----

----

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

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

**INTRODUCTION**

----

----

*Page            -1*

----

**PART        I: FINANCIAL INFORMATION**

**Item        1. Financial Statements**

*Page            -2*

----

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

**CONSOLIDATED        FINANCIAL STATEMENTS**

**September        30, 2007**

*Page            -3*

----

| **TURNER                  VALLEY OIL & GAS,                  INC.**                                                                                                                  |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (A                  Development Stage Company)                                                                                                                                           |   |
| Consolidated                  Balance Sheets                                                                                                                                             |   |
|                                                                                                                                                                                     |   |   |   |   |   |   |
| ASSETS                                                                                                                                                                                   |   |
|                                                                                                                                                                                     |   | September 30, |   |   | December 31, |   |
|                                                                                                                                                                                     |   | 2006 |   |   | 2005 |   |
|                                                                                                                                                                                     |   | Unaudited |   |   |   |   |
| CURRENT                  ASSETS                                                                                                                                                          |   |   |   |   |   |   |
|                                                                                                                                                                                     |   |   |   |   |   |   |
| Cash                                                                                                                                                                                     |   | $ | 2,052 |   |   | $ | 78,848 |   |
| Accounts                  receivable                                                                                                                                                     |   |   | 1,252 |   |   |   | 2,546 |   |
|                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Total                  Current Assets                                                                                                                                                    |   |   | 3,304 |   |   |   | 81,394 |   |
|                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| OIL                  AND GAS PROPERTIES USING FULL COST ACCOUNTING                                                                                                                  |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Properties                  subject to amortization                                                                                                                                      |   |   | 674,486 |   |   |   | 212,996 |   |
| Accumulated                  amortization                                                                                                                                                |   |   | (18,267 | ) |   |   | (10,767 | ) |
|                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Net                  Oil and Gas Properties                                                                                                                                              |   |   | 656,219 |   |   |   | 202,229 |   |
|                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| OTHER                  ASSETS                                                                                                                                                            |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Investments                                                                                                                                                                              |   |   | 1,013,053 |   |   |   | 155,651 |   |
|                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Total                  Other Assets                                                                                                                                                      |   |   | 1,013,053 |   |   |   | 155,651 |   |
|                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| TOTAL                  ASSETS                                                                                                                                                            |   | $ | 1,672,576 |   |   | $ | 439,274 |   |
|                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| LIABILITIES                  AND STOCKHOLDERS' EQUITY                                                                                                 |   |
|                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| CURRENT                  LIABILITIES                                                                                                                                                     |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Accounts                  payable                                                                                                                                                        |   | $ | 114,449 |   |   | $ | 5,958 |   |
| Notes                  payable, related party                                                                                                                                            |   |   | 23,658 |   |   |   | 23,658 |   |
|                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Total                  Current Liabilities                                                                                                                                               |   |   | 138,107 |   |   |   | 29,616 |   |
|                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Total                  Liabilities                                                                                                                                                       |   |   | 138,107 |   |   |   | 29,616 |   |
|                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| STOCKHOLDERS'                  EQUITY                                                                                                                                                    |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Common                  stock, 100,000,000 shares authorized of $0.001par value, 56,985,984                  and                  53,385,984 shares issued and outstanding, respectively |   |   | 56,987 |   |   |   | 53,387 |   |
| Capital                  in excess of par value                                                                                                                                          |   |   | 4,569,723 |   |   |   | 4,185,323 |   |
| Subscription                  receivable                                                                                                                                                 |   |   | - |   |   |   | - |   |
| Accumulated                  other comprehensive income                                                                                                                                  |   |   | (4,085 | ) |   |   | (4,810 | ) |
| Deficit                  accumulated during the development stage                                                                                                                        |   |   | (3,088,156 | ) |   |   | (3,824,242 | ) |
|                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Total                  Stockholders' Equity                                                                                                                                              |   |   | 1,534,469 |   |   |   | 409,658 |   |
|                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| TOTAL                  LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                              |   | $ | 1,672,576 |   |   | $ | 439,274 |   |

