UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                             Washington, DC 20549

                                  FORM 10-QSB

[X]   Quarterly Report pursuant to Section 13 or 15(d) of the Securities
      Exchange Act of 1934

      For the quarterly period ended   October 31, 2006
                                      ------------------

[ ]   Transition Report pursuant to 13 or 15(d) of the Securities Exchange
      Act of 1934

      For the transition period                  to
                               ------------------   --------------------

      Commission File Number    333-119848
                            -----------------

                             AAA ENERGY, INC.
    -----------------------------------------------------------------------
       (Exact name of small Business Issuer as specified in its charter)

          Nevada                                   Applied For
---------------------------------         -------------------------------
(State or other jurisdiction of          (IRS Employer Identification No.)
 incorporation or organization)

1200 Alberni Street, Suite 1503
Vancouver,BC, Canada                                     V6E 1A6
----------------------------------------      -----------------------------
(Address of principal executive offices)                 (Zip Code)


Issuer's telephone number, including area code:        (604) 618-2888
                                                ---------------------------

                                 3841 Amador Way
                                Reno Nevada, 89502
    -----------------------------------------------------------------------
     (Former name, former address and former fiscal year, 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  Securities  Exchange  Act  of  1934  during the preceding 12
months  (or for such shorter period that the issuer was required  to  file  such
reports),  and  (2) has been subject to such filing requirements for the past 90
days   [ X ] Yes  [   ] No

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act).
[ X ]  Yes    [  ] No

State the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date: 34,272,000 shares of $0.001
par value common stock outstanding as of December 13, 2006.





<PAGE>

















                                AAA ENERGY INC.

                          (FORMERLY AAA MINERALS INC.)

                         (AN EXPLORATION STAGE COMPANY)

                             FINANCIAL STATEMENTS

                                OCTOBER 31, 2006

			     (Stated in US Dollars)

                                  (UNAUDITED)











BALANCE SHEETS

INTERIM STATEMENTS OF OPERATIONS

INTERIM STATEMENTS OF CASH FLOWS

STATEMENT OF STOCKHOLDERS' EQUITY

NOTES TO THE INTERIM FINANCIAL STATEMENTS











<PAGE>

AAA ENERGY INC.
(Formerly AAA MINERALS INC.)
(An Exploration Stage Company)
BALANCE SHEETS
(Stated in US Dollars)
___________________________________________________________________________

<TABLE>
<CAPTION>

<S>                                              <C>               <C>
                                                    October 31,        July 31,
                                                       2006              2006
                                                    (Unaudited)        (Audited)
                                       ASSETS
Current
 Cash                                               $   33,622        $   60,910
 Prepaid expenses                                        2,941              -

Total Assets                                        $   36,563        $   60,910


                                    LIABILITIES
Current
 Accounts payable and accrued liabilities           $   36,177        $   28,027

Total Liabilities                                       36,177            28,027


                                STOCKHOLDERS' EQUITY

Common Stock (Note 4)
 Authorized:
 100,000,000 common shares $0.001 par value
 Issued:
 34,272,000 common shares
 (July 31, 2006 - 34,272,000 shares)                    16,772            16,772
     Additional Paid in Capital                         77,728            77,728
Deficit accumulated during the exploration stage       (94,114)          (61,617)

Total Stockholders' Equity                                 386            32,883

Total Liabilities and Stockholders' Equity          $   36,563        $   60,910

</TABLE>

GOING CONCERN:  NOTE 1







 The accompanying notes are an integral part of these financial statements



<PAGE>
AAA ENERGY INC.
(Formerly AAA MINERALS INC.)
(An Exploration Stage Company)
INTERIM STATEMENTS OF OPERATIONS
(Stated in US Dollars)
(Unaudited)
_____________________________________________

<TABLE>
<CAPTION>
 <S>                                        <C>            <C>                 <C>
                                                                              Cumulative From
                                                                              May 26, 2004
                                                   Three months ended	      (Inception)
                                                      October 31,	      to October 31,
                                                2006             2005                2006


