##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-QSB
  þ

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
 for the
period ended September 30, 2007.
 o


TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 for the transition period
from  to

.
 Commission File No. 000-28335
 Platina Energy Group, Inc. Platina Energy Group, Inc.
  Delaware

84-1080043(State or other jurisdiction of incorporation
or organization)

(I.R.S. Employer Identification No.)1807 CAPITOL AVE. SUITE 101 - I, CHEYENNE, WY

82001(Address of principal executive offices)

(Zip Code)
 (307) 637-3900
  Title of each class


Name of each exchange on which registeredNone


None
 Check whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d)
of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period
that the Registrant was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
 þ o
 **APPLICABLE ONLY TO CORPORATE ISSUERS** 
   **TABLE OF CONTENTS**  PART I - FINANCIAL INFORMATIONITEM 1. FINANCIAL STATEMENTSCONSOLIDATED BALANCE SHEETCONSOLIDATED STATEMENTS OF OPERATIONSCONSOLIDATED STATEMENT OF CASH FLOWSNOTES TO FINANCIAL STATEMENTSITEM 2. - MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONPART II - OTHER INFORMATIONITEM 1. LEGAL PROCEEDINGSITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDSITEM 3. DEFAULTS UPON SENIOR SECURITIESITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERSITEM 5. OTHER INFORMATIONITEM 6. EXHIBITS AND REPORTSSIGNATURESEXHIBIT 31.1EXHIBIT 32.1   Table of Contents  PART I - FINANCIAL INFORMATION
 ITEM 1. FINANCIAL STATEMENTS
 Platina Energy Group, Inc. PLATINA ENERGY GROUP, INC. FINANCIAL STATEMENTSQUARTER ENDED SEPTEMBER 30, 2007
  PageFinancial
StatementsConsolidated Balance Sheet -

F-1As of September 30, 2007Consolidated Statements of Operations -For the Three and Six Months
	Ending Sept 30, 2007 and for the Period Jan. 9, 2007 through Sept 30, 2007

F-2Consolidated Statements of Cash Flows -For the Six Months Ending
	Sept 30, 2007 and for the Period Jan. 9, 2007 through Sept 30, 2007

F-3Notes to Consolidated Financial Statements

F-6
 3
 Table of Contents

**PLATINA ENERGY GROUP, INC.****(An Exploratory Stage Company)****CONSOLIDATED BALANCE SHEET****(UNAUDITED)****Sept 30,****2007****ASSETS****Current
assets**Cash

$
27,336





Prepaid expense


37,500$
64,836****
**Property &
equipment**Oil and gas properties,
full cost method of
accounting:Unproven



1,005,221Other property and equipment


43,351**Other
assets**Intangible asset subject
to amortization


223,393Convertible debentures and accrued interest payable, net of discount of
$1,282,669$
1,336,801**LIABILITIES AND
STOCKHOLDERS' DEFICIT****Current
liabilities**Accounts payable and accrued expenses

$
38,429Accrued compensation due officers


412,000Convertible notes payable and accrued interest payable, net of discount of
$291,667


97,296Notes payable to related
parties


319,482Notes payable - other


248,912**Total current
liabilities**


1,116,119**Commitments and
Contingencies**


-**Stockholders'
deficit**Preferred stock, par value $.001, 20,000,000 shares authorized 70,000 shares
designated Series A, 61,091 issued and
outstanding.  Aggregate
liquidation preference
of  $0. One share of
Series A preferred is
convertible into ten
shares of common stock.


61Preferred stock, 100,000
shares designated Series
B, 96,464
shares issued and
outstanding.  Aggregate
liquidation value
preference of $9,646,
One share of Series B preferred is convertible into 100 shares of common
stock.


96Preferred stock, 10,000
shares designated Series
C. 3,600 shares issued
and outstanding at
December 31, 2006.
Aggregate liquidation
value preference of
$360.  One share
of Series C preferred is
convertible into
100 shares of common
stock.


4Common stock; $0.001 par value; 100,000,000 shares authorized 52,679,158 shares issued
and outstanding.


52,679Additional paid in
capital


14,488,504Accumulated deficit


(6,913,820
)Deficit accumulated during the exploratory
stage






(7,406,842
)**Total
stockholders' deficit**








220,682$
1,336,801The accompanying notes
are an integral part of
these financial
statementsF-1
 Table of Contents
**PLATINA ENERGY GROUP, INC.****(An Exploratory Stage Company)****CONSOLIDATED STATEMENTS OF OPERATIONS****(UNAUDITED)****From****Three Months Ended**




**Six****Months Ended**





**January 9, 2007****Sept 30,**


**Sept
30,**



**Sept 30,**





**Sept
30,**




**through****2007**


**2006**



**2007**





**2006**




**Sept****30, 2007**Revenue from equipment lease



















$

7,200













$

18,000Revenue from oil and gas sales



$

2,826





$

-





$

2,826





$

-





$

2,826$
2,826


$
-



$

10,026





$

-




$
20,826**Operating Expenses**Testing costs associated with Thermal Pump





-







-







7,200







-







7,200Depreciation, depletion, and amortization





276







-







276







-







276General and administrative expenses


202,600







58,272







336,350







142,481








444,017Consulting fees, non-cash


333,975



-





636,071







-





813,100Compensation, non-cash


72,203



-





82,978







-





93,753609,054



58,272





1,062,875







142,481





1,358,346**Loss from Operations**


(606,228
)


(58,272
)




(1,052,849

)





(142,481

)



(1,337,520
)**Other Income (Expense)**Interest expense


(44,605
)


(14,403
)




(65,995

)





(27,177

)



(219,413
)Loss on settlement of debt


(2,338,142
)


-





(5,568,309

)





-





(5,849,909
)(2,382,747
)


(14,403
)




(5,634,304

)





(27,177

)



(6,069,322
)**Net Loss**




$
(2,988,975


)

$
(72,675
)





$

(6,687,153



)



$

(169,658

)


$
(7,406,842
)**Per Share Data****Basic loss per share**

$
(0.07
)

$
(0.00
)


$

(0.18

)



$

(0.01

)**Weighted average common****shares outstanding**


43,508,154



17,635,166





36,313,325







17,641,206
The
accompanying notes are an integral part of these
financial statements
F-2

Table of Contents
**PLATINA ENERGY GROUP, INC.****(An Exploratory Stage Company)****CONSOLIDATED STATEMENTS OF CASH FLOWS****(UNAUDITED)****From**
**January 9, 2007**
**through**
**Sept****30, 2007****Six****Months Ended****Sept 30,     2007**


**Sept 30,    
2006****Cash Flows from Operating Activities**Net Loss

$
(6,687,153
)

$
(169,658
)

$
(7,406,842
)Adjustments to reconcile net loss to net cashused in operating activities:Amortization expense


24,822



24,821



37,233Depreciation expense


4,706



4,055



7,059Loss on settlement of debt


5,568,309



-



5,849,909Value of conversion feature


-



-



134,776Common stock issued for services


647,212



-



835,015Amortization of
debt discount


8,333







8,333Amortization of stock options and warrants


92,478



-



92,478Changes in assets:Prepaid expenses


-



(4,036
)


2,294Deposits


-



1,312



-Changes in liabilitiesIncrease (decrease) in accounts payable and accrued expenses


(29,742
)


(29,435
)


22,219Increase in accrued compensation due
related parties


65,000



36,000



65,000Increase in short-term borrowings


32,482



27,176



48,830**Net cash used in operating
activities**


(273,553
)


(109,765
)


(303,696
)**Cash Flows from Investing
Activities**Proceeds from sale of interest in oil and
gas properties


75,500



-



100,500Acquisition of oil and gas properties


(63,810
)


-



(119,400
)**Net cash used in investing
activities**


11,690



-



(18,900
)**Cash Flows from Financing Activities**Proceeds from sale of common stock


25,000



61,250



25,000Proceeds from issuance of debt


300,000



-



350,000Repayment of debt


(51,068
)


-



(51,068
)Advances from related parties


21,000



47,000



32,000Repayment of related
party advances


(6,000
)


-



(6,000
)**Net cash provided by financing activities**


288,932



108,250



349,932**Net Increase (Decrease) in Cash and Cash
Equivalents**


27,069



(1,515
)


27,336**Cash and Cash Equivalents - Beginning of
Period**


267



6,200



-**Cash and Cash Equivalents - End of Period**

$
27,336


$
4,685


$
27,336
The
accompanying notes are an integral part of these
financial statements
F-3
**PLATINA ENERGY GROUP, INC.****(An Exploratory Stage Company)****CONSOLIDATED STATEMENTS OF CASH FLOWS****(UNAUDITED)****From**
**January 9, 2007**
**through**
**Sept****30, 2007****Six****Months Ended****Sept 30,**


**Sept****30,****2007**


**2006**
******Supplemental Disclosures of Cash Flow Information****Cash Paid For:**Interest Expense

$
3,370


$
-


$
3,370Income Taxes

$
-


$
-


$
-**Non-Cash Financing and Investing Information:**On April 6, 2005, the Company completed its purchase of rights and licenses from Permian Energy Services LP
in connection with the marketing of a certain pump in the oil and gas industry.  In consideration for the assets
purchased, the Company agreed to issue 2,250,000 shares of its common stock and pay $250,000 as evidenced
by a promissory note.  Of the 2,250,000 shares issued, 2,025,000 shares were returned in April 2006, pursuant
to a settlement agreement with the Company and Permian Energy Services LP.  In addition, the Company
issued a consultant 750,000 shares in connection with the asset purchase.  The Company did not assign any value to
the 2,250,000 shares due to the fact that the issuance of these shares had no commercial substance. The Company
assigned the value of 750,000 shares at the market price on the effective date of the asset purchase of $97,500.
Therefore the license was valued at $347,500 ($250,000 obligation under the note and the fair value of
the 750,000 shares of $97,500 - see Note 3 to the financial statements).

On May 30, 2005, a note holder
converted $10,070 of indebtedness due him by the Company into 53,000 shares of the Company's common stock.


On June 23, 2005, a preferred stockholder
converted 10,000 shares of Series A preferred stock into 100,000
shares of the Company's common stock.


On June 23, 2005, a preferred stockholder
converted 3,800 shares of Series C preferred stock into 380,000
shares of the Company's common stock.


As discussed above, in April 2006,
the Company entered into a settlement agreement with Permian Energy Services
LLC under which 2,025,000 shares of the Company's common stock were returned to the Company for cancellation and
paid the LP $53,823 of which $38,923 was charged against the balance owed the LP for past services and $14,900
was charged to operations.  The Company also agreed to assign the remaining balance of the Obligation due the LP
($227,640, including accrued interest) to a corporation that was wholly owned by the Company's President  at the
time of the transaction (See Notes 3 and 5 to the financial statements).

