================================================================================

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 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 Under Section 13 or 15(d) Of The Securities Exchange Act
     Of 1934


                  For the transition period from _____ to _____


                        COMMISSION FILE NUMBER 000-50932


                          NITRO PETROLEUM INCORPORATED
                          ----------------------------
                 (Name of small business issuer in its charter)

           NEVADA                                     98-0488493
--------------------------------          ------------------------------------
(State or other jurisdiction of           (I.R.S. Employer Identification No.)
 incorporation or organization)


29 - 3800 Pinnacle Way, Gallaghers Canyon
Kelowna, British Columbia, Canada                             V1W 3Z8
-------------------------------------------           --------------------------
(Address of principal executive offices)                     (Zip Code)


            250-809-9185
-----------------------------------------
       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 registrant 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 |_| ______ No |X|


State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date.  29,608,000 shares of Common Stock as
of November 24, 2006


Transitional Small Business Disclosure Format (check one): Yes |_|     No |X|


<page>






ITEM 1. FINANCIAL STATEMENTS












                              NITRO PETROLEUM INC.

                         (An Exploration Stage Company)

                          INTERIM FINANCIAL STATEMENTS

                                October 31, 2006

                             (Stated in US Dollars)

                                   (Unaudited)








<page>



                              NITRO PETROLEUM INC.
                         (An Exploration Stage Company)
                             INTERIM BALANCE SHEETS
                      October 31, 2006 and January 31, 2006
                             (Stated in US Dollars)
                                   (Unaudited)
<table>
<caption>
                                                                                October 31,          January 31,
                                                     ASSETS                        2006                 2006
                                                     ------                        ----                 ----

                                                                         <c>                  <c>
Current
    Cash                                                                    $          95,858    $           33,645
    Note receivable - Note 6                                                          400,000                     -
    Prepaid expenses                                                                    2,608                     -
                                                                            -----------------    ------------------

                                                                                       498,466               33,645
Equipment - Note 4                                                                       1,834                    -
Oil and gas properties - Note 6 and Schedule 2                                       1,465,000              390,000
                                                                            ------------------   ------------------

                                                                            $        1,965,300   $          423,645
                                                                            ==================   ==================

                                                    LIABILITIES
                                                    -----------
Current
    Accounts payable and accrued liabilities                                $           20,682   $           60,030
    Promissory notes payable                                                         2,299,344              424,581
    Due to related party - Note 7                                                        4,533                4,633
                                                                            ------------------   ------------------

                                                                                     2,324,559              489,244
                                                                            ------------------   ------------------

                                              STOCKHOLDERS' DEFICIENCY
                                              ------------------------
Capital stock
    Authorized:
           400,000,000  common stock, $0.001 par value
            10,000,000  preferred stock, $0.001 par value
    Issued and outstanding:
            29,608,000  common shares (January 31, 2006: 29,608,000)                    29,608               29,608
Contributed surplus                                                                     62,592               62,592
Deficit accumulated during the pre-exploration stage                                  (451,459)            (157,799)
                                                                            ------------------   ------------------

                                                                                      (359,259)             (65,599)
                                                                            ------------------   ------------------

                                                                            $        1,965,300   $          423,645
                                                                            ==================   ==================
</table>

                             SEE ACCOMPANYING NOTES

<page>

                              NITRO PETROLEUM INC.
                         (An Exploration Stage Company)
                        INTERIM STATEMENTS OF OPERATIONS
                   for the three and nine months ended October
                31, 2006 and 2005 and for the period October 27,
                  2003 (Date of Inception) to October 31, 2006
                             (Stated in US Dollars)
                                   (Unaudited)
<table>
<caption>
                                                                                                               October 27, 2003
                                                                                                                  (Date of
                                                        Three months ended                  Nine months ended    Inception) to
                                                             October 31                        October 31        October 31,
                                               ------------------------------------------
                                                    2006          2005            2006           2005               2006
                                                    ----          ----            ----           ----               ----

                                          <c>              <c>           <c>           <c>               <c>
Expenses
 Accounting and audit fees                    $        5,707   $     2,070  $     38,533   $         6,918   $        65,539
 Amortization                                             96             -            96                 -                96
 Bank charges and interest                            22,551            46        65,257               109            65,452
 Management fees - Note 7                              7,700         1,500        22,465             4,500            31,965
 Filing fees                                           3,237           390         3,237             1,145             9,349
 Foreign currency translation                         (1,039)            -         2,965                 -             2,965
 Investor relation fees                                8,499             -        43,106                 -            43,106
 Legal fees                                           12,083         1,538       110,341             5,539           185,360
 Office and miscellaneous                              2,180             -         3,935                 -             6,912
 Transfer agent fees                                      70            35           713               270             4,293
 Travel                                                7,156             -        28,310                 -            28,310
                                              --------------- ------------- -------------   ---------------   ---------------

