---

UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C.
20549

FORM 10-QSB

Quarterly Report Pursuant To Section 13 or 15(d) Of The
Securities Exchange Act Of 1934

For the quarterly period ended July 31, 2007

COMMISSION FILE NUMBER 000-50932

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

|NEVADA                                           | 98-0488493                          
|------------------------------------------------ | ------------------------------------
|(State or other jurisdiction of incorporation or | (I.R.S. Employer Identification No.)
|organization)                                    |                                     
|                                                 |                                     
|260  7250 Express Way                           |                                     
|Oklahoma City, OK                                | 73132                               
|(Address of principal executive offices)         | (Zip Code)                          
|                                                 |                                     
|                                                 |                                     
|405-728-3800                                     |                                     
|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. 148,540,000
shares of Common Stock as of September 14, 2007

Transitional Small Business Disclosure Format (check one):
Yes [] No [x]

---

ITEM 1. FINANCIAL STATEMENTS



---

NITRO PETROLEUM INC.

(A Development Stage Company)

INTERIM FINANCIAL STATEMENTS

July 31, 2007

(Stated in US Dollars)

(Unaudited)

---

|NITRO PETROLEUM INC.              
|----------------------------------
|(A Development Stage Company)     
|INTERIM BALANCE SHEETS            
|July 31, 2007 and January 31, 2007
|(Stated in US Dollars)            
|(Unaudited)                       

|                                                               |   | July 31,   |   |   | January 31, |  
|-------------------------------------------------------------- | - | ---------- | - | - | ----------- | -
|**ASSETS**                                                     |   | 2007       |   |   | 2007        |  
|                                                               |   |            |   |   |             |  
|Current                                                        |   |            |   |   |             |  
|Cash                                                           | $ | 83,766     |   | $ | 65,642      |  
|Accounts receivable                                            |   | 84,654     |   |   | 34,640      |  
|Settlement receivable  Note 3                                 |   | -          |   |   | 145,502     |  
|                                                               |   |            |   |   |             |  
|                                                               |   | 168,420    |   |   | 245,784     |  
|Equipment  Note 5                                             |   | 1,563      |   |   | 1,737       |  
|Oil and gas properties, unproved  Note 3 and Schedule
      1 |   | 1,499,808  |   |   | 1,531,591   |  
|                                                               |   |            |   |   |             |  
|                                                               | $ | 1,669,791  |   | $ | 1,779,112   |  
|                                                               |   |            |   |   |             |  
|LIABILITIES                                                    |   |            |   |   |             |  
|                                                               |   |            |   |   |             |  
|Current                                                        |   |            |   |   |             |  
|Accounts payable and accrued
      liabilities                 | $ | 53,584     |   | $ | 90,922      |  
|Promissory notes payable  Note 4                              |   | 2,366,198  |   |   | 2,321,873   |  
|Due to related party 
      Note 7                            |   | 5,199      |   |   | 5,199       |  
|                                                               |   |            |   |   |             |  
|                                                               |   | 2,424,981  |   |   | 2,417,994   |  
|                                                               |   |            |   |   |             |  
|STOCKHOLDERS DEFICIENCY                                       |   |            |   |   |             |  
|                                                               |   |            |   |   |             |  
|Capital stock                                                  |   |            |   |   |             |  
|Authorized:                                                    |   |            |   |   |             |  
|2,000,000,000
      common stock, $0.001 par value             |   |            |   |   |             |  
|10,000,000
      preferred stock, $0.001 par value             |   |            |   |   |             |  
|Issued and outstanding:                                        |   |            |   |   |             |  
|148,540,000
      common shares                                |   |            |   |   |             |  
|(January 31, 2007: 148,040,000)                                |   | 148,540    |   |   | 148,040     |  
|Stock subscriptions  Note 6                                   |   | -          |   |   | 250,000     |  
|Additional paid-in capital                                     |   | 720,957    |   |   | 294,160     |  
|Deficit accumulated during the development stage               |   | (1,624,687 | ) |   | (1,331,082  | )
|                                                               |   |            |   |   |             |  
|                                                               |   | (775,190   | ) |   | (638,882    | )
|                                                               |   |            |   |   |             |  
|                                                               | $ | 1,669,791  |   | $ | 1,779,112   |  

