UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549FORM 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, 2007[  ]
     TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGEACT OF 1934


For the transition period from _________________to _________________Commission File No. 000-32089NORTH 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 490Vancouver, British Columbia, Canada V6C 3B6

(Address of principal executive offices)

(604) 687-6991 Issuer'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, 2007: 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 302007
     
     2007$
     
     $(unaudited)ASSETSCurrent AssetsCash
     14,973
     
     4,739Total Assets
     14,973
     
     4,739LIABILITIES AND STOCKHOLDERS' DEFICITCurrent LiabilitiesAccounts payable
     19,181
     
     15,489Accrued liabilities
     
     
     450Due to a related party (Note 5)
     49,500
     
     29,500Total Liabilities
     68,681
     
     45,439Contingencies (Note 1)Stockholders' DeficitPreferred Stock: 20,000,000 shares authorized, $.0001 par value;None issued and outstanding
     
     
     Common Stock: 100,000,000 shares authorized, $0.0001 par value;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
     (366,708
     )
     (353,700
     )Total Stockholders' Deficit
     (53,708
     )
     (40,700
     )Total Liabilities and Stockholders' Deficit
     14,973
     
     4,739






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)Accumulated fromThree Months Ended
     
     Six Months Ended
     
     March 24, 2000October 31,
     
     October 31,
     
     (Date of Inception)2007
     
     2006
     
     2007
     
     2006
     
     to October 31, 2007$
     
     $
     
     $
     
     $
     
     $Revenue
     
     
     
     
     
     
     
     
     ExpensesBusiness development
     
     
     
     
     
     
     
     
     24,475Consulting fees
     
     
     
     
     
     
     
     
     25,000Directors fees
     
     
     1,500
     
     1,000
     
     3,000
     
     30,000Finance costs
     
     
     
     
     
     
     
     
     75,975License written-off
     
     
     
     
     
     
     
     
     35,000Office and rent
     329
     
     524
     
     665
     
     897
     
     14,531Professional fees
     3,090
     
     4,150
     
     10,950
     
     10,900
     
     143,106Transfer agent and filing fees
     158
     
     161
     
     393
     
     409
     
     19,603Travel
     
     
     
     
     
     
     
     
     863Total Expenses
     3,577
     
     6,335
     
     13,008
     
     15,206
     
     368,553Net Loss Before Other Income
     (3,577
     )
     (6,335
     )
     (13,008
     )
     (15,206
     )
     (368,553
     )Other IncomeInterest income
     
     
     
     
     
     
     
     
     1,845Net Loss for the Period
     (3,577
     )
     (6,335
     )
     ( 13,008
     )
     (15,206
     )
     (366,708
     )Net Loss Per Share  Basic andDiluted
     
     
     
     
     
     
     
     
     Weighted Average Number ofShares 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)Six Months EndedOctober 31,2007
     
     2006$
     
     $Operating ActivitiesNet loss for the period
     (13,008
     )
     (15,206
     )Adjustments to reconcile net loss to net cash used in operating activitiesChanges in operating assets and liabilitiesAccounts payable and accrued liabilities
     3,242
     
     4,235Net Cash Used in Operating Activities
     (9,766
     )
     (10,971
     )Financing ActivitiesAdvances from a related party
     20,000
     
     10,000Net Cash Provided by Financing Activities
     20,000
     
     10,000Increase (Decrease) In Cash
     10,234
     
     (971
     )Cash - Beginning of Period
     4,739
     
     5,381Cash - End of Period
     14,973
     
     4,410Supplemental 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, 2007(Expressed in U.S. Dollars)(Unaudited)

|1. | Nature of Operations and Continuance of Business                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
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|   | 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s license to market health and fitness products expired in April 2006, but upon its expiration, the Company did not renew the license. The Company is currently exploring new business opportunities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|  
|   | 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, and the attainment of profitable operations. As at October 31, 2007, the Company has never generated any revenues, has a working capital deficit of $53,708 and has accumulated losses of $366,708 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.
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|2. | Summary of Significant Accounting Policies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
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F-4



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North American Natural Gas, Inc.(A Development Stage Company)Notes to the Financial StatementsOctober 31, 2007(Expressed in U.S. Dollars)(Unaudited)

|2. | Summary of Significant Accounting Policies (continued)
|-- | ------------------------------------------------------
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F-5



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North American Natural Gas, Inc.(A Development Stage Company)Notes to the Financial StatementsOctober 31, 2007(Expressed in U.S. Dollars)(Unaudited)

|2. | Summary of Significant Accounting Policies (continued)
|-- | ------------------------------------------------------
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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, 2007(Expressed in U.S. Dollars)(Unaudited)

|2. | Summary of Significant Accounting Policies (continued)
|-- | ------------------------------------------------------
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F-7



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North American Natural Gas, Inc.(A Development Stage Company)Notes to the Financial StatementsOctober 31, 2007(Expressed in U.S. Dollars)(Unaudited)

|2. | Summary of Significant Accounting Policies (continued)                                                                                                                                            
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
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|3. | Related Party Transactions                                                                                                                                                                        
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|   | As at October 31, 2007, the amount of $49,500 (April 30, 2007- $29,500) due to the President of the Company for cash advanced to the Company is non-interest bearing, unsecured and due on demand.
|  



























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.

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.

The Company is in the development stage. We have not yet generated or realized any revenues from our business operations. 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.

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, 2007, 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 $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, 2007, much of our efforts were directed at locating new business opportunities. Our plan of operation over the next twelve months will be to consider guidelines of industries in which the Company may hold an interest; to adopt a business plan regarding engaging in a business in any selected industry and to commence such operations through funding by issuing debt and/or equity securities although we have no current arrangements or agreements to such financings at this time.

If we are unable to identify any new business opportunities and cannot generate sufficient revenues to fund all of our anticipated expenses, we will either have to suspend operations until we do raise the cash, or cease operations entirely.

For the six- month period ended October 31, 2007, we had total general and administrative expenses of $13,008. For the remainder of the current fiscal year ending April 30, 2008, 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, 2007 reflects total assets of $14,973 comprising of cash. We had total liabilities of $68,681 for a working capital deficiency of $53,708. During the six -month period ended October 31, 2007 our President advanced a total of $20,000 for general 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. If additional capital is required we will raise the funds by issuing debt and/or equity securities although we have no current arrangements or agreements to such financings at this time.

We have incurred a loss of $13,008 for the fiscal period to date and a total loss of $366,708 from inception. During the quarter ended October 31, 2007, we did not issue any common stock.













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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 $14,973 as at October 31, 2007 and a working capital deficiency of $53,708 as compared to cash on hand of $4,739 and working capital deficiency of $40,700 as at April 30, 2007.

As we have yet to commence operations, we have not generated any revenues and there can be no assurance that we can generate significant revenues from operations. We expect to incur administrative and professional charges associated with preparing, reviewing, auditing and filing our financial statements and our periodic and other disclosure documents. 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. To date, our President has loaned us $49,500 for additional working capital but 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. 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.

We may engage in a combination with another business. 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, 2007, 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 Chief Executive and Chief Financial Officer. Based upon that evaluation, our companys Chief Executive 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 Chief Executive and Chief Financial Officer as appropriate, to allow timely decisions regarding required disclosure.









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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 SECURITIESNone.ITEM 4.      SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERSNone.ITEM 5.      OTHER INFORMATIONNone.ITEM 6.      EXHIBITS

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













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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 6, 2007
     By:
     JIM GLAVASJim GlavasPresident, Chief Executive andChief Financial Officer andDirector






























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