**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: August              31,              2006  |
|--------|---------------------------------------------------------------------------------|

** **

| o | **Transition                report pursuant to section 13 or 15(D) of the exchange act of                1934** |
|---|-----------------------------------------------------------------------------------------------------------------|
|   | For the transition period from ________              to              _________  |
|--------|--------------------------------------------------------------------------------------|

|   | **ARCH                MANAGEMENT SERVICES                INC.**                                 |   |
|--------|-------------------------------------------------------------------------------------------------|--------|
|   | (Exact                Name of Small Business Issuer as                specified in its charter) |   |

| **Nevada**                                |   |  **84-1665042**                  |
|------------------------------------------------|--------|---------------------------------------|
| (State                or other jurisdiction of |   | (IRS                Employer          |
| incorporation                or organization)  |   | Identification                Number) |

**6600,      Trans-Canada**

**Suite      519**

**Pointe-Claire,      Quebec H9R 4S2**

**Canada**

**(514)      771-3795**

**4-2341      West Broadway**

**Vancouver,      British Columbia, V6K 2E6**

**Canada**

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**PART      I: FINANCIAL INFORMATION**

**Item      1. Financial Statements**

**ARCH      MANAGEMENT SERVICES INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**BALANCE      SHEETS**

**(UNAUDITED)**

|                                                                  |   | August                  31, |     | Nov.                  30, |   |
|-----------------------------------------------------------------------|--------|-----------------------------|----------|---------------------------|--------|
|                                                                  |   | 2006                        |     | 2005                      |   |
| ASSETS                                                                |   |                        |     |                      |   |
|                                                                  |   |                        |     |                      |   |   |   |
| Cash                                                                  |   | $                           | 29,230   |                      | $      | 60,801 |   |
| Government                  tax receivables                           |   |                        | 10,422   |                      |   | -- |   |
|                                                                  |   | $                           | 39,652   |                      | $      | 60,801 |   |
| LIABILITIES                  AND STOCKHOLDERS' EQUITY (DEFICIT)       |   |                        |     |                      |   |   |   |
|                                                                  |   |                        |     |                      |   |   |   |
| CURRENT                  LIABILITIES                                  |   |                        |     |                      |   |   |   |
|                                                                  |   |                        |     |                      |   |   |   |
| Accounts                  payable and accrued expenses                |   | $                           | 96,318   |                      | $      | 337 |   |
| Loan                  payable to related party                        |   |                        | --       |                      |   | 4,193 |   |
|                                                                  |   |                        |     |                      |   |   |   |
| TOTAL                  CURRENT LIABILITIES                            |   |                        | 96,318   |                      |   | 4,530 |   |
|                                                                  |   |                        |     |                      |   |   |   |
| STOCKHOLDERS'                  EQUITY (DEFICIT)                       |   |                        |     |                      |   |   |   |
|                                                                  |   |                        |     |                      |   |   |   |
| Common                  stock, $.001 par value, 100,000,000 shares    |   |                        |     |                      |   |   |   |
| authorized,                  10,162,750 shares issued and outstanding |   |                        | 10,163   |                      |   | 10,163 |   |
| Additional                  paid-in capital                           |   |                        | 131,968  |                      |   | 114,435 |   |
| Deficit                  accumulated during development stage         |   |                        | (198,797 | )                         |   | (68,327 | ) |
|                                                                  |   |                        |     |                      |   |   |   |
| Total                  stockholders' equity (deficit)                 |   |                        | (56,666  | )                         |   | 56,271 |   |
|                                                                  |   |                        |     |                      |   |   |   |
| TOTAL                  LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) |   | $                           | 39,652   |                      | $      | 60,801 |   |

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**ARCH      MANAGEMENT SERVICES INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**STATEMENTS      OF EXPENSES**

