**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


**Washington,
      D.C. 20549**







**FORM 10-QSB/A**


**(Mark
                one)****x**
            
            **QUARTERLY
                REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
                OF 1934.**




**For
      the fiscal quarter ended June 30, 2006**


**OR**




**o**
            
            **TRANSITION
                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
                EXCHANGE ACT OF 1934.**




**For
      the transition period
      from                                  to**




**Commission
      File No. 000-50906**







**ETERNAL
      ENERGY CORP.**


(Exact
      Name of Small Business Issuer in its Charter)





**Nevada**
            
            **20-0237026**(State
                or Other Jurisdiction
              of
                Incorporation or
              Organization)
            
            (I.R.S.
                Employer
              Identification
                No.)





**2120
      West Littleton Blvd., Suite 300**


**Littleton,
      Colorado**


(Address
      and telephone number of Principal Executive Offices)





**(303)
      385-1230**


(Issuer’s
      Telephone Number, Including Area Code)











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 registrant was required to file such reports),
      and (2) has been subject to such filing requirements for the past 90
      days.





Yes x No o





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





Yes o No x





Number
      of
      shares outstanding as of the close of business on August 21, 2006:





**TITLE
                OF CLASS**
            
            **NUMBER
                OF SHARES**
              **OUTSTANDING**Common
                Stock, $0.001 par value.
            
            42,350,000





Transitional
      Small Business Disclosure Format (Check one):  Yes o No x









**PART
      I. FINANCIAL INFORMATION**





**Item
      3. Controls and Procedures**





The
      Company maintains disclosure controls and procedures that are designed to ensure
      that information required to be disclosed in our Exchange Act reports is
      recorded, processed, summarized and reported within the time periods specified
      under the Securities and Exchange Commission’s rules and forms, and that
      such information is accumulated and communicated to our management, including
      our Principal Executive Officer and our Principal Financial Officer, as
      appropriate, to allow timely decisions regarding required disclosures. Our
      management, including our Principal Executive Officer and our Principal
      Financial Officer, does not expect that our disclosure controls or procedures
      will prevent all error and all fraud. A control system, no matter how well
      conceived and operated, can provide only reasonable, not absolute assurance
      that
      the objectives of the control system are met. Further, the benefits of controls
      must be considered relative to their costs. Because of the inherent limitations
      in all control systems, no evaluation of controls can provide absolute assurance
      that all control issues and instances of fraud, if any, within us have been
      detected.




We
      carried out an evaluation, under the supervision and with the participation
      of
      our management, including our Principal Executive Officer and our Principal
      Financial Officer, of the effectiveness of the design and operation of our
      disclosure controls and procedures as of the end of the period covered by this
      report. Based on the foregoing, our Principal Executive Officer and our
      Principal Financial Officer concluded that our disclosure controls and
      procedures were effective at the reasonable assurance level.




There
      has
      been no change in our internal controls over financial reporting during our
      most
      recent fiscal quarter that has materially affected, or is reasonably likely
      to
      materially affect, our internal controls over financial reporting.










**PART
      II OTHER INFORMATION**





**Item
      6. Exhibits**





**Exhibit
                Number**
            
            **Description
                of Document**31.1*
            
            Certification
                pursuant to Section 302 of the Sarbanes-Oxley Act32.1*
            
            Certification
                pursuant to Section 906 of the Sarbanes-Oxley
                Act




*Filed
      with this report.









**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.




ETERNAL
                ENERGY CORP.(Registrant)January
                18, 2007
            
            /s/Bradley
                M. ColbyBradley
                M. ColbyPresident,
                Chief Executive Officer, Secretary,
              Treasurer,
                and Chief Financial Officer