Expenses
 Accounting and audit fees                    $  2,130       $  5,000         $    30,005
 Bank charges                                       62             23                 400
 Consulting fees                                19,760              -              32,760
 Filing and transfer agent fees                    430          1,704               6,179
 Legal fees                                          -              -               7,030
 Mineral property costs (Note 3)                     -              -               7,500
 Office expenses                                 1,500              -               1,625
 Travel                                          8,615              -               8,615

Net loss                                      $(32,497)      $(6,727)         $   (94,114)

Basic and diluted loss per share              $  (0.00)      $ (0.00)

Weighted average common shares
outstanding				    34,272,000    33,072,000

</TABLE>













 The accompanying  notes  are an integral part of these financial statements





<PAGE>
AAA ENERGY INC.
(Formerly AAA MINERALS INC.)
(An Exploration Stage Company)
INTERIM STATEMENTS OF CASH FLOWS
(Stated in US Dollars)
(Unaudited)
___________________________________________________________________________

<TABLE>
<CAPTION>
<S>                                                        <C> <C>          <C>     <C>
									     	 	Cumulative From
                                                             	                 	May 26, 2004
                                                   	Three months ended	 	(Inception)
                                                      	October 31,	      	 	to October 31,
                                                	2006             2005         	2006


Operating Activities

 Net loss                                               $(32,497) 	$(6,727)       	$(94,114)
 Non cash items
   Mineral property costs                                      -            -                500

 Change in non-cash working capital balance relating to
 operations

   Prepaid expenses 					 (2,941)	    -             (2,941)
   Accounts payable and accrued liabilities               8,150   	 1,352            36,177

Net cash used in operating activities                   (27,288)	(5,375)  	 (60,378)


Financing Activities

  Capital stock issued for cash                               -             -             94,000

Net cash from financing activities                            -             -             94,000

Increase (decrease) in cash                             (27,288)       (5,375)            33,622


Cash, beginning                                          60,910        15,503                 -


Cash, ending                                            $33,622       $10,128           $33,622


Supplemental Cash Flow Disclosures:
    Cash paid for:
       Interest                                               -            -                 -
       Income taxes                                           -            -                 -
    Non cash item:
       Shares issued for acquisition of mineral property      -            -               500

</TABLE>





   The accompanying notes are an integral part of these financial statements





<PAGE>
AAA ENERGY INC.
(Formerly AAA MINERALS INC.)
(An Exploration Stage Company)
STATEMENT OF STOCKHOLDERS' EQUITY
(Stated in US Dollars)
May 26, 2004 (Inception) to October 31, 2006
___________________________________________________________________________


<TABLE>
<CAPTION>
<S>                                       <C>        <C>       <C>        <C>                       <C>
                                                                            Deficit Accumulated
                                                               Additional       During the
                                             Common Shares      Paid-in        Exploration
                                            Number   Par Value  Capital           Stage            Total

Balance May 26, 2004 (Inception)                  -  $       - $       -  $           -       $        -
Capital stock issued for cash
 - June, 2004 at $0.001                   18,000,000     3,000         -              -            3,000
 - June, 2004 at $0.01                    10,800,000    10,800     7,200              -           18,000
 - July, 2004 at $0.05                     1,200,000     1,200     8,800              -           10,000
Capital stock issued for mineral
  property                                 3,000,000       500         -              -              500
Net loss                                          -          -         -         (4,064)          (4,064)
Balance, July 31, 2004 (audited)          33,000,000    15,500    16,000         (4,064)          27,436
Capital stock issued for cash
 - August, 2004 at $0.25                      72,000        72     2,928              -            3,000
Net loss                                          -          -         -        (21,511)         (21,511)
Balance, July 31, 2005 (audited)          33,072,000    15,572    18,928        (25,575)           8,925
Capital stock issued for cash
 - July, 2006 at $0.30                     1,200,000     1,200    58,800              -           60,000
Net loss                                          -          -         -        (36,042)         (36,042)
Balance, July 31, 2006 (audited)          34,272,000    16,772    77,728        (61,617)          32,883