Net loss before other items                          (68,240)       (5,579)     (318,958)          (18,481)         (443,347)

 Other Items
   Royalty income                                     17,369             -        21,668                 -            21,668
   Interest income                                         -             -         3,630                 -             3,652
                                               -------------- ------------- -------------   ---------------   ---------------

Net loss for the period from continued operations    (50,871)       (5,579)     (293,660)          (18,481)         (418,027)
Discontinued operations - Schedule 1                       -          (493)            -            (6,831)          (33,432)
                                              --------------- ------------- -------------   ---------------   ---------------

Net loss for the period                       $      (50,871) $     (6,072) $   (293,660)  $       (25,312)  $      (451,459)
                                              =============== ============= =============   ===============   ===============

Basic and diluted loss per share              $        (0.00) $      (0.00) $      (0.01)  $         (0.00)
                                              =============== ============= =============   ===============

Weighted average number of shares outstanding     29,608,000    29,608,000    29,608,000        29,608,000
                                              =============== ============= =============   ===============
</table>


                             SEE ACCOMPANYING NOTES

<page>

                              NITRO PETROLEUM INC.
                         (An Exploration Stage Company)
                        INTERIM STATEMENTS OF CASH FLOWS
                      for the nine months ended October 31,
                  2006 and 2005 and for the period October 27,
                  2003 (Date of Inception) to October 31, 2006
                             (Stated in US Dollars)
                                   (Unaudited)
<table>
<caption>
                                                                                                         October 27, 2003
                                                                                                             (Date of
                                                                         Nine months ended                Inception) to
                                                                            October 31,                    October 31,
                                                                     2006                 2005                 2006
                                                                     ----                 ----                 ----

                                                          <c>                  <c>                  <c>
Operating Activities
    Net loss for the period from continued operations        $         (293,660)  $          (18,481)  $         (418,027)
    Adjustment for item not effecting cash
      Amortization                                                           96                    -                   96
    Changes in non-cash working capital balances
     related to  operations
      Prepaid expenses                                                   (2,608)                   -               (2,608)
      Accounts payable and accrued liabilities                          (39,348)                (833)              20,682
                                                             ------------------   ------------------   ------------------

Cash used in operating activities                                      (335,520)             (19,314)            (399,857)
                                                             ------------------   ------------------   ------------------

Investing Activities
    Advances to affiliate                                                     -               (2,213)             (33,432)
    Acquisition of oil and gas properties                            (1,475,000)                   -           (1,865,000)
    Purchase of equipment                                                (1,930)                   -               (1,930)
                                                             ------------------   ------------------   ------------------

Cash used in investing activities                                    (1,476,930)              (2,213)          (1,900,362)
                                                             ------------------   ------------------   ------------------

Financing Activities
    Issuance of common stock                                                  -                    -               92,200
    Issuance of promissory notes payable                              1,874,763                    -            2,299,344
    Increase (decrease) in due to related party                            (100)               4,415                4,533
                                                             ------------------   ------------------   ------------------

Cash from financing activities                                        1,874,663                4,415            2,396,077
                                                             ------------------   ------------------   ------------------

Increase (decrease) in cash from continuing
 operations                                                              62,213              (17,112)              95,858

Decrease in cash from discontinued operations
 -Note 5                                                                      -               (4,395)                   -
                                                             ------------------   ------------------   ------------------

Increase (decrease) in cash during the period                            62,213              (21,507)              95,858
Cash, beginning of the period                                            33,645               22,554                    -
                                                             ------------------   ------------------   ------------------

Cash, end of the period                                      $           95,858   $            1,047   $           95,858
                                                             ==================   ==================   ==================

Non-cash Transaction - Note 8
</table>

                             SEE ACCOMPANYING NOTES

<page>

                              NITRO PETROLEUM INC.
                         (An Exploration Stage Company)
                              INTERIM STATEMENTS OF
                 STOCKHOLDERS' EQUITY for the period October 27,
                  2003 (Date of Inception) to October 31, 2006
                             (Stated in US Dollars)
                                   (Unaudited)
<table>
<caption>
                                                                                                      Cumulative
                                                                                       Deficit          Effect
                                                                                     Accumulated      of Foreign
                                                                      Additional     During the        Currency
                                              Common Shares            Paid-in       Exploration      Translation
                                      ------------------------------
                                         *Number      *Par Value       Capital          Stage         Adjustment       Total
                                          ------       ---------       -------          -----         ----------       -----

                                     <c>         <c>             <c>            <c>             <c>              <c>
Capital stock issued for cash:
                       - at $0.001       20,000,000 $       20,000  $      (15,000)$            -  $             -   $    5,000
                       - at $0.01         6,800,000          6,800          10,200              -                -       17,000
                       - at $0.10         2,808,000          2,808          67,392              -                -       70,200
Net loss for the period                           -              -               -        (17,045)               -      (17,045)
Foreign currency translation
 adjustment                                       -              -               -              -              277          277
                                      ------------- --------------  -------------- --------------  ---------------   -----------

