**Washington,      D. C. 20549**
** **

| x | QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934 |
|---|--------------------------------------------------------------------------------------------------------------------------------------|

| o | TRANSITION                REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF                1934 |
|---|------------------------------------------------------------------------------------------------------------------|

| Nevada                                                                        | 98-0422451                                          |
|-------------------------------------------------------------------------------|-----------------------------------------------------|
| (State                or other jurisdiction of incorporation or organization) | (I.R.S.                Employer Identification No.) |

----

|  **PART                I - FINANCIAL INFORMATION** |
|---------------------------------------------------------|
|                                                    |   |   | Page |
| Item                1.                                  |   | Financial                Statements |   |
|                                                    |   |   |   |
|                                                    |   | Consolidated                Balance Sheets as of September 30, 2007 and March 31, 2007 | 1 |
|                                                    |   |   |   |
|                                                    |   | Consolidated                Statements of Operations for the Three Months ended September 30,                2007 and                2006 | 2 |
|                                                    |   |   |   |
|                                                    |   | Consolidated                Statements of Operations for the Six Months ended September 30, 2007                and                2006 | 3 |
|                                                    |   |   |   |
|                                                    |   | Consolidated                Statement of Changes in Stockholders’ Equity for the Six Months ended                September 30, 2007 | 4 |
|                                                    |   |   |   |
|                                                    |   | Consolidated                Statements of Cash Flows for the Six Months ended September 30, 2007                and                2006 | 5 |
|                                                    |   |   |   |
|                                                    |   | Notes                to Consolidated Financial Statements | 7 |
|                                                    |   |   |   |
| Item                2.                                  |   | Management's                Discussion and Analysis of Financial Condition and Results of                Operations | 13 |
|                                                    |   |   |   |
| Item                3.                                  |   | Quantitative                and Qualitative Disclosures About Market Risk | 20 |
|                                                    |   |   |   |
| Item                4.                                  |   | Controls                and Procedures | 20 |
|                                                    |   |   |   |
|  **PART                II - OTHER INFORMATION**    |
|                                                    |   |   |   |
| Item                1A.                                 |   | Risk                Factors | 22 |
|                                                    |   |   |   |
| Item                2.                                  |   | Unregistered                Sales of Equity Securities and Use of Proceeds | 22 |
|                                                    |   |   |   |
| Item                6.                             |   | Exhibits | 22 |
|                                                    |   |   |   |
|  **SIGNATURES**                                    | 25 |