Net loss                                          -          -         -        (32,497)         (32,497)
Balance, October 31, 2006 (unaudited)     34,272,000 $  16,772 $  77,728  $     (94,114)      $      386

</TABLE>













The accompanying notes are  an  integral part of these financial statements




<PAGE>

AAA ENERGY INC.
(Formerly AAA MINERALS INC.)
(An Exploration Stage Company)
NOTES TO THE INTERIM FINANCIAL STATEMENTS
(Stated in US Dollars)
October 31, 2006
(Unaudited)
_______________________________________________________________

Note 1 Nature and Continuance of Operations

Organization

AAA  Energy  Inc.  (the  "Company")  (formerly  AAA  Minerals  Inc.)   was
incorporated  under  the  law of the State of Nevada on May 26, 2004.  The
Company  is  an Exploration Stage  Company  as  defined  by  Statement  of
Financial Accounting  Standard  ("SFAS")  No.  7.  The  Company previously
acquired  a mineral property located in the Province of British  Columbia,
Canada. In fiscal 2006, the claims lapsed as the Company did not incur the
required property expenditures (Note 3).

Going concern

These financial  statements  have  been  prepared on a going concern basis
which assumes the Company will be able to realize its assets and discharge
its  liabilities  in  the normal course of business  for  the  foreseeable
future.  The Company has  incurred  losses since inception resulting in an
accumulated deficit of $94,114 as at  October  31, 2006 and further losses
are  anticipated  in the development of its business  raising  substantial
doubt about the Company's  ability  to  continue  as a going concern.  The
ability  to  continue  as a going concern is dependent  upon  the  Company
generating profitable operations  in  the  future  and/or  to  obtain  the
necessary  financing  to  meet  its  obligations and repay its liabilities
arising from normal business operations  when  they  come  due. Management
intends  to  finance  operating  costs  over  the next twelve months  with
existing cash on hand and loans from directors and or private placement of
common stock.

Unaudited Interim Financial Statements

The accompanying unaudited interim financial statements have been prepared
in accordance with United States generally accepted  accounting principles
("US GAAP") for interim financial information and with the instructions to
Form   10-QSB  of  Regulation  S-B.   Certain  information  and   footnote
disclosures   normally   included  in  financial  statements  prepared  in
accordance with US GAAP have  been  condensed  or omitted pursuant to such
rules  and regulations. However, except as disclosed  herein,  there  have
been no  material changes in the information disclosed in the notes to the
financial  statements  for  the  year  ended July 31, 2006 included in the
Company's annual report filed with the Securities and Exchange Commission.
The interim unaudited financial statements  should  be read in conjunction
with  those  financial  statements  included in the Form  10-KSB.  In  the
opinion of Management, all adjustments  considered  necessary  for  a fair
presentation, consisting solely of normal recurring adjustments, have been
made.  Operating  results  for the three months ended October 31, 2006 are
not necessarily indicative of  the  results  that  may be expected for the
year ending July 31, 2007.

Note 2 Summary of Significant Accounting Policies

Basis of Presentation

The financial statements of the Company have been prepared  in  accordance
with  US  GAAP and are expressed in US dollars. The Company's fiscal  year
end is July 31.







<PAGE>
AAA ENERGY INC.
(Formerly AAA MINERALS INC.)
(An Exploration Stage Company)
NOTES TO THE INTERIM FINANCIAL STATEMENTS
(Stated in US Dollars)
October 31, 2006
(Unaudited)
____________________________________________________________

Note 2 Summary of Significant Accounting Policies (cont'd)

Mineral Property Costs

Mineral  property  exploration  and  development  costs  are  expensed  as
incurred until  such time as economic reserves are quantified. The Company
has considered the  guidance  under  EITF  04-2  and  has  determined that
capitalization  of mineral property acquisition costs is inappropriate  at
the  current  stage   of   the   Company's  mineral  property  exploration
activities.  To date, the Company's  mineral  interests  consist mainly of
exploration stage properties. Furthermore, there is uncertainty  as to the
Company's  ability to fund the exploration work necessary to determine  if
the properties  have recoverable reserves or any future economic benefits.
As a result, acquisition  costs  to date are considered to be impaired and
accordingly, have been written off as mineral property expenditures.