Balance, as at January 31, 2004          29,608,000         29,608          62,592        (17,045)             277       75,432

Net loss for the year                             -              -               -        (57,733)               -      (57,733)
Foreign currency translation
 adjustment                                       -              -               -              -           (1,433)      (1,433)
                                      ------------- --------------  -------------- --------------  ---------------   -----------

Balance, as at January 31, 2005          29,608,000         29,608          62,592        (74,778)          (1,156)      16,266

Net loss for the year                             -              -               -        (83,021)               -      (83,021)
Foreign currency translation
 adjustment                                       -              -               -               -           1,156        1,156
                                      ------------- --------------  -------------- --------------- ---------------   -----------

Balance, as at January 31, 2006          29,608,000         29,608          62,592       (157,799)               -      (65,599)

Net loss for the period                           -              -               -       (293,660)               -     (293,660)
                                      ------------- --------------  -------------- --------------  ---------------   -----------

Balance, as at October 31, 2006          29,608,000 $       29,608  $       62,592 $     (451,459) $             -   $ (359,259)
                                      ============= ==============  ============== ==============  ===============   ===========
</table>


*       The  number  of  common  shares  have  been  retroactively  restated  to
        reflect a forward split of four new shares for one old share,  effective
        on February 6, 2006. The par value and additional  paid-in  capital have
        been adjusted to reflect the correct par value.  The  authorized  common
        shares have also been increased from 100,000,000 to 400,000,000.

                             SEE ACCOMPANYING NOTES

<page>

                                                                     Schedule 1
                              NITRO PETROLEUM INC.
                         (An Exploration Stage Company)
                        INTERIM STATEMENTS OF OPERATIONS
           FROM DISCONTINUED OPERATIONS OF INGENIUM CAPITAL B.C. LTD.
        for the three and nine months ended October 31, 2006 and 2005 and
          from October 27, 2003 (Date of Inception) to October 31, 2006
                             (Stated in US Dollars)
                                   (Unaudited)
<table>
<caption>
                                                                                                               October 27,
                                                                                                              2003 (Date of
                                                 Three months ended                Nine months ended          Inception) to
                                                     October 31,                      October 31,              October 31,
                                               2006             2005             2006            2005              2006
                                               ----             ----             ----            ----              ----

                                       <c>             <c>               <c>             <c>             <c>
Expenses
    Bank charges                          $            -  $            12   $            -  $          71   $             246
    Filing fees                                        -                -                -              -               1,752
    Legal fees                                         -                -                -              -                 841
    Office and miscellaneous                           -              192                -          1,509               7,812
    Promotion costs                                    -              121                -            239                   -
    Mineral property costs                             -                -                -          4,362              21,769
    Transfer agent fees                                -                -                -              -                 791
    Travel                                             -               94                -            416                   -
                                          --------------  ---------------   --------------  -------------   -----------------

Loss before the following                              -             (419)               -         (6,597)            (33,211)

    Write -off of due to parent                        -                -                -              -              36,499
    Interest income                                    -                -                -              -                 149
    Foreign exchange gain (loss)                       -              (74)               -           (234)             (3,437)
    Write-off of due from affiliate                    -                -                -              -             (33,432)
                                          --------------  ---------------   --------------  -------------   -----------------

Net loss for the period                   $            -  $          (493)  $            -  $      (6,831)  $         (33,432)
                                          ==============  ===============   ==============  =============   =================
</table>

                             SEE ACCOMPANYING NOTES

<page>

                                                                      Schedule 2
                              NITRO PETROLEUM INC.
                         (An Exploration Stage Company)
                  INTERIM STATEMENTS OF OIL AND GAS PROPERTIES
                 for the nine months ended October 31, 2006 and
                       for the year ended January 31, 2006
                             (Stated in US Dollars)
                                   (Unaudited)
<table>
<caption>
                                                Balance                          Balance                        Balance
                                              January 31,                       July 31,                      October 31,
                                                  2006          Additions         2006          Disposals        2006
                                                  ----          ---------         ----          ---------        ----

                                         <c>             <c>             <c>             <c>              <c>
Oil and gas property costs:

    Barnett Shale                           $      300,000   $            -  $     300,000   $            -  $     300,000

    Phillip #2                                      80,000                -         80,000                -         80,000

    Corsicana Pilot Project                         10,000          470,000        480,000                -        480,000

    Barnett Shale wells                                  -          750,000        750,000         (400,000)       350,000

    Inglish #1 Horizontal                                -          135,000        135,000                -        135,000

    3D Seismic Program                                   -          100,000        100,000                -        100,000

    Corsicana Waste Water Project                        -           20,000         20,000                -         20,000
                                            --------------   --------------  -------------   --------------  -------------

