UNITED STATESSECURITIES AND EXCHANGE COMMISSION 
Washington, D.C. 20549

FORM 10-QSB

(Mark One)[X]
     
     QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGEACT OF 1934For the quarterly period ended October 31, 2006[   ]
     
     TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGEACT OF 1934For the transition period from ____________  to  __________


Commission File No. 000-32089

NORTH AMERICAN NATURAL GAS, INC.(Exact name of small business issuer as specified in its charter)Washington
     
     91-2023071(State or other jurisdiction of incorporation or organization)
     
     (IRS Employer Identification No.)


580 Hornby Street, Suite 210 Vancouver, British Columbia, Canada V6C 3B6(Address of principal executive offices)

(604) 687-6991Issuer's telephone number

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.

Yes [X] No [   ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes [X] No [   ]

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: December 1, 2006: 19,812,500 common shares

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|PART 1  FINANCIAL INFORMATION
|------------------------------



|ITEM 1. FINANCIAL STATEMENTS
|----------------------------

Our financial statements are stated in United States Dollars (US$) and are prepared in accordance with United States Generally Accepted Accounting Principles.





















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North American Natural Gas, Inc.(A Development Stage Company)Balance Sheets(Expressed in U.S. Dollars)October 31,
     
     
     April 30,2006
     
     
     2006$
     
     
     $(unaudited)ASSETSCurrent AssetsCash
     
     4,410
     
     
     5,381Total Assets
     
     4,410
     
     
     5,381LIABILITIES AND STOCKHOLDERS DEFICITCurrent LiabilitiesAccounts payable
     
     10,849
     
     
     7,164Accrued liabilities
     
     915
     
     
     365Due to related party (Note 4(b))
     
     19,500
     
     
     9,500Total Liabilities
     
     31,264
     
     
     17,029Contingencies (Note 1)Stockholders DeficitPreferred Stock: 20,000,000 shares authorized, $0.0001 par value;none issued and outstanding
     
     
     
     
     Common Stock: 100,000,000 shares authorized, $0.0001 parvalue; 19,812,500 shares issued and outstanding
     
     1,981
     
     
     1,981Additional Paid-in Capital
     
     309,019
     
     
     309,019Donated Capital
     
     2,000
     
     
     2,000Deficit Accumulated During the Development Stage
     
     (339,854
     )
     
     (324,648
     )Total Stockholders Deficit
     
     (26,854
     )
     
     (11,648
     )Total Liabilities and Stockholders Deficit
     
     4,410
     
     
     5,381










The accompanying notes are an integral part of these financial statements

F-1

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North American Natural Gas, Inc.(A Development Stage Company)Statements of Operations(Expressed in U.S. Dollars)(unaudited)AccumulatedFromFor the
     
     
     For the
     
     
     March 24, 2000Three Months
     
     
     Six Months
     
     
     (Date ofEnded
     
     
     Ended
     
     
     Inception)October 31,
     
     
     October 31,
     
     
     to October 31,2006
     
     
     2005
     
     
     2006
     
     
     2005
     
     
     2006$
     
     
     $
     
     
     $
     
     
     $
     
     
     $Revenue
     
     
     
     
     
     
     
     
     
     
     
     
     
     ExpensesBusiness development
     
     
     
     
     
     
     
     
     
     
     
     
     
     24,475Consulting fees
     
     
     
     
     
     
     
     
     
     
     
     
     
     25,000Directors fees
     
     1,500
     
     
     1,500
     
     
     3,000
     
     
     3,000
     
     
     26,000Finance costs
     
     
     
     
     
     
     
     
     
     
     
     
     
     75,975License written-off
     
     
     
     
     
     
     
     
     
     
     
     
     
     35,000Professional fees
     
     4,150
     
     
     3,150
     
     
     10,900
     
     
     7,700
     
     
     124,316Office and rent (Note 4(a))
     
     524
     
     
     310
     
     
     897
     
     
     626
     
     
     13,214Transfer agent and filing fees
     
     161
     
     
     677
     
     
     409
     
     
     1,473
     
     
     16,856Travel
     
     
     
     
     
     
     
     
     
     
     
     
     
     863Total Expenses
     
     6,335
     
     
     5,637
     
     
     15,206
     
     
     12,799
     
     
     341,699Net Loss Before Other Income
     
     (6,335
     )
     
     (5,637
     )
     
     (15,206
     )
     
     (12,799
     )
     
     (341,699
     )Other IncomeInterest income
     
     
     
     
     
     
     
     
     
     
     
     
     
     1,845Net Loss for the Period
     
     (6,335
     )
     
     (5,637
     )
     
     (15,206
     )
     
     (12,799
     )
     
     (339,854
     )Net Loss Per Share  Basic and Diluted
     
     
     
     
     
     
     
     
     
     
     
     
     
     Weighted Average Shares Outstanding
     
     19,812,500
     
     
     19,812,500
     
     
     19,812,500
     
     
     19,812,500












The accompanying notes are an integral part of these financial statements

F-2

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North American Natural Gas, Inc.(A Development Stage Company)Statements of Cash Flows(Expressed in U.S. Dollars)(unaudited)For the
     