Environmental Costs

Environmental expenditures that relate  to  current operations are charged
to operations or capitalized as appropriate.  Expenditures  that relate to
an  existing  condition  caused  by  past  operations,  and  which do  not
contribute  to  current  or  future  revenue  generation,  are charged  to
operations. Liabilities are recorded when environmental assessments and/or
remedial  efforts are probable, and the cost can be reasonably  estimated.
Generally,  the  timing  of  these  accruals coincides with the earlier of
completion of a feasibility study or  the  Company's commitments to a plan
of action based on the then known facts. At  October 31, 2006 and July 31,
2006, the Company has recorded $Nil in environmental costs.

Use of Estimates and Assumptions

The  preparation  of  financial  statements  in conformity  with  US  GAAP
requires  management  to make estimates and assumptions  that  affect  the
reported amounts of assets  and  liabilities  and disclosure of contingent
assets  and liabilities at the date of the financial  statements  and  the
reported  amounts  of  revenues  and expenses during the reporting period.
Actual results could differ from those estimates.

Foreign Currency Translation

The Company's functional and reporting currency is the US dollar. Monetary
assets and liabilities denominated  in  foreign  currencies are translated
using the exchange rate prevailing at the balance  sheet  date.  Gains and
losses   arising   on   translation  or  settlement  of  foreign  currency
denominated transactions  or balances are included in the determination of
income. The Company has not,  to  the date of these financials statements,
entered  into derivative instruments  to  offset  the  impact  of  foreign
currency fluctuations.

Financial Instruments

The carrying  value  of cash, and accounts payable and accrued liabilities
approximates their fair  value  because  of  the  short  maturity of these
instruments. The Company's operations are in Canada and virtually  all  of
its  assets  and  liabilities  are  giving rise to significant exposure to
market risks from changes in foreign currency rates. The financial risk is
the  risk to the Company's operations  that  arise  from  fluctuations  in
foreign  exchange  rates  and  the  degree  of  volatility of these rates.
Currently, the Company does not use derivative instruments  to  reduce its
exposure to foreign currency risk.





<PAGE>
AAA ENERGY INC.
(Formerly AAA MINERALS INC.)
(An Exploration Stage Company)
NOTES TO THE INTERIM FINANCIAL STATEMENTS
(Stated in US Dollars)
October 31, 2006
(Unaudited)
________________________________________________________________


Note 2  Summary of Significant Accounting Policies - (cont'd)

Income Taxes

The Company has adopted SFAS No. 109 as of its inception. Pursuant to SFAS
No.  109  the  Company  is required to compute tax asset benefits for  net
operating losses carried  forward.  Potential  benefit  of  net  operating
losses have not been recognized in these financial statements because  the
Company  cannot  be assured it is more likely than not it will utilize the
net operating losses  carried  forward  in future years, and is reduced to
$Nil by a valuation allowance.


Basic and Diluted Loss Per Share

The Company computes net loss per share in  accordance  with SFAS No. 128,
"Earnings per Share". SFAS No. 128 requires presentation of both basic and
diluted  loss per share on the face of the statement of operations.  Basic
loss per share  is  computed  by  dividing  net  loss  available to common
shareholders  by the weighted average number of shares outstanding  during
the period. Diluted  loss per share gives effect to all dilutive potential
common shares outstanding  during  the  period  using  the  treasury stock
method.  In computing diluted loss per share, the average stock  price for
the  period  is  used  in  determining the number of shares assumed to  be
purchased from the exercise of stock options or warrants. Diluted loss per
share excludes all dilutive  potential  shares  if  their  effect is anti-
dilutive.