                                            $      390,000   $    1,475,000  $   1,865,000   $     (400,000) $   1,465,000
                                            ==============   ==============  =============   ==============  =============
</table>



                             SEE ACCOMPANYING NOTES

<page>


                              NITRO PETROLEUM INC.
                         (An Exploration Stage Company)
                    NOTES TO THE INTERIM FINANCIAL STATEMENTS
                                October 31, 2006
                             (Stated in US Dollars)
                                   (Unaudited)


Note 1        Interim Reporting
              -----------------
              While the information  presented in the accompanying  interim nine
              months  financial   statements  is  unaudited,   it  includes  all
              adjustments which are, in the opinion of management,  necessary to
              present fairly the financial  position,  results of operations and
              cash flows for the interim  periods  presented in accordance  with
              accounting  principles  generally accepted in the United States of
              America.  These  interim  financial  statements  follow  the  same
              accounting  policies  and  methods  of  their  application  as the
              Company's  January  31,  2006  annual  financial  statements.  All
              adjustments are of a normal recurring nature. It is suggested that
              these interim financial statements be read in conjunction with the
              Company's January 31, 2006 annual financial statements.

              Operating  results for the nine months ended  October 31, 2006 are
              not necessarily indicative of the results that can be expected for
              the year ended January 31, 2007.

Note 2        Nature and Continuance of Operations
              ------------------------------------
              The Company is in the  exploration  stage and directly and through
              joint  ventures  is in the  process of  exploring  its oil and gas
              properties  located in the U.S.A.  The  recoverability  of amounts
              shown for oil and gas  properties are dependent upon the discovery
              of  economically   recoverable   reserves,   confirmation  of  the
              Company's  interest in the properties,  the ability of the Company
              to obtain necessary  finances to complete the development and upon
              future  profitable  production  or proceeds  from the  disposition
              thereof.

              These  financial  statements have been prepared in accordance with
              generally  accepted  accounting  principles  applicable to a going
              concern,  which  assumes that the Company will be able to meet its
              obligations  and  continue  its  operations  for its  next  twelve
              months.  Realization  values may be  substantially  different from
              carrying  values as shown and these  financial  statements  do not
              give effect to adjustments that would be necessary to the carrying
              values and  classification  of assets and  liabilities  should the
              Company be unable to continue as a going  concern.  At October 31,
              2006, the Company had not yet achieved profitable operations,  has
              accumulated losses of $451,459 since its inception,  has a working
              capital  deficiency  of  $1,826,093  and expects to incur  further
              losses in the  development  of its  business,  all of which  casts
              substantial  doubt  about the  Company's  ability to continue as a
              going  concern.  The  Company's  ability  to  continue  as a going
              concern  is  dependent   upon  its  ability  to  generate   future
              profitable  operations 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 has no formal
              plan in place to  address  this  concern  but  considers  that the
              Company  will  be  able  to  obtain  additional  funds  by  equity
              financing  and/or  related  party  advances,  however  there is no
              assurance of additional funding being available.

<page>

Nitro Petroleum Inc.
(An Exploration Stage Company)
Notes to the Interim Financial Statements
October 31, 2006
(Stated in US Dollars)
(Unaudited) - Page 2
 ---------




Note 2        Nature and Continuance of Operations - (cont'd)
              ------------------------------------

              The Company  was  incorporated  in the State of Nevada on  October
              27, 2003. On February 27, 2006, the Company  changed its name from
              Ingenium Capital Corp. to Nitro Petroleum Inc.

Note 3        Additional Significant Accounting Policy
              ----------------------------------------
              Equipment

              Equipment  is recorded at cost and  consists of office  furniture.
              Depreciation is provided using the declining balance method at 20%
              per annum.

              Equipment  additions  during the year are  depreciated at one-half
              rates.

Note 4        Equipment
              ---------
<table>
<caption>
                                                                                                     January 31,
                                                             October 31, 2006                           2006
                                           ------------------------------------------------------  --------------
                                                               Accumulated
                                                 Cost          Amortization           Net                Net
            
                            <c>              <c>                <c>                 <c>
             Office furniture              $         1,930   $            96   $        1,834      $          -
                                           ===============   ===============   ==============      ============
</table>


Note 5        Discontinued Operations
              -----------------------

              On  January  31, 2006,  the  company  indicated  its intention  to
              dissolve  its  100%  owned   subsidiary,  Ingenium   Capital  B.C.
              Ltd.  ("BC").  The loss  related  to BC for the nine  months ended
              October  31,  2005 has been  disclosed  as loss from  discontinued
              operations (Schedule 1).