*Page            -4*

----

| **TURNER                  VALLEY OIL & GAS, INC.** |   |
|--------------------------------------------------------|--------|
| (A                  Development Stage Company)         |   |
| Consolidated                  Statements of Operations |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                   |   | For                  the Three Months Ended September 30, |   |   | For                  the Nine Months Ended September 30, |   |   | From                  Inception on April 21, 1999 Through                  September 30, |   |
|                                                   |   | 2006 |   |   | 2005 |   |   | 2006 |   |   | 2005 |   |   | 2006 |   |
| REVENUE                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Royalties                  received                    |   | $ | 784 |   |   | $ | - |   |   | $ | 9,612 |   |   | $ | 1,640 |   |   | $ | 19,889 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| EXPENSES                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost                  of production                    |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,565 |   |   |   | 51,753 |   |
| Depletion                                              |   |   | 2,500 |   |   |   | 2,500 |   |   |   | 7,500 |   |   |   | 7,500 |   |   |   | 15,767 |   |
| General                  and administrative            |   |   | 230,335 |   |   |   | 1,012 |   |   |   | 565,739 |   |   |   | 543,989 |   |   |   | 4,317,240 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                  Expenses                        |   |   | 232,835 |   |   |   | 3,512 |   |   |   | 573,239 |   |   |   | 554,054 |   |   |   | 4,384,760 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET                  OPERATING LOSS                    |   |   | (232,051 | ) |   |   | (3,512 | ) |   |   | (563,627 | ) |   |   | (552,414 | ) |   |   | (4,364,871 | ) |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER                  INCOME (EXPENSE)                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                  income                          |   |   | 336,702 |   |   |   | 237,825 |   |   |   | 396,863 |   |   |   | 237,825 |   |   |   | 272,505 |   |
| Unrealised                  Gain on WIN Investment     |   |   | 902,851 |   |   |   | - |   |   |   | 902,851 |   |   |   | - |   |   |   | 902,851 |   |
| Interest                  expense                      |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (3,292 | ) |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                  Other Income (Expense)          |   |   | 1,239,553 |   |   |   | 237,825 |   |   |   | 1,299,714 |   |   |   | 237,825 |   |   |   | 1,172,064 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET                  PROFIT/(LOSS) BEFORE INCOME TAX   |   | $ | 1,007,502 |   |   | $ | 234,313 |   |   | $ | 736,088 |   |   | $ | (314,589 | ) |   | $ | (3,192,807 | ) |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                  tax                            |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET                  PROFIT/(LOSS)                     |   | $ | 1,007,502 |   |   | $ | 234,313 |   |   | $ | 736,088 |   |   | $ | (314,589 | ) |   | $ | (3,192,807 | ) |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BASIC                  LOSS PER COMMON SHARE           |   | $ | 0.02 |   |   | $ | 0.00 |   |   | $ | 0.01 |   |   | $ | (0.01 | ) |   |   |   |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| WEIGHTED                  AVERAGE NUMBER OF            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COMMON                  SHARES OUTSTANDING             |   |   | 55,078,292 |   |   |   | 49,694,775 |   |   |   | 55,078,292 |   |   |   | 49,882,687 |   |   |   |   |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COMPREHENSIVE                  INCOME (LOSS)           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET                  LOSS                              |   | $ | 1,007,502 |   |   | $ | 234,313 |   |   | $ | 736,088 |   |   | $ | (314,589 | ) |   | $ | (3,192,807 | ) |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER                  COMPREHENSIVE INCOME (LOSS)     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign                  Currency Translation          |   |   | - |   |   |   | - |   |   |   | (725 | ) |   |   | 2,367 |   |   |   | (4,085 | ) |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COMPREHENSIVE                  INCOME (LOSS)           |   | $ | 1,007,502 |   |   | $ | 234,313 |   |   | $ | 735,363 |   |   | $ | (312,222 | ) |   | $ | (3,196,892 | ) |

