**FORM      10-QSB**

**[X]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) **

**OF      THE SECURITIES EXCHANGE ACT OF 1934**

**Austin      Chalk Oil and Gas, Ltd.**

***Page          - 1***

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**PART      I: FINANCIAL INFORMATION**

**Item      1. Financial Statements. **

***Page          - 2***

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**Austin        Chalk Oil & Gas, LTD**

***Page            - 3***

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**Austin          Chalk Oil & Gas, LTD.**

|                                                                                    |   | September                    30,  |   |   | December                    31, |   |
|-----------------------------------------------------------------------------------------|--------|----------------------------------------|--------|--------|---------------------------------|--------|
|                                                                                    |   | 2005                                   |   |   | 2004                            |   |
| **ASSETS**                                                                              |   | (Unaudited)                       |   |   |                            |   |
| Current                    Assets                                                       |   |                                   |   |   |                            |   |
| Cash                                                                                    | $      | 11,157                                 |   | $      | 44,909                          |   |
|                                                                                    |   |                                   |   |   |                            |   |
| Total                    Current Assets                                                 |   | 11,157                                 |   |   | 44,909                          |   |
|                                                                                    |   |                                   |   |   |                            |   |
| Investment                    - Oil Properties                                          |   | 99,500                                 |   |   | 74,500                          |   |
|                                                                                    |   |                                   |   |   |                            |   |
| Total                    Assets                                                         | $      | 110,657                                |   | $      | 119,409                         |   |
|                                                                                    |   |                                   |   |   |                            |   |
|                                                                                    |   |                                   |   |   |                            |   |
| **LIABILITIES                    AND STOCKHOLDERS' EQUITY**                             |   |                                   |   |   |                            |   |
|                                                                                    |   |                                   |   |   |                            |   |
| Current                    Liabilities                                                  |   |                                   |   |   |                            |   |
| Accounts                    Payable                                                     | $      | 195                                    |   | $      | 195                             |   |
| Notes                    Payable - Related Party                                        |   | 43,984                                 |   |   | 19,287                          |   |
| Notes                    Payable                                                        |   | 24,970                                 |   |   | 24,970                          |   |
|                                                                                    |   |                                   |   |   |                            |   |
| Total                    Current Liabilities                                            |   | 69,149                                 |   |   | 44,452                          |   |
|                                                                                    |   |                                   |   |   |                            |   |
|                                                                                    |   |                                   |   |   |                            |   |
| Total                    Liabilities                                                    |   | 69,149                                 |   |   | 44,452                          |   |
|                                                                                    |   |                                   |   |   |                            |   |
| Stockholders'                    Equity                                                 |   |                                   |   |   |                            |   |
| Common                    Stock, Authorized 100,000,000 Shares of $.001 Par Value,      |   |                                   |   |   |                            |   |
| 96,460,736                    and 96,460,736 shares issued and outstanding respectively |   | 96,460                                 |   |   | 96,460                          |   |
| Additional                    Paid in Capital                                           |   | 1,262,501                              |   |   | 1,262,501                       |   |
| Subscription                    Receivable                                              |   | (2,500                                 | )      |   | (2,500                          | )      |
| Accumulated                    Deficit                                                  |   | (1,314,953                             | )      |   | (1,281,504                      | )      |
|                                                                                    |   |                                   |   |   |                            |   |
|                                                                                    |   |                                   |   |   |                            |   |
| Total                    Stockholders' Equity                                           |   | 41,508                                 |   |   | 74,957                          |   |
|                                                                                    |   |                                   |   |   |                            |   |
| Total                    Liabilities and Stockholders' Equity                           | $      | 110,657                                |   | $      | 119,409                         |   |

***Page            - 4***

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**Austin          Chalk Oil & Gas, LTD**