<page>

Nitro Petroleum Inc.
(An Exploration Stage Company)
Notes to the Interim Financial Statements
October 31, 2006
(Stated in US Dollars)
(Unaudited) - Page 3
 ---------


Note 5        Discontinued Operations - (cont'd)
              -----------------------

              Statement of Cash Flows

              Cash flows from discontinued operations are as follows:
<table>
<caption>
                                                                                                       October 27,
                                                                                                      2003 (Date of
                                                                          Nine months ended           Inception) to
                                                                             October 31,               October 31,
                                                                        2006             2005             2006
                                                                        ----             ----             ----
            
                                                   <c>               <c>             <c>
             Cash flows used in operating activities
                 Loss from discontinued operations                $             -   $       (6,831) $       (33,432)
                 Write-off of advances from parent company                      -                -           33,432
                 Change in non-cash working capital
                  balance related to operations:
                   Accounts payable                                             -                -                -
                   Due to related party                                         -              223                -
                                                                  ---------------   --------------  ---------------

             Cash provided by (used in) operating activities                    -           (6,608)               -
                                                                  ---------------   --------------  ---------------

             Financing Activity
                 Advances from (to) parent company                              -            2,213                -
                                                                  ---------------   --------------  ---------------

             Cash provided by (used in) financing activity                      -            2,213                -
                                                                  ---------------   --------------  ---------------

             Decrease in cash from discontinued operations
              prior to disposal                                   $             -   $       (4,395) $             -
                                                                  ===============   ==============  ===============
</table>

Note 6        Oil and Gas Properties - Schedule 2
              ----------------------

              a)  By  an  acreage  participation   agreement  effectively  dated
                  January  23,  2006,  the Company  acquired  50% of a leasehold
                  interest in mineral  leases known as the Barnett Shale play in
                  Montague County,  Texas for $300,000.  The Company is entitled
                  to a 1% overriding royalty,  $500 per acre bonus with drilling
                  commitments  and the  right to  participate  in a 25%  working
                  interest in wells drilled.

              b)  By a letter  agreement  dated  December 27, 2005,  the Company
                  acquired a 5% working  interest in the Phillips #2 well, equal
                  to a 3.75% net revenue  interest in the Barnett Shale Prospect
                  in Montague  County,  Texas for $80,000 (40 acres  burdened by
                  25% royalty and overriding royalty interests).  The Company is
                  also entitled to  participate  up to a 5% working  interest of
                  additional wells on adjoining acreage.

<page>

Nitro Petroleum Inc.
(An Exploration Stage Company)
Notes to the Interim Financial Statements
October 31, 2006
(Stated in US Dollars)
(Unaudited) - Page 4
 ---------


Note 6        Oil and Gas Properties - (cont'd)
              ----------------------

              c)  By a letter of intent dated March 1, 2006,  the Company agreed
                  to acquire a 25%  interest in the  Corsicana  Pilot  Project -
                  Phase 1, Corsicana,  Texas in  consideration  for the payments
                  totalling  $750,000,  of which  $410,000  has been  paid.  The
                  remaining  funding will be due and payable as requested by the
                  operating parties,  however, the remaining funding will be due
                  and payable by March 1, 2008.  The Company may pay  $1,500,000
                  to fund additional  prospect leases to earn an undivided 23.5%
                  working  interest  and 35% net  income  payback  until  it has
                  returned its contributed capital. Pursuant to an authority for
                  expenditure  dated April 11, 2006, the Company  acquired a 25%
                  working  interest  in the  Pierce #1 and  McKinney  #2 lateral
                  wells in Corsicana, Texas for $70,000.

                  The Company has committed to 50% of the seismic project in the
                  Corsicana field located in Corsicana,  Texas.  The Company has
                  advanced  $100,000  as at July 31,  2006 and will  advance  an
                  additional  $150,000  upon request by the  operating  parties,
                  however,  the remaining  funding will be due and payable on or
                  before March 1, 2008. This is a secondary recovery proposal to
                  enhance production from the Corsican Pilot project.

              d)  By a letter dated April 25,  2006,  the Company has acquired a
                  5% to 10% working interest in various oil and gas wells (in an
                  area known as the  Barnett  Shale  play) in  Montague  County,
                  Texas in  consideration  for the payment of  $750,000  (paid).
                  This letter has substituted the use of the $750,000 previously
                  paid with respect to a letter  agreement dated March 27, 2006,
                  which was terminated on April 27, 2006.