     
     For theSix Months
     
     
     Six MonthsEnded
     
     
     EndedOctober 31,
     
     
     October 31,2006
     
     
     2005$
     
     
     $Operating ActivitiesNet loss for the period
     
     (15,206
     )
     
     (12,799
     )Adjustment to reconcile net loss to cash used in operating activitiesDonated rent
     
     
     
     
     600Changes in operating assets and liabilitiesAccounts payable
     
     3,685
     
     
     1,312Accrued liabilities
     
     550
     
     
     (673
     )Net Cash Used in Operating Activities
     
     (10,971
     )
     
     (11,560
     )Financing ActivitiesAdvances from a related party
     
     10,000
     
     
     Net Cash Provided By Financing Activities
     
     10,000
     
     
     Decrease in Cash
     
     (971
     )
     
     (11,560
     )Cash - Beginning of Period
     
     5,381
     
     
     15,078Cash - End of Period
     
     4,410
     
     
     3,518Supplemental DisclosuresInterest paid
     
     
     
     
     Income taxes paid
     
     
     
     
     






















The accompanying notes are an integral part of these financial statements

F-3

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|North American Natural Gas, Inc.(A Development Stage Company)Notes To The Financial StatementsOctober 31, 2006(Expressed in U.S. Dollars)(Unaudited)
|----------------------------------------------------------------------------------------------------------------------------------------------------

|1. | Nature of Operations and Continuance of Business                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   | North American Natural Gas, Inc. herein (the Company) was incorporated in the State of Washington, U.S.A. on March 24, 2000 and is a Development Stage Company as defined by Statement of Financial Accounting Standard (SFAS) No. 7 Accounting and Reporting for Enterprises in the Development Stage. 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 was also developing a marketing strategy to offer personal care products through a kiosk-based ordering system.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|  
|   | During fiscal 2003 the Company changed its name from FAR Group, Inc. 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. The Company is currently exploring new business opportunities after not renewing its license to market health and fitness products.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|  
|   | These financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The Company has never generated revenues since inception and has never paid any dividends and is unlikely to pay dividends or generate earnings in the immediate or foreseeable future. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability of the Company to obtain necessary equity financing to continue operations, confirmation of the Companys interests in the underlying properties, and the attainment of profitable operations. As at October 31, 2006, the Company has never generated any revenues, has a working capital deficit of $26,854 and has accumulated losses of $339,854 since inception. These factors raise substantial doubt regarding the Companys ability to continue as a going concern. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.
|  
|2. | Summary of Significant Accounting Policies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
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|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
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|   | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
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|North American Natural Gas, Inc.(A Development Stage Company)Notes To The Financial StatementsOctober 31, 2006(Expressed in U.S. Dollars)(Unaudited)
|----------------------------------------------------------------------------------------------------------------------------------------------------

|2. | Summary of Significant Accounting Policies (continued)
|-- | ------------------------------------------------------
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|   | (d)                                                   
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|   | (e)                                                   
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|   | (f)                                                   
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|   | (i)                                                   
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|North American Natural Gas, Inc.(A Development Stage Company)Notes To The Financial StatementsOctober 31, 2006(Expressed in U.S. Dollars)(Unaudited)
|----------------------------------------------------------------------------------------------------------------------------------------------------

|2. | Summary of Significant Accounting Policies (continued)
|-- | ------------------------------------------------------
|  
|   | (j)                                                   
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F-6

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|North American Natural Gas, Inc.(A Development Stage Company)Notes To The Financial StatementsOctober 31, 2006(Expressed in U.S. Dollars)(Unaudited)
|----------------------------------------------------------------------------------------------------------------------------------------------------

|2. | Summary of Significant Accounting Policies (continued)
|-- | ------------------------------------------------------
|  
|   | (n)                                                   
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|North American Natural Gas, Inc.(A Development Stage Company)Notes To The Financial StatementsOctober 31, 2006(Expressed in U.S. Dollars)(Unaudited)
|----------------------------------------------------------------------------------------------------------------------------------------------------

|2. | Summary of Significant Accounting Policies (continued)                                                                                                                                                                                                                                                                                                                                                
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   | (n)                                                                                                                                                                                                                                                                                                                                                                                                   
|  
|   |                                                                                                                                                                                                                                                                                                                                                                                                       
|  
|3. | Preferred Stock                                                                                                                                                                                                                                                                                                                                                                                       
|  
|   | On March 13, 2003 the Company authorized 3,500,000 of the existing authorized preferred stock to be designated as Class A Convertible Preferred Shares having a par value of $10.00 per share. When issued, holders will be entitled to receive a 6% cash dividend or $0.60 per share payable quarterly. These shares also carry conversion features of one preferred share for eight common shares.
|  
|4. | Related Party Transactions                                                                                                                                                                                                                                                                                                                                                                            
|  
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                   
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|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                   
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F-8



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

This quarterly report contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as may, should, expects, plans, anticipates, believes, estimates, predicts, potential, or continue or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industrys actual results, levels of activity, performance or achievements to be materially different from future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

Our financial statements are stated in United States Dollars (US$) and are prepared in accordance with United States Generally Accepted Accounting Principles. In this quarterly report, unless otherwise specified, all dollar amounts are expressed in United States dollars. All references to common shares refer to the common shares in our capital stock.