----

**PART      I - FINANCIAL INFORMATION**

**Item      1. Financial Statements**
**.**

|                                                                                                                                                                                                                                            |   | September                  30,2007 |                        | March                  31,2007 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|-----------------------------|--------------------------------|--------|
| **ASSETS**                                                                                                                                                                                                                                      |   |                               |                        |                           |   |
|                                                                                                                                                                                                                                            |   |                               |                        |                           |   |
| Current                  assets:                                                                                                                                                                                                                |   |                               |                             |                           |   |  |   |
| Cash                  and cash equivalents                                                                                                                                                                                                      |   | $                                  | 1,444,420                   |                           | $      | 5,129,883 |   |
| Accounts                  receivable                                                                                                                                                                                                            |   |                               | 633,029                     |                           |   | 453,709 |   |
| Prepaid                  expenses                                                                                                                                                                                                               |   |                               | 49,857                      |                           |   | - |   |
| Total                  current assets                                                                                                                                                                                                           |   |                               | 2,127,306                   |                           |   | 5,583,592 |   |
|                                                                                                                                                                                                                                            |   |                               |                             |                           |   |   |   |
| Oil                  & gas properties, at cost (successful efforts method):                                                                                                                                                                 |   |                               |                             |                           |   |   |   |
| Unproved                                                                                                                                                                                                                                        |   |                               | 56,998,862                  |                           |   | 56,079,133 |   |
| Proved                                                                                                                                                                                                                                          |   |                               | 18,667,591                  |                           |   | 18,552,188 |   |
| Less:                  Accumulated depletion, depreciation, and amortization                                                                                                                                                                    |   |                               | (966,951                    | )                              |   | (347,821 | ) |
| Net                  oil & gas properties                                                                                                                                                                                                   |   |                               | 74,699,502                  |                           |   | 74,283,500 |   |
|                                                                                                                                                                                                                                            |   |                               |                             |                           |   |   |   |
| Other                  assets, net of accumulated depreciation of $109,006 and $27,880,                  respectively                                                                                                                           |   |                               | 2,144,502                   |                           |   | 1,610,939 |   |
| Total                  assets                                                                                                                                                                                                                   |   | $                                  | 78,971,310                  |                           | $      | 81,478,031 |   |
| **LIABILITIES                  AND STOCKHOLDERS’ EQUITY**                                                                                                                                                                                 |   |                               |                             |                           |   |  |   |
|                                                                                                                                                                                                                                            |   |                               |                             |                           |   |  |   |
| Current                  liabilities:                                                                                                                                                                                                           |   |                               |                             |                           |   |  |   |
|   Accounts                  payable and accrued liabilities                                                                                                                                                                           |   | $                                  | 1,535,611                   |                           | $      | 1,542,840 |   |
| Accrued                  oil & gas property costs                                                                                                                                                                                           |   |                               | 291,867                     |                           |   | 250,000 |   |
| Asset                  retirement obligation                                                                                                                                                                                                    |   |                               | 180,260                     |                           |   | 196,000 |   |
| Liquidated                  damages pursuant to registration rights arrangement                                                                                                                                                                 |   |                               | 1,227,                  626 |                           |   | 2,705,531 |   |
|   Total                  current liabilities                                                                                                                                                                                          |   |                               | 3,235,364                   |                           |   | 4,694,371 |   |
|                                                                                                                                                                                                                                            |   |                               |                        |                           |   |   |   |
| Long-term                  liabilities:                                                                                                                                                                                                         |   |                               |                        |                           |   |   |   |
| Accrued                  liabilities                                                                                                                                                                                                            |   |                               | 306,160                     |                           |   | - |   |
| Asset                  retirement obligation                                                                                                                                                                                                    |   |                               | 1,090,723                   |                           |   | 1,025,567 |   |
| Total                  long-term liabilities                                                                                                                                                                                                    |   |                               | 1,396,883                   |                           |   | 1,025,567 |   |
|                                                                                                                                                                                                                                            |   |                               |                        |                           |   |   |   |
| Commitments                  and contingencies                                                                                                                                                                                                  |   |                               |                        |                           |   |   |   |
|                                                                                                                                                                                                                                            |   |                               |                        |                           |   |   |   |
| Stockholders’                  equity:                                                                                                                                                                                                    |   |                               |                        |                           |   |   |   |
| Common                  stock, $0.00001 par value, 275,000,000 shares authorized,                   111,608,158 and 102,041,432 shares issued and outstanding at                  September 30, 2007 and March 31, 2007, respectively |   |                               | 1,117                       |                           |   | 1,021 |   |
| Additional                  paid-in capital                                                                                                                                                                                                     |   |                               | 89,973,759                  |                           |   | 84,985,934 |   |
| Accumulated                  deficit                                                                                                                                                                                                            |   |                               | (15,635,813                 | )                              |   | (9,228,862 | ) |
| Total                  stockholders’ equity                                                                                                                                                                                               |   |                               | 74,339,063                  |                           |   | 75,758,093 |   |
|                                                                                                                                                                                                                                            |   |                               |                        |                           |   |   |   |
| Total                  liabilities and stockholders’ equity                                                                                                                                                                               |   | $                                  | 78,971,310                  |                           | $      | 81,478,031 |   |