                  By agreement dated September 1, 2006, as extended  November 1,
                  2006,  the  Company  entered  into an  agreement  whereby  the
                  Company  disposed of 50% of the Company's  interest in certain
                  oil and gas  properties  located in the Barnett  Shale play in
                  consideration  for  proceeds of  $400,000  payable by way of a
                  promissory  note, due February 28, 2007, bears interest at 10%
                  per annum and is secured by a general security  agreement.  As
                  part of the extension,  the purchaser  agreed to issue 250,000
                  common  shares to the Company.  125,000  common  shares may be
                  returned to the  purchaser if the  purchaser  performs all its
                  covenants.  The Company and the  purchaser  have a director in
                  common.

              e)  Pursuant to an authority  for  expenditure  dated May 7, 2006,
                  the Company advanced $135,000 to acquire a 5% working interest
                  in Inglish #1 Horizontal well in Barnett Shale,  Cooke County,
                  Texas.

              f)  Pursuant to an authority for expenditure  dated June 15, 2006,
                  the Company advanced $20,000 to earn a 25% interest to acquire
                  and  build a  waste  water  disposal  in the  Corsicana  field
                  located in Corsicana, Texas.

<page>

Nitro Petroleum Inc.
(An Exploration Stage Company)
Notes to the Interim Financial Statements
October 31, 2006
(Stated in US Dollars)
(Unaudited) - Page 5
 ---------


Note 7        Related Party Transactions - Note 6
              --------------------------

              During the nine months ended October 31, 2006 the Company incurred
              management  fees  charged by a director of the  Company  totalling
              $22,465  (2005:  $4,500  charged  by  a  former  director  of  the
              Company).

              Amounts due to related  party are due to a director of the Company
              for  unpaid   management   fees.   These  amounts  are  unsecured,
              non-interest bearing and have no specific terms of repayment.

Note 8        Non-cash Transaction
              --------------------
              Investing  and  financing  activities  that do not  have a  direct
              impact on current cash flows are excluded  from the  statements of
              cash flows.  During the nine months ended  October 31,  2006,  the
              Company sold 50% of its  interest in the Barnett  shale play for a
              $400,000 note receivable.

              This transaction was excluded from the statements of cash flows.


<page>


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

OVERVIEW

The Company is an  exploration  stage  company  engaged in the  acquisition  and
exploration  of gas and oil  properties.  The Company is  attempting  to acquire
interest in the properties of, and working interests in the production owned by,
established oil and gas production companies,  whether public or private, in the
United States oil producing areas. The Company does not intend to operate any of
the  production  acquired.  Thus, the Company will ensure that the production in
which it invests is operated to internationally accepted standards.
The Company believes such opportunities  exist in the United States. The Company
believes these  opportunities  also have  considerable  future potential for the
development  of additional  oil reserves.  Such new reserves might come from the
development of existing but as yet  undeveloped  reserves as well as from future
success in exploration.

When and if funding becomes available, the Company plans to acquire high-quality
oil and gas  properties,  primarily  "proven  producing  and proven  undeveloped
reserves."  The Company  will also  explore  low-risk  development  drilling and
work-over opportunities with experienced, well-established operators.

PLAN OF OPERATION

Corsicana
---------
Under  the  Corsicana Pilot  Flood Project  agreement, entered  into on March 1,
2006,  between Texas M.O.R., Inc. and JMT Resources Ltd. (the operating parties)
and Nitro  Petroleum,  Inc. and KOKO Petroleum, Ltd. (the investing parties) all
parties are forming a joint venture.  KOKO recently sold its interest under this
agreement to Quantum Energy Inc.

There are thirteen wells drilled for the pilot flood project, of which seven are
now completed and producing,  Nitro has 23.5% working interest in these 7 wells.
The other six wells  drilled are  classified  as injection  polymer flood wells.
Nitro has a 23.5 % working interest in these as well.

Nitro is planning to continue the Pilot Flood project and to expand upon success
with  potential  to drill up to 50 wells in total in 2006 and 2007.  The Company
intends to initiate 3D seismic shooting to cover approximately 4,000 acres.

Barnett Shale
-------------
Nitro has interest in the various wells in Barnett Shale.

Nitro has a 5% working interest in the Phillips #2.

On September 1, 2006, the Company entered into an Asset Purchase  Agreement (the
"APA")  with  Quantum  Energy  Inc.  ("Quantum"),  selling oil and gas assets in
Texas, USA. In consideration,  the Company accepted an unsecured promissory note

<page>

for $400,000,  which did not accrue interest and was due and payable on November
1, 2006 (the "Promissory Note 1"). The assets sold consist of 50% of the working
interests in the wells identified below:

1.       10% working interest in Inglish 4 well;
2.       10% working interest in Inglish 5 well;
3.       10% working interest in Inglish D1 well;
4.       10% working interest in Inglish D2 well;
5.       5% working interest in Craig Muncaster 6 well; and
6.       5% working interest in Craig Muncaster 7 well.

The Inglish 4 and Inglish 5 wells are now complete.  Nitro's working interest in
each of these wells is now reduced to 5%  pursuant  to the APA of  September  1,
2006  described  above.  The Inglish D1 and D2 wells have been completed and are
now in production (Nitro currently has 5% working interest in each of them).

Additionally,  as a result of the APA of September 1, 2006, Nitro's interest has
been reduced to 2.5% working  interest in Craig  Muncaster 7 and Craig Muncaster
6, each of which has been completed and is now producing.