*Page            -5*

----

| **Turner                    Valley Oil & Gas Corporation**                  |   |
|---------------------------------------------------------------------------------|--------|
| (A                    Development Stage Company)                                |   |
| Statement                    of Stockholders' Equity and Comprehensive Income   |   |
| September                    30, 2006                                           |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   | Shares |   |   | Amount |   |   | Additional                    Paid-in-Capital |   |   | Comprehensive                    Income/(Loss) |   |   | Retained                    Earnings |   |   | Subscription                    Receivable |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                    at inception April 21, 1999                          |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued for services during 1999                       |   |   | 41,080 |   |   |   | 41 |   |   |   | 5,094 |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued for cash during 1999                           |   |   | 16,000 |   |   |   | 16 |   |   |   | 99,984 |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    Loss for the period ended December 31, 1999              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (96,935 | ) |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                    at December 31, 1999                                 |   |   | 57,080 |   |   |   | 57 |   |   |   | 105,078 |   |   |   | 0 |   |   |   | (96,935 | ) |   |   | 0 |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    Loss for the period ended December 31, 2000              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (27,242 | ) |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                    at December 31, 2000                                 |   |   | 57,080 |   |   |   | 57 |   |   |   | 105,078 |   |   |   | 0 |   |   |   | (124,177 | ) |   |   | 0 |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    Loss for the period ended December 31, 2001              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (65,380 | ) |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                    at December 31, 2001                                 |   |   | 57,080 |   |   |   | 57 |   |   |   | 105,078 |   |   |   | 0 |   |   |   | (189,557 | ) |   |   | 0 |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued for debt reduction during 2002                 |   |   | 8,000 |   |   |   | 8 |   |   |   | 99,992 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued for services during 2002                       |   |   | 2,190,150 |   |   |   | 2,190 |   |   |   | 1,092,885 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    Loss for the period ended December 31, 2002              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (1,240,008 | ) |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                    at December 31, 2002                                 |   |   | 2,255,230 |   |   |   | 2,255 |   |   |   | 1,297,955 |   |   |   | 0 |   |   |   | (1,429,565 | ) |   |   | 0 |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued for services at $.02 per share                 |   |   | 1,500,000 |   |   |   | 1,500 |   |   |   | 298,500 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Rounding                    of shares from reverse split                        |   |   | 2,000 |   |   |   | 2 |   |   |   | (2 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued for accounts payable at $.05 Per share         |   |   | 8,000,000 |   |   |   | 8,000 |   |   |   | 392,000 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued for services at $.015 per share                |   |   | 31,729,200 |   |   |   | 31,729 |   |   |   | 444,209 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued for services at $.015 per share                |   |   | 9,487,504 |   |   |   | 9,488 |   |   |   | 132,825 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued pursuant to S-8 registration at $.05 per share |   |   | 2,000,000 |   |   |   | 2,000 |   |   |   | 98,000 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued pursuant to S-8 registration at $.05 per share |   |   | 650,000 |   |   |   | 650 |   |   |   | 31,850 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cancellation                    of Common Stock                                 |   |   | (16,691,520 | ) |   |   | (16,692 | ) |   |   | (220,459 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued for cash at $.05 per share                     |   |   | 3,000,000 |   |   |   | 3,000 |   |   |   | 147,000 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued for cash at $.30 per share                     |   |   | 100,000 |   |   |   | 100 |   |   |   | 29,900 