Stock-based Compensation

In  December  2004, the FASB issued SFAS No. 123R, "Share-Based  Payment",
which replaced SFAS No. 123, "Accounting for Stock-Based Compensation" and
superseded APB Opinion No. 25, "Accounting for Stock Issued to Employees".
In January 2005,  the  Securities  and  Exchange Commission ("SEC") issued
Staff Accounting Bulletin ("SAB") No. 107,  "Share-Based  Payment",  which
provides supplemental implementation guidance for SFAS No. 123R. SFAS  No.
123R  requires  all share-based payments to employees, including grants of
employee stock options, to be recognized in the financial statements based
on the grant date  fair  value  of  the  award.  SFAS  No.  123R was to be
effective  for interim or annual reporting periods beginning on  or  after
June 15, 2005,  but  in  April 2005 the SEC issued a rule that will permit
most registrants to implement SFAS No. 123R at the beginning of their next
fiscal year, instead of the  next reporting period as required by SFAS No.
123R. The pro-forma disclosures previously permitted under SFAS No. 123 no
longer will be an alternative  to  financial  statement recognition. Under
SFAS No. 123R, the Company must determine the appropriate fair value model
to be used for valuing share-based payments, the  amortization  method for
compensation  cost  and  the  transition  method  to  be  used  at date of
adoption.

The  transition  methods  include  prospective  and  retroactive  adoption
options.  Under  the  retroactive  options,  prior periods may be restated
either  as of the beginning of the year of adoption  or  for  all  periods
presented.  The  prospective  method requires that compensation expense be
recorded  for all unvested stock  options  and  restricted  stock  at  the
beginning of  the  first  quarter  of adoption of SFAS No. 123R, while the
retroactive methods would record compensation  expense  for  all  unvested
stock  options  and  restricted  stock  beginning  with  the  first period
restated.  The Company adopted the modified prospective approach  of  SFAS
No. 123R for  the  quarter  beginning  November  1,  2005. The Company did
not record any compensation expense in the second quarter of 2006  because




<PAGE>
AAA ENERGY INC.
(Formerly AAA MINERALS INC.)
(An Exploration Stage Company)
NOTES TO THE INTERIM FINANCIAL STATEMENTS
October 31, 2006
(Unaudited)
_______________________________________________________________


Note 2  Summary of Significant Accounting Policies - (cont'd)

Stock-based Compensation - (cont'd)

there  were no stock options  outstanding prior to the adoption or at July
31, 2005.

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  October 31, 2006, the Company has no items
that represent other comprehensive loss and, therefore, has not included a
schedule of comprehensive loss in the financial statements.

Recent Accounting Pronouncements

In February 2006, the FASB issued  SFAS  No.  155,  Accounting for Certain
Hybrid Financial Instruments-an amendment of FASB Statements  No.  133 and
140,  to  simplify  and  make  more  consistent the accounting for certain
financial instruments. SFAS No. 155 amends  SFAS  No.  133, Accounting for
Derivative  Instruments  and  Hedging  Activities,  to permit  fair  value
remeasurement  for  any  hybrid  financial  instrument  with  an  embedded
derivative  that  otherwise would require bifurcation, provided  that  the
whole instrument is  accounted  for  on  a  fair value basis. SFAS No. 155
amends SFAS No. 140, Accounting for the Impairment  or  Disposal  of Long-
Lived  Assets,  to  allow  a  qualifying special-purpose entity to hold  a
derivative financial instrument  that  pertains  to  a beneficial interest
other than another derivative financial instrument. SFAS  No.  155 applies
to all financial instruments acquired or issued after the beginning  of an
entity's  first  fiscal  year  that  begins after September 15, 2006, with
earlier application allowed. This standard  is  not  expected  to  have  a
significant  effect on the Company's future reported financial position or
results of operations.