On November 1, 2006 the Company entered into an Extension Agreement with Quantum
in regard to the APA and Quantum's obligation to the Company.

Under the Extension  Agreement the Promissory  Note 1 has been cancelled and new
note has been executed (the  "Promissory  Note 2"). The Promissory Note 2 is for
the same amount of $400,000,  but now accrues interest at ten (10 %) percent per
annum.  As security for the Promissory  Note 2 Quantum  granted to the Company a
security  interest over all of Quantum's  assets  perfected by UCC-1 filing in a
state of Nevada,  which shall be released upon repayment of the Promissory  Note
2. Also  under the new  terms  Quantum  is  required  to issue to Nitro  250,000
restricted shares of Quantum's common stock,  125,000 of which shall be returned
to Quantum if the principal  amount of the  Promissory  Note 2 together with the
interest is repaid on time. The Promissory Note 2 is due and payable on February
28, 2007.

The first  horizontal  well , the Inglish 1H, was  completed on August 31. Nitro
has a 5% working interest in this well. This well went into production September
15, 2006.

Nitro has  acquired 50% of the  holder's  leasehold  interest in a gross area of
approximately 2,000 acres of mineral leases in and around Montague County, Texas
(the "Assigned  Acreage").  Under this agreement the  participant is entitled to
receive 1% overriding  royalty on the entire Gross Area, to participate in up to
a 25% working  interest in wells drilled in the Gross Area.  The  operator,  REO
Petroleum, expects to drill the first horizontal well on this lease in the first
quarter of 2007.

The Company is planning to continue to acquire  additional  acreage in the area.
It intends to continue drilling its already acquired undrilled acreage.  It also
intends to acquire drilling rigs and expand the existing pipeline system.

Nitro has paid $20,000 as a down payment (Nitro's  participation in this project
is  approximately  $225,000) for a 25 % gross working  interest on a waste water
disposal injection well and the related plant facilities including a purchase of
10 acre surface land.  This site will be used by oil producers  within a 50 mile
range to inject waste salt water  recovered from their  producing  wells.  It is
planned to drill 3 more injection  wells within this project.  The Texas Railway
Commission  has approved  the  injection  permit for this site.  This project is
expected to be operational by the first quarter of 2007.

<page>

The Company  intends to continue to acquire high quality oil and gas properties,
primarily  "proved  producing  and proved  undeveloped  reserves"  in the United
States. The Company sees significant  opportunities in acquiring properties with
proven  producing  reserves and  undeveloped  acreage in fields that have a long
history of  production.  The  Company  will also  explore  low-risk  development
drilling and work-over  opportunities  with experienced,  strong operators.  The
Company will attempt to finance oil and gas operations  through a combination of
privately placed debt and/or equity.  There can be no assurance that the Company
will be successful in finding financing, or even if financing is found, that the
Company will be  successful  in  acquiring  oil and/or gas assets that result in
profitable operations.

Nitro is continuing its efforts to identify and assess investment  opportunities
in oil and natural gas  properties,  utilizing  free labor of its  directors and
stockholders until such time as funding is sourced from the capital markets.  It
is  anticipated  that  funding  for the next  twelve  months will be required to
maintain  the  Company.  Attempts  are  ongoing to raise funds  through  private
placements  and said attempts will continue this year and  throughout  2007. The
Company may also use various  debt  instruments  as well as public  offerings to
raise needed capital.

General and Administrative Expenses

General  and  administrative  expenses  consist of  expenses  related to general
corporate functions  including  marketing expenses,  professional and consultant
service expenses, development costs and travel.

General and administrative  expenses totaled $68,240 for the three months ending
October 31,  2006,  compared to $5,579 for the three months  ending  October 31,
2005. This increase was due to an increase in development,  organization,  sales
and costs associated with the acquisition,  operation and development of the oil
and gas properties.

Liquidity and Capital Resources

The  Company  had cash of $95,858 as of October  31,  2006,  compared to cash of
$33,645 as of January 31, 2006.  The Company had working  capital  deficiency of
$1,826,093  as of October 31, 2006,  compared to working  capital  deficiency of
$455,599 as of January 31,  2006.  Current  funds  available  to the Company are
inadequate  for it to be fully  competitive  in the areas in which it intends to
operate.  The  Company  will  need to raise  additional  funds in order to fully
implement  its  business  plan and is  currently  in the process of raising such
funds. The Company will attempt to raise approximately $65,000,000 in additional
funds over the next 12 months through private placements;  however, there can be
no assurance  that the Company  will be  successful  in raising such  additional
funds.

Regardless of whether the  Company's  cash assets prove to be inadequate to meet
the Company's  operational needs, the Company might seek to compensate providers
of services by issuance of stock in lieu of cash.