In September 2006, 5,000 shares of the Company's Class B Preferred Shares were converted into 500,000 shares
of the Company's common stock.

The
accompanying notes are an integral part of these
financial statements
F-4**PLATINA ENERGY GROUP, INC.****(An Exploratory Stage Company)****CONSOLIDATED STATEMENTS OF CASH FLOWS****(UNAUDITED)****Non-Cash Financing and Investing Information:**In October 2006, a note holder converted $35,015 of indebtedness due him by the Company into 700,300
shares of the Company's common stock.  The Company recognized a $28,012 loss on the conversion.

On October 12, 2006, the Company issued 3,600 shares of its Series C Preferred Stock in exchange for a 90-day
option to acquire certain oil and gas leases in Lloyd and Briscoe Counties, Texas.  The option was valued at $32,400
and was extended through the payment of $54,000 in January 2007.

In November 2006, the Company issued 1,250,000 shares of its common stock in consideration for investment
relations services. The services were valued at $150,000 based on the market value of the shares on the date of
issuance.

In January 2007, the Company issued 22,500 shares of its Series B Preferred Stock in consideration for the acquisition
of certain oil and gas leases. The shares were valued at $213,773 based upon the market price of the underlying
common shares at date of issuance.

In January 2007, the Company issued 25,000 shares of its Series B Preferred Stock in exchange
for the acquisition of certain oil and gas leases. The shares were valued at $237,525 based upon
the market price of the underlying common shares at date of issuance.

In January 2007, the Company issued 50,000 shares of its common stock as
additional consideration
on a $50,000 loan.

In February 2007, the Company issued 750,000 shares of its common stock in consideration for consulting
services. The services were valued at $93,375, which was based on the market value of the shares on
date of issuance.

In March 2007, the Company issued 20,000 shares of its Series B Preferred Stock in payment of a consulting
agreement. The shares were valued at $280,000 based upon the market price of the underlying common
shares on date of issuance.

In March 2007, the Company issued 2,200,000 shares of its common stock in exchange for the cancellation of
$4,400 of indebtedness due on certain convertible debentures. The company recognized a loss of $281,600
on the conversion.

In March 2007, the Company cancelled 5,000 shares of its Series B Preferred Stock in exchange for the issuance
of 500,000 shares of its common stock.

In April 2007, the Company issued 12,464 shares of its Series B Preferred Stock in exchange
for the extension of an option to acquisition of certain oil and gas leases. The shares were valued at $149,568 based upon
the market price of the underlying common shares at date of issuance.

In April 2007, the Company issued 2,200,000 shares of its common stock in exchange for the cancellation of
$4,800 of indebtedness due on certain convertible debentures. The company recognized a loss of $237,200
on the conversion.

In April 2007, the Company issued 1,266,667 shares of its common stock in exchange for the cancellation of
$3,800 of indebtedness due on certain convertible debentures. The company recognized a loss of $135,533
on the conversion.

In June 2007, the Company issued 1,400,000 shares of its common stock in consideration for consulting
services. The services were valued at $182,000, which was based on the market value of the shares on
date of issuance.

In June 2007, the Company issued 50,000 shares of its common stock in consideration for extending
the due date of a note payable.  The shares were valued at $9,500, which was based on the market value of
the shares on date of issuance.

In June 2007, the Company issued 1,833,333 shares of its common stock in exchange for the cancellation of
$5,500 of indebtedness due on certain convertible debentures. The company recognized a loss of $397,833
on the conversion.

In June 2007, the Company issued 61,091 shares of its Series A Preferred Stock in exchange
for the acquisition of certain oil and gas leases. The shares were valued at $171,055 based upon
the market price of the underlying common shares at date of issuance.

In June 2007, the Company issued 6,500 shares of its Series B Preferred Stock in exchange
for the acquisition of certain oil and gas leases. The shares were valued at $182,000 based upon
the market price of the underlying common shares at date of issuance.

In June 2007, the Company issued 8,800,000 shares of its common stock in exchange for the cancellation of
$4,400 of indebtedness due on certain convertible debentures. The company recognized a loss of $2,481,600
on the conversion.

In June 2007, the Company issued 1,000,000 shares of its common stock in consideration for consulting
services. The services were valued at $190,000, which was based on the market value of the shares on
date of issuance.

In July 2007, the Company issued 53,571 shares of its common stock as part consideration  on wages earned.
The shares were valued at $15,000, which was based on the market value of the shares on date of issuance.

In July 2007, the Company issued 300,000 shares of its common stock in accordance with an
employment agreement one time stock grant.  The shares were valued at $84,000, which was based on
the market value of the shares on date of issuance.

In August 2007, the Company issued 3,900,000 shares of its common stock in exchange for the cancellation of
$11,700 of indebtedness due on certain convertible debentures. The Company recognized a loss of $667,967
on the conversion.

In September 2007, the Company issued 7,900,000 shares of its common stock in exchange for the cancellation of
$23,700 of indebtedness due on certain convertible debentures. The Company recognized a loss of $1,624,000
on the conversion.

In September 2007, the Company issued 100,000 shares of its common stock in consideration for consulting
services. The services were valued at $9,000, which was based on the market value of the shares on
date of issuance.

In September 2007, the Company issued 202,500 shares of its common stock in exchange for the cancellation
of $19,737 of indebtedness due on certain accounts payables. The company recognized a loss of $23,576
on the conversion.

In September 2007, the Company issued 37,500 shares of its common stock in consideration for legal services.
The services were valued at $8,438, which was based on the market value of the shares on date of issuance.

The
accompanying notes are an integral part of these
financial statements
F-5
Table of Contents
**PLATINA ENERGY GROUP, INC.****(An Exploratory Stage Company)****NOTES TO FINANCIAL STATEMENTS****N****ote 1.  Basis of Presentation and Organization**

Organization, History and Business

Platina Energy Group, Inc. ("the Company"),
a Delaware Corporation, was originally incorporated on January 19, 1988.  The Company went through several previous
unrelated transactions involving other businesses that have subsequently been divested.  A further subsequent
restructure of the Company on June 25, 2005 resulted in the name change to Platina Energy Group, Inc. with business focus
on the oil and gas sector.

The Company is in the exploration stage, as
defined in Statement of Financial Accounting Standards ("SFAS") No. 7, "Accounting and Reporting by Development Stage Enterprises,"
with its principal activity being the exploration and development of oil and gas properties.

On March 30, 2005, the Company formed a wholly
owned subsidiary, Permian Energy International, Inc., a Nevada Corporation to acquire certain rights for enhanced oil recovery
and reduction of paraffin build up through a thermal pulsing pump device. On April 6, 2005, the Company completed its acquisitions
of rights and licenses from Permian Energy Services, LP in connection with certain rights including the representation and
marketing of a proprietary thermal pulsing pump in the oil and gas industry.  The assets acquired from the LP were
transferred into Permian Energy International.  The thermal pulse unit, ("TPU"), was engineered to create a new
recovery pump for oil particularly in fields with heavy paraffin problems.  As a by-product of the process for specific
field applications, the need for down-hole or pump jacks can be eliminated.  Also, flow rates of oil from viscosity
changes due to heat and pressure changes can be substantially increased. Through May 2007, the Company leased its sole TPU for
$3,600 per month.

On January 5, 2007, the Company formed
Appalachian Energy Corp. a Nevada Corporation ("Appalachian"). Appalachian was formed as a wholly owned subsidiary to
acquire oil and gas properties for exploration and development (See Note 4).

Basis of Presentation

The accompanying interim financial statements have been
prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") for
interim financial reporting.  These interim financial statements are unaudited and, in the opinion of management, include
all adjustments (consisting of normal recurring adjustments and accruals) necessary to present fairly the balance sheet,
operating results and cash flows for the periods presented in accordance with accounting principles generally accepted in
the United States of America ("GAAP").  Operating results for the three and six months ended September 30, 2007 are not
necessarily indicative of the results that may be expected for the year ending March 31, 2008 or for any other interim
period during such year.  Certain information and footnote disclosures normally included in financial statements prepared
in accordance with GAAP have been omitted in accordance with the rules and regulations of the SEC.  These interim
financial statements should be read in conjunction with the audited financial statements and notes thereto contained
in the Company's Form 10-KSB for the year ended March 31, 2007.

The Company's financial statements are prepared
using the accrual method of accounting in accordance with accounting principles generally accepted in the United States of
America and have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of
liabilities in the normal course of business. The Company has accumulated operating losses since its inception (January 19, 1988).
In addition, the Company has used ongoing working capital in its operations.  At September 30, 2007 liabilities exceeded
current assets by approximately $1,100,000, and the Company has an accumulated deficit of approximately $14,300,000.

In view of current matters, the continuation
of the Company's operations is dependent on funds provided by its management, advancements made by expenditures from certain
joint venture arrangements, the raising of capital through the sale of its equity instruments or issuance of debentures.
Management has purchased certain rights and licenses from Permian Energy Services LP ("Permian"), a related party
(see Notes 3 & 5), in connection with the marketing of a proprietary thermal pulsing pump in the oil and gas industry. Further,
the Company has entered into various drilling programs with third parties. In several arrangements, the third parties have
agreed to fund the drilling of several wells under turnkey agreements that Management believes will be profitable for the
Company. Management believes that these sources of funds will allow the Company to continue as a going concern through 2008.
However, no assurances can be made that current or anticipated future sources of funds will enable the Company to finance
future periods' operations.  In light of these circumstances, substantial doubt exists about the Company's ability to
continue as a going concern.  These consolidated financial statements do not include any adjustments relating to the
recoverability and classification of recorded assets or liabilities that might be necessary should the Company be unable
to continue as a going concern.F-6

**Note 2.  Summary of
Significant Accounting Policies**

Principles of Consolidation

The accompanying consolidated financial
statements include the accounts of the Platina Energy Group Inc. and its wholly owned subsidiaries, Appalachian Energy
Corporation and Permian Energy International, Inc. Intercompany transactions and balances have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in
conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during the reporting period. Accordingly, actual results
could differ from those estimates.

Cash Equivalents

For purposes of the statements of
cash flows, the Company considers cash equivalents to include highly liquid investments with original maturities
of three months or less.

Property and Equipment

Property and equipment are stated at
cost. Major renewals and improvements are charged to the asset accounts while replacements, maintenance, and
repairs that do not improve or extend the lives of the respective assets are expensed. At the time property
and equipment are retired or otherwise disposed of, the asset and related accumulated depreciation accounts are relieved
of the applicable amounts. Gains or losses from retirements or sales are credited or charged to income.

The Company's equipment consists of a TPU unit
which is being depreciated over its estimated useful life of 7 years on the straight-line method.