In March 2006,  the FASB issued SFAS No. 156, "Accounting for Servicing of
Financial Assets,  an  amendment of FASB Statement No. 140, Accounting for
Transfers  and  Servicing  of  Financial  Assets  and  Extinguishments  of
Liabilities". This  statement requires all separately recognized servicing
assets and servicing  liabilities  be initially measured at fair value, if
practicable,  and permits for subsequent  measurement  using  either  fair
value measurement  with changes in fair value reflected in earnings or the
amortization  and  impairment  requirements  of  Statement  No.  140.  The
subsequent measurement  of  separately  recognized  servicing  assets  and
servicing  liabilities at fair value eliminates the necessity for entities
that  manage   the  risks  inherent  in  servicing  assets  and  servicing
liabilities with derivatives to qualify for hedge accounting treatment and
eliminates the characterization  of  declines in fair value as impairments
or direct write-downs. SFAS No. 156 is  effective  for  an  entity's first
fiscal  year  beginning after September 15, 2006.  This adoption  of  this
statement is not  expected  to  have a significant effect on the Company's
future reported financial position or results of operations.

In September 2006, the FASB issued  SFAS No. 157,  "Fair  Value  Measures"
("SFAS No. 157").   This  Statement  defines  fair  value,  establishes  a
framework  for measuring  fair  value  in  generally  accepted  accounting
principles (GAAP),  expands disclosures about fair value measurements, and
applies under other accounting  pronouncements that require or permit fair
value measurements.  SFAS No. 157 does not  require  any  new  fair  value


<PAGE>
AAA ENERGY INC.
(Formerly AAA MINERALS INC.)
(An Exploration Stage Company)
NOTES TO THE INTERIM FINANCIAL STATEMENTS
(Stated in US Dollars)
October 31, 2006
(Unaudited)
_______________________________________________________________

Note 2 Summary of Significant Accounting Policies - (cont'd)

Recent Accounting Pronouncements - (cont'd)

measurements.  However,  the  FASB  anticipates that  for  some  entities,
the  application  of  SFAS  No. 157 will  change  current  practice.  SFAS
No.  157  is effective for financial  statements issued  for fiscal  years
beginning  after  November 15, 2007. The Company  is currently  evaluating
the impact of  SFAS No. 157  but  does  not  expect  that  it will  have a
material impact on its financial statements.

In  September  2006, the FASB issued SFAS No. 158, "Employers'  Accounting
for  Defined  Benefit   Pension  and  Other  Postretirement  Plans."  This
Statement requires an employer  to  recognize  the  over  funded  or under
funded  status  of  a  defined benefit post retirement plan (other than  a
multiemployer plan) as an asset or liability in its statement of financial
position, and to recognize  changes  in  that funded status in the year in
which the changes occur through comprehensive  income.   SFAS  No.  158 is
effective  for  fiscal  years  ending after December 15, 2006. The Company
does not expect that the implementation  of  SFAS  No.  158  will have any
material impact on its financial position and results of operations.

In September 2006, the SEC issued SAB No. 108, "Considering the Effects of
Prior  Year  Misstatements when Quantifying Misstatements in Current  Year
Financial Statements." SAB No. 108 addresses how the effects of prior year
uncorrected  misstatements   should   be   considered   when   quantifying
misstatements  in current year financial statements. SAB No. 108  requires
companies to quantify  misstatements  using  a  balance  sheet  and income
statement  approach  and  to  evaluate whether either approach results  in
quantifying an error that is material  in  light  of relevant quantitative
and qualitative factors. SAB No. 108 is effective for periods ending after
November 15,  2006.   The Company is currently evaluating  the  impact  of
adopting SAB No. 108 but  does  not  expect  that  it will have a material
effect on its financial statements.