**THREE      MONTHS AND NINE MONTHS ENDED AUGUST 31, 2006 AND 2005 AND THE      PERIOD**

**FROM      SEPTEMBER 9, 2004, (INCEPTION) THROUGH AUGUST 31, 2006**

**(UNAUDITED)**

|                                                              |   | Three                Months Ended |       | Nine                Months Ended |   | Through                Inception |   |
|-------------------------------------------------------------------|--------|-----------------------------------|------------|----------------------------------|--------|----------------------------------|--------|
|                                                              |   | Aug.                31,           |       | Aug.                31,          |   | Aug.                31,          |   | Aug.                31, |   | Aug.                31, |   |
|                                                              |   | 2006                              |       | 2005                             |   | 2006                             |   | 2005 |   | 2006 |   |
|                                                              |   |                              |       |                             |   |                             |   |   |   |   |   |
| General                and administrative                         |   | $                                 | 104,483    |                             | $      | 27,187                           |   | $ | 130,374 |   | $ | 48,507 |   | $ | 198,364 |   |
|                                                              |   |                              |       |                             |   |                             |   |   |   |   |   |   |   |   |   |   |
| Interest                expense                                   |   |                              | -          |                             |   | 96                               |   |   | 96 |   |   | 290 |   |   | 433 |   |
|                                                              |   |                              |       |                             |   |                             |   |   |   |   |   |   |   |   |   |   |
| NET                LOSS                                           |   | $                                 | (104,483   | )                                | $      | (27,283                          | )      | $ | (130,470 | ) | $ | (48,797 | ) | $ | (198,797 | ) |
|                                                              |   |                              |       |                             |   |                             |   |   |   |   |   |   |   |   |   |   |
| Basic                and diluted net lossper                share |   | $                                 | (0.01      | )                                | $      | (0.01                            | )      | $ | (0.01 | ) | $ | (0.01 | ) |   |   |   |
|                                                              |   |                              |       |                             |   |                             |   |   |   |   |   |   |   |   |   |   |
| Weighted                averageshares                outstanding  |   |                              | 10,162,750 |                             |   | 5,023,250                        |   |   | 10,162,750 |   |   | 4,522,839 |   |   |   |   |

----

**ARCH      MANAGEMENT SERVICES INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**STATEMENTS      OF CASH FLOWS**

**NINE      MONTHS ENDED AUGUST 31, 2006 AND 2005 AND THE PERIOD**

**FROM      SEPTEMBER 9, 2004, (INCEPTION) THROUGH AUGUST 31, 2006**

**(UNAUDITED)**

|                                                                                                  |   | Nine                monthsEnded                Aug. 31,2006 |     | Nine                monthsEnded                Aug. 31,2005 |   | InceptionThrough                Aug. 31, 2006 |   |
|-------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------|----------|-------------------------------------------------------------|--------|-----------------------------------------------|--------|
| Cash                flows from operating activities:                                                  |   |                                                        |     |                                                        |   |                                          |   |
|                                                                                                  |   |                                                        |     |                                                        |   |                                          |   |
| Net                loss                                                                               |   | $                                                           | (130,470 | )                                                           | $      | (48,797                                       | )      | $ | (198,797 | ) |
| Adjustments                to reconcile net loss to cash used in operating                activities: |   |                                                        |     |                                                        |   |                                          |   |   |   |   |
| Imputed                rent and salary expenses                                                       |   |                                                        | 12,393   |                                                        |   | 25,650                                        |   |   | 54,243 |   |
| Changes                in:                                                                            |   |                                                        |     |                                                        |   |                                          |   |   |   |   |
| Deferred                offering costs                                                                |   |                                                        | --       |                                                        |   | 20,000                                        |   |   | -- |   |
| Government                taxes receivables                                                           |   |                                                        | (10,422  | )                                                           |   | --                                            |   |   | (10,422 | ) |
| Accounts                payable and accrued expenses                                                  |   |                                                        | 91,788   |                                                        |   | (19,710                                       | )      |   | 92,125 |   |
|                                                                                                  |   |                                                        |     |                                                        |   |                                          |   |   |   |   |
| Net                cash used in operating activities                                                  |   |                                                        | (36,711  | )                                                           |   | (22,857                                       | )      |   | (62,851 | ) |
| Cash                flows from financing activities:                                                  |   |                                                        |     |                                                        |   |                                          |   |   |   |   |
| Proceeds                from sales of common stock                                                    |   |                                                        | --       |                                                        |   | 82,348                                        |   |   | 82,748 |   |
| Proceeds                from loan                                                                     |   |                                                        | --       |                                                        |   | 2,380                                         |   |   | 4,193 |   |
| Loan                repayments                                                                        |   |                                                        | 5,140    |                                                        |   | --                                            |   |   | 5,140 |   |
|                                                                                                  |   |                                                        |     |                                                        |   |                                          |   |   |  |   |
| Net                cash provided by (used in )                                                        |   |                                                        |     |                                                        |   |                                          |   |   |   |   |
| Financing                activities                                                                   |   |                                                        | 5,140    |                                                        |   | 84,728                                        |   |   | 92,081 |   |
|                                                                                                  |   |                                                        |     |                                                        |   |                                               |   |   |  |   |
| Net                change in cash                                                                     |   |                                                        | (31,571  | )                                                           |   | 61,871                                        |   |   | 29,230 |   |
| Cash                at beginning of period                                                            |   |                                                        | 60,801   |                                                        |   | 355                                           |   |   | -- |   |
| Cash                at end of period                                                                  |   | $                                                           | 29,230   |                                                        | $      | 62,226                                        |   | $ | 29,230 |   |
|                                                                                                  |   |                                                        |     |                                                        |   |                                          |   |   |   |   |
| Supplemental                information:                                                              |   |                                                        |     |                                                        |   |                                          |   |   |   |   |
| Interest                paid                                                                          |   | $                                                           | -        |                                                        | $      | -                                             |   | $ | 337 |   |
| Income                taxes paid                                                                      |   |                                                        | -        |                                                        |   | -                                             |   |   | - |   |

