |          | $      | (50,042 | )                        |   | $ | (4,820,310 | ) |
| Adjustments      to reconcile net loss to net cash used in operating      activities: |   |                        |    |   |          |   |    |                     |   |   |   |   |
| Depletion                                                                             |   |                        | 5,000   |   |          |   | 5,000   |                     |   |   | 35,767 |   |
| Loss      on abandonment of property                                                  |   |                        | -       |   |          |   | -       |                     |   |   | 551,025 |   |
| Gain      on sale of Investment                                                       |   |                        | -       |   |          |   | (54,736 | )                        |   |   | (834,085 | ) |
| Common      stock issued for services rendered                                        |   |                        | -       |   |          |   | -       |                     |   |   | 4,289,460 |   |
| Non-cash      Effect from Foreign Currency Translation                                |   |                        | -       |   |          |   | -       |                     |   |   | 1,274 |   |
| Changes      in operating assets and liabilities:                                     |   |                        |    |   |          |   |    |                     |   |   | (4,085 | ) |
| Increase      (Decrease) in bank Overdraft                                            |   |                        | -       |   |          |   | 16,055  |                     |   |   | - |   |
| Increase      (Decrease) in accounts receivable                                       |   |                        | (5,701  | )      |          |   | 2,857   |                     |   |   | (6,420 | ) |
| Increase      (Decrease) in accounts payable - related Party                          |   |                        |    |   |          |   | -       |                     |   |   | 23,659 |   |
| Increase      in accounts payable and accrued expenses                                |   |                        | 31,209  |   |          |   | -       |                     |   |   | 326,797 |   |
|                                                                                  |   |                        |    |   |          |   |    |                     |   |   |   |   |
| Net      Cash Used in Operating Activities                                            |   |                        | (64,032 | )      |          |   | (80,866 | )                        |   |   | (436,918 | ) |
|                                                                                  |   |                        |    |   |          |   |    |                     |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES:                                            |   |                        |    |   |          |   |    |                     |   |   |   |   |
|                                                                                  |   |                        |    |   |          |   |    |                     |   |   |   |   |
| Proceeds      from sale of investments                                                |   |                        | -       |   |          |   | 80,866  |                     |   |   | 1,073,082 |   |
| Investing      in new Oil & Gas working interests                                 |   |                        | -       |   |          |   | -       |                     |   |   | (825,544 | ) |
| Expenditures      for oil and gas property development                                |   |                        |    |   |          |   | -       |                     |   |   | (312,714 | ) |
|                                                                                  |   |                        |    |   |          |   |    |                     |   |   |   |   |
| Net      Cash Used in Investing Activities                                            |   |                        | -       |   |          |   | 80,866  |                     |   |   | (65,176 | ) |
|                                                                                  |   |                        |    |   |          |   |    |                     |   |   |   |   |
| 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                                                  |   |                        | (64,032 | )      |          |   | -       |                     |   |   | 11,656 |   |
|                                                                                  |   |                        |    |   |          |   |    |                     |   |   |   |   |
| CASH      AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                 |   |                        | 75,688  |   |          |   | -       |                     |   |   | - |   |
|                                                                                  |   |                        |    |   |          |   |    |                     |   |   |   |   |
| CASH      AND CASH EQUIVALENTS AT END OF PERIOD                                       |   | $                           | 11,656  |   |          | $      | -       |                     |   | $ | 11,656 |   |
|                                                                                  |   |                        |    |   |          |   |    |                     |   |   |   |   |
| SUPPLEMENTAL      CASH FLOW INFORMATION                                               |   |                        |    |   |          |   |    |                     |   |   |   |   |
|                                                                                  |   |                        |    |   |          |   |    |                     |   |   |   |   |
| CASH      PAID FOR:                                                                   |   |                        |    |   |          |   |    |                     |   |   |   |   |
|                                                                                  |   |                        |    |   |          |   |    |                     |   |   |   |   |
| Interest                                                                              |   | $                           | -       |   |          | $      | -       |                     |   | $ | - |   |
| Income      taxes                                                                     |   | $                           | -       |   |          | $      | -       |                     |   | $ | - |   |
|                                                                                  |   |                        |    |   |          |   |    |                     |   |   |   |   |
| NON-CASH      FINANCING ACTIVITIES                                                    |   |                        |    |   |          |   |    |                     |   |   |   |   |
|                                                                                  |   |                        |    |   |          |   |    |                     |   |   |   |   |
| Common      stock issued for services rendered                                        |   | $                           | -       |   |          | $      | -       |                     |   | $ | 3,756,960 |   |
| Common      stock issued for retirement of payables                                   |   | $                           | -       |   |          | $      | -       |                     |   | $ | 532,500 |   |

----

| NOTE      1 - | BASIS      OF PRESENTATION |
|---------------|----------------------------|

| NOTE      2 - | LOSS      PER SHARE |
|---------------|---------------------|

|                                                           |   | For      the            |       |
|----------------------------------------------------------------|--------|-------------------------|------------|
|                                                           |   | Three      Months Ended |       |
|                                                           |   | June 30,           |       |
|                                                           |   | 2008                    |       |   | 2007 |   |
|                                                           |   |                    |       |   |   |   |
| Net      loss)available to common shareholders                 |   | $                       | (12,833    | ) |   | $ | (55,201 | ) |
|                                                           |   |                    |       |   |   |   |   |   |
| Weighted      average shares                                   |   |                    | 61,335,984 |   |   |   | 58,535,984 |   |
|                                                           |   |                    |       |   |   |   |   |   |
| Basic      income per share (based on weighted average shares) |   | $                       | 0.00       |   |   | $ | 0.00 |   |

|                                                           |   | For      the          |       |
|----------------------------------------------------------------|--------|-----------------------|------------|
|                                                           |   | Six      Months Ended |       |
|                                                           |   | June 30,         |       |
|                                                           |   | 2008                  |       |   | 2007 |   |
|                                                           |   |                  |       |   |   |   |
| Net      loss)available to common shareholders                 |   | $                     | (94,540    | ) |   | $ | (50,042 | ) |
|                                                           |   |                  |       |   |   |   |   |   |
| Weighted      average shares                                   |   |                  | 61,335,984 |   |   |   | 58,535,984 |   |
|                                                           |   |                  |       |   |   |   |   |   |
| Basic      income per share (based on weighted average shares) |   | $                     | 0.00       |   |   | $ | 0.00 |   |

----

| NOTE      3 - | OIL      AND GAS PROPERTIES |
|---------------|-----------------------------|

----

----

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

----

|  | 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, Range9W5M |
|--|----------------|----------------------------------------------------------------------------------------------------------------------------|

|  | 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. |
|--|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Item      3.  | Quantitative      and Qualitative Disclosures About MarketRisk |
|--------------------|----------------------------------------------------------------|

----

| Item      4T.  | Controls      and Procedures |
|---------------------|------------------------------|

----

Exhibit 31. 

Exhibit 32.

----

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

----