SEE ACCOMPANYING NOTES

---

|NITRO PETROLEUM INC.                                                      
|--------------------------------------------------------------------------
|(A Development Stage Company)                                             
|INTERIM STATEMENTS OF OPERATIONS                                          
|for the three and six months ended July 31, 2007 and 2006
      and       
|for the period October 27, 2003 (Date of Inception) to July
      31, 2007
|(Stated in US Dollars)                                                    
|(Unaudited)                                                               

|                                                |   |                    |   |   |                  |   |   |               |   |   |            |   |   | October 27, |  
|----------------------------------------------- | - | ------------------ | - | - | ---------------- | - | - | ------------- | - | - | ---------- | - | - | ----------- | -
|                                                |   |                    |   |   |                  |   |   |               |   |   |            |   |   | 2003        |  
|                                                |   |                    |   |   |                  |   |   |               |   |   |            |   |   | (Date of    |  
|                                                |   | Three months ended |   |   | Six months ended |   |   | Inception) to |  
|                                                |   | July 31,           |   |   | July 31,         |   |   | July 31,      |  
|                                                |   | 2007               |   |   | 2006             |   |   | 2007          |   |   | 2006       |   |   | 2007        |  
|                                                |   |                    |   |   |                  |   |   |               |   |   |            |   |   |             |  
|Revenue                                         |   |                    |   |   |                  |   |   |               |   |   |            |   |   |             |  
|Oil and gas revenue                             | $ | 57,121             |   | $ | 5,657            |   | $ | 133,906       |   | $ | 5,657      |   | $ | 223,622     |  
|Production costs                                |   | (13,709            | ) |   | (1,358           | ) |   | (32,137       | ) |   | (1,358     | ) |   | (53,669     | )
|Depletion                                       |   | (3,351             | ) |   | -                |   |   | (6,269        | ) |   | -          |   |   | (9,678      | )
|                                                |   |                    |   |   |                  |   |   |               |   |   |            |   |   |             |  
|                                                |   | 40,061             |   |   | 4,299            |   |   | 95,500        |   |   | 4,299      |   |   | 160,275     |  
|                                                |   |                    |   |   |                  |   |   |               |   |   |            |   |   |             |  
|Expenses                                        |   |                    |   |   |                  |   |   |               |   |   |            |   |   |             |  
|Accounting and audit fees                       |   | 13,624             |   |   | 4,656            |   |   | 31,957        |   |   | 32,826     |   |   | 121,175     |  
|Bank charges and interest                       |   | 335                |   |   | 449              |   |   | 420           |   |   | 473        |   |   | 1,142       |  
|Consulting fee                                  |   | -                  |   |   | -                |   |   | -             |   |   | -          |   |   | 5,000       |  
|Depreciation                                    |   | 87                 |   |   | -                |   |   | 174           |   |   | -          |   |   | 367         |  
|Filing fees                                     |   | 1,442              |   |   | -                |   |   | 6,501         |   |   | -          |   |   | 16,036      |  
|Foreign currency loss (gain)                    |   | 565                |   |   | 3,773            |   |   | (525          | ) |   | 4,004      |   |   | (142        | )
|Impairment loss on oil
      and gas properties |   | -                  |   |   | -                |   |   | -             |   |   | -          |   |   | 454,498     |  