----

**ARCH      MANAGEMENT SERVICES INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**NOTES      TO FINANCIAL STATEMENTS**

**(UNAUDITED)**

**NOTE      1 - BASIS OF PRESENTATION**

**NOTE      2 COMMON STOCK**

**NOTE      3 - SUBSEQUENT EVENTS**

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

**Forward      Looking Statements**

**Plan      of Operation**

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**Financial      Condition, Liquidity and Capital Resources**

----

**Results      of Operations**

**Off-Balance      Sheet Arrangements**

**Item      3. Controls and Procedures**

**PART      II. OTHER INFORMATION**

**Item      1. Legal Proceedings**

**Item      2. Unregistered Sales of Equity Securities and Use of      Proceeds**

**Item      3. Defaults Upon Senior Securities**

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

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**Item      5. Other Information**

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

| Exhibit                No.  | Description                of Exhibits                                                                                                                                                                                                                                                                                                                                |
|----------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                             |                                                                                                                                                                                                                                                                                                                                                                  |
| Exhibit                10.2      | Purchase                Agreement, dated as of September 1, 2006, between the Company and                Gallant                Energy International Inc., incorporated by reference to Exhibit 10.2                to                the Company’s Report on Form 8-K, filed with the Securities and Exchange                Commission on September 18, 2006. |
|                             |                                                                                                                                                                                                                                                                                                                                                                  |
| Exhibit                10.3      | Securities                Purchase Agreement, dated as of June 5, 2006, between Nigel Johnson,                Alfred Nutt, Fiducie Chevrette, Gaetan Leonard, Lai Yin Cheung, Capex                Investments Limited, and Sun RichInternational Limited.                                                                                                            |
|                             |                                                                                                                                                                                                                                                                                                                                                                  |
| Exhibit                10.4      | Form                of Indemnification Agreement                                                                                                                                                                                                                                                                                                                      |
|                             |                                                                                                                                                                                                                                                                                                                                                                  |
| Exhibit                10.5      | Loan                Agreement, dated as of September 30, 2006, between the Company and                Asset                Protection Fund Limited.                                                                                                                                                                                                                   |
|                             |                                                                                                                                                                                                                                                                                                                                                                  |
| Exhibit                14.1      | Code                of Conduct, incorporated by reference to Exhibit 14.1 to the Company’s                Report on Form 8-K, filed with the Securities and Exchange Commission                on                August 31, 2006.                                                                                                                               |
|                             |                                                                                                                                                                                                                                                                                                                                                                  |
| Exhibit                14.2      | Equity                Incentive Plan                                                                                                                                                                                                                                                                                                                                  |
|                             |                                                                                                                                                                                                                                                                                                                                                                  |
| Exhibit                14.3      | Audit                Committee Charter                                                                                                                                                                                                                                                                                                                                |
|                             |                                                                                                                                                                                                                                                                                                                                                                  |
| Exhibit                14.4      | Whistleblower                Procedures Policy                                                                                                                                                                                                                                                                                                                        |
|                             |                                                                                                                                                                                                                                                                                                                                                                  |
| Exhibit                14.5      | Governance                Charter                                                                                                                                                                                                                                                                                                                                     |
|                             |                                                                                                                                                                                                                                                                                                                                                                  |