|                                                                      |   |   | For                    the nine   |   |   | For                    the nine  |   |   | For                    the three |   |   | For                    the three |   |   | From                    Inception       |   |
|---------------------------------------------------------------------------|--------|--------|----------------------------------------|--------|--------|----------------------------------|--------|--------|----------------------------------|--------|--------|----------------------------------|--------|--------|-----------------------------------------|--------|
|                                                                      |   |   | months                    ended   |   |   | months                    ended  |   |   | months                    ended  |   |   | months                    ended  |   |   | on                    December 16, 1998 |   |
|                                                                      |   |   | September                    30,  |   |   | September                    30, |   |   | September                    30, |   |   | September                    30, |   |   | thru                    Sept. 30,       |   |
|                                                                      |   |   | 2005                                   |   |   | 2004                             |   |   | 2005                             |   |   | 2004                             |   |   | 2005                                    |   |
|                                                                      |   |   |                                   |   |   |                             |   |   |                             |   |   |                             |   |   |                                    |   |
| Revenues                                                                  |   | $      | 1,036                                  |   | $      | -                                |   | $      | 1,036                            |   | $      | -                                |   | $      | 1,036                                   |   |
|                                                                      |   |   |                                   |   |   |                             |   |   |                             |   |   |                             |   |   |                                    |   |
| Operating                    Expenses                                     |   |   |                                   |   |   |                             |   |   |                             |   |   |                             |   |   |                                    |   |
| General                    & Administrative                           |   |   | 34,486                                 |   |   | 173,828                          |   |   | 8,246                            |   |   | 55,272                           |   |   | 1,002,854                               |   |
|                                                                      |   |   |                                   |   |   |                             |   |   |                             |   |   |                             |   |   |                                    |   |
| Total                    Operating Expenses                               |   |   | 34,486                                 |   |   | 173,828                          |   |   | 8,246                            |   |   | 55,272                           |   |   | 1,002,854                               |   |
|                                                                      |   |   |                                   |   |   |                             |   |   |                             |   |   |                             |   |   |                                    |   |
| Operating                    Income (Loss) before discontinued operations |   |   | (33,450                                | )      |   | (173,828                         | )      |   | (7,210                           | )      |   | (55,272                          | )      |   | (1,001,818                              | )      |
|                                                                      |   |   |                                   |   |   |                             |   |   |                             |   |   |                             |   |   |                                    |   |
| (Loss)                    from discontinued operations                    |   |   | -                                      |   |   | -                                |   |   | -                                |   |   | -                                |   |   | (443,238                                | )      |
| (Loss)                    from disposal of discontinued operations        |   |   | -                                      |   |   | -                                |   |   | -                                |   |   | -                                |   |   | 133,499                                 |   |
|                                                                      |   |   |                                   |   |   |                             |   |   |                             |   |   |                             |   |   |                                    |   |
| Net                    (loss) from operations                             |   |   | (33,450                                | )      |   | (173,828                         | )      |   | (7,210                           | )      |   | (55,272                          | )      |   | (1,311,557                              | )      |
|                                                                      |   |   |                                   |   |   |                             |   |   |                             |   |   |                             |   |   |                                    |   |
| Other                    Income (Expense)                                 |   |   |                                   |   |   |                             |   |   |                             |   |   |                             |   |   |                                    |   |
| Impairment                    Loss                                        |   |   |                                   |   |   |                             |   |   |                             |   |   |                             |   |   | -                                       |   |
| Miscellaneous                    Income                                   |   |   | -                                      |   |   | -                                |   |   | -                                |   |   | -                                |   |   | -                                       |   |
| Interest                    Expense                                       |   |   | -                                      |   |   | (3,396                           | )      |   | -                                |   |   | -                                |   |   | (3,396                                  | )      |
|                                                                      |   |   |                                   |   |   |                             |   |   |                             |   |   |                             |   |   |                                    |   |
| Total                    Other Income (Expense)                           |   |   | -                                      |   |   | (3,396                           | )      |   | -                                |   |   | -                                |   |   | (3,396                                  | )      |
|                                                                      |   |   |                                   |   |   |                             |   |   |                             |   |   |                             |   |   |                                    |   |
| Net                    Income (Loss)                                      |   | $      | (33,450                                | )      | $      | (177,224                         | )      | $      | (7,210                           | )      | $      | (55,272                          | )      | $      | (1,314,953                              | )      |
|                                                                      |   |   |                                   |   |   |                             |   |   |                             |   |   |                             |   |   |                                    |   |
| Net                    Income (Loss) Per Share                            |   | $      | (0.00                                  | )      | $      | (0.01                            | )      | $      | (0.00                            | )      | $      | (0.00                            | )      | $      | (0.06                                   | )      |
|                                                                      |   |   |                                   |   |   |                             |   |   |                             |   |   |                             |   |   |                                    |   |
| Weighted                    Average Shares Outstanding                    |   |   | 96,460,736                             |   |   | 30,448,030                       |   |   | 96,460,736                       |   |   | 96,410,736                       |   |   | 20,669,743                              |   |

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**Austin          Chalk Oil & Gas, LTD**