----

|                                                                            |   | Three                  Months EndedSeptember                  30, |        |
|---------------------------------------------------------------------------------|--------|-------------------------------------------------------------------|-------------|
|                                                                            |   | 2007                                                              |        | 2006 |   |
|                                                                            |   |                                                              |        |   |   |
| Revenues:                                                                       |   |                                                              |             |   |   |  |   |
|   Oil                  & gas sales                                |   | $                                                                 | 1,650,628   |   | $ | - |   |
|                                                                            |   |                                                              |        |   |   |   |   |
| Operating                  expenses:                                            |   |                                                              |        |   |   |   |   |
| Production                  taxes                                               |   |                                                              | 201,182     |   |   | - |   |
| Lease                  operating expenses                                       |   |                                                              | 712,195     |   |   | - |   |
| Depreciation,                  depletion, and amortization                      |   |                                                              | 368,724     |   |   | - |   |
| Impairment                  of unproved properties                              |   |                                                              | -           |   |   | 395,785 |   |
| Accretion                  expense                                              |   |                                                              | 31,618      |   |   | - |   |
| Exploration                  expense                                            |   |                                                              | 89,670      |   |   | - |   |
| General                  and administrative expense                             |   |                                                              | 1,545,734   |   |   | 395,214 |   |
|                     Total                  operating expenses         |   |                                                              | 2,949,123   |   |   | 790,999 |   |
|                                                                            |   |                                                              |        |   |   |   |   |
| Loss                  from operations                                           |   |                                                              | (1,298,495  | ) |   | (790,999 | ) |
|                                                                            |   |                                                              |        |   |   |   |   |
| Other                  income (expense):                                        |   |                                                              |        |   |   |   |   |
| Liquidated                  damages pursuant to registration rights arrangement |   |                                                              | (1,268,283  | ) |   | - |   |
| Interest                  expense                                               |   |                                                              | (41,941     | ) |   | 1,644 |   |
| Write-off                  of deferred financing costs                          |   |                                                              | (99,254     | ) |   |   |   |
| Interest                  and other income                                      |   |                                                              | 78,943      |   |   | 22,120 |   |
|   Total                  other income (expense)                       |   |                                                              | (1,330,535  | ) |   | 23,764 |   |
|                                                                            |   |                                                              |        |   |   |   |   |
| Net                  loss                                                       |   | $                                                                 | (2,629,030  | ) | $ | (767,235 | ) |
|                                                                            |   |                                                              |        |   |   |   |   |
| Basic                  and fully diluted net loss per share                     |   | $                                                                 | (0.02       | ) | $ | (0.02 | ) |
|                                                                            |   |                                                              |        |   |   |   |   |
| Basic                  and fully diluted weighted average shares outstanding    |   |                                                              | 108,018,888 |   |   | 37,598,545 |   |

----

|                                                                            |   | Six                  Months EndedSeptember                  30, |        |
|---------------------------------------------------------------------------------|--------|-----------------------------------------------------------------|-------------|
|                                                                            |   | 2007                                                            |        | 2006 |   |
|                                                                            |   |                                                            |        |   |   |
| Revenues:                                                                       |   |                                                            |             |   |   |  |   |
|   Oil                  & gas sales                                |   | $                                                               | 2,981,107   |   | $ | - |   |
|                                                                            |   |                                                            |        |   |   |   |   |
| Operating                  expenses:                                            |   |                                                            |        |   |   |   |   |
| Production                  taxes                                               |   |                                                            | 362,651     |   |   | - |   |
| Lease                  operating expenses                                       |   |                                                            | 1,312,109   |   |   | - |   |
| Depreciation,                  depletion, and amortization                      |   |                                                            | 700,256     |   |   | - |   |
| Impairment                  of unproved properties                              |   |                                                            | -           |   |   | 395,785 |   |
| Accretion                  expense                                              |   |                                                            | 77,608      |   |   | - |   |
| Exploration                  expense                                            |   |                                                            | 130,828     |   |   | - |   |
| General                  and administrative expense                             |   |                                                            | 4,130,160   |   |   | 966,282 |   |
|                     Total                  operating expenses         |   |                                                            | 6,713,612   |   |   | 1,362,067 |   |
|                                                                            |   |                                                            |        |   |   |   |   |
| Loss                  from operations                                           |   |                                                            | (3,732,505  | ) |   | (1,362,067 | ) |
|                                                                            |   |                                                            |        |   |   |   |   |
| Other                  income (expense):                                        |   |                                                            |        |   |   |   |   |
| Liquidated                  damages pursuant to registration rights arrangement |   |                                                            | (2,645,393  | ) |   | - |   |
| Interest                  expense                                               |   |                                                            | (113,180    | ) |   | (33,000 | ) |
| Write-off                  of deferred financing costs                          |   |                                                            | (99,254     | ) |   | - |   |
| Interest                  and other income                                      |   |                                                            | 183,381     |   |   | 23,485 |   |
|   Total                  other income (expense)                       |   |                                                            | (2,674,446  | ) |   | (9,515 | ) |
|                                                                            |   |                                                            |        |   |   |   |   |
| Net                  loss                                                       |   | $                                                               | (6,406,951  | ) | $ | (1,371,582 | ) |
|                                                                            |   |                                                            |        |   |   |   |   |
| Basic                  and fully diluted net loss per share                     |   | $                                                               | (0.06       | ) | $ | (0.04 | ) |
|                                                                            |   |                                                            |        |   |   |   |   |
| Basic                  and fully diluted weighted average shares outstanding    |   |                                                            | 105,888,646 |   |   | 33,336,427 |   |