|Investor relations                              |   | 14,976             |   |   | 19,996           |   |   | 21,588        |   |   | 34,607     |   |   | 49,534      |  
|Legal fees                                      |   | 31,959             |   |   | 46,960           |   |   | 48,850        |   |   | 98,258     |   |   | 285,766     |  
|Management fees  Note 7                        |   | 34,800             |   |   | 7,500            |   |   | 44,500        |   |   | 14,765     |   |   | 84,303      |  
|Office and miscellaneous                        |   | 2,268              |   |   | 1,617            |   |   | 2,905         |   |   | 1,755      |   |   | 10,826      |  
|Promotion and miscellaneous                     |   | 3,739              |   |   | -                |   |   | 3,739         |   |   | -          |   |   | 22,074      |  
|Transfer agent fees                             |   | 225                |   |   | -                |   |   | 3,140         |   |   | 643        |   |   | 10,213      |  
|Travel                                          |   | 467                |   |   | 7,889            |   |   | 4,235         |   |   | 21,154     |   |   | 35,477      |  
|                                                |   |                    |   |   |                  |   |   |               |   |   |            |   |   |             |  
|                                                |   | 104,487            |   |   | 92,840           |   |   | 167,484       |   |   | 208,485    |   |   | 1,096,269   |  
|                                                |   |                    |   |   |                  |   |   |               |   |   |            |   |   |             |  
|Net loss before other items                     |   | (64,426            | ) |   | (88,541          | ) |   | (71,984       | ) |   | (204,186   | ) |   | (935,994    | )
|                                                |   |                    |   |   |                  |   |   |               |   |   |            |   |   |             |  
|Other items:                                    |   |                    |   |   |                  |   |   |               |   |   |            |   |   |             |  
|Interest income                                 |   | -                  |   |   | -                |   |   | -             |   |   | 3,630      |   |   | 3,652       |  
|Interest expense  Note 4                       |   | (112,647           | ) |   | (22,233          | ) |   | (221,621      | ) |   | (42,233    | ) |   | (658,913    | )
|                                                |   |                    |   |   |                  |   |   |               |   |   |            |   |   |             |  
|Net loss for the period from continued          |   |                    |   |   |                  |   |   |               |   |   |            |   |   |             |  
|operations                                      |   | (177,073           | ) |   | (110,774         | ) |   | (293,605      | ) |   | (242,789   | ) |   | (1,591,255  | )
|                                                |   |                    |   |   |                  |   |   |               |   |   |            |   |   |             |  
|Discontinued operations                         |   | -                  |   |   | -                |   |   | -             |   |   | -          |   |   | (33,432     | )
|                                                |   |                    |   |   |                  |   |   |               |   |   |            |   |   |             |  
|Net loss for the period                         | $ | (177,073           | ) | $ | (110,774         | ) | $ | (293,605      | ) | $ | (242,789   | ) | $ | (1,624,687  | )
|                                                |   |                    |   |   |                  |   |   |               |   |   |            |   |   |             |  
|Basic and diluted loss per share                | $ | (0.00              | ) | $ | (0.00            | ) | $ | (0.00         | ) | $ | (0.00      | ) |   |             |  
|                                                |   |                    |   |   |                  |   |   |               |   |   |            |   |   |             |  
|Weighted average number of shares               |   |                    |   |   |                  |   |   |               |   |   |            |   |   |             |  
|outstanding                                     |   | 148,540,000        |   |   | 29,608,000       |   |   | 148,540,000   |   |   | 29,608,000 |   |   |             |  