|                                                                            |   |   |                                                |   |   | From                    inception         |   |
|---------------------------------------------------------------------------------|--------|--------|-----------------------------------------------------|--------|--------|-------------------------------------------|--------|
|                                                                            |   |   | For                    the nine months ended,  |   |   | on                    December 16, 1998   |   |
|                                                                            |   |   | September                    30                |   |   | to                    September 30,  |   |
|                                                                            |   |   | 2005                                                |   |   | 2004                                      |   |   | 2005 |   |
| Cash                    Flows from Operating Activities                         |   |   |                                                |   |   |                                      |   |   |   |   |
|                                                                            |   |   |                                                |   |   |                                      |   |   |   |   |
| Net                    Income (Loss)                                            |   | $      | (33,450                                             | )      | $      | (177,224                                  | )      | $ | (1,314,953 | ) |
| Adjustments                    to Reconcile Net Loss to Net Cash                |   |   |                                                |   |   |                                      |   |   |   |   |
| Provided                    by Operations:                                      |   |   |                                                |   |   |                                      |   |   |   |   |
| Bad                    debt expense                                             |   |   | -                                                   |   |   | -                                         |   |   | 11,154 |   |
| Stock                    Issued for Services                                    |   |   | -                                                   |   |   | -                                         |   |   | 700,629 |   |
| Stock                    issued for forgiveness of debt                         |   |   |                                                |   |   | 242,669                                   |   |   | 367,651 |   |
| Change                    in Assets and Liabilities                             |   |   | -                                                   |   |   | -                                         |   |   | 30,000 |   |
| (Increase)                    in Accounts Recievable                            |   |   |                                                |   |   |                                      |   |   |   |   |
| (Increase)                    in Accounts Payable -related                      |   |   | 24,698                                              |   |   | (139,352                                  | )      |   | 43,985 |   |
| Increase                    (Decrease) in Accounts Payable and Accrued Expenses |   |   | -                                                   |   |   | (6,223                                    | )      |   | 14,204 |   |
|                                                                            |   |   |                                                |   |   |                                      |   |   |   |   |
| Net                    Cash Provided(Used) by Operating Activities              |   |   | (8,752                                              | )      |   | (80,130                                   | )      |   | (147,330 | ) |
|                                                                            |   |   |                                                |   |   |                                      |   |   |   |   |
| Cash                    Flows from Investing Activities                         |   |   |                                                |   |   |                                      |   |   | (63,993 | ) |
| Cash                    paid for Oil Interests                                  |   |   | (25,000                                             | )      |   | (74,500                                   | )      |   | (99,500 | ) |
|                                                                            |   |   |                                                |   |   |                                      |   |   |   |   |
| Net                    Cash Provided (Used) by Investing Activities             |   |   | (25,000                                             | )      |   | (74,500                                   | )      |   | (163,493 | ) |
|                                                                            |   |   |                                                |   |   |                                      |   |   |   |   |
| Cash                    Flows from Financing Activities                         |   |   |                                                |   |   |                                      |   |   | 35,000 |   |
| Cash                    received from notes payable                             |   |   |                                                |   |   | -                                         |   |   | (10,030 | ) |
| Cash                    received from subscription receivable                   |   |   | -                                                   |   |   | -                                         |   |   | 9,800 |   |
| Cash                    received from spin-off                                  |   |   | -                                                   |   |   | -                                         |   |   | 3,710 |   |
| Common                    stock issued for cash                                 |   |   | -                                                   |   |   | 169,985                                   |   |   | 283,500 |   |
| -                                                                               |   |   |                                                |   |   |                                      |   |   |   |   |
| Net                    Cash Provided(Used) by Financing Activities              |   |   | -                                                   |   |   | 169,985                                   |   |   | 321,980 |   |
|                                                                            |   |   |                                                |   |   |                                      |   |   |   |   |
| Increase                    (Decrease) in Cash                                  |   |   | (33,752                                             | )      |   | 15,355                                    |   |   | 11,157 |   |
|                                                                            |   |   |                                                |   |   |                                      |   |   |   |   |
| Cash                    and Cash Equivalents at Beginning of Period             |   |   | 44,909                                              |   |   | 26                                        |   |   | - |   |
|                                                                            |   |   |                                                |   |   |                                      |   |   |   |   |
| Cash                    and Cash Equivalents at End of Period                   |   |   | 11,157                                              |   |   | 15,381                                    |   |   | 11,157 |   |
|                                                                            |   |   |                                                |   |   |                                      |   |   |   |   |
| Cash                    Paid For:                                               |   |   |                                                |   |   |                                      |   |   |   |   |
| Interest                                                                        |   | $      | -                                                   |   | $      | -                                         |   | $ | - |   |
| Income                    Taxes                                                 |   | $      | -                                                   |   | $      | -                                         |   | $ | - |   |

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**Austin        Chalk Oil & Gas, LTD**

***Page          - 7***

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**Item      2. Discussion and Analysis or Plan of Operation**
**.      **

**(**
**a**
**)      Plan of Operation for the next twelve months**
**.      **
*      Austin Chalk Oil and Gas, Ltd.*

**(**
**b**
**)      The Giddings Field of th Austin Chalk Trend**

***Page          - 8***

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**(**
**c**
**)      Discussion and Analysis of Financial Condition and Results of      Operations**
**.      **
*Holifield      Oil Company*

**(**
**1**
**)      Revenues**
**.**

**(**
**2**
**)      Expenses**
**.**

**(**
**3**
**)      Profitability**
**.**

***Page          - 9***

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**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**