The Company's  continued  operations  therefore  will depend upon its ability to
raise additional funds through bank borrowings,  equity or debt financing. While
the Company has been successful in raising funds to date,  there is no assurance
that the Company will be able to obtain additional  funding when needed, or that
such funding, if available,  can be obtained on terms acceptable to the Company.
If the Company cannot obtain needed funds,  it may be forced to curtail or cease
its activities.

<page>

If additional  shares are issued to obtain financing,  current  shareholders may
suffer a dilutive effect on their  percentage of stock ownership in the Company.
A large portion of the Company's financing to date has been through the issuance
of shares or through equity financing with share based collateral.  There can be
no  assurances  that the Company  will become  self-sufficient.  Therefore,  the
Company may  continue  to issue  shares to further the  business,  and  existing
shareholders  may suffer a dilutive  effect on the price of their shares as well
as a loss of voting  power in the  Company.

Going  Concern

The Company has  not  attained  profitable  operations  and  is  dependent  upon
obtaining  financing to  pursue  any  extensive oil  and  gas  acquisitions  and
explorations.  The auditors stated  in their  report  on the  audited  financial
statements that they have substantial doubt the Company will be able to continue
as a going concern.

Off-Balance Sheet Arrangements

The Company has no significant  off-balance sheet  arrangements that have or are
reasonably likely to have a current or future effect on the financial condition,
changes in financial  condition,  revenues or expenses,  results of  operations,
liquidity,  capital  expenditures  or  capital  resources  that is  material  to
stockholders.

ITEM 3. CONTROLS AND PROCEDURES.

As required by Rule 13a-15  under the Exchange  Act, the Company  carried out an
evaluation of the  effectiveness  of the design and operation of its  disclosure
controls  and  procedures  as of October  31,  2006,  being the date of the most
recently  completed  fiscal  quarter.  This evaluation was carried out under the
supervision and with the participation of the Company's Chief Executive Officer.
Based upon that evaluation,  Chief Executive  Officer  concluded that disclosure
controls and procedures are effective in timely alerting  management to material
information required to be included in periodic SEC filings.  There have been no
significant  changes in the Company's internal controls or in other factors that
could  significantly  affect  internal  controls  subsequent  to the date of the
evaluation.
Disclosure  controls and procedures are controls and other  procedures  that are
designed to ensure that  information  required  to be  disclosed  in our reports
filed or submitted under the Exchange Act is recorded, processed, summarized and
reported,  within  the time  periods  specified  in the SEC'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  Exchange  Act is  accumulated  and  communicated  to
management,  including  our Chief  Executive  Officer  and our  Chief  Financial
Officer, to allow timely decisions regarding required disclosure.

                                     PART II

<page>
<table>
<caption>


Item 6. Exhibits
    Exhibit
     Number            Description of Exhibit                                   Location
   <c>                 <c>                                                     <c>
    Item 3             Articles of Incorporation and Bylaws

      3.1              Articles of Incorporation                                Incorporated by reference from
                                                                                the Registration Statement on
                                                                                Form SB-2 filed April 21, 2004,
                                                                                SEC File No. 333-114660

      3.2              Bylaws, as amended                                       Incorporated by reference from
                                                                                the Registration Statement on
                                                                                Form SB-2 filed April 21, 2004,
                                                                                SEC File No. 333-114660

      3.3              Articles of Amendment to the Articles of Incorporation   Incorporated by reference from
                       of Ingenium Capital Corp. (Name changed therein to       the Form 10-KSB filed May 15,
                       Nitro Petroleum Incorporated)                            2006


    Item 10            Material Contracts

    10.11              Asset Purchase Agreement with Quantum Energy Inc.        This filing
                       dated September 1, 2006

    10.12              Extension Agreement with Quantum Energy Inc.             This filing
                       dated November 1, 2006;

    10.13              Promissory Note 2 for $400,000 dated                     This filing
                       November 1, 2006

    10.14              General Security Agreement with                          This filing
                       Quantum Energy Inc. in favour of Nitro
                       Petroleum  Incorporated dated November 7, 2006


    Item 31            Rule 13a-14(a)/15d-14(a) Certifications

     31.1              Certification of Chief Executive Officer and Chief       This filing.
                       Financial Officer pursuant to 18 U.S.C. Section 1350,
                       as adopted pursuant to Section 302 of the
                       Sarbanes-Oxley Act of 2002

    Item 32            Section 1350 Certifications

     32.1              Certification of Chief Executive Officer and Chief       This filing.
                       Financial Officer pursuant to 18 U.S.C. Section 1350,
                       as adopted pursuant to Section 906 of the
                       Sarbanes-Oxley Act of 2002
</table>

<page>


                                   SIGNATURES

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

NITRO PETROLEUM INCORPORATED

By:   /s/ Ted Kozub
      ------------------------------------------------
      Ted Kozub, CEO, CFO and President

Date: December 7, 2006