SEE ACCOMPANYING NOTES

---

|NITRO PETROLEUM INC.                                                      
|--------------------------------------------------------------------------
|(A Development Stage Company)                                             
|INTERIM STATEMENTS OF CASH FLOWS                                          
|for the six months ended July 31, 2007 and 2006 and                       
|for the period October 27, 2003 (Date of Inception) to July
      31, 2007
|(Stated in US Dollars)                                                    
|(Unaudited)                                                               

|                                                   |   |                  |   |   |               |   |   | October 27, 2003 |  
|-------------------------------------------------- | - | ---------------- | - | - | ------------- | - | - | ---------------- | -
|                                                   |   |                  |   |   |               |   |   | (Date of         |  
|                                                   |   | Six months ended |   |   | Inception) to |  
|                                                   |   | July 31,         |   |   | July 31,      |  
|                                                   |   | 2007             |   |   | 2006          |   |   | 2007             |  
|                                                   |   |                  |   |   |               |   |   |                  |  
|Operating Activities                               |   |                  |   |   |               |   |   |                  |  
|Net loss for the period                            | $ | (293,605         | ) | $ | (242,789      | ) | $ | (1,624,687       | )
|Adjustments for items not
      effecting cash:    |   |                  |   |   |               |   |   |                  |  
|Depreciation                                       |   | 174              |   |   | -             |   |   | 367              |  
|Depletion                                          |   | 6,269            |   |   | -             |   |   | 9,678            |  
|Donated interest                                   |   | 177,297          |   |   | -             |   |   | 527,297          |  
|Loss
      on impairment of oil and gas properties |   | -                |   |   | -             |   |   | 454,498          |  
|Interest accrued on
      notes payable            |   | 44,325           |   |   | 42,233        |   |   | 131,617          |  
|Write-off
      of advances from affiliate from    |   |                  |   |   |               |   |   |                  |  
|discontinued operations                            |   | -                |   |   | -             |   |   | 33,432           |  
|Change in non-cash working
      capital balances  |   |                  |   |   |               |   |   |                  |  
|related to operations                              |   |                  |   |   |               |   |   |                  |  
|Accounts
      receivable                          |   | (50,014          | ) |   | (1,431        | ) |   | (84,654          | )
|Accounts payable and
      accrued liabilities     |   | (37,338          | ) |   | (34,418       | ) |   | 53,584           |  
|Settlement
      receivable                        |   | 145,502          |   |   | -             |   |   | 145,502          |  
|                                                   |   |                  |   |   |               |   |   |                  |  
|Cash used in operating activities                  |   | (7,390           | ) |   | (236,405      | ) |   | (353,366         | )
|                                                   |   |                  |   |   |               |   |   |                  |  
|Investing Activities                               |   |                  |   |   |               |   |   |                  |  
|Advances to affiliate                              |   | -                |   |   | -             |   |   | (33,432          | )
|Oil and gas costs                                  |   | (124,486         | ) |   | (1,475,000    | ) |   | (2,259,486       | )
|Proceeds from sale of oil and gas properties       |   | 150,000          |   |   | -             |   |   | 150,000          |  
|Purchase of equipment                              |   | -                |   |   | (1,930        | ) |   | (1,930           | )
|                                                   |   |                  |   |   |               |   |   |                  |  
|Cash provided by (used in) investing activities    |   | 25,514           |   |   | (1,476,930    | ) |   | (2,144,848       | )
|                                                   |   |                  |   |   |               |   |   |                  |  
|Financing Activities                               |   |                  |   |   |               |   |   |                  |  
|Issuance of common stock                           |   | -                |   |   | -             |   |   | 342,200          |  
|Issuance of promissory
      notes payable         |   | -                |   |   | 1,810,000     |   |   | 2,234,581        |  
|Increase (decrease) in due to related party        |   | -                |   |   | (52           | ) |   | 5,199            |  
|                                                   |   |                  |   |   |               |   |   |                  |  
|Cash provided by financing activities              |   | -                |   |   | 1,809,948     |   |   | 2,581,980        |  
|                                                   |   |                  |   |   |               |   |   |                  |  
|Increase in cash during the period                 |   | 18,124           |   |   | 96,613        |   |   | 83,766           |  
|                                                   |   |                  |   |   |               |   |   |                  |  
|Cash, beginning of the period                      |   | 65,642           |   |   | 33,645        |   |   | -                |  
|                                                   |   |                  |   |   |               |   |   |                  |  
|Cash, end of the period                            | $ | 83,766           |   | $ | 130,258       |   | $ | 83,766           |  

