U. S.
Securities and Exchange Commission


Washington,
D.C. 20549





FORM
10-QSB




(Mark
One)




[X]
    QUARTERLY
      REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934





For the
quarterly period ended January 31, 2005




[_]
    TRANSITION
      REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
      ACT OF 1934






For the
transition period from _______________________ to
_______________________





Commission
File No. 000-32089


NORTH
      AMERICAN NATURAL GAS, INC.(Name
      of Small Business Issuer as specified in its
Charter)








Washington
    91-2023071(State
      or Other Jurisdiction of
    (I.R.S.
      Employerincorporation
      or organization)
    Identification
      No)





580
Hornby Street, Suite 210


Vancouver,
British Columbia, Canada V6C 3B6 ________________________________________


(Address
of Principal Executive Offices)





(604)
687-6991


__________________________________


Issuer's
Telephone Number





N/A


(Former
Name or Former Address, if changed since last Report)





Check
whether the Issuer (1) filed all reports required to be filed by Section 13 or
15(d) of the Exchange Act during the past 12 months (or for such shorter period
that the Company was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.





(1)
    Yes
    
    X
    
    No
    
    
    (2)
    Yes
    
    X
    
    No





(ISSUERS
INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS)




Not
applicable





(APPLICABLE
ONLY TO CORPORATE ISSUERS)





State the
number of shares outstanding of each of the Issuer's classes of common equity,
as of the latest practicable date:




January
31, 2005




Common -
19,812,500 common shares





DOCUMENTS
INCORPORATED BY REFERENCE





A
description of any "Documents Incorporated by Reference" is contained in Item 6
of this Report.





Transitional
      Small Business Issuer Format
    Yes
    
    X
    
    No





North
American Natural Gas Inc.


(A
Development Stage Company)


Balance
Sheets


(Expressed
in U.S. Dollars)




January
      31
      2005
      $
      (Unaudited)
    
    April
      30
      2004
      $
      (Audited)ASSETSCurrent
      AssetsCash
    
    
    20,581
    
    
    44,236Total
      Assets
    
    
    20,581
    
    
    44,236LIABILITIES
      AND STOCKHOLDERS' EQUITYCurrent
      LiabilitiesAccounts
      payable
    
    
    300
    
    
    429Accrued
      liabilities
    
    
    800
    
    
    4,850Total
      Liabilities
    
    
    1,100
    
    
    5,279Stockholders'
      EquityPreferred
      Stock: $.0001 par value; authorized 20,000,000 preferred shares; none
      issued
    
    
    -
    
    
    -Common
      Stock: $0.0001 par value; authorized 100,000,000 common shares; 19,812,500
      shares issued and outstanding respectively
    
    
    1,981
    
    
    1,981Additional
      Paid-in Capital
    
    
    309,019
    
    
    309,019Deficit
      Accumulated During the Development Stage
    
    
    (291,519
    )
    
    (272,043
    )Total
      Stockholders' Equity
    
    
    19,481
    
    
    38,957Total
      Liabilities and Stockholders' Equity
    
    
    20,581
    
    
    44,236





(See
Accompanying Notes to the Financial Statements)





North
American Natural Gas Inc.


(A
Development Stage Company)


Statements
of Operations


(Unaudited)


(Expressed
in U.S. Dollars)




AccumulatedMarch
      24, 2000
    
    Three
      Months
    
    Nine
      Months(Date
      of Inception)
    
    Ended
    
    Endedto
      January 31,
    
    January
      31,
    
    January
      31,2005
    
    2005
    
    2004
    
    2005
    
    2004$
    
    $
    
    $
    
    $
    
    $Revenue
    
    
    -
    
    
    -
    
    
    -
    
    
    -
    
    
    -ExpensesAccounting
      and legal
    
    
    94,376
    
    
    3,502
    
    
    7,261
    
    
    13,515
    
    
    27,908Business
      development
    
    
    24,475
    
    
    -
    
    
    -
    
    
    -
    
    
    -Finance
      costs
    
    
    75,975
    
    
    -
    
    
    -
    
    
    -
    
    
    -Consulting
      fees
    
    
    25,000
    
    
    -
    
    
    -
    
    
    -
    
    
    -Directors
      fee
    
    
    15,500
    
    
    1,500
    
    
    1,500
    
    
    4,500
    
    
    4,500License
      written-off
    
    
    35,000
    
    
    -
    
    
    -
    
    
    -
    
    
    -Office
    
    
    9,568
    
    
    25
    
    
    503
    
    
    280
    
    
    1,891Transfer
      agent and filing fees
    
    
    13,468
    
    
    574
    
    
    608
    
    
    1,181
    
    
    2,397Less
      Interest Income
    
    
    (1,843
    )
    