----

|                                                                                                                                 |   |   Shares |        |  Amount |   | Additional                Paid- In Capital |   | AccumulatedDeficit |       | TotalStockholders’Equity |   |
|--------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|-------------|--------------|--------|--------------------------------------------|--------|--------------------|------------|--------------------------------|--------|
|                                                                                                                                 |   |               |        |         |   |                                       |   |               |       |                           |   |
| Balance,                April 1, 2007                                                                                                |   |               | 102,041,432 |         | $      | 1,021                                      |   | $                  | 84,985,934 |                           | $      | (9,228,862 | ) | $ | 75,758,093 |   |
|                                                                                                                                 |   |               |             |         |   |                                            |   |               |            |                           |   |  |   |   |  |   |
| Liquidated                damages and imputed interest pursuant to registration rights arrangement,                settled in shares |   |               | 7,426,772   |         |   | 75                                         |   |               | 4,235,712  |                           |   | - |   |   | 4,235,787 |   |
|                                                                                                                                 |   |               |        |         |   |                                       |   |               |       |                           |   |   |   |   |   |   |
| Stock                issued upon exercise of stock options                                                                           |   |               | 1,250,000   |         |   | 12                                         |   |               | -          |                           |   | - |   |   | 12 |   |
|                                                                                                                                 |   |               |        |         |   |                                       |   |               |       |                           |   |   |   |   |   |   |
| Restricted                stock awards                                                                                               |   |               | 500,000     |         |   | 5                                          |   |               | 155,095    |                           |   | - |   |   | 155,100 |   |
|                                                                                                                                 |   |               |        |         |   |                                       |   |               |       |                           |   |   |   |   |   |   |
| Common                stock exchanged for services - non-employee directors                                                          |   |               | 282,811     |         |   | 3                                          |   |               | 148,497    |                           |   | - |   |   | 148,500 |   |
|                                                                                                                                 |   |               |        |         |   |                                       |   |               |       |                           |   |   |   |   |   |   |
| Common                stock exchanged for services - non-employee                                                                    |   |               | 107,143     |         |   | 1                                          |   |               | 112,499    |                           |   | - |   |   | 112,500 |   |
|                                                                                                                                 |   |               |        |         |   |                                       |   |               |       |                           |   |   |   |   |   |   |
| Stock-based                compensation                                                                                              |   |               | -           |         |   | -                                          |   |               | 570,034    |                           |   | - |   |   | 570,034 |   |
|                                                                                                                                 |   |               |        |         |   |                                       |   |               |       |                           |   |   |   |   |   |   |
| Offering                costs                                                                                                        |   |               | -           |         |   | -                                          |   |               | (234,012   | )                              |   | - |   |   | (234,012 | ) |
|                                                                                                                                 |   |               |        |         |   |                                       |   |               |       |                           |   |   |   |   |   |   |
| Net                loss                                                                                                              |   |               | -           |         |   | -                                          |   |               | -          |                           |   | (6,406,951 | ) |   | (6,406,951 | ) |
|                                                                                                                                 |   |               |             |         |   |                                            |   |               |            |                           |   |  |   |   |  |   |
| Balance,                September 30, 2007                                                                                           |   |               | 111,608,158 |         | $      | 1,117                                      |   | $                  | 89,973,759 |                           | $      | (15,635,813 | ) | $ | 74,339,063 |   |