As used in this quarterly report the terms we, us, our, the Company and North American Natural Gas, means North American Natural Gas, Inc., unless otherwise indicated.



|General
|-------

We were incorporated in the State of Washington on March 24, 2000 as FAR Group Inc. 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.

In light of the numerous delays with the Vitamineralherb.com website and initial reaction to our preliminary market survey, the Company decided to no longer try to exploit the license to market and sell vitamins and other health related products and is seeking new business opportunities.

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|Plan of Operation
|-----------------

North American Natural Gas, Inc. is in the development stage. During the period from March 24, 2000 through October 31, 2006, we engaged in no significant operations other than organizational
activities, acquisition of the rights to market Vitamineralherb.com, 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, the Company extended its license with Vitamineralherb.com in 2003 for an additional three years to market vitamins, minerals, nutritional supplements and other health and fitness products
through the Vitamineralherb.com website.

In April 2006, the License with Vitamineralherb.com expired and the Company did not renew the license, due to numerous delays with the Vitamineralherb.com website. For the period ended October
31, 2006, much of our efforts were directed at locating new business opportunities. We intend 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 six- month period ended October 31, 2006, we had total general and administrative expenses of $15,206. For the remainder of the current fiscal year ending April 30, 2007, 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 October 31, 2006 reflects total assets of $4,410 comprising of cash. We had total liabilities of $31,264 for a
working capital deficiency of $26,854. To date, our President has loaned us $19,500 for additional working capital. This loan will have to be repaid upon demand. There can be no assurance that he will continue to advance funds as required or
that other methods of financing will be available or accessible on reasonable terms.

We have incurred a loss of $15,206 for the fiscal period to date and a total loss of $339,854 from inception. During the quarter ended October 31, 2006, we did not issue any common
stock.



|Liquidity
|---------

As of the date of this report, the Company has yet to generate any revenues from its business operations. We had cash on hand of $4,410 as at October 31, 2006 and a working capital
deficiency of $26,854 as compared to cash on hand of $5,381 and working capital deficiency of $11,648 as at April 30, 2006.

We currently do not have sufficient funds to meet our cash requirements for the next twelve months. We intend to raise the capital required to fund our cash requirements and future business
opportunities by issuing debt and/or equity securities, although we have no current arrangements or agreements related to such financings. 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.

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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 revenue 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

As required by Rule 13a-15 under the Exchange Act, as of the end of the period covered by this quarterly report, being October 31, 2006, we have carried out an evaluation of the effectiveness of the design and operation of our companys disclosure controls and procedures. This evaluation was carried out under the supervision and with the participation of our companys management, including our companys President and Chief Financial Officer. Based upon that evaluation, our companys President and Chief Financial Officer concluded that our companys disclosure controls and procedures are effective as at the end of the period covered by this report. There have been no significant changes in our companys internal controls over financial reporting that occurred during our most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect our internal controls over financial reporting.

Disclosure controls and procedures and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act of 1934 is recorded, processed, summarized and reported, within the time period specified in the Securities and Exchange Commissions rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed under the Securities Exchange Act of 1934 is accumulated and communicated to management, including our President and Chief Financial Officer as appropriate, to allow timely decisions regarding required disclosure.



|PART II - OTHER INFORMATION
|---------------------------

ITEM 1.LEGAL PROCEEDINGS

We know of no material, active or pending legal proceedings against our company, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which any of our directors, officers or affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest.

|ITEM 2. | CHANGES IN SECURITIES                              
|------- | ---------------------------------------------------
|        |                                                    
|None.   |                                                    
|        |                                                    
|ITEM 3. | DEFAULTS UPON SENIOR SECURITIES                    
|        |                                                    
|None.   |                                                    
|        |                                                    
|ITEM 4. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
|        |                                                    
|None.   |                                                    



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|ITEM 5. | OTHER INFORMATION
|------- | -----------------
|        |                  
|None.   |                  
|        |                  
|ITEM 6. | EXHIBITS         

|(a) | Exhibits
|--- | --------
|   
|    | 31.1    
|   
|    | 31.2    
|   
|    | 32.1    
|    |         
|   
|    | 32.2    
|    |         
|   



















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|SIGNATURES
|----------

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

|      |  |                   |  | NORTH AMERICAN NATURAL GAS, INC.
|----- |  | ----------------- |  | --------------------------------
|     
|     
|     
|Date: |  | December 11, 2006 |  | By:                             
|      |  |                   |  |                                 
|      |  |                   |  |                                 
|      |  |                   |  |                                 

|Date: |  | December 11, 2006 |  | By: |  | RICHARD ACHRON                    
|----- |  | ----------------- |  | --- |  | ----------------------------------
|      |  |                   |  |     |  | Richard Achron                    
|      |  |                   |  |     |  | Chief Financial Officer, Principal
|      |  |                   |  |     |  | Accounting Officer and Director   





















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