    -
    
    
    -
    
    
    -
    
    
    (457
    )Total
      Expenses
    
    
    291,519
    
    
    5,601
    
    
    9,872
    
    
    19,476
    
    
    36,239Net
      Loss for the Period
    
    
    (291,519
    )
    
    (5,601
    )
    
    (9,872
    )
    
    (19,476
    )
    
    (36,239
    )Net
      Loss Per Share - Basic and Diluted
    
    
    
    
    
    -
    
    
    -
    
    
    -
    
    
    -Weighted
      Average Number of Shares Outstanding (stock split applied retro
      actively)
    
    
    
    
    
    19,812,500
    
    
    19,812,500
    
    
    19,812,500
    
    
    19,812,500





(See
Accompanying Notes to the Financial Statements)





North
American Natural Gas Inc.


(A
Development Stage Company)


Statements
of Cash Flow


(Unaudited)


(Expressed
in U.S. Dollars)




Nine
      Months EndedJanuary
      31,2005
      $
    
    2004
      $Cash
      Flows Used In Operating ActivitiesNet
      loss for the period
    
    
    (19,476
    )
    
    (36,239
    )Change
      in operating assets and liabilities(Decrease)
      in accounts payable and accrued liabilities
    
    
    (4,179
    )
    
    (16,387
    )(Decrease)
      in share subscription refundable
    
    
    -
    
    
    (1,600,000
    )Net
      Cash Used in Operating Activities
    
    
    (23,655
    )
    
    (1,652,626
    )Decrease
      In Cash
    
    
    (23,655
    )
    
    (1,652,626
    )Cash
      - Beginning of Period
    
    
    44,236
    
    
    1,704,740Cash
      - End of Period
    
    
    20,581
    
    
    52,114Non
      - Cash Financing and Investing Activities
    
    
    -
    
    
    -Supplemental
      DisclosuresInterest
      paid
    
    
    -
    
    
    -Income
      tax paid
    
    
    -
    
    
    -




(See
Accompanying Notes to the Financial Statements)





North
American Natural Gas Inc.


(A
Development Stage Company)


Notes to
Financial Statements


(Unaudited)


(Expressed
in U.S. Dollars)






NOTE 1 -
BASIS OF PRESENTATION





These
unaudited financial statements have been prepared in accordance with the
instructions to SEC Form 10-QSB. Accordingly, certain information and footnote
disclosures normally included in financial statements prepared in accordance
with generally accepted accounting principles have been condensed or omitted
pursuant to such instructions. These unaudited financial statements should be
read in conjunction with the audited financial statements and notes thereto as
at April 30, 2004.





In the
opinion of the Company's management, all adjustments considered necessary for a
fair presentation of these unaudited financial statements have been included and
all such adjustments are of a normal recurring nature. Operating results for the
ninth-month period ended January 31, 2005 are not necessarily indicative of the
results that can be expected for the year ended April 30, 2005.








NOTE 2 -
DEVELOPMENT STAGE COMPANY





North
American Natural Gas, Inc. (formerly FAR Group, Inc.) herein (the "Company") was
incorporated in the State of Washington, U.S.A. on March 24, 2000. The Company
acquired a license to market and distribute vitamins, minerals, nutritional
supplements, and other health and fitness products in which the grantor of the
license offers these products for sale from various suppliers on their Web site.





The
Company is in the development stage. In a development stage company, management
devotes most of its activities in developing a market for its products. Planned
principal activities have not yet begun. The ability of the Company to emerge
from the development stage with respect to any planned principal business
activity is dependent upon its successful efforts to raise additional equity
financing and/or attain profitable operations. There is no guarantee that the
Company will be able to raise any equity financing or sell any of its products
at a profit. There is substantial doubt regarding the Company's ability to
continue as a going concern.





During
fiscal 2003, the Company changed its name to North American Natural Gas, Inc. as
it had anticipated that it would undertake a new business purpose in the oil and
gas exploration industry. The Company was unsuccessful in its efforts to raise
the required capital to acquire the oil and gas properties contemplated and
reverted back to its original business to exploit the license to market and sell
vitamins and other health and fitness products.





NOTE 3 -
RELATED PARTY TRANSACTIONS





None





NOTE 4 -
COMPREHENSIVE LOSS





SFAS No.
130, "Reporting Comprehensive Income," establishes standards for the reporting
and display of comprehensive loss and its components in the financial
statements. As at January 31, 2005, the Company has no items that represent
comprehensive loss and, therefore, has not included a schedule of comprehensive
loss in the financial statements.