----

|                                                                                                       |   | Six                  Months Ended September                  30, |       |
|------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------|------------|
|                                                                                                       |   | 2007                                                             |       | 2006 |   |
| Cash                  flows from operating activities:                                                     |   |                                                             |            |   |   |  |   |
| Net                  loss                                                                                  |   | $                                                                | (6,406,951 | ) | $ | (1,371,582 | ) |
| Adjustments                  to reconcile net loss to cash used for operating                  activities: |   |                                                             |       |   |   |   |   |
| Depreciation,                  depletion, and amortization                                                 |   |                                                             | 700,256    |   |   | 1,800 |   |
| Impairment                  of unproved properties                                                         |   |                                                             | -          |   |   | 395,785 |   |
| Accretion                  expense                                                                         |   |                                                             | 77,608     |   |   | - |   |
| Settlement                  of asset retirement obligation                                                 |   |                                                             | (46,665    | ) |   | - |   |
| Liquidated                  damages pursuant to registration rights arrangement                            |   |                                                             | 2,645,393  |   |   | - |   |
| Imputed                  interest expense                                                                  |   |                                                             | 112,488    |   |   | 33,453 |   |
| Stock-based                  compensation expense                                                          |   |                                                             | 570,034    |   |   | 529,375 |   |
| Restricted                  stock compensation expense                                                     |   |                                                             | 155,095    |   |   | - |   |
| Services                  exchanged for common stock - non-employee directors                              |   |                                                             | 148,497    |   |   | - |   |
| Services                  exchanged for common stock - non-employee                                        |   |                                                             | 112,499    |   |   | - |   |
| Other                                                                                                      |   |                                                             | -          |   |   | 2,284 |   |
| Changes                  in operating assets and liabilities:                                              |   |                                                             |       |   |   |   |   |
| Accounts                  receivable                                                                       |   |                                                             | (179,320   | ) |   | - |   |
| Prepaid                  expenses                                                                          |   |                                                             | (49,857    | ) |   |   |   |
| Other                  assets                                                                              |   |                                                             | 6,416      |   |   | - |   |
| Accounts                  payable and accrued liabilities                                                  |   |                                                             | 298,930    |   |   | 86,290 |   |
| Net                  cash used for operating activities                                                    |   |                                                             | (1,855,577 | ) |   | (322,595 | ) |
|                                                                                                       |   |                                                             |       |   |   |   |   |
| Cash                  flows from investing activities:                                                     |   |                                                             |       |   |   |   |   |
| Capital                  expenditures for oil & gas properties                                         |   |                                                             | (1,466,291 | ) |   | (2,800,167 | ) |
| Proceeds                  from conveyance of unproved oil & gas properties                             |   |                                                             | 491,500    |   |   | - |   |
| Increase                  in other assets                                                                  |   |                                                             | (619,144   | ) |   | (37,709 | ) |
| Net                  cash used for investing activities                                               |   |                                                             | (1,593,935 | ) |   | (2,837,875 | ) |
|                                                                                                       |   |                                                             |       |   |   |   |   |
| Cash                  flows from financing activities:                                                     |   |                                                             |       |   |   |   |   |
| Payment                  of deferred financing costs                                                       |   |                                                             | (1,951     | ) |   | - |   |
| Proceeds                  from issuance of convertible notes payable                                       |   |                                                             | -          |   |   | 150,000 |   |
| Payments                  of convertible notes payable                                                     |   |                                                             | -          |   |   | (150,000 | ) |
| Proceeds                  from notes payable converted to common stock                                     |   |                                                             | -          |   |   | 500,000 |   |
| Proceeds                  from sale of common stock and warrants                                           |   |                                                             | -          |   |   | 8,093,397 |   |
| Proceeds                  from issuance of common stock upon exercise of stock                  options    |   |                                                             | 12         |   |   | - |   |
| Payment                  of offering costs                                                                 |   |                                                             | (234,012   | ) |   | - |   |
| Net                  cash provided by (used for) financing activities                                      |   |                                                             | (235,951   | ) |   | 8,593,397 |   |
|                                                                                                       |   |                                                             |       |   |   |   |   |
| Increase                  (decrease) in cash and cash equivalents                                          |   |                                                             | (3,685,463 | ) |   | 5,432,926 |   |
| Cash                  and cash equivalents, beginning of period                                            |   |                                                             | 5,129,883  |   |   | 46,081 |   |
| Cash                  and cash equivalents, end of period                                                  |   | $                                                                | 1,444,420  |   | $ | 5,479,007 |   |

----

|                                                                                                                                                             |   | Six                  Months Ended September                  30, |      |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------|-----------|
|                                                                                                                                                             |   | 2007                                                             |      | 2006 |   |
| Non-cash                  investing and financing activities:                                                                                                    |   |                                                             |      |   |   |
| Payables                  for purchase of oil & gas properties                                                                                               |   | $                                                                | 41,867    |   | $ | 603,537 |   |
| Asset                  retirement asset and obligation                                                                                                           |   | $                                                                | 18,473    |   | $ | - |   |
| Common                  stock and warrants issued on payment of liquidated damages pursuant                  to                  registration rights arrangement |   | $                                                                | 4,235,787 |   | $ | - |   |