SEE ACCOMPANYING NOTES

---

|NITRO PETROLEUM INC.                                      
|----------------------------------------------------------
|(A Development Stage Company)                             
|INTERIM STATEMENTS OF STOCKHOLDERS EQUITY (DEFICIENCY)   
|from October 27, 2003 (Date of Inception) to July 31, 2007
|(Stated in US Dollars)                                    
|(Unaudited)                                               

|                                               |  |               |  |  |               |  |   |           |  |   |               |   |   |             |   |   |             |   |   | Cumulative |   |   |            |  
|---------------------------------------------- |  | ------------- |  |  | ------------- |  | - | --------- |  | - | ------------- | - | - | ----------- | - | - | ----------- | - | - | ---------- | - | - | ---------- | -
|                                               |  |               |  |  |               |  |   |           |  |   |               |   |   |             |   |   | Deficit     |   |   | Effect of  |   |   |            |  
|                                               |  |               |  |  |               |  |   |           |  |   |               |   |   |             |   |   | Accumulated |   |   | Foreign    |   |   |            |  
|                                               |  |               |  |  |               |  |   |           |  |   |               |   |   | Additional  |   |   | During the  |   |   | Currency   |   |   |            |  
|                                               |  |               |  |  | Common Shares |  |   | Stock     |  |   | Paid-in       |   |   | Development |   |   | Translation |   |   |            |  
|                                               |  |               |  |  | *Number       |  |   | Par Value |  |   | Subscriptions |   |   | Capital     |   |   | Stage       |   |   | Adjustment |   |   | Total      |  
|                                               |  |               |  |  |               |  |   |           |  |   |               |   |   |             |   |   |             |   |   |            |   |   |            |  
|Capital stock issued for cash:                 |  | - at $0.00005 |  |  | 100,000,000   |  | $ | 100,000   |  | $ | -             |   | $ | (95,000     | ) | $ | -           |   | $ | -          |   | $ | 5,000      |  
|                                               |  | - at $0.0005  |  |  | 34,000,000    |  |   | 34,000    |  |   | -             |   |   | (17,000     | ) |   | -           |   |   | -          |   |   | 17,000     |  
|                                               |  | - at $0.005   |  |  | 14,040,000    |  |   | 14,040    |  |   | -             |   |   | 56,160      |   |   | -           |   |   | -          |   |   | 70,200     |  
|Net loss for the period                        |  |               |  |  | -             |  |   | -         |  |   | -             |   |   | -           |   |   | (17,045     | ) |   | -          |   |   | (17,045    | )
|Foreign currency translation adjustment        |  |               |  |  | -             |  |   | -         |  |   | -             |   |   | -           |   |   | -           |   |   | 277        |   |   | 277        |  
|                                               |  |               |  |  |               |  |   |           |  |   |               |   |   |             |   |   |             |   |   |            |   |   |            |  
|Balance, as at January 31, 2004                |  |               |  |  | 148,040,000   |  |   | 148,040   |  |   | -             |   |   | (55,840     | ) |   | (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                |  |               |  |  | 148,040,000   |  |   | 148,040   |  |   | -             |   |   | (55,840     | ) |   | (74,778     | ) |   | (1,156     | ) |   | 16,266     |  
|Net loss from continued operations             |  |               |  |  | -             |  |   | -         |  |   | -             |   |   | -           |   |   | (73,788     | ) |   | -          |   |   | (73,788    | )
|Net income (loss) from discontinued operations |  |               |  |  | -             |  |   | -         |  |   | -             |   |   | -           |   |   | (9,233      | ) |   | 1,156      |   |   | (8,077     | )
|                                               |  |               |  |  |               |  |   |           |  |   |               |   |   |             |   |   |             |   |   |            |   |   |            |  
|Balance, as at January 31, 2006                |  |               |  |  | 148,040,000   |  |   | 148,040   |  |   | -             |   |   | (55,840     | ) |   | (157,799    | ) |   | -          |   |   | (65,599    | )
|Stock subscriptions  Note 6                   |  |               |  |  | -             |  |   | -         |  |   | 250,000       |   |   | -           |   |   | -           |   |   | -          |   |   | 250,000    |  
|Donated interest                               |  |               |  |  | -             |  |   | -         |  |   | -             |   |   | 350,000     |   |   | -           |   |   | -          |   |   | 350,000    |  
|Net loss for the year                          |  |               |  |  | -             |  |   | -         |  |   | -             |   |   | -           |   |   | (1,173,283  | ) |   | -          |   |   | (1,173,283 | )
|                                               |  |               |  |  |               |  |   |           |  |   |               |   |   |             |   |   |             |   |   |            |   |   |            |  
|Balance, as at January 31, 2007                |  |               |  |  | 148,040,000   |  |   | 148,040   |  |   | 250,000       |   |   | 294,160     |   |   | (1,331,082  | ) |   | -          |   |   | (638,882   | )
|Share subscriptions  Note 6                   |  |               |  |  | 500,000       |  |   | 500       |  |   | (250,000      | ) |   | 249,500     |   |   | -           |   |   | -          |   |   | -          |  
|Donated interest  Note 4                      |  |               |  |  | -             |  |   | -         |  |   | -             |   |   | 177,297     |   |   | -           |   |   | -          |   |   | 177,297    |  
|Net loss for the period                        |  |               |  |  | -             |  |   | -         |  |   | -             |   |   | -           |   |   | (293,605    | ) |   | -          |   |   | (293,605   | )
|                                               |  |               |  |  |               |  |   |           |  |   |               |   |   |             |   |   |             |   |   |            |   |   |            |  
|Balance, as at July 31, 2007                   |  |               |  |  | 148,540,000   |  | $ | 148,540   |  | $ | -             |   | $ | 720,957     |   | $ | (1,624,687  | ) | $ | -          |   | $ | (755,190   | )

|* | The number of common shares have been retroactively
        restated to reflect the following:
|- | ----------------------------------------------------------------------------------------------

| | 1) | Forward split of four new shares for one old share,
        effective February 6, 2006. 
| | -- | ----------------------------------------------------------------------------------------
| | 2) | Forward split of five new shares for one old share,
        effective December 29, 2006.

The authorized common shares have also been increased from 100,000,000
  to 2,000,000,000 as a result of these splits.

SEE ACCOMPANYING NOTES

---

| | NITRO PETROLEUM INC.                                       | Schedule 1
| | ---------------------------------------------------------- | ----------
| | (A Development Stage Company)                              |           
| | INTERIM SCHEDULE OF OIL AND GAS PROPERTIES  UNPROVED      |           
| | from October 27, 2003 (Date of Inception) to July 31, 2007 |           
| | (Stated in US Dollars)                                     |           
| | (Unaudited)                                                |           