ITEM
      2.
    MANAGEMENT'S
      DISCUSSION AND ANALYSIS OR PLAN OF
OPERATION




The
following discussion and analysis of the Company's financial condition and
results of operations should be read in conjunction with the accompanying
financial statements and notes and the other financial information appearing
elsewhere in this report. This Report contains statements that may contain
forward-looking statements concerning the Company's future operations and
planned future acquisitions and other matters and the Company intends that such
forward-looking statements be subject to the safe harbors for such statements.
Any statements that involve discussions with respect to predictions,
expectations, beliefs, plans, projections, objectives, assumptions or future
events or performances often, but not always, using phrases such as "expects",
or "does not expect", "is expected", "anticipates" or "does not anticipate",
"plans", "estimates", or "intends", or stating that certain actions, events or
results "may", "could", or "might" or "will" be taken to occur or be achieved
are not statements of historical fact and may be "forward looking statements".




The
Company cautions readers not to place undue reliance on any such forward-looking
statements which speak only as of the date made. Such forward-looking statements
are based on the beliefs and estimates of the Company's management as well as on
assumptions made by and information currently available to the Company at the
time such statements were made. Forward-looking statements are subject to a
variety of risks and uncertainties which could cause actual events or results to
differ from those reflected in the forward-looking statements, including,
without limitation, the failure to obtain adequate financing on a timely basis
and other risks and uncertainties. Actual results could differ materially from
those projected in the forward-looking statements, either as a result of the
matters set forth or incorporated in this Report generally and certain economic
and business factors, some of which may be beyond the control of the
Company.




**Critical
Accounting Policies**




The
Company's discussions and analysis of its financial condition and results of
operations, including the discussion on liquidity and capital resources are
based upon the Company's financial statements, which have been prepared in
accordance with US GAAP. The preparation of these financial statements requires
the Company to make estimates and judgements that affect the reported amounts of
assets, liabilities, revenues and expenses, and related disclosure of contingent
assets and liabilities.




**Plan
of Operation**




During
the period from March 24, 2000 through January 31, 2005, we engaged in no
significant operations other than organizational activities, acquisition of the
rights to market Vitamineralherb, preparation for registration of securities
under the Securities Act of 1933, as amended, preparation of a supplementary
business plan and completing a private placement. No revenues were received by
us during this period.




During
the fourth quarter of fiscal 2003, we changed our name to North American Natural
Gas, Inc. as we had anticipated that we would undertake a new business purpose
in the oil and gas exploration industry. We entered into agreements to purchase
interests in two oil and gas exploration opportunities subject to raising a
minimum of US$11,000,000 in a private placement. We were unsuccessful in our
efforts to raise the minimum amount and all funds received were subsequently
returned to the original subscribers. All agreements were terminated. We spent
an aggregate of $85,683 in connection with the failed financing
efforts.




As we
were unsuccessful in our efforts to raise the required capital to change our
business purpose, we reverted back to our original business to determine the
feasibility of marketing the Vitamineralherb.com products in various markets,
and, if the products proved to be in demand, begin marketing and selling
Vitamineralherb.com products.




We have
extended our license with Vitamineralherb.com for an additional three years to
market vitamins, minerals, nutritional supplements and other health and fitness
products in Minnesota through the Vitamineralherb.com web site. The license
remains in effect until April 2006 subject to the payment of annual
fees.









The
implementation of our initial plans was delayed as Vitamineralherb.com re-worked
its web site rendering it non-operational for a period of time. In addition,
Vitamineralherb changed its primary supplier of products again delaying our
ability to initiate our business plan. Our efforts to implement our initial
plans continues to be delayed as Vitamineralherb continues to modify its web
site and to find a replacement supplier for its vitamin and mineral products to
offer to its licensees.




To date,
the Vitamineralherb.com website continues to be non-operational. It is our
intention to continue to explore other business opportunities although we have
not identified any new business opportunities and have no agreements related to
such opportunities.




For the
nine-month period ended January 31, 2005, we had total general and
administrative expenses of $19,476 as compared to $36,239 during the same period
ended January 31, 2004, a decrease of $16,763. In the previous period we
incurred additional professional fees relating to our unsuccessful efforts to
raise the required capital to acquire the previous contemplated oil and gas
properties. For the remainder of the current fiscal year ending April 30, 2005,
we anticipate incurring a loss as a result of expenses associated with
maintaining the company in good standing and exploring new business
opportunities.




We remain
a company in the development stage. Our balance sheet as of January 31, 2005
reflects total assets of $20,581 comprising of cash. We had total liabilities of
$1,100 for a positive working capital position of $19,481. We have incurred a
loss of $19,476 for the
fiscal period to date and a total loss of $291,519 from inception. During the
quarter ended January 31, 2005, we did not issue any common stock.




**Liquidity**




We have
cash on hand of $20,581 as at January 31, 2005 and working capital of $19,481 as
compared to cash on hand of $44,236 and working capital of $38,957 as at April
30, 2004 .