Oil and Gas Properties

The Company follows the full cost method of accounting for crude oil and natural gas properties.
Under this method, all direct costs and certain indirect costs associated with acquisition of
properties and successful as well as unsuccessful exploration and development activities
are capitalized. Depreciation, depletion, and amortization of capitalized crude oil and natural
gas properties and estimated future development costs, excluding unproved properties, are based on
the unit-of-production method based on proved reserves.

Long-Lived Assets

The Company accounts for its long-lived
assets in accordance with SFAS No. 144, "*Accounting for the Impairment or Disposal of Long-Lived Assets*."  
SFAS No. 144 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate
that the historical cost carrying value of an asset may no longer be appropriate.  The Company assesses recoverability
of the carrying value of an asset by estimating the future net cash flows expected to result from the asset, including eventual
disposition.  If the future net cash flows are less than the carrying value of the asset, an impairment loss is
recorded equal to the difference between the asset's carrying value and fair value or disposable value. As of June 30, 2007,
the Company did not deem any of its long-term assets to be impaired.

Revenue recognition

The Company recognizes revenue in
accordance with Staff Accounting Bulletin ("SAB") No. 101, "Revenue Recognition in Financial Statements,"
as revised by SAB No. 104.  As such, the Company recognizes revenue when persuasive evidence of an
arrangement exists, title transfer has occurred, the price is fixed or readily determinable and collectibility
is probable.  Sales are recorded net of sales discounts.

In September 2006, the Company entered
into an agreement to joint venture its thermal pulsing pump (TPU) for one year at $3,600 per month.  The lease
was cancelled effective June 1, 2007. Pursuant to the lease agreement, the Company received an advance payment of $7,400
and was required to make certain modifications to the pump's vessel. The Company incurred $7,432 in costs associated in the
vessel upgrade in October 2006 and the $7,432 is included in the cost basis of the TPU. The lease commenced in November 2006
and terminated in June 2007. The costs of the vessel upgrades are being depreciated over the pump's remaining expected useful
life of approximately 6 years.

Convertible Debentures

If the conversion feature of conventional
convertible debt provides for a rate of conversion that is below market value, this feature is characterized as a beneficial
conversion feature ("BCF").  A BCF is recorded by the Company as a debt discount pursuant to
EITF Issue No. 98-5 ("EITF 98-05"), "Accounting for Convertible Securities with Beneficial Conversion Features or
Contingency Adjustable Conversion Ratio," and EITF Issue No. 00-27, "Application of EITF Issue No. 98-5 to Certain
Convertible Instruments."  In those circumstances, the convertible debt will be recorded net of the discount
related to the BCF and the Company will amortize the discount to interest expense over the life of the debt using the
effective interest method. In the modification of the terms of its convertible debt, the Company determined a BCF of $134,775 that
was fully expensed during the year ended March 31, 2007 as the due date of the underlying debentures had expired at the time
the BCF was created.

Income Taxes

The Company accounts for income taxes
under the provisions of SFAS No. 109, "*Accounting for Income Taxes*."  Under SFAS No. 109, deferred
tax assets and liabilities are recognized for future tax benefits or consequences attributable to temporary differences
between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases.  
Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in
which those temporary differences are expected to be recovered or settled.  A valuation allowance is provided for
significant deferred tax assets when it is more likely than not that the asset will not be realized through future
operations.

The Company has total net operating tax loss carry
forwards at September 30, 2007 of approximately $8,900,000 for federal income tax purposes.  These net operating losses have
generated a deferred tax asset of approximately $3,000,000 on which a valuation allowance equaling the total tax benefit has
been provided due to the uncertain nature of it being realized. Net operating loss carryforwards expire in various years through
September 30, 2027 for federal tax purposes.F-7


Stock Based Compensation


The Company accounts for stock-based
compensation under SFAS No. 123R, "Share-based Payment" " and SFAS No. 148, "Accounting for Stock-Based
Compensation--Transition and Disclosure--An amendment to SFAS No. 123." These standards define a fair value based method
of accounting for stock-based compensation. In accordance with SFAS Nos. 123R and 148, the cost of stock-based employee
compensation is measured at the grant date based on the value of the award and is recognized over the vesting period. The value
of the stock-based award is determined using the Black-Scholes option-pricing model, whereby compensation cost is the excess
of the fair value of the award as determined by the pricing model at the grant date or other measurement date over the amount an
employee must pay to acquire the stock. The resulting amount is charged to expense on the straight-line basis over the period in
which the Company expects to receive the benefit, which is generally the vesting period.


Net Loss per Share

The Company adopted the provisions of SFAS No.
128, "Earnings Per Share" ("EPS").  SFAS No. 128 provides for the calculation of basic and diluted earnings per share.
Basic EPS includes no dilution and is computed by dividing income or loss available to common shareholders by the weighted
average number of common shares outstanding for the period.  Diluted EPS reflects the potential dilution of securities that
could share in the earnings or losses of the entity, arising from the exercise of options and warrants and the conversion of
convertible debt.  If such shares were included in diluted EPS, they would have resulted in weighted-average common shares of
84,508,107 and 26,847,438 for the three months ended September 30, 2007 and 2006, respectively and 77,036,882 and 26,853,479
for the six months ended September 30, 2007 and 2006, respectively.

Fair Value of Financial Instruments

The Company's financial instruments consist of cash
and cash equivalents, accounts payable, and notes payable.  Pursuant to SFAS No. 107, "*Disclosures About Fair Value
of Financial Instruments*," the Company is required to estimate the fair value of all financial instruments at the balance
sheet date.  The Company considers the carrying values of its financial instruments in the financial statements to
approximate their fair values due to the short term nature of the instruments.

Reclassification

Certain reclassifications have been made to the
2006 balances to conform to the 2007 presentation.

Recent Accounting Pronouncements

SFAS No. 157 - In September 2006, the FASB
issued Statement 157, *Fair Value Measurements.*This Statement defines fair value, establishes a framework for measuring
fair value in generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. This Statement
applies under other accounting pronouncements that require or permit fair value measurements, the Board having previously concluded
in those accounting pronouncements that fair value is the relevant measurement attribute. Accordingly, this Statement does not
require any new fair value measurements. However, for some entities, the application of this Statement will change current practice.
This Statement is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods
within those fiscal years. Earlier application is encouraged, provided that the reporting entity has not yet issued financial
statements for that fiscal year, including financial statements for an interim period within that fiscal year.  The
Company has evaluated the impact of the adoption of SFAS 157, and does not believe the impact will be significant to the Company's
overall results of operations or financial position.

SFAS No. 158
- In September 2006, the FASB issued Statement No. 158 *Employers' Accounting for Defined Benefit
Pension and Other Postretirement Plans-an amendment of FASB Statements No. 87, 88, 106, and 132(R)*.
This Statement improves financial reporting by requiring an employer to recognize the over funded or under
funded status of a defined benefit postretirement plan (other than a multiemployer plan) as an asset or
liability in its statement of financial position and to recognize changes in that funded status in the year
in which the changes occur through comprehensive income of a business entity or changes in unrestricted
net assets of a not-for-profit organization. This Statement also improves financial reporting by requiring
an employer to measure the funded status of a plan as of the date of its year-end statement of financial
position, with limited exceptions. An employer with publicly traded equity securities is required to
initially recognize the funded status of a defined benefit postretirement plan and to provide the required
disclosures as of the end of the fiscal year ending after December 15, 2006. An employer without publicly
traded equity securities is required to recognize the funded status of a defined benefit postretirement
plan and to provide the required disclosures as of the end of the fiscal year ending after June 15, 2007. The
Company has evaluated the impact of the adoption of SFAS 158, and does not believe the impact will be significant
to the Company's overall results of operations or financial position.

SAB No. 108- In September 2006,
the Securities and Exchange Commission issued Staff Accounting Bulletin No. 108 (SAB No. 108), "Considering
the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements." The guidance in
SAB No. 108 requires Companies to base their materiality evaluations on all relevant quantitative and qualitative factors.
This involves quantifying the impact of correcting all misstatements, including both the carryover and reversing effects of
prior year misstatements, on the current year financial statements. The Company has adopted this standard.

SFAS No. 159 - In
February 2007, the FASB issued Statement No. 159, *The Fair Value Option for Financial Assets and Financial
Liabilities-Including an amendment of FASB Statement No. 115*This Statement permits entities to choose to measure many
financial instruments and certain other items at fair value. The objective is to improve financial reporting by providing
entities with the opportunity to mitigate volatility in reported earnings caused by measuring related assets and
liabilities differently without having to apply complex hedge accounting provisions. This Statement is expected to expand
the use of fair value measurement, which is consistent with the Board's long-term measurement objectives for accounting
for financial instruments.  This Statement applies to all entities, including not-for-profit organizations. Most of the
provisions of this Statement apply only to entities that elect the fair value option. However, the amendment to
FASB Statement No. 115, *Accounting for Certain Investments in Debt and Equity Securities,* applies to all entities
with available-for-sale and trading securities. Some requirements apply differently to entities that do not report net
income. This Statement is effective as of the beginning of an entity's first fiscal year that begins after November 15, 2007.
Early adoption is permitted as of the beginning of a fiscal year that begins on or before November 15, 2007, provided the
entity also elects to apply the provisions of FASB Statement No. 157, *Fair Value Measurements.*No entity is permitted
to apply this Statement retrospectively to fiscal years preceding the effective date unless the entity chooses early
adoption. The choice to adopt early should be made after issuance of this Statement but within 120 days of the beginning
of the fiscal year of adoption, provided the entity has not yet issued financial statements, including required notes
to those financial statements, for any interim period of the fiscal year of adoption. This Statement permits application to
eligible items existing at the effective date (or early adoption date). The Company has evaluated the impact of the
implementation of SFAS No. 159 and does not believe the impact will be significant to the Company's overall results of
operations or financial position.F-8

**Note 3. Acquisition of Licensing
Rights**

On April 6, 2005, the Company completed its
purchase of rights and licenses from Permian Energy Services LP, a related party, in connection with certain technological
representation and marketing rights of a proprietary thermal pulse pump in the oil and gas industry.  In
consideration for the assets purchased, the Company originally agreed to issue 2,250,000 shares of its common stock
and pay $250,000 as evidenced by a promissory note with interest accruing at an annual rate of 6%.  Under the
terms of the note, accrued interest would have been due one year from the date of the Note and all principal and additional
accrued interest would have been due two years from the date of the note.  Throughout the first portion of fiscal
2006, Permian Energy International was in dispute with the prior President of Permian International, Inc. relative to certain
amounts allegedly due to him.  The Company valued the intangible assets purchased at $347,500, which consisted
of the $250,000 obligation plus the fair value of the 750,000 shares issued to a consultant in connection with the acquisition.
  The Company valued the shares issued as of April 6, 2005 (See Note 5).