**Retirement      of Officer/Director**

**Evaluation      of Disclosure Controls and Procedures.**

**Changes      in Internal Accounting.**

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

***Page          - 10***

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**SIGNATURES**

***Austin      Chalk Oil & Gas, Inc.***

| /s/ Darrel                Figg |  /s/Marlen                L. Roepke                         |
|-------------------------------------|------------------------------------------------------------------|
| Darrel                FiggPresident | Marlen                L. RoepkeRetiring                Secretary |

***Page          - 11***

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**Exhibit      31**

**Section      302 Certification**

***Page          - 12***

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**CERTIFICATIONS      PURSUANT TO SECTION 302**

|   |   | I,                Darrel;                Figg,                certify that: |
|--------|--------|-----------------------------------------------------------------------------|

*Austin      Chalk Oil & Gas, Inc.*

|   | (a)                Designed such disclosure controls and procedures, or caused such                disclosure controls and procedures to be designed under our supervision,                to ensure that material information relating to the small business                issuer,                including its consolidated subsidiaries, is made known to us by others                within those entities, particularly during the period in which this                annual                report is being prepared; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b)                Designed such internal control over financial reporting, or causes                such                internal control over financial reporting to be designed under our                supervision, to provide reasonable assurance regarding the reliability                of                financial reporting and the preparation of financial statements for                external purposes in accordance with generally accepted accounting                principles; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c)                Evaluated the effectiveness of the small business issuer's disclosure                controls and procedures and presented in this report our conclusions                about                the effectiveness of the disclosure controls and procedures, as of                the end                of the period covered by this report based on such evaluation, and |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d)                Disclosed in this report any change in the small business issuer's                internal control over financial reporting that occurred during the                small                business issuer's most recent fiscal quarter (the small business                issuer's                fourth fiscal quarter in the case of an annual report) that has materially                affected or is reasonably likely to materially affect, the small                business                issuer's internal control over financial reporting; and |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a)                all significant deficiencies in the design or operation of internal                controls which could adversely affect the registrant's ability to                record,                process, summarize and report financial data and have identified                for the                registrant's auditors any material weaknesses in internal controls;                and |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b)                any fraud, whether or not material, that involves management or other                employees who have a significant role in the registrant's internal                controls; and |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Page          - 13***

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**CERTIFICATIONS      PURSUANT TO SECTION 302**

|   |   | I,                Marlen                L. Roepke,                certify that: |
|--------|--------|---------------------------------------------------------------------------------|

*Austin      Chalk Oil & Gas, Inc.*

|   | (a)                Designed such disclosure controls and procedures, or caused such                disclosure controls and procedures to be designed under our supervision,                to ensure that material information relating to the small business                issuer,                including its consolidated subsidiaries, is made known to us by others                within those entities, particularly during the period in which this                annual                report is being prepared; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b)                Designed such internal control over financial reporting, or causes                such                internal control over financial reporting to be designed under our                supervision, to provide reasonable assurance regarding the reliability                of                financial reporting and the preparation of financial statements for                external purposes in accordance with generally accepted accounting                principles; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c)                Evaluated the effectiveness of the small business issuer's disclosure                controls and procedures and presented in this report our conclusions                about                the effectiveness of the disclosure controls and procedures, as of                the end                of the period covered by this report based on such evaluation, and |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d)                Disclosed in this report any change in the small business issuer's                internal control over financial reporting that occurred during the                small                business issuer's most recent fiscal quarter (the small business                issuer's                fourth fiscal quarter in the case of an annual report) that has materially                affected or is reasonably likely to materially affect, the small                business                issuer's internal control over financial reporting; and |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a)                all significant deficiencies in the design or operation of internal                controls which could adversely affect the registrant's ability to                record,                process, summarize and report financial data and have identified                for the                registrant's auditors any material weaknesses in internal controls;                and |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b)                any fraud, whether or not material, that involves management or other                employees who have a significant role in the registrant's internal                controls; and |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Page          - 14***

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**Exhibit      32**

**CERTIFICATION      PURSUANT TO 18 USC SECTION 1350**

***Page          - 15***

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**CERTIFICATION      PURSUANT TO 18 U.S.C. SECTION 1350**

**AS      ADOPTED PURSUANT TO SECTION 906 OF THE**

**SARBANES-OXLEY      ACT OF 2002**

*Austin      Chalk Oil & Gas, Inc.*

***Page          - 16***

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**CERTIFICATION        PURSUANT TO 18 U.S.C. SECTION 1350**

**AS        ADOPTED PURSUANT TO SECTION 906 OF THE**

**SARBANES-OXLEY        ACT OF 2002**

*Austin      Chalk Oil & Gas, Inc.*

***Page              - 17***

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