We
believe the Company currently does not have sufficient funds to meet its cash
requirements for the next twelve months. The Company intends to raise the
capital required to fund its cash requirements and future business opportunities
by issuing debt and/or equity securities, although the Company has no current
arrangements or agreements related to such financings. The Company's management
is exploring a variety of options to meet the Company's cash requirements and
future capital requirements, including the possibility of equity offerings, debt
financing, and business combinations. There can be no assurance financing will
be available or accessible on reasonable terms.




We may
engage in a combination with another business. During the fiscal year of 2003,
we entered into agreements that would have changed our business to the oil and
gas industry. We were unsuccessful in raising the minimum capital required to
complete the transaction and subsequently terminated all the agreements. We have
engaged in discussions concerning potential business combinations, but have not
entered into any agreement for such a combination.




Our
failure to generate revenues and conduct operations since inception raises
substantial doubt about the Company's ability to continue as a going concern. We
will require substantial working capital, and currently have inadequate capital
to fund all of our business strategies, which could severely limit our
operations.





**ITEM
      3.**
    **CONTROL
      AND PROCEDURES**





(a) *Evaluation
of Disclosure Controls and Procedures:* Disclosure controls and procedures are designed to ensure that information
required to be disclosed in the reports filed or submitted under the Exchange
Act is recorded, processed, summarized and reported, within the time period
specified in the SEC's rules and forms. Disclosure controls and procedures
include, without limitation, controls and procedures designed to ensure that
information required to be disclosed in the reports filed under the Exchange Act
is accumulated and communicated to management, including the Chief Executive
Officer and Chief Financial Officer, as appropriate, to allow timely decisions
regarding required disclosure. As of the end of the period covered by this
report, the Company carried out an evaluation, under the supervision and with
the participation of the Company's management, including the Company's Chief
Executive Officer and Chief Financial Officer, of the effectiveness of the
design and operation of the Company's disclosure controls and procedures. Based
upon and as of the date of that evaluation, the Chief Executive Officer and
Chief Financial Officer concluded that the Company's disclosure controls and
procedures are effective to ensure that information required to be disclosed in
the reports the Company files and submits under the Exchange Act is recorded,
processed, summarized and reported as and when required.







(b) *Changes
in Internal Control over Financial Reporting:* There
were no changes in the Company's internal control over financial reporting
identified in connection with the Company evaluation of these controls as of the
end of the period covered by this report that could have significantly affected
those controls subsequent to the date of the evaluation referred to in the
previous paragraph, including any correction action with regard to significant
deficiencies and material weakness.





There
were no significant changes in the Company's internal controls or in other
factors that could significantly affect these controls subsequent to the date of
their evaluation, including any significant deficiencies or material weaknesses
of internal controls that would require corrective action.





**PART
II - OTHER INFORMATION**





**ITEM
      1.**
    **LEGAL
      PROCEEDINGS**





None; not
applicable.





**ITEM
      2.**
    **CHANGES
      IN SECURITIES**





None





**ITEM
      3.**
    **DEFAULTS
      UPON SENIOR SECURITIES**





None; not
applicable.





**ITEM
      4.**
    **SUBMISSION
      OF MATTERS TO A VOTE OF SECURITY
HOLDERS**





None





**ITEM
      5.**
    **OTHER
      INFORMATION**





None





**ITEM
      6.**
    **EXHIBITS
      AND REPORTS ON FORM 8-K**





**(a)**
    **Exhibits**





31.1
    Certification
      pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 - Chief
      Executive Officer


31.2
    Certification
      pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 - Chief
      Financial Officer


32.1
    Certification
      pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of
      the Sarbanes Oxley Act of 2002 - Chief Executive
Officer


32.2
    Certification
      pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of
      the Sarbanes Oxley Act of 2002 - Chief Financial
Officer





**(b)**
    **Reports
      on Form 8-K**





None





**Documents
incorporated by reference**








None








SIGNATURES





Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.





NORTH
      AMERICAN NATURAL GAS, INC.Date:
    
    March
      14, 2005
    
    By:
    
    /s/
      Jim GlavasJim
      Glavas
      President,
      Chief Executive Officer and Director
   Pursuant
to the requirements of the Securities Exchange Act of 1934, as amended, this
report has been signed below by the following persons on behalf of the Company
and in the capacities and on the dates indicated:
 
 Date:
    
    March
      14, 2005
    
    By:
    
    /s/
      Jim GlavasJim
      Glavas
      President,
      Chief Executive Officer and DirectorDate:
    
    March
      14, 2005
    
    By:
    
    /s/
      Richard AchronRichard
      Achron
      Chief
      Financial Officer and DirectorDate:
    
    March
      14, 2005
    
    By:
    
    /s/
      Dickson CoatsworthDickson
      Coatsworth
      Director