In April 2006, the Company entered
into a satisfactory settlement agreement with Permian Energy Services L.P. and Robert Clark ("Clark"),
the former president of Permian Energy International Inc. Under the terms of the settlement agreement, the Company
agreed to dismiss its lawsuit against Clark. The Company has also agreed to pay Clark $53,823 in exchange for Clark
returning the 2,025,000 shares it received under the April 6, 2005 asset purchase agreement and cancelling the $214,963
obligation due it.

In order to bring the negotiations with
Clark to a successful conclusion, Wyoming Energy Corp. had to return to Permian Energy Services LP, its 10% ownership
interest in the LP. In consideration for the loss of Wyoming's interest in the LP, the Company transferred its obligation
in favor of the LP to Wyoming under the same terms and conditions. At the time of the transaction, Wyoming Energy Corp. was
wholly-owned by the Company's president, but was subsequently sold to an unrelated third party in March 2007.

Clark also agreed not to engage in
the business of providing downhole oil or gas well stimulation as referenced and defined in the PES-BI-Comp agreement,
which was assigned to the Company by Clark in April 2005 pursuant to the Asset Purchase Agreement for a period of three years.

The Company is amortizing the licensing rights over
its expected useful life of seven years. Amortization expense charged to operations amounted to $24,822 and $22,821 in each of
the six months ended September 30, 2007 and 2006. Amortization expense charged to operations amounted to $12,411 and $12,410 in
each of the three months ended September 30, 2007 and 2006.

Estimated amortization expense is as follows:
Year Ending September 30,2008

$49,6432009

$49,6432010

$49,6432011

$49,6432012

$24,821Total
$223,393


**Note 4. Property and
equipment**

**Oil and gas
properties**

In October 2006, the Company issued 3,600
shares of its Class C convertible preferred stock in exchange for an option to acquire certain oil and gas leases situated
on 3,600 acres in Floyd County, Texas. The option was to expire in January 2007, but the Company paid $54,000 to extend the
option period. The 3,600 shares of Class C preferred stock were valued at $32,400 based on the market price of the underlying
common shares on which the preferred shares can be converted into on the date of issuance.

In January 2007, the company
issued 22,500 shares of its Series B Preferred Stock to Tri Global Holdings, LLC for the purchase of oil and
gas leases to thirty to thirty five drilling locations on approximately 1,600 acres in the Devonian Black Shale
formation located in the Appalachian Basin in East Tennessee.  The 22,500 shares were valued at $213,773,
based on the market price of the Company's underlying common stock on the date of acquisition. Each share of Series
B Preferred is convertible into 100 shares of the Company's common stock.

In February 2007, the Company issued 25,000
shares of its Series B Preferred Stock in exchange for the acquisition of oil and gas leases and options comprising of
approximately 20,000 acres located in Palo Duro Basin, Texas and oil and gas leases located on 372 acres in Young Texas.
The 25,000 shares were valued at $237,525, based on the market price of the Company's underlying common stock on the date
of acquisition.

Further in April 2007, the Company issued
12,464 shares of its Series B Preferred Stock to extend the option for Floyd County through August 1, 2007. The 12,464 shares of Class B
preferred stock were valued at $149,568 based on the market price of the underlying common shares on which the preferred
shares can be converted into on the date of issuance.

In June 2007, the Company issued 61,091 of its
Class A convertible preferred stock in exchange for a 75% working interest in oil and gas leases located in Hale County
Texas from West Texas Royalties, Inc.  The 61,091 shares of Class A convertible preferred stock were valued
at $171,055 based on the market price of the underlying common shares on which the preferred shares can be converted
into on the date of issuance.

In June 2007, the Company issued 6,500
of its Class B convertible preferred stock and paid $10,000 to West Texas Royalties, Inc. in consideration for the
remaining 25% of the working interest in the oil and gas leases located in Young County, Texas. The 6,500 shares of
Class B convertible preferred stock were valued at $182,000 based on the market price of the underlying common shares
on which the preferred shares can be converted into on the date of issuance.

On May 14, 2007 the Company signed a
memorandum agreement (Agreement) with Zone Petroleum, LLC (Zone), a Wyoming corporation to fund the development of
its Young County prospect. Pursuant to the agreement, Zone is granted an exclusive for the Young County prospect as
long as Zone is able to fund the development of 35 wells over an 18 month period based an turnkey agreement of $50,000 per well.
As discussed below, in June, 2007. The Company acquired the remaining balance of the working interest in its Young County, Texas
prospect in order to facilitate its agreement with Zone Petroleum LLC. Under the agreement with Zone Petroleum, it will receive a
75% working interest with Platina retaining the remaining 25% working interest. Under the agreement, the Company will
receive an operating fee of 10% to 15%, subject to negotiation. During the three months ended June 30, 2007, the Company
received $35,500 from Zone and received an additional $25,000 last year relating to this agreement.




On August 7th 2007 the Company signed an agreement with Homestead Oil and Gas LLC to fund the development of its Appalachian
prospect. Under the agreement, the development of 55 well sites are to be funded by Homestead, who will receive a 75% working
interest in the wells, with Appalachian, a wholly owned subsidiary of Platina retaining a 25% working interest. As part of the
agreement, Appalachian will have the right to purchase 100% or any fraction there of, of any Homestead-owned well interest on
this property. Drilling activities began in August of 2007. No assurance can be given as to the expected progress or performance
of the development of the wells or that the production there from will prove profitable.F-9


**Note 5. Convertible Debt**

***Agreement #1***


On March 14, 2007, convertible debentures totaling $137,556 were sold by four Noteholders ("Assignors") of the Company to third
party assignee(s) represented by counsel ("Assignee").  Under the terms of the sale, the Company agreed to modify the conversion
feature of the notes. Under the modified terms, The Assignee shall have the right, upon three (3) days written notice to the
Company, to convert the unpaid principal and accrued interest of each Note into the Company's common stock at a rate of $0.002
per share for the first 4,000,000 shares and thereafter $0.003 per share, except the last 4,000,000 shares will be at the rate
of $0.004 per share; provided, however, the Assignee can only convert after the respective Assignor has been fully paid for that
portion of the Note that the Assignee is looking to convert. The terms further provide that no Note shall be converted at any
time by the Assignee if it would result in the Assignee beneficially owning more than 9.99% of the common stock of the Company
at the time of such conversion and that no Note can be converted at any time that the Fair Market Value of the common stock of
the Company is less than nine cents ($0.09) per share without the prior written consent of the Board of Directors of the Company.
In addition, the converted shares can not be sold by the Assignee(s) represented by legal counsel into the US Market for a period
of five (5) years from the date of the Assignment.  In March 2007, the Company issued 2,200,000 shares of its common stock in
exchange for canceling $4,400 of indebtedness. The Company recognized a loss of $281,600 on the conversion. The Company determined
that the modification of the conversion features created a beneficial conversion feature ("BCF") totaling $134,775 which was charged
to interest expense during the year ended March 31, 2007.



During the six months ended September 30, 2007, the Company issued 25,900,000 shares of its common stock in exchange for
canceling $53,900 of indebtedness. The Company recognized a loss of $5,568,309 on the conversions. Of the $53,900, $4,400
was cancelled under a special agreement at a price of $.0005 per share on which 8,800,000 shares were issued.
 
The balance of the convertible debenture at September 30, 2007 totaled $87,116, including accrued interest. The note is
assessed interest at an annual rate of 12%. Interest charged to operations during the six months ended September 30, 2007
and 2006 totaled $9,364 and $0, respectively. Interest charged to operations during the three months ended September 30,
2007 and 2006 totaled $3,361 and $0, respectively.

***Agreement #2***


On August 30, 2007 the Company entered into a Securities Purchase Agreement with La Jolla Cove Investors, Inc. ("La Jolla"), to
(i) sell to La Jolla a 7 1/4 % Convertible Debenture for $300,000 with a maturity date of August 30, 2010 if not earlier converted
by La Jolla into shares of the Company's Common Stock and (ii) issue to La Jolla a Warrant to Purchase up to 3,000,000 shares of
the Company's common stock at price of $1 per share with an expiration date of August 30, 2010.

Under the terms of the convertible debenture, La Jolla can convert the debt or any portion thereof.  The number of common shares
into which the debenture may be converted is equal to the dollar amount of the Debenture being converted multiplied by eleven,
minus the product of the Conversion Price multiplied by ten times the dollar amount of debenture being converted, the entire
result being divided by the Conversion Price. The Conversion Price equals the lesser of (i) $1.00 or (ii) 80% of the average of the
3 lowest prices of the Common Shares during the twenty days prior to conversion. If La Jolla elects to convert, the Company has the
right to pay off the amount of debt to be converted including accrued interest, however, if the trading price of the Company's
common shares is less than $.25 at the time of La Jolla elects to convert, the Company may pay off the amount of debt and accrued
interest to be converted with a 20% penalty thereon. The Company has the right to prepay any or all of the outstanding principal
balance and accrued interest due at anytime in an amount equal to 120% of such outstanding balance and accrued interest.

The Company has valued the convertible debenture (imputing an interest rate of 20%) and the related beneficial conversion option
to convert the principal balance into shares using the "Relative Fair Value" approach.  Accordingly, the Company recognized a
$300,000 discount on the $300,000 principal amount of the convertible debenture. The discount is being amortized over the 3 year life of the debenture. Interest charged to operation on the debenture for the three months ending September 30, 2007
and 2006 amounted to $1,847 and $0, respectively. Interest charged to operation on the debenture for the six months ending
September 30, 2007 and 2006 amounted to $1,847, and $0, respectively. Interest charged to operation on the discount for the
three months ending September 30, 2007 and 2006 amounted to $8,333 and $0, respectively. Interest charged to operation on the
debenture for the six months ending September 30, 2007 and 2006 amounted to $8,333, and $0, respectively.
**Note 6. Note Payable - Other**

As discussed in Note 3, Wyoming Energy Corp, a
corporation previously owned by the Company's President, returned its 10% interest in Permian Energy Services LLC in order to
bring the settlement with Permian to a successful conclusion. In consideration for the loss of Wyoming's interest in the LLC,
the Company transferred its obligation to Permian to Wyoming under the same terms and conditions.

Under the terms of the modified note, all outstanding principal and
additional accrued interest are due on March 31, 2008.   Interest accrued and charged to
operations on this obligation accruing during the three months ended September 30, 2007 and 2006 totaled $3,679 and $3,465,
respectively. Interest accrued and charged to operations on this obligation accruing during the six months ended September 30,
2007 and 2006 totaled $7,303 and $6,880, respectively. The total balance of this obligation at September 30, 2007 is $249,912. The
due date of this obligation including accrued interest has been extended to March 31, 2008.
F-10
**Note 7.
Due to Related Parties**
As of September 30, 2007, the Company owed its President, Blair Merriam, a total of $319,482 under various loan obligations,
including accrued interest.  The loans are assessed interest at an annual rate of 12%.  Interest charged to operations for the
three months ended September 30, 2007 and 2006 on these loans totaled $8,361 and $6,124, respectively. Interest charged to
operations for the six months ended September 30, 2007 and 2006 on these loans totaled $16,271 and $10,810, respectively In
addition, under the terms of the loans, until the principal loans balance and accrued interest are paid in full, the President
has the right to convert the obligation due him, including accrued interest, into shares of the Company's common stock at a
price per share equal to the average of the bid price of the Company's common stock for the thirty day trading period prior
to the written notice of conversion.