|                                  |   | Barnett     |  |   |            |  |   | Barnett     |   |   |            |  |   |          |   |   |           |   |   |           |  
|--------------------------------- | - | ----------- |  | - | ---------- |  | - | ----------- | - | - | ---------- |  | - | -------- | - | - | --------- | - | - | --------- | -
|                                  |   | Shale Lease |  |   | Phillip #2 |  |   | Shale Wells |   |   | Inglish #1 |  |   | Oklahoma |   |   | Corsicana |   |   | Total     |  
|                                  |   |             |  |   |            |  |   |             |   |   |            |  |   |          |   |   |           |   |   |           |  
|Balance, January 31, 2005         | $ | -           |  | $ | -          |  | $ | -           |   | $ | -          |  | $ | -        |   | $ | -         |   | $ | -         |  
|Additions  acquisition costs     |   | 300,000     |  |   | 80,000     |  |   | -           |   |   | -          |  |   | -        |   |   | 10,000    |   |   | 390,000   |  
|                                  |   |             |  |   |            |  |   |             |   |   |            |  |   |          |   |   |           |   |   |           |  
|Balance, January 31, 2006         |   | 300,000     |  |   | 80,000     |  |   | -           |   |   | -          |  |   | -        |   |   | 10,000    |   |   | 390,000   |  
|Additions  acquisition costs     |   | -           |  |   | -          |  |   | 750,000     |   |   | 135,000    |  |   | 270,000  |   |   | 590,000   |   |   | 1,745,000 |  
|Proceeds from settlement  Note 3 |   | -           |  |   | -          |  |   | -           |   |   | -          |  |   | -        |   |   | (145,502  | ) |   | (145,502  | )
|Impairment                        |   | -           |  |   | -          |  |   | -           |   |   | -          |  |   | -        |   |   | (454,498  | ) |   | (454,498  | )
|Depletion                         |   | -           |  |   | -          |  |   | (3,409      | ) |   | -          |  |   | -        |   |   | -         |   |   | (3,409    | )
|                                  |   |             |  |   |            |  |   |             |   |   |            |  |   |          |   |   |           |   |   |           |  
|Balance, January 31, 2007         |   | 300,000     |  |   | 80,000     |  |   | 746,591     |   |   | 135,000    |  |   | 270,000  |   |   | -         |   |   | 1,531,591 |  
|Exploration costs                 |   | -           |  |   | -          |  |   | -           |   |   | -          |  |   | 124,486  |   |   | -         |   |   | 124,486   |  
|Disposal                          |   | -           |  |   | -          |  |   | (150,000    | ) |   | -          |  |   | -        |   |   | -         |   |   | (150,000  | )
|Depletion                         |   | -           |  |   | -          |  |   | (4,918      | ) |   | -          |  |   | (1,351   | ) |   | -         |   |   | (6,269    | )
|                                  |   |             |  |   |            |  |   |             |   |   |            |  |   |          |   |   |           |   |   |           |  
|Balance, July 31, 2007            | $ | 300,000     |  | $ | 80,000     |  | $ | 591,673     |   | $ | 135,000    |  | $ | 393,135  |   | $ | -         |   | $ | 1,499,808 |  

SEE ACCOMPANYING NOTES

---

|NITRO PETROLEUM INC.                     
|-----------------------------------------
|(A Development Stage Company)            
|NOTES TO THE INTERIM FINANCIAL STATEMENTS
|July 31, 2007                            
|(Stated in US Dollars)                   
|(Unaudited)                              

|Note 1 | Interim Reporting
|------ | -----------------

While the information presented in the
  accompanying interim six 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. These interim financial statements follow the same
  accounting policies and methods of their application as the Companys January
  31, 2007 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, 2007 annual financial statements.

Operating results for the six months
  ended July 31, 2007 are not necessarily indicative of the results that can be
  expected for the year ended January 31, 2008.

|Note 2 | Nature and Continuance of Operations
|------ | ------------------------------------

The Company is in the development 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 July 31, 2007, the Company
  had not yet achieved profitable operations, has accumulated losses of $1,624,687
  since its inception, has a working capital deficiency of $2,256,561 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.

---

|Nitro Petroleum Inc.                     
|-----------------------------------------
|(A Development Stage Company)            
|Notes to the Interim Financial Statements
|July 31, 2007                            
|(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 | Oil and Gas Properties Schedule
      1
|------ | ----------------------------------------

| | 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | c) | By a letter of agreement dated April25, 2006 the Company
        has acquired a 5% to 10% working interest, equal to a 1.875% to 3.75%
        net revenue 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. 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 and February 28, 2007, 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 October
        31, 2007, which bares 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. As the risks and other incidents
        of ownership have not transferred to the purchaser with sufficient certainty,
        this transaction has not been reflected in these financial statements.
        The Company and the purchaser had a director in common. As at July 31,
        2007, total proceeds of $150,000 has been received.
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | d) | Pursuant to an authority for expenditure dated May 7,
        2006, the Company advanced $135,000 to acquire a 5% working interest equal
        to a 3.75% net revenue interest in Inglish #1 Horizontal well in Barnett
        Shale, Cooke County, Texas.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