Note 3   Mineral Properties

Pursuant to a  mineral  property  purchase  agreement dated June 23, 2004,
the Company acquired a 100% undivided right, title and  interest in the BA
claims represented by five mineral claims, located in the  Lillooet Mining
Division of British Columbia, Canada by issuance of 3,000,000 (500,000 pre
stock split) common shares of the Company's capital stock at  a  price  of
$0.001  per  share  for  cost  of $500.  This cost has been written off to
operations in the fiscal year ended  July  31, 2004. During the year ended
July   31,  2005  the  company  incurred  $7,000  in   resource   property
expenditures that were expensed in the statement of operations. During the
year ended  July  31, 2006 the Company did not incur the required property
expenditures and consequently the claims lapsed.

Note 4   Share Capital

During the year ended  July  31,  2006  the Company's directors approved a
stock split of the Company's authorized and  issued common stock such that
every  one of the Company's common stock be forward  split  for  six  post
split common  shares  of  the  Company  and  to  decrease  the  post split
authorized  common  share  capital  of  the  Company to 100,000,000 common
shares with a par value of $0.001. Prior to the stock split, the Company's



<PAGE>
AAA ENERGY INC.
(Formerly AAA MINERALS INC.)
(An Exploration Stage Company)
NOTES TO THE INTERIM FINANCIAL STATEMENTS
(Stated in US Dollars)
October 31, 2006
(Unaudited)
_______________________________________________________________

Note 4   Share Capital - (cont'd)

authorized common share capital was 75,000,000 shares with a par  value of
$0.001.


These financial statements are presented as if  the  forward  stock  split
took place at the beginning of all periods presented.

During  the  period  ending  July  31,  2004 the Company issued 30,000,000
common shares for total cash proceeds of  $31,000. In addition the Company
issued 3,000,000 (500,000 pre stock split)  common  shares  at  a price of
$0.001 each for mineral properties for a cost of $500.

During  the  year  ended  July  31,  2005 the Company issued 72,000 common
shares for cash proceeds of $3,000.

During the year ended July 31, 2006, the Company issued 1,200,000 units at
a price of $0.30 per unit for the aggregate  purchase  price  of  $60,000.
Each  unit  consists of one share of common stock and one non-transferable
share purchase  warrant  entitling  the  holder  to purchase an additional
share of common stock for $0.60 for a period of two  years  until July 12,
2008.

At  October  31,  2006  there  are  1,200,000  outstanding  share purchase
warrants and no outstanding stock options.

Note 5  Income Taxes

At October 31, 2006, the Company has accumulated non-capital  loss  carry-
forwards  of  approximately $94,000, which are available to reduce taxable
income in future  taxation years. These losses expire beginning 2026.  Due
to the uncertainty  of  realization  of  these loss carry-forwards, a full
valuation allowance had been provided for this deferred tax asset.




<PAGE>

Item 2. Management's Discussion and Analysis or Plan of Operation

FORWARD LOOKING STATEMENTS

This quarterly report contains forward-looking statements that involve risks and
uncertainties.  We use words such as anticipate, believe, plan, expect, future,
intend and similar expressions to identify such forward-looking statements.  You
should not place too much reliance on these forward-looking statements.  Our
actual results are likely to differ materially from those anticipated in these
forward-looking statements for many reasons, including the risks faced by us
described in this Risk Factors section and elsewhere in this annual report.

PLAN OF OPERATION

We commenced operations as a company involved in the acquisition and exploration
of resource properties.  During the fiscal year ended July 31, 2005, we held a
100% interest in five mineral claims comprising the BA property.  During the
fiscal year ended July 31, 2006, our interest in the BA property lapsed.

We are continuing to review other potential acquisitions in the resource sector.
Currently, we are in the process of completing a due diligence investigation of
various opportunities in the oil and gas sector, as well as the base and
precious metals sectors.  However, there is no guarantee that we will be able to
reach any agreement to acquire such assets.

We anticipate spending an additional $25,000 on administrative fees, including
fees we will incur in complying with reporting obligations.

We will require additional funding to cover all administrative expenses and
costs incurred in connection with our review of potential projects.  We
anticipate that additional funding will be required in the form of equity
financing from the sale of our common stock.  However, we do not have any
arrangements in place for any future equity financing.