**Note 8.
Shareholder's Deficit**
Preferred Stock

In September 2006, 5,000 shares of the Company's Series B Preferred Stock were converted into 500,000 shares of the Company's
common stock.

In January 2007, the Company issued 22,500 shares of its Series B Preferred Stock in consideration for certain oil and gas leases
and options (see Note 4).

In January 2007, the Company issued 25,000 shares of its Series B Preferred Stock in exchange for the acquisition of certain
oil and gas leases and options (see Note 4).

In March 2007, the Company issued 20,000 shares of its Series B Preferred Stock in consideration for consulting services valued
at $280,000.

On October 12, 2006, the Company issued 3,600 shares of its Series C Preferred Stock in exchange for a 90-day option to acquire
certain oil and gas leases in Lloyd and Briscoe Counties, Texas. (See Note 4)

In March 2007, 5,000 shares of the Company's Series B Preferred Stock were converted into 500,000 shares of the Company's
common stock

In April 2007, the Company issued 12,464 shares of its Series B Preferred Stock in exchange for the extension of an option
to acquisition of certain oil and gas leases. The shares were valued at $149,568 based upon the market price of the underlying
common shares at date of issuance.

In June 2007, the Company issued 61,091 shares of its Series A Preferred Stock in exchange for the acquisition of certain oil and
gas leases. The shares were valued at $171,055 based upon the market price of the underlying common shares at date of issuance.

In June 2007, the Company issued 6,500 shares of its Series B Preferred Stock in exchange for the acquisition of certain oil and
gas leases. The shares were valued at $182,000 based upon the market price of the underlying common shares at date of issuance.
Common Stock

In April 2006, the Company issued a total of 1,225,000 rule 144 shares of its common stock in exchange for $61,250.


In April 2006, Clark returned the 2,025,000 shares of the Company's common stock as required in the April 5, 2006 settlement
agreement (See Note 3). These shares were subsequently cancelled by the Company.


In October 2006, the Company issued a total of 700,300 shares of its rule 144 common stock in payment of debt to a note holder
in the amount of $35,015 (see Note 4).  The aggregate fair value of the shares issued was $63,027; accordingly, the Company
recorded a $28,012 loss on settlement of debt.


In November 2006, the Company issued a total of 1,250,000 shares of its rule 144 common stock in consideration for investor
relations services.


In January 2007, the Company issued 50,000 shares of its rule 144 common stock as additional consideration on a $50,000
loan (See Note 5).


In February 2007, the Company issued 750,000 shares of its rule 144 common stock in consideration for consulting agreement
Services valued at $93,375 based upon the market price of shares on date of issuance.


In March 2007, the Company issued 2,200,000 shares of its common stock in consideration for the cancellation of $4,400 of
indebtedness (See Note 5). The aggregate fair value of the shares issued was $286,000; accordingly, the Company recorded a
$281,600 loss on settlement of debt.


In April 2007, the Company issued 1,266,667 shares of its common stock in exchange for the cancellation of $3,800 of indebtedness
due on certain convertible debentures. The company recognized a loss of $135,533 on the conversion.


In April 2007, the Company issued 2,200,000 shares of its common stock in exchange for the cancellation of $4,800 of indebtedness
due on certain convertible debentures. The company recognized a loss of $237,200 on the conversion.


In June 2007, the Company issued 1,400,000 shares of its common stock in consideration for consulting services. The services were
valued at $182,000, which was based on the market value of the shares on date of issuance.


In June 2007, the Company issued 50,000 shares of its common stock in consideration for extending the due date of a note payable.
The shares were valued at $9,500, which was based on the market value of the shares on date of issuance.


In June 2007, the Company issued 1,833,333 shares of its common stock in exchange for the cancellation of $5,500 of indebtedness due
on certain convertible debentures. The company recognized a loss of $397,833 on the conversion.


In June 2007, the Company issued 8,800,000 shares of its common stock in exchange for the cancellation of $4,400 of indebtedness due
on certain convertible debentures. The company recognized a loss of $2,481,600 on the conversion.


In June 2007, the Company issued 1,000,000 shares of its common stock in consideration for consulting services. The services were
valued at $190,000, which was based on the market value of the shares on date of issuance.


In July, 2007, the Company issued 53,571 shares of its common stock in payment of wages earned.  The shares were valued at $15,000,
which was based on the market value of the shares on date of issuance.


In July 2007, the Company issued 300,000 shares of its common stock in accordance with an employment agreement on time stock grant.
The shares were valued at $84,000, which was based on the market value of the shares on the date of issuance.


In August 2007, the Company issued 3,900,000 shares of its common stock in exchange for the cancellation of $11,700 of indebtedness
due on certain convertible debentures.  The Company recognized a loss of $667,967 on the conversion.


In September 2007, the Company issued 7,900,000 shares of its common stock in exchange for the cancellation of $23,700 of
indebtedness due on certain convertible debentures.  The Company recognized a loss of $1,624,000 on the conversion.


In September 2007, the Company issued 100,000 shares of its common stock in consideration for consulting services.  The services
were valued at $9,000, which was based on the market value of the shares on the date of issuance.


In September 2007, the Company issued 202,500 shares of its common stock in exchange for the cancellation of $19,737 of indebtedness
due on certain accounts payable.  The Company recognized a loss of $23,576 on the issuance.


In September 2007, the Company issued 37,500 shares of its common stock in consideration for legal services.  The services were
valued at $8,438, which was based on the market value of the shares on the date of issuance.

Stock Warrants


At September 30, 2007, there were total warrants outstanding to purchase 1,425,000 shares of rule 144 common stock at $0.50,
and 4,425,000 shares of common stock at $1.00. The expiration dates of the warrants vary from July 31, 2007 to August 30, 2010.
During the six months ended September 30, 2007, the Company issued an extension for certain warrants and accordingly, recorded an
expense of $35,767 associated with the expiration of the warrants.  Also during the six months ended September 30, 2007 the Company
issued 3,000,000 warrants, included above, and accordingly recorded an expense of $12,550 associated with the amortization of these
warrants over their respective life.
Employee Stock Option Plan


On March 25, 2005, the Company established a stock option plan for officers, directors, employees and consultants. Under the plan,
certain options issued will constitute "Incentive Stock Options" within the meaning of section 422A of the Internal Revenue Code,
and other options issued will be deemed nonstatutory. The Company's Board of Directors is responsible for the plan and the granting
of the options.  The number of common shares reserved to be issued through the plan is 3,000,000. Options are exercisable for as
period up to ten years from the date of grant. The Company's Board of Directors decides the actual term of each option. Options
granted to employees are subject to a vesting schedule based upon the number of years of continuous service that the employee has
with the Company from the grant date of the respective option. After three years of continuous service from the date of grant, the
respective options held by an employee are fully vested. The price for shares issued through the exercise of incentive stock
options are at fair market value for all employees with the exception of employees who are significant shareholders, who will pay no
less than 110% of market value. The price for shares issued through the exercise of nonstatutory options shall be decided by the
Company's Board, but at a price no less than 100% of the shares market value at date of grant.


On March 28, 2007, the Company granted stock options for a total of 3,000,000 common shares. The options were issued to its management
and its employee under its 2005 Stock Option Plan. The options are exercisable any time through March 27, 2012 at a price of $.09 per
share. The agreements limit the amount of shares exercised per holder in any year to 100,000. These options were valued using the
Black-Scholes option pricing model using the following assumptions: term of 5 years, a risk-free interest rate of 4.50%, a
dividend yield of 0% and volatility of 139%.  Compensation recognized on the above option grants was $215,500 which will be
charged to operations over the next five years.  For the three and six months ended September 30, 2007, amortization of the
options was $10,775 and $21,550, respectively.


In addition, on March 28, 2007, the Company granted a consultant options to purchase 200,000 shares of its common stock at a
price of $0.10 per share, the option expires on March 27, 2010.  The options were valued using the Black-Scholes option pricing
model using the following assumptions: term of 3 years, a risk-free interest rate of 4.49%, a dividend yield of 0% and volatility
of 139%. . Compensation recognized on the above option grant was $13,940 which was charged to operations at March 31, 2007,


In addition, on April 13, 2007, the Company granted a consultant options to purchase 200,000 shares of its common stock at a
price of $0.10 per share, the option expires on April 12, 2010.  The options were valued using the Black-Scholes option pricing
model using the following assumptions: term of 3 years, a risk-free interest rate of 4.71%, a dividend yield of 0% and volatility
of 164%. Compensation recognized on the above option grant was $17,100 which was charged to operations during the six months ended
September 30, 2007,


In addition, the Company had additional outstanding stock options granted to its management to purchase 3,525,000 rule 144 shares
of the Company's common stock at a price of $.15 per share. These options expired in April 2007.
**Note 9. Related Parties**

Stock Options
The Company had granted stock options to related parties to purchase shares of the Company common stock. As of September
30, 2007, the 3,200,000 stock options outstanding were all issued to related parties (see Note 7).
Noncash Transactions

For the three months ended September 30, 2007 and 2006, the Company accrued $15,000 and $18,000, respectively, for compensation
due its officers for services rendered. For the six months ended September 30, 2007 and 2006, the Company accrued $75,000 and
$36,000, respectively, for compensation due its officers for services rendered. The balances due to these officers at September
30, 2007 totaled $412,000.

**Note 10. Subsequent Events**

In October 2007, the Company acquired a 47.5% interest in Bowie Energy LLC ("Bowie"), a Limited Liability Company formed in
Texas on October 9, 2007. The purpose of LLC is to acquire certain assets of a third party including 30 producing oil wells, 1
producing gas well, 6 water injection wells, and 16 shut in wells located on approximately 4,250 acres in Quitman Texas. In
addition, the purchase also includes certain equipment and a small office building. The LLC is currently negotiating the terms
of the purchase of the properties and equipment, but there is no assurance that the transaction will be consummated.