| Exhibit                14.6      | Compensation                Charter                                                                                                                                                                                                                                                                                                                                   |
|                             |                                                                                                                                                                                                                                                                                                                                                                  |
| Exhibit                31.1      | Certification                of Principal Executive Officer pursuant to Section 302 of the                Sarbanes-Oxley Act of                                                                                                                                                                                                                                       |
|                             | 2002.                                                                                                                                                                                                                                                                                                                                                                 |
|                             |                                                                                                                                                                                                                                                                                                                                                                  |
| Exhibit                31.2      | Certification                of Principal Financial Officer pursuant to Section 302 of the                Sarbanes-Oxley Act of                                                                                                                                                                                                                                       |
|                             | 2002.                                                                                                                                                                                                                                                                                                                                                                 |
|                             |                                                                                                                                                                                                                                                                                                                                                                  |
| Exhibit                32.1      | Certification                of the Principal Executive Officer pursuant to 18 U.S.C. Section                1350, as                adopted                                                                                                                                                                                                                          |
|                             | pursuant                to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                             |
|                             |                                                                                                                                                                                                                                                                                                                                                                  |
| Exhibit                32.2      | Certification                of the Principal Financial Officer pursuant to 18 U.S.C. Section                1350, as                adopted                                                                                                                                                                                                                          |
|                             | pursuant                to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                             |
|                             |                                                                                                                                                                                                                                                                                                                                                                  |

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**SUBSEQUENT      EVENTS**

| 1. | An                Audit Committee Charter; |
|----|--------------------------------------------|

| 2. | A                Whistleblower Procedures Policy; |
|----|---------------------------------------------------|

| 3. | A                Governance and Compensation                Charter; |
|----|----------------------------------------------------------------------|

| 4. | A                Disclosure Policy; and |
|----|-----------------------------------------|

| 5. | An                Indemnification Agreement. |
|----|----------------------------------------------|

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|   | 1. | Dr.                Nancy Ho was granted an option exercisable for the purchase of 60,000                shares of the Company’s common stock at an exercise price of                $0.05; |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Dr.                Naim Kosaric was granted an option exercisable for the purchase of                60,000                shares of the Company’s common stock at an exercise price of                $0.05; |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | Mr.                James Leung was granted an option exercisable for the purchase of                60,000                shares of the Company’s common stock at an exercise price of                $0.05; |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | Mr.                Arthur Rawl was granted an option exercisable for the purchase of                100,000                shares of the Company’s common stock at an exercise price of $0.05;                and |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5. | Mr.                Gilles Simard was granted an option exercisable for the purchase                of 40,000                shares of the Company’s common stock at an exercise price of                $0.05. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SIGNATURES**

|                                       |                                                               |                                                          |
|--------------------------------------------|--------------------------------------------------------------------|---------------------------------------------------------------|
|                                       | **ARCH              MANAGEMENT SERVICES INC.**                     |
|                                            | (Registrant)                                                       |
| October              19,              2006 |                                                          |                                                     |
|                                       | By:                                                      | /s/ James              Pak              Chiu Leung  |
|                                       | Name: James              Pak Chiu Leung                       |
|                                       | Title:               Principal              Executive Officer |
|                                       |                                                                   |                                |
|--------------------------------------------|------------------------------------------------------------------------|-------------------------------------|
| October              19,              2006 |                                                              |                           |
|                                       | By:                                                          | /s/ Gilles              Simard |
|                                       | Name: Gilles              Simard                                  |
|                                       | Title:                 Principal                Financial Officer |

----