---

|Nitro Petroleum Inc.                     
|-----------------------------------------
|(A Development Stage Company)            
|Notes to the Interim Financial Statements
|July 31, 2007                            
|(Stated in US Dollars)                   
|(Unaudited)  Page 3                     

|Note 3 | Oil and Gas Properties Schedule
      1  (contd)
|------ | ---------------------------------------------------

| | e) | By an asset purchase and sale agreement dated December
        18, 2006, the Company acquired a 100% ownership interest, equal to a 78%
        net revenue interest in three oil and gas properties located in Nowata
        County, Oklahoma in consideration for $250,000. The Company also paid
        $22,500 for property related expenses. During the six months ended July
        31, 2007, the Company further incurred exploration costs totalling $121,986.                                                                                                                                                                                                                  
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | f) | Effective July 1 2007, the Company acquired a 6.375%
        working interest of a 79.125% net revenue interest in an oil and gas lease
        located in Garvin County, Oklahoma. Advances totaling $56,363 were made
        pursuant to an AFE received from the operator for this lease which included
        an overpayment of $19,977. On August 8, 2007, $15,000 of the overpayment
        was received from the operator.                                                                                                                                                                                                                                                       
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |    | The above assignment is subject to all royalty, overriding
        royalty and applicable leasehold burdens.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | g) | 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 totaling $750,000,
        of which $410,000 has been paid. 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 31, 2008. This is a secondary recovery
        proposal to enhance production from the Corsicana Pilot project.                                                                                                                                                                                                                 
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |    | 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 system in the Corsicana field located
        in Corsicana, Texas.                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |    | The Company did not fund the Corsicana Pilot project
        as set forth in the Letter of Intent dated March 1, 2006 and entered into
        a settlement agreement and mutual release dated January 31, 2007 whereby
        the Company agreed to assign its interest in all Corsicana projects for
        a total consideration of $145,502, which was paid during the six months
        ended July 31, 2007.                                                                                                                                                                                                                                                                       

---

|Nitro Petroleum Inc.                     
|-----------------------------------------
|(A Development Stage Company)            
|Notes to the Interim Financial Statements
|July 31, 2007                            
|(Stated in US Dollars)                   
|(Unaudited)  Page 4                     

|Note 4 | Promissory Notes Payable
|------ | ------------------------

At July 31, 2007 the Company had promissory
  notes outstanding totalling $2,366,198 (January 31, 2007 - $2,321,873) which
  are unsecured, bear interest at 4% per annum and are due on demand. These notes
  are due from companies who are shareholders of the Company. The Company has
  determined that the fair value of interest would be $221,621 ( January 31, 2007
  - $437,000), which is in excess of the stated interest actually charged by $177,297
  (January 31, 2007 - $350,000). This excess amount has been recorded by the Company
  as donated interest, which is included in additional paid-in capital.

|Note 5 | Equipment
|------ | ---------

| |                  |   |       |  |   |                     |  |   |       |  |   | January 31, | 
| | ---------------- | - | ----- |  | - | ------------------- |  | - | ----- |  | - | ----------- | 
| |                  |   |       |  |   | July
      31, 2007 |  |   |       |  |   | 2007        | 
| |                  |   |       |  |   | Accumulated         |  |   |       |  |   |             | 
| |                  |   | Cost  |  |   | Depreciation        |  |   | Net   |  |   | Net         | 
| |                  |   |       |  |   |                     |  |   |       |  |   |             | 
| | Office furniture | $ | 1,930 |  | $ | 367                 |  | $ | 1,563 |  | $ | 1,737       | 

|Note 6 | Capital Stock
|------ | -------------

Commitment:

Stock Subscriptions

By a subscription agreement dated December
  18, 2006, the Company agreed to issue 500,000 common shares of the Company at
  $0.50 per share and 500,000 common share purchase warrants exercisable at $0.75
  per share until December 18, 2009 for total proceeds received of $250,000. On
  February 1, 2007, the Company issued 500,000 common shares and 500,000 common
  share purchase warrants pursuant to this private placement.

|Note 7 | Related Party Transactions Notes
      3 and 4
|------ | -----------------------------------------------

During the six months ended July 31,
  2007, the Company incurred management fees charged by a significant shareholder
  and a director of the Company totaling $44,500 (2006 - $14,765).

Included in accounts payable at July
  31, 2007 is $16,000 (January 31, 2007: $Nil) due to a director of the Company
  for management services.