RESULTS OF OPERATIONS FOR PERIOD ENDING OCTOBER 31, 2006

We did not earn any revenues during the nine-month period ending October 31,
2006.  We incurred operating expenses in the amount of $32,497 for the three-
month period ended October 31, 2006.  Our operating expenses were comprised of
accounting and audit fees of $2,130, filing and transfer agent fees of $430,
office costs of $1,500, bank charges of $62, consulting fees of $19,760 and
travel costs of $8,615.

At October 31, 2006, we had total assets of $36,563 consisting of $33,622 in
cash and $2,941 in prepaid expenses and $36,177 in liabilities consisting of
accounts payable and accrued liabilities.

ITEM 3:  CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS

Our management evaluated the effectiveness of our disclosure controls and
procedures as of the end of our fiscal quarter on October 31, 2006.  This
evaluation was conducted by our chief executive officer, Dr. Earl Abbott, and
our principal accounting officer, Dennis LaPrairie.

Disclosure controls are controls and other procedures that are designed to
ensure that information that we are required to disclose in the reports we file
pursuant to the Securities Exchange Act of 1934 is recorded, processed,
summarized and reported.





<PAGE>
LIMITATIONS ON THE EFFECTIVE OF CONTROLS

Our management does not expect that our disclosure controls or our internal
controls over financial reporting will prevent all error and fraud.  A control
system, no matter how well conceived and operated, can provide only reasonable,
but no absolute, assurance that the objectives of a control system are met.
Further, any control system reflects limitations on resources, and the benefits
of a control system must be considered relative to its costs.  These limitations
also include the realities that judgments in decision-making can be faulty and
that breakdowns can occur because of simple error or mistake.  Additionally,
controls can be circumvented by the individual acts of some persons, by
collusion of two or more people or by management override of a control.  A
design of a control system is also based upon certain assumptions about
potential future conditions; over time, controls may become inadequate because
of changes in conditions, or the degree of compliance with the policies or
procedures may deteriorate.  Because of the inherent limitations in a cost-
effective control system, misstatements due to error or fraud may occur and may
not be detected.

CONCLUSIONS

Based upon his evaluation of our controls, our chief executive officer and
principal accounting officer have concluded that, subject to the limitations
noted above, the disclosure controls are effective providing reasonable
assurance that material information relating to us is made known to management
on a timely basis during the period when our reports are being prepared.  There
were no changes in our internal controls that occurred during the quarter
covered by this report that have materially affected, or are reasonably likely
to materially affect our internal controls.




<PAGE>
PART II- OTHER INFORMATION

Item 1.    Legal Proceedings

We are not a party to any pending legal proceeding.  Management is not aware of
any threatened litigation, claims or assessments.

Item 2.    Changes in Securities

The Company did not issue any securities during the quarter ended October 31,
2006.

Item 3. Defaults Upon Senior Securities

None.

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

None.

Item 5. Other Information

None.

Item 6. Exhibits and Report on Form 8-K

Exhibits

31.1  Certification pursuant to Rule 13a-14(a) under the Securities
      Exchange Act of 1934
31.2  Certification pursuant to Rule 13a-14(a) under the Securities
      Exchange Act of 1934
32.1  Certification pursuant to 18 U.S.C. Section 1350, as adopted
      pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2  Certification pursuant to 18 U.S.C. Section 1350, as adopted
      pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Current Reports on Form 8-K

During the quarter ended October 31, 2006, we filed the following current
reports on Form 8-K:

1.  On August 1, 2006, we filed a current report indicating that Albert Au had
    been appointed as our director; and

2.  On August 14, 2006, we filed a current report disclosing that we changed our
    independent accountants from Moen & Company, Chartered Accountants to Dale
    Matheson Carr Hilton LaBonte, Chartered Accountants.





<PAGE>

SIGNATURES

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

DATED:  December 13, 2006

AAA Energy, Inc.

/s/ Dr. Earl Abbott
------------------------------
Dr. Earl Abbott, President