On October 16, 2007 the Company borrowed $250,000 (the "Loan") from La Jolla Cove Investors, Inc. ("La Jolla"), pursuant to a
Promissory Note (the "Note") dated October 16, 2007 with interest at 8% due in monthly payments of interest only commencing three
(3) months from the date of the Note and with all principal and accrued but unpaid interest due on or before July 15, 2008. The
material default provisions include non payment of principal or interest when due. As part of this transaction, Blair Merriam, the
Company's President, entered into a Stock Pledge Agreement whereby Mr. Merriam pledged 2,000,000 shares of the Company's common
stock owned by Mr. Merriam to secure the Note and the previous $300,000 loan by La Jolla on August 30, 2007.  The $250,000 was
transferred to Bowie to partly fund its acquisition of oil properties in the State of Texas.

On October 29, 2007 Platina Energy Group, Inc. (the "Company") through its wholly owned subsidiary, Platina Exploration Corporation,
entered into a Property Sale and Joint Venture Agreement (the "Rick Newell Agreement") with Buccaneer Energy Corporation ("Buccaneer").
The Rick Newell Agreement provides for a Joint Venture by the Company with Buccaneer for a one half (1/2) interest in the Rick
Newell Salt Water Disposal Project located in Oklahoma that consists of one (1) producing oil well (Rick #1) currently producing
approximately four (4) barrels of oil per day, one (1) salt water disposal well (the Newell #2) and a number of wells which are to
be recompleted and dispose of the salt water on the lease in the Newell #2 well. Pursuant to the Rick Newell Agreement, the Company
is to pay to Buccaneer a total consideration of $455,138. In connection with this purchase, the Company is offering to qualified
investors units at a price of $50,000 each. Each unit consist of 100,000 restricted shares of the Company's common stock, a 4% working
interest in the Rick #1 and the Newell #2 and a 1 1/2 % working interest in the 10 non-operating wells.. As of November 16, 2007, the
Company has received $400,000 through the issuance of 8 units.


In October 2007, the Company issued 8,000,000 shares in consideration for cancelling $24,000 of convertible debt.



On October 31, 2007, the Company, through its wholly owned subsidiary, Platina Exploration Corporation, also entered into a Property
Sale and Joint Venture Agreement (the "Oklahoma Agreement") with Buccaneer. The Oklahoma Agreement provides for a Joint Venture by the
Company with Buccaneer for a one half (1/2) interest in (i) the approximate forty percent (40%) interest of Buccaneer in the Oklahoma
PUD Prospects comprised of several undeveloped prospects to be drilled and (ii) a one half (1/2) interest in the East Texas Projects
consisting of the Gaywood acquisition comprised of approximately fifty (50) locations in Rusk County. The Oklahoma Agreement further
provides that Buccaneer will show the Company other opportunities or projects and if the Company elects to participate, it will
receive a one half (1/2) interest in such project or projects upon reimbursement to Buccaneer for its costs in such project(s). The
Oklahoma Agreement also provides that the Company will pay Buccaneer $199,873 comprised of $60,000 cash which has been paid and a
$139,873 promissory note at six percent (6%) interest due on or before January 31, 2008.

Both the Rick Newell Agreement and the Oklahoma Agreement further provide that Buccaneer and the Company will be equal partners in
future operations with Buccaneer's wholly owned subsidiary, Buccaneer Energy L.L.C. being the operator of projects located in
Oklahoma, Bowie Operating Company ("Bowie Operating"), a newly formed Texas LLC being the operator of all other projects except that
pursuant to an oral agreement, Bowie Operating will also be the Operator of the Newell #2 upon completion of bonding in Oklahoma,
with all operations to be at cost, plus normal Model 610 Operating Agreement COPUS drilling, completion and operating overhead
reimbursement fees. Buccaneer has a 47.5% membership interest in Bowie Energy LLC.
F-11
Table of Contents
**ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN
OF OPERATION**
THIS FOLLOWING INFORMATION SPECIFIES CERTAIN FORWARD-LOOKING STATEMENTS
OF MANAGEMENT OF THE COMPANY. FORWARD-LOOKING
STATEMENTS ARE STATEMENTS THAT ESTIMATE THE HAPPENING OF FUTURE EVENTS AND ARE NOT BASED ON HISTORICAL FACT.  FORWARD-LOOKING
STATEMENTS MAY BE IDENTIFIED BY THE USE OF FORWARD-LOOKING TERMINOLOGY, SUCH AS "MAY", "SHALL", "COULD", "EXPECT", "ESTIMATE",
"ANTICIPATE", "PREDICT", "PROBABLE", "POSSIBLE", "SHOULD", "CONTINUE", OR SIMILAR TERMS, VARIATIONS OF THOSE TERMS OR THE
NEGATIVE OF THOSE TERMS.  THE FORWARD-LOOKING STATEMENTS SPECIFIED IN THE FOLLOWING INFORMATION HAVE BEEN COMPILED BY
MANAGEMENT ON THE BASIS OF ASSUMPTIONS MADE BY MANAGEMENT AND CONSIDERED BY
MANAGEMENT TO BE REASONABLE. THE FUTURE
OPERATING RESULTS, HOWEVER, ARE IMPOSSIBLE TO PREDICT AND NO REPRESENTATION, GUARANTY, OR WARRANTY IS TO BE INFERRED
FROM THOSE FORWARD-LOOKING STATEMENTS.
THE ASSUMPTIONS USED FOR PURPOSES OF THE FORWARD-LOOKING STATEMENTS SPECIFIED IN
THE FOLLOWING INFORMATION REPRESENT ESTIMATES OF FUTURE EVENTS AND ARE SUBJECT
TO UNCERTAINTY AS TO POSSIBLE CHANGES IN ECONOMIC, LEGISLATIVE, INDUSTRY, AND
OTHER CIRCUMSTANCES.  AS A RESULT, THE IDENTIFICATION AND INTERPRETATION OF
DATA AND OTHER INFORMATION AND THEIR USE IN DEVELOPING AND SELECTING ASSUMPTIONS
FROM AND AMONG REASONABLE ALTERNATIVES REQUIRE THE EXERCISE OF JUDGMENT. 
TO THE EXTENT THAT THE ASSUMED EVENTS DO NOT OCCUR, THE OUTCOME MAY VARY
SUBSTANTIALLY FROM ANTICIPATED OR PROJECTED RESULTS, AND, ACCORDINGLY, NO
OPINION IS EXPRESSED ON THE ACHIEVABILITY OF THOSE FORWARD-LOOKING STATEMENTS.
NO ASSURANCE CAN BE GIVEN THAT ANY OF THE ASSUMPTIONS RELATING TO THE
FORWARD-LOOKING STATEMENTS SPECIFIED IN THE FOLLOWING INFORMATION ARE ACCURATE,
AND NEITHER THE COMPANY NOR MANAGEMENT ASSUME ANY OBLIGATION TO UPDATE ANY SUCH FORWARD-LOOKING STATEMENTS.
**CRITICAL ACCOUNTING POLICIES**

Our Management's Discussion and Analysis or Plan of Operation section discusses our financial statements, which have been
prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of
these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets
and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting
period. On an on-going basis, management evaluates its estimates and judgments, including those related to revenue recognition,
accrued expenses, financing operations, and contingencies and litigation. Management bases its estimates and judgments on
historical experience and on various other factors that are believed to be reasonable under the circumstances, the results
of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily
apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.
The most significant accounting estimates inherent in the preparation of our financial statements include estimates as
to the appropriate carrying value of certain assets and liabilities which are not readily apparent from other sources,
accruals for other costs, and the classification of net operating loss and tax credit carry forwards between current and
long-term assets. These accounting policies are more fully described in the notes to the financial statements included in
our Annual Report on Form 10-KSB for the fiscal year ended March 31, 2007.



	The first critical accounting policy relates to revenue recognition. The
	Company recognizes income from its oil and gas sales when title passes on
	the sale of the related product.The second critical accounting policy relates to the valuation of non-monetary consideration issued for services rendered.
The Company values all services rendered in exchange for its common stock at the quoted price of the shares issued at date of
issuance or at the fair value of the services rendered, which ever is more readily determinable.  All other services provided
in exchange for other non-monetary consideration is valued at either the fair value of the services received or the fair value
of the consideration relinquished, whichever is more readily determinable. 

The third critical accounting policy relates to the valuation of the Company's long-term assets. The Company accounts for its
long-lived assets in accordance with SFAS No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets."  SFAS No.
144 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the
historical cost carrying value of an asset may no longer be appropriate.  The Company assesses recoverability of the carrying
value of an asset by estimating the future net cash flows expected to result from the asset, including eventual disposition. If
the future net cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference
between the asset's carrying value and fair value or disposable value.  

The fourth critical accounting policy relates to the accounting of the Company's oil and gas activities. The Company follows the
full cost method of accounting for crude oil and natural gas properties. Under this method, all direct costs and certain indirect
costs associated with acquisition of properties and successful as well as unsuccessful exploration and development activities
are capitalized. Depreciation, depletion, and amortization of capitalized crude oil and natural gas properties and estimated
future development costs, excluding unproved properties, are based on the unit-of-production method based on proved reserves.


The fifth critical accounting policy relates to the valuation of the modified terms of its convertible debt. The Company considers
the modified conversion terms to be an inducement offer pursuant to FSAB No. 84. Therefore, each conversion is valued separately and a
gain or loss on the difference between the debt cancelled and the market value of the shares issued on the conversion is recognized
into operations.


The six critical accounting policy is our accounting for conventional convertible debt.  When the convertible feature of the
conventional convertible debt provides for a rate of conversion that is below market value, this feature is characterized as a
beneficial conversion feature ("BCF").  We record a BCF as a debt discount pursuant to EITF Issue No. 98-5 ("EITF 98-05"), "Accounting
for Convertible Securities with Beneficial Conversion Features or Contingency Adjustable Conversion Ratio," and EITF
Issue No. 00-27, "Application of EITF Issue No. 98-5 to Certain Convertible Instruments."  In those circumstances, the convertible
debt will be record net of the discount related to the BCF.  We amortize the discount to interest expense over the life of the debt
using the effective interest method.

**OVERVIEW**

Platina Energy Group, Inc. ("the Company"), a Delaware Corporation, was originally incorporated on January 19, 1988.  The
Company went through several previous unrelated transactions involving other businesses that have subsequently been divested.
A further subsequent restructure of the Company on June 15, 2005 resulted in the name change to Platina Energy Group, Inc.  As
part of this restructure, the Company acquired technology representation  rights and certain marketing licenses to a proprietary
thermal pulsing pump which will be utilized in the oil and gas industry.


Subsequent to this endeavor with the TPU (Thermal Pulse Unit) technology, the Company initiated efforts in seeking possible
acquisitions of oil and gas properties that in management's opinion would provide revenue and profit generating opportunities.
Pursuant to management's goal of acquiring said properties, management identified several potential candidates and on October
12, 2006, the Company issued 3,600 shares of its Series C Preferred Stock in exchange for an option to acquire certain oil and
gas leases in Lloyd and Briscoe Counties, Texas.