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued for cash at $.35 per share                     |   |   | 528,570 |   |   |   | 529 |   |   |   | 184,471 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign                    Currency Translation                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (1,718 | ) |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    Loss for the period ended December 31, 2003              |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   |   |   |   |   | (1,137,760 | ) |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                    at December 31, 2003                                 |   | ** ** | **42,560,984** |   |   | ** ** | **42,561** |   |   | ** ** | **2,836,249** |   |   | ** ** | **(1,718** | **)** |   | ** ** | **(2,567,325** | **)** |   | ** ** | **0** |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued pursuant to S-8 registration at $.20 per share |   |   | 932,500 |   |   |   | 933 |   |   |   | 185,567 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued pursuant to S-8 registration at $.08 per share |   |   | 1,597,500 |   |   |   | 1,598 |   |   |   | 126,202 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued pursuant to S-8 registration at $.08 per share |   |   | 1,000,000 |   |   |   | 1,000 |   |   |   | 79,000 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued pursuant to S-8 registration at $.11 per share |   |   | 85,000 |   |   |   | 85 |   |   |   | 9,265 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 9/30/2004                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued pursuant to S-8 registration at $.20 per share |   |   | 1,385,000 |   |   |   | 1,385 |   |   |   | 275,615 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued for Cash at $.05 per share                     |   |   | 975,000 |   |   |   | 975 |   |   |   | 47,775 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Subscription                    Recievable                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (48,750 | ) |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign                    Currency Translation                                 |   |   |   |   |   |   |   |   |   |   |   |   |   | ** ** | **(2,367** | **)** |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    Loss for the period ended December 31, 2004              |   | ** ** | **0** |   |   | ** ** | **0** |   |   | ** ** | **0** |   |   | ** ** | **0** |   |   | ** ** | **(784,001** | **)** |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                    at December 31, 2004                                 |   | ** ** | **48,535,984** |   |   | ** ** | **48,537** |   |   | ** ** | **3,559,673** |   |   | ** ** | **(4,085** | **)** |   | ** ** | **(3,351,326** | **)** |   | ** ** | **(48,750** | **)** |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued pursuant to S-8 registration at $.13 per share |   |   | 2,850,000 |   |   |   | 2,850 |   |   |   | 367,650 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued pursuant to S-8 registration at $.13 per share |   |   | 2,000,000 |   |   |   | 2,000 |   |   |   | 258,000 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign                    Currency Translation                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (725 | ) |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Subscription                    Recievable                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 48,750 |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    Loss for the period ended December 31, 2005              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (472,917 | ) |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Balance                    at December 31, 2005**                             |   | ** ** | **53,385,984** |   |   | ** ** | **53,387** |   |   | ** ** | **4,185,323** |   |   | ** ** | **(4,810** | **)** |   | ** ** | **(3,824,244** | **)** |   | ** ** | **0** |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued pursuant to S-8 registration at $.13 per share |   |   | 2,000,000 |   |   |   | 2,000 |   |   |   | 258,000 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                    issued pursuant to S-8 registration at $.08 per share |   |   | 1,600,000 |   |   |   | 1,600 |   |   |   | 126400 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    Income for the period ended September 30, 2006           |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 725 |   |   |   | 736,088 |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Balance                    as at September 30, 2006**                         |   | ** ** | **56,985,984** |   |   | ** ** | **56,987** |   |   | ** ** | **4,569,723** |   |   | ** ** | **(4,085** | **)** |   | ** ** | **(3,088,156** | **)** |   | ** ** | **0** |   |