Due to related party is owing to the
  former President of the Company for advances to the Company. This amount is
  unsecured, non-interest bearing and has no specific terms for repayment.

---

|Nitro Petroleum Inc.                     
|-----------------------------------------
|(A Development Stage Company)            
|Notes to the Interim Financial Statements
|July 31, 2007                            
|(Stated in US Dollars)                   
|(Unaudited)  Page 5                     

|Note 7 | Related Party Transactions Notes
      3 and 4  (contd)
|------ | ----------------------------------------------------------

By a management agreement dated January
  1, 2007, the Company agreed to pay a director of the company management fees
  of $4,000 per month for management services for a term of one year. The term
  may be renewed for further one year terms at the option of the Company.

|Note 8 | Comparative Figures
|------ | -------------------

Certain of the comparative figures have
  been reclassified to conform with the current periods presentation.

---

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 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 will ensure that the production in which it invests is operated to internationally accepted standards.

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.

Financial Condition and Results of Operations

For the six-month period ended July 31, 2007 the Company received revenue of approximately $95,500 from production of oil and gas from the Barnett Shale properties, as compared to $4,299 revenue for the six-month period ended July 31,
2006.

For the six-month period ended July 31, 2007, the Company had a net loss of approximately $293,605, as compared to a net loss of $242,789 for the six-month period ended July 31, 2006, an increase of approximately 21%.  That increase is due
to the interest charges incurred and additional acquisition made by the Company.  The interest charges incurred for the six-moth period ended July 31, 2007 was $221,621 as compared to the interest of $42,233 incurred for the six-month period
ended July 31, 2006.  The Company acquired 6.375% working interest of a 79.125% net revenue interest in an oil and gas lease in Garvin County of Oklahoma.

There was a decrease in general and administrative expenses, which totaled $20,589 for the six months ended July 31, 2007, compared to $28,029 for the six months ended July 31, 2006. This decrease in general and administrative expenses was
the result of decrease of audit, legal and travel expenses of the Company. General and administrative expenses consist of expenses related

---

to general corporate functions including marketing expenses, professional and consultant service expenses, development costs and travel.

Liquidity and Capital Resources

The Company had cash of $83,766 as of July 31, 2007, compared to cash of $65,642 as of January 31, 2007. The Company had a working capital deficiency of $2,256,561 as of July 31, 2007, compared to a working capital deficiency of
$2,172,210 as of January 31, 2007.

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. 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.

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 for the fiscal
year ended January 31, 2007, 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.

---

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are
designed to ensure that information required to be disclosed by us in the
reports that we file or submit to the Securities and Exchange Commission under
the Securities Exchange Act of 1934, as amended, is recorded, processed,
summarized and reported within the time periods specified by the Securities and
Exchange Commissions rules and forms, and that information is accumulated and
communicated to our management, including our principal executive and principal
financial officer (whom we refer to in this periodic report as our Certifying
Officer), as appropriate to allow timely decisions regarding required
disclosure. Our management evaluated, with the participation of our Certifying
Officer, the effectiveness of our disclosure controls and procedures as of July
31, 2007, pursuant to Rule 13a-15(b) under the Securities Exchange Act. Based
upon that evaluation, our Certifying Officer concluded that, as of July 31,
2007, our disclosure controls and procedures were effective.

Changes in Internal Controls

There were no changes in our
internal control over financial reporting that occurred during the quarter ended
July 31, 2007 that have materially affected, or are reasonably likely to
materially affect, our internal control over financial reporting.

PART II Item 6.
Exhibits

Exhibit Number
      Description of Exhibit
      LocationItem 3
      Articles of Incorporation and Bylaws3.1
      Articles of Incorporation
      Incorporated by reference from the Registration
        Statement on Form SB-2 filed April 21, 2004, SEC File No. 333-1146603.2
      Bylaws, as amended
      Incorporated by reference from the Registration
        Statement on Form SB-2 filed April 21, 2004, SEC File No. 333-1146603.3
      Articles of Amendment to the Articles of Incorporation
        of Ingenium Capital Corp. (Name changed therein to Nitro Petroleum Incorporated)
      Incorporated by reference from the Form 10-KSB
        filed May 15, 2006, SEC File No. 000-50932Item 31
      Rule 13a-14(a)/15d-14(a) Certifications31.1
      Certification of Chief
        Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section
        1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of
        2002
      This filing.Item 32
      Section 1350 Certifications32.1
      Certification of Chief Executive
        Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350,
        as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
      This filing.


---

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:                         
|                            

Date:September 18, 2007

---