On October 27, 2006, the Company entered into an agreement to purchase an oil and gas lease for thirty to thirty five drilling
locations on approximately 1,600 acres in the Devonian Black Shale formation located in the Appalachian Basin in East Tennessee
(said lease prospects are contained in the P Hawkins Gas Project). An engineering report produced by an independent Petroleum
Engineer states that the production in the P Hawkins Gas Project area comes from the Devonian Black Shale which has had significant
proven commercial reserves. However, there can be no assurance that our leases will be determined to have commercially proven
reserves or that the development of the wells on the leases or the production there from will prove profitable. In consideration
for the assets purchased, the Company agreed to issue 22,500 shares of its Series B Preferred Stock to seller. The closing of the
transaction was January 8, 2007. 

In October 2006, the Company entered into an agreement with West Texas Royalties to purchase oil and gas lease options to certain
oil and gas leases situated on 3,600 acres in Floyd and Briscoe Counties, Texas. The option was to expire in January 2007, but
the Company paid $54,000 to extend the option period. In April 2007, the Company issued 12,464 shares of
its Series B Preferred Stock to further extend the option through August 1, 2007.

In November 2006, the Company entered into an asset purchase agreement with West Texas Royalties to purchase a 75% working interest
in oil and gas leases located on 372 acres in Young County, Texas. Additionally, the purchase agreement provided oil and gas lease
options on approximately 20,000 gross acres located in Palo Duro Basin, Texas. The Company is in the process of obtaining engineering
reports for said acreage in the Palo Duro Basin, and no assurance can be given that the reports
will result in commercially viable proved reserves.

In June 2007, the Company issued 6,500 of its Class B convertible preferred
stock and paid $10,000 to West Texas Royalties, Inc. in consideration for the remaining 25% of the working interest in the oil
and gas leases located in Young County, Texas. In May 14, 2007 the Company signed a memorandum agreement (Agreement) with Zone Petroleum, LLC (Zone), a Wyoming corporation to
fund the development of its Young County prospect. Pursuant to the agreement, Zone is granted an exclusive for the Young County
prospect as long as Zone is able to fund the development of 35 wells over an 18 month period based on a turnkey agreement of
$50,000 per well. Once Zone has performed by commissioning 35 wells in an 18 month period, the exclusivity is non-revocable.
As discussed above, in June, 2007. The Company acquired the remaining balance of the working interest in its Young County,
Texas prospect in order to facilitate its agreement with Zone Petroleum LLC. Under the agreement with Zone Petroleum, it will
receive a 75% working interest with Platina retaining the remaining 25% working interest. Under the agreement, the Company will
receive an operating fee of 10% to 15%, subject to negotiation. During the three months ended June 30, 2007, the Company received
$35,500 from Zone and received an additional $25,000 last year relating to this agreement. Drilling activity began on the Young County
prospect at the end of the first quarter 2007. The Company has struck oil with its first well, however no assurance can be given as to
the resulting production of said well, or the future performance of this prospect with respect to its development or subsequent
profitability thereof.

In June 2007, the Company issued 61,091 of its Class A convertible preferred stock in exchange for a 75% working interest in
oil and gas leases for Palo Duro Basin located in Hale County, Texas from West Texas Royalties, Inc. 

In June of 2007, Platina Exploration Corp. was formed in the state of Nevada as a wholly owned subsidiary to Platina Energy Group, Inc.
Mr. Chip Langston was elected as the CEO immediately following the incorporation of Platina Exploration Corp. Further, Mr. Langston
was elected to the Board of Directors of Platina Energy Group, Inc. on June 7, 2007. Mr. Langston has an extensive financial background
relating to the acquisition and funding of oil and gas projects, and will immediately begin devoting time to the development of Platina
Exploration Corp.
In July, 2007, the Company issued 53, 571 shares of its common stock in payment of wages earned.  The shares were valued at $15,000, which
was based on the market value of the shares on date of issuance.


In July 2007, the Company issued 300,000 shares of its common stock in accordance with an employment agreement on time stock grant.  The
shares were valued at $84,000, which was based on the market value of the shares on the date of issuance.

In August 2007, the Company issued 3,900,000 shares of its common stock in exchange for the cancellation of $11,700 of indebtedness
due on certain convertible debentures.  The Company recognized a loss of $667,967 on the conversion.

In September 2007, the Company issued 6,900,000 shares of its common stock in exchange for the cancellation of $20,700 of
indebtedness due on certain convertible debentures.  The Company recognized a loss of $1,430,600 on the conversion.

In September 2007, the Company issued 1,100,000 shares of its common stock in consideration for consulting services.  The
services were valued at $214,000, which was based on the market value of the shares on the date of issuance.

In September 2007, the Company issued 202,500 shares of its common stock in exchange for the cancellation of $19,737
of indebtedness due on certain accounts payable.  The Company recognized a loss of $23,576 on the issuance.


As of November 13th, 2006 the Company's corporate headquarters is located on 1807 Capitol Ave. Suite 101 - I, Cheyenne, WY 82001

 15Table of Contents
**RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED SEPT 30, 2007 AND 2006** **REVENUES**

Revenues for the three months ended September 30, 2007 were $2,826 and $0 for the same period of 2006. **OPERATING EXPENSES** 

General and administrative expenses for the three months ended September 30, 2007 totaled $202,600, which primarily
consisted of accounting and legal fees of $38,968, consulting expenses of
$26,765, compensation to its officers and employees of $90,000, depreciation and amortization
of $14,764, office rent of $1,360, and other general and administrative expenses totaling $30,743. 

Operating expenses for the three-months ended September 30, 2006 totaled $58,272, which primarily consisted of salaries
and related costs to non-officers totaling $17,561, accrued compensation to its officers totaling $18,000, accounting
and legal fees of $17,741, depreciation and amortization of $14,439, and other general and administrative expenses
totaling $8,272.  

Non-cash consulting fees for the three months ended September 30, 2007 amounted to $333,975. 


Interest charged to operations for the three months ended  September 30, 2007 and 2006 amounted to $72,202 and $12,773,
respectively.  Interest charged to operations in both years relate to the interest accrued on the various indebtedness
due by the Company. **RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED SEPT 30, 2007 AND 2006** 

The revenue during the six months ended September 30, 2007 was $7,200 and was generated from the lease of the
thermal pulsing pump. The lease was cancelled in June 2007 and the equipment returned.
In addition during the six month period the Company earned $2,826 from oil and
gas sales. There was no revenue for
the same six month period of 2006.
**OPERATING EXPENSES**
General and administrative expenses for the three months ended September 30, 2007 totaled $336,350, which primarily
consisted of salaries and related costs to non-officers totaling $45,000, compensation to its officers
totaling $150,000, contract labor of $10,765 accounting and legal fees of $52,485, other consulting expenses of $26,765,
depreciation and amortization of $29,527, office rent of $2,380, and other general and administrative expenses
totaling $19,428.


Operating expenses for the six-months ended September 30, 2006 totaled $142,481, which primarily consisted of salaries
and related costs to non-officers totaling $32,400, accrued compensation to its officers totaling $36,000, accounting
and legal fees of $33,748, depreciation and amortization of $28,876, office rent of $4,830, and other general and
administrative expenses totaling $6,627.


Non-cash consulting fees for the six months ended September 30, 2007 amounted to $636,071.


Interest charged to operations for the six months ended September 30, 2007 and 2006 amounted to $65,995 and $12,773,
respectively.  Interest charged to operations in both years relate to the interest accrued on the various indebtedness
due by the Company.
**LIQUIDITY AND CAPITAL RESOURCES**

As of September 30, 2007, the Company's current assets totaled $64,836, consisting of $27,336 in cash accounts and
prepaid expenses totaling $37,500, which consisted of the value of the Company's common stock issue for future services.
The Company also had oil and gas leases and options with a book value of $1,005,221, equipment with a net book value
of $43,351, and licensing rights of $223,393, net of amortization. Total assets at September 30, 2007 amounted to
$1,336,801. 

As of September 30, 2007, the Company had current liabilities of $1,116,119 consisting of accrued compensation
to officers of $412,000 and notes payable of $1,077,690 and had no long term liabilities.  

As of September 30, 2006, the Company's had current assets of $8,721. It had equipment with a net book value of $45,276,
security deposits of $1,312, and licensing rights of $285,446, net of amortization. Total assets at September 30, 2006
amounted to $327,033. 

As of September 30, 2006, the Company had current liabilities of $1,005,698 consisting of accrued compensation to
officers of $311,000 and notes payable of $638,926, and had no long term liabilities. 

During the six months ended June 30, 2006, the Company received $61,250 through
the sale of 1,225,000 shares of the Company's rule 144 common stock and received
$47,000 in advances from its President. During the same period, the Company paid
$109,765 in
its operations.

During the six months ended September 30, 2007, the Company received $25,000 through the sale of 55,556 shares of the
Company's rule 144 common stock, $75,500 relating to the sale of a portion of its interests in its oil and gas properties, and received $21,000 in
advances from its President, and $300,000 through the issuance of a convertible
debenture. During the same period, the Company paid $273,553 in its operations,
and paid $63,810 relating
to its oil and gas properties, $51,068 repayment of debt and repaid $6,000 to
its President.

With respect to the financial condition beyond September 30, 2007 the Company will need access to additional funding to
meet operating requirements. Access to funding may come from joint venture opportunities, debt, stock placement or sale
of assets. Accordingly, the Company does not expect to be able to fund operations from internally generated funds until
such time as its new E & P (exploration and production) business strategy can be funded and implemented. As of the date
of this audit Company had no material commitments for any additional financing, and there can be no assurance that any
such commitments would be obtained on favorable terms, if at all.
**PLAN OF OPERATION**

The Company has previously maintained its operations from the sale of rule 144 stock and advances from related and unrelated parties.
The Company plans to provide for its future financing needs via strategic joint venture alliances. Over the next twelve months
the Company plans to devote significant effort to these joint venture alliances as well as other potential avenues to extinguish
debt and have access to strategic capital pools. Actual losses attributed to operations for the first quarter were negligible and
in line with internal projections. 

Although management is cautiously optimistic about its progress for a resolution to financing needs based on certain subsequent
events to this quarterly report, no assurances can be made that its strategic alliances or joint venture partners will continue
with their commitments to the Company. Adverse market conditions, reductions in oil and gas energy prices and limited access to
the capital markets can also adversely impact the Company and its progress as a going concern. 

In the event of any equity capital raise or share exchange for debt may be dilutive to stockholders, and debt financing,
if available, may involve restrictive covenants with respect to dividends, raising capital and other financial and operational
matters which could further restrict operations or finances.  If the Company is unable to obtain additional financing as
strategically needed, it may be required to reduce the scope of operations for anticipated expansion, which could have a
material adverse effect on business, results of operations and financial condition.