*Page            -6*

----

| **TURNER                    VALLEY OIL & GAS, INC.**                                                          |   |
|-------------------------------------------------------------------------------------------------------------------|--------|
| (A                    Development Stage Company)                                                                  |   |
| Consolidated                    Statements of Cash Flows                                                          |   |
| (Unaudited)                                                                                                       |   |
|                                                                                                              |   |   |   |   |   |   |   |   |   |
|                                                                                                              |   | For                    the 9 months Ended September 30, |   |   | From                    Inception on April 21, 1999Through September 30, |   |
|                                                                                                              |   | 2007 |   |   | 2006 |   |   | 2007 |   |
|                                                                                                              |   |   |   |   |   |   |   |   |   |
| CASH                    FLOWS FROM OPERATING ACTIVITIES:                                                          |   |   |   |   |   |   |   |   |   |
|                                                                                                              |   |   |   |   |   |   |   |   |   |
| Net                    Income/(Loss)                                                                              |   | $ | (65,210 | ) |   | $ | (166,764 | ) |   | $ | (4,176,690 | ) |
| Adjustments                    to reconcile net loss to net cash used in operating                    activities: |   |   |   |   |   |   |   |   |   |   |   |   |
| Depletion                                                                                                         |   |   | 7,500 |   |   |   | 7,500 |   |   |   | 28,267 |   |
| Loss                    on abandonment of property                                                                |   |   | - |   |   |   | - |   |   |   | 25,481 |   |
| Gain                    on sale of Investment                                                                     |   |   | (97,799 | ) |   |   | (336,701 | ) |   |   | (801,314 | ) |
| Common                    stock issued for services rendered                                                      |   |   | 15,000 |   |   |   | 388,000 |   |   |   | 4,256,960 |   |
| Non-cash                    Effect from Foreign Currency Translation                                              |   |   | - |   |   |   | 725 |   |   |   | (4,080 | ) |
| Non-cash                    effect of revaluing Marketable Securities                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Changes                    in operating assets and liabilities:                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Increase                    (Decrease) in bank Overdraft                                                          |   |   |   |   |   |   | - |   |   |   | - |   |
| Increase                    (Decrease) in accounts receivable                                                     |   |   | 1,394 |   |   |   | 1,294 |   |   |   | 722 |   |
| Increase                    (Decrease) in accounts payable - related Party                                        |   |   |   |   |   |   | - |   |   |   | 23,659 |   |
| Increase                    in accounts payable and accrued expenses                                              |   |   | 11,977 |   |   |   | 108,489 |   |   |   | 313,166 |   |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    Cash Used in Operating Activities                                                          |   |   | (127,138 | ) |   |   | 2,543 |   |   |   | (333,829 | ) |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH                    FLOWS FROM INVESTING ACTIVITIES:                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds                    from sale of investments                                                              |   |   | 141,640 |   |   |   | 382,151 |   |   |   | 972,839 |   |
| Investing                    in new Oil & Gas working interests                                               |   |   | - |   |   |   | (461,490 | ) |   |   | (425,544 | ) |
| Expenditures                    for oil and gas property development                                              |   |   |   |   |   |   | - |   |   |   | (712,714 | ) |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    Cash Used in Investing Activities                                                          |   |   | 141,640 |   |   |   | (79,339 | ) |   |   | (165,419 | ) |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH                    FLOWS FROM FINANCING ACTIVITIES:                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds                    from issuance of common stock                                                         |   |   |   |   |   |   | - |   |   |   | 465,000 |   |
| Receipt                    of subscription receivable                                                             |   |   | - |   |   |   | - |   |   |   | 48,750 |   |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    Cash Provided by Financing Activities                                                      |   |   | - |   |   |   | - |   |   |   | 513,750 |   |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| NET                    INCREASE (DECREASE) IN CASH                                                                |   |   | 14,502 |   |   |   | (76,796 | ) |   |   | 14,502 |   |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH AND CASH                    EQUIVALENTS AT BEGINNING OF PERIOD                                     |   |   | - |   |   |   | 78,848 |   |   |   | -  |   |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH AND CASH                    EQUIVALENTS AT END OF PERIOD                                           |   | $ | 14,502 |   |   | $ | 2,052 |   |   | $ | 14,502 |   |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL                    CASH FLOW INFORMATION                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH                    PAID FOR:                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                                                                                                          |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Income                    taxes                                                                                   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| NON-CASH                    FINANCING ACTIVITIES                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                    stock issued for services rendered                                                      |   | $ | 15,000 |   |   | $ | 260,000 |   |   | $ | 3,724,460 |   |
| Common                    stock issued for retirement of payables                                                 |   | $ | - |   |   | $ | - |   |   | $ | 532,500 |   |
| Transfer                    of working Interest for payment of Debt                                               |   | $ | 400,000 |   |   |   |   |   |   | $ | 400,000 |   |

*Page            -7*

----

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

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

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

**The        Strachan Property**

*Page            -8*

----

**The        Strachan Property – Leduc region**

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

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

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

*Page            -9*

----

**Mississippi        Prospect**

**General        & Administrative Costs**

**Liquidity**

*Page            -10*

----

**PART        II: OTHER INFORMATION**

**Item        1. Legal Proceedings**

**Item        2. Changes in Securities**

**Item        3. Defaults on Senior Securities**

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

**Item        5. Other Information. None**

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

**Exhibit        31. Section 302 Certification**

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

*Page            -11*

----

**SIGNATURES**

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

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

----