The Company began drilling activities at the end of the first quarter in Young County, Texas and having struck oil with its
first well, the Company expects to book revenues from oil production in the second quarter ending September 31, 2007. Additional
wells are scheduled for development based upon a joint venture agreement that calls for the drilling of a total of 35 wells over an
18 month period in Young County. Further, the planned development of the Company's Appalachian project is expected to begin in the
second quarter ending September 31, 2007 and will add natural gas revenues from core organic growth in proved fields. Based on the
Company's current plans, potential revenues from organic growth could reach several million dollars by year end with an operational
profit moving forward, although no assurance can be given that the Company's projections will materialize as planned.  

In addition to paving the way for the following quarters of fiscal 2007, the Company also acquired more leasehold acreage in the
Palo Duro Basin which it believes to be one of the biggest potential plays in North America at this time. Engineering and
geological studies are currently being contracted for the 20,000 lease-hold acres under option by the Company. To date,
the Company has been able to acquire oil and gas leases in Tennessee and Texas and prove reserves valued in the hundreds of
millions of dollars (based on the current market prices of oil and gas as of the date of
this filing), while incurring relatively modest paper losses. 

On August 7, 2007 the Company signed an agreement with Homestead Oil and Gas LLC to fund the development of its
Appalachian prospect. Under the agreement, the development of 55 well sites are to be funded by Homestead, who will receive
a 75% working interest in the wells, with Appalachian, a wholly owned subsidiary of Platina retaining a 25% working interest.
As part of the agreement, Appalachian will have the right to purchase 100% or any fraction there of, of any Homestead-owned
well interest on this property.  No assurance can be given as to the expected progress or performance of the development of
the wells or that the production therefrom will prove profitable.              **SUBSEQUENT EVENTS**

On October 26, 2007, the Company utilized the funds received from the La Jolla Loan for an equity investment of a forty seven
and one half percent (47 1/2%) interest in Bowie Energy, LLC, a Texas limited liability company ("Bowie") that is a newly
created entity for the acquisition (the "Acquisition") of the Quitman and Redwater Texas oil and gas producing properties
(the "Quitman and Redwater Texas Properties"). Bowie previously entered into a non binding Letter of Intent on October 8,
2007 with a non affiliate. for the Acquisition. The Quitman and Redwater Texas Properties include oil and gas leases
including all production effective October 1, 2007, a 63 mile pipeline, all rolling stock, real property, and other
miscellaneous property. The Acquisition is for a total consideration of $16,000,000 with (i) $6,000,000 to be carried back
by the Seller, (ii) additional debt financing of $8,000,000 for which Bowie has received a non binding Preliminary Term Sheet
from Western National Bank and (iii) $2,000,000 to be raised by Bowie.

On October 29, 2007 Platina Energy Group, Inc. (the "Company") through its wholly owned subsidiary, Platina Exploration
Corporation, entered into a Property Sale and Joint Venture Agreement (the "Rick Newell Agreement") with Buccaneer Energy
Corporation ("Buccaneer"). The Rick Newell Agreement provides for a Joint Venture by the Company with Buccaneer for a one
half (1/2) interest in the Rick Newell Salt Water Disposal Project located in Oklahoma that consists of one (1) producing
oil well (Rick #1) currently producing approximately four (4) barrels of oil per day, one (1) salt water disposal well
(the Newell #2) and a number of wells which are to be recompleted and dispose of the salt water on the lease in the
Newell #2 well. Pursuant to the Rick Newell Agreement, the Company is to pay to Buccaneer a total consideration of $455,138.
The Company anticipates selling a forty percent (40%) interest in the Rick #1 and Newell #2 wells and a fifteen percent (15%)
interest in the remaining non-operating wells of the Rick Newell Salt Water Disposal Project to various third party investors
and retaining a ten percent (10%) and thirty five percent (35%) interest, respectfully in such wells.

On October 31, 2007, the Company, through its wholly owned subsidiary, Platina Exploration Corporation, also entered into a
Property Sale and Joint Venture Agreement (the "Oklahoma Agreement") with Buccaneer. The Oklahoma Agreement provides for a
Joint Venture by the Company with Buccaneer for a one half (1/2) interest in (i) the approximate forty percent (40%) interest
of Buccaneer in the Oklahoma PUD Prospects comprised of several undeveloped prospects to be drilled and (ii) a one half (1/2)
interest in the East Texas Projects consisting of the Gaywood acquisition comprised of approximately fifty (50) locations in
Rusk County. The Oklahoma Agreement further provides that Buccaneer will show the Company other opportunities or projects and
if the Company elects to participate, it will receive a one half (1/2) interest in such project or projects upon reimbursement
to Buccaneer for its costs in such project(s). The Oklahoma Agreement also provides that the Company will pay Buccaneer
$199,873 comprised of $60,000 cash to be paid by November 16, 2007 and a $139,873 promissory note at six percent (6%) interest
due on or before January 31, 2008.

Both the Rick Newell Agreement and the Oklahoma Agreement further provide that Buccaneer and the Company will be equal partners
in future operations with Buccaneer's wholly owned subsidiary, Buccaneer Energy L.L.C. being the operator of projects located
in Oklahoma, Bowie Operating Company ("Bowie"), a newly formed Texas operator being the operator of all other projects except
that pursuant to an oral agreement, Bowie will also be the Operator of the Newell #2 upon completion of bonding in Oklahoma,
with all operations to be at cost, plus normal Model 610 Operating Agreement COPUS drilling, completion and operating overhead
reimbursement fees.

Management has worked aggressively in the second and third quarters to position the company for potential significant future
growth through the acquisitions and joint venture, including an income strategy that can be offset by much of the tax loss
carry forwards. The Company also anticipates strategic further debt reductions that will substantially enhance its net income
after tax. Actual losses from operations have been relatively small in comparison to other competitors. With a minimal staff
of full time employees and modest office overhead, the Company has positioned itself for optimal operational bottom lines as
revenues grow.
**KNOWN RISKS AND TRENDS
SEASONALITY**The Company does not expect to be sensitive to seasonal fluctuation.  The Company is however, affected by
fluctuations in crude oil and
natural gas pricing, as well as the pricing of competitive technologies.  Risks include the potential for the development of
displacement technologies which may be considered a better or more feasible solution for oil and gas recovery. 
Risks associated with
oil and gas recovery, drilling and exploration are many.  These would include:  price fluctuations; drilling rig access
because of
demand; contractor problems; logistical complications; and more.


**LIABILITY FOR THE COMPANY'S SERVICES** Liability issues affecting the Company would be
similar to those in the oil and gas service industry (see
"Government Regulations and Legal uncertainties") as well as those that might result in expanded distribution of its
access to recovery technology which may also have set backs or complications currently unknown.16
Table of Contents
**PART II - OTHER INFORMATION**
**ITEM 1. LEGAL PROCEEDINGS**None.
**ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS**
In April 2006, the Company issued a total of 1,225,000 rule 144 shares of its common stock in exchange for $61,250.


In April 2006, Clark returned the 2,025,000 shares of the Company's common stock as required in the April 5, 2006 settlement
agreement (See Note 3). These shares were subsequently cancelled by the Company.


In October 2006, the Company issued a total of 700,300 shares of its rule 144 common stock in payment of debt to a note holder
in the amount of $35,015 (see Note 4).  The aggregate fair value of the shares issued was $63,027; accordingly, the Company
recorded a $28,012 loss on settlement of debt.


In November 2006, the Company issued a total of 1,250,000 shares of its rule 144 common stock in consideration for investor
relations services.


In January 2007, the Company issued 50,000 shares of its rule 144 common stock as additional consideration on a $50,000
loan (See Note 5).


In February 2007, the Company issued 750,000 shares of its rule 144 common stock in consideration for consulting agreement
Services valued at $93,375 based upon the market price of shares on date of issuance.


In March 2007, the Company issued 2,200,000 shares of its common stock in consideration for the cancellation of $4,400 of
indebtedness (See Note 5). The aggregate fair value of the shares issued was $286,000; accordingly, the Company recorded a
$281,600 loss on settlement of debt.


In April 2007, the Company issued 1,266,667 shares of its common stock in exchange for the cancellation of $3,800 of indebtedness
due on certain convertible debentures. The company recognized a loss of $135,533 on the conversion.


In April 2007, the Company issued 2,200,000 shares of its common stock in exchange for the cancellation of $4,800 of indebtedness
due on certain convertible debentures. The company recognized a loss of $237,200 on the conversion.


In June 2007, the Company issued 1,400,000 shares of its common stock in consideration for consulting services. The services were
valued at $182,000, which was based on the market value of the shares on date of issuance.


In June 2007, the Company issued 50,000 shares of its common stock in consideration for extending the due date of a note payable.
The shares were valued at $9,500, which was based on the market value of the shares on date of issuance.


In June 2007, the Company issued 1,833,333 shares of its common stock in exchange for the cancellation of $5,500 of indebtedness due
on certain convertible debentures. The company recognized a loss of $397,833 on the conversion.


In June 2007, the Company issued 8,800,000 shares of its common stock in exchange for the cancellation of $4,400 of indebtedness due
on certain convertible debentures. The company recognized a loss of $2,481,600 on the conversion.


In June 2007, the Company issued 1,000,000 shares of its common stock in consideration for consulting services. The services were
valued at $190,000, which was based on the market value of the shares on date of issuance.


In July, 2007, the Company issued 53,571 shares of its common stock in payment of wages earned.  The shares were valued at $15,000,
which was based on the market value of the shares on date of issuance.


In July 2007, the Company issued 300,000 shares of its common stock in accordance with an employment agreement on time stock grant.
The shares were valued at $84,000, which was based on the market value of the shares on the date of issuance.


In August 2007, the Company issued 3,900,000 shares of its common stock in exchange for the cancellation of $11,700 of indebtedness
due on certain convertible debentures.  The Company recognized a loss of $667,967 on the conversion.


In September 2007, the Company issued 7,900,000 shares of its common stock in exchange for the cancellation of $23,700 of
indebtedness due on certain convertible debentures.  The Company recognized a loss of $1,624,000 on the conversion.


In September 2007, the Company issued 100,000 shares of its common stock in consideration for consulting services.  The services
were valued at $9,000, which was based on the market value of the shares on the date of issuance.


In September 2007, the Company issued 202,500 shares of its common stock in exchange for the cancellation of $19,737 of indebtedness
due on certain accounts payable.  The Company recognized a loss of $23,576 on the issuance.


In September 2007, the Company issued 37,500 shares of its common stock in consideration for legal services.  The services were
valued at $8,438, which was based on the market value of the shares on the date of issuance.
	**ITEM 3. DEFAULTS UPON SENIOR SECURITIES**
None.
**ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS**None.
	**ITEM 5. OTHER INFORMATION**None.
		**ITEM 6. EXHIBITS AND REPORTS**