----

**Note      1—Organization and Summary of Significant Accounting      Policies**

*Fair      Value Measurements *

*The      Fair Value Option for Financial Assets and Financial      Liabilities*

----

|                                                               |   | For                  the Three Months EndedSeptember                  30, |        | For                  the Six Months EndedSeptember                  30, |   |
|--------------------------------------------------------------------|--------|---------------------------------------------------------------------------|-------------|-------------------------------------------------------------------------|--------|
|                                                               |   | 2007                                                                      |        | 2006                                                                    |   | 2007 |   | 2006 |   |
|                                                               |   |                                                                      |        |                                                                    |   |     |   |     |   |
| Net                  loss                                          |   | $                                                                         | (2,629,030  | )                                                                       | $      | (767,235 | ) | $ | (6,406,951 | ) | $ | (1,371,582 | ) |
| Basic                  weighted-average common shares outstanding  |   |                                                                      | 108,018,888 |                                                                    |   | 37,598,545 |   |   | 105,888,646 |   |   | 33,336,427 |   |
| Basic                  and fully-diluted net loss per common share |   | $                                                                         | (0.02       | )                                                                       | $      | (0.02 | ) | $ | (0.06 | ) | $ | (0.04 | ) |

**Note      2—Property Acquisitions**

*Pro      Forma Results of Operations*

|                                                      |   |   | Three                Months Ended September                30, 2006 |   |   | Six                Months Ended September                30, 2006 |   |
|-----------------------------------------------------------|--------|--------|---------------------------------------------------------------------|--------|--------|-------------------------------------------------------------------|--------|
| Revenue                                                   |   | $      | 1,576,578                                                           |   | $      | 2,780,723                                                         |   |
| Net                loss                                   |   |   | (685,571                                                            | )      |   | (1,196,390                                                        | )      |
| Net                loss per basic and fully-diluted share |   |   | (0.01                                                               | )      |   | (0.02                                                             | )      |

**Note      3—Asset Retirement Obligations**

----

 

| Balance,                April 1, 2007      |   | $      | 1,221,567 |   |
|--------------------------------------------|--------|--------|-----------|--------|
| Liabilities                incurred        |   |   | 18,473    |   |
| Liabilities                settled         |   |   | (46,665   | )      |
| Accretion                expense           |   |   | 77,608    |   |
| Balance,                September 30, 2007 |   | $      | 1,270,983 |   |
|                                       |   |   |           |   |
| Current                                    |   | $      | 180,260   |   |
| Long-term                                  |   |   | 1,090,723 |   |
|                                       |   | $      | 1,270,983 |   |

**Note      4—Income Taxes**

*Accounting      for Uncertainty in Income Taxes - An Interpretation of FASB Statement No.      109*

**Note      5—Common Stock**

----

|    Payment                Date |   | 90%                of Volume Weighted Average Price for 10 Days                Preceding Payment |   |    Shares                Issued |   |   Closing                Price at Payment                Date |   |   Value                of Shares                Issued |   |
|-----------------------------------------------|--------|--------------------------------------------------------------------------------------------------|--------|------------------------------------------------|--------|-------------------------------------------------------------------------|--------|------------------------------------------------------------------|--------|
|                                          |   |                                                                                             |   |                                           |   |                                                                    |   |                                                             |   |
| May                18, 2007                   |   | $                                                                                                | 0.85   |                                           |   | 933,458                                                                 |   | $                                                                | 1.04   |   | $ | 970,797 |   |
| June                19, 2007                  |   | $                                                                                                | 0.84   |                                           |   | 946,819                                                                 |   | $                                                                | 0.88   |   |   | 833,201 |   |
| July                19, 2007                  |   | $                                                                                                | 0.60   |                                           |   | 1,321,799                                                               |   | $                                                                | 0.66   |   |   | 872,387 |   |
| August                17, 2007                |   | $                                                                                                | 0.45   |                                           |   | 1,757,212                                                               |   | $                                                                | 0.41   |   |   | 720,457 |   |
| September                17, 2007             |   | $                                                                                                | 0.32   |                                           |   | 2,467,484                                                               |   | $                                                                | 0.34   |   |   | 838,945 |   |
|                                          |   |                                                                                             |   |                                           |   | 7,426,772                                                               |   |                                                             |   |   | $ | 4,235,787 |   |
|                                          |   |                                                                                             |   |                                           |   |                                                                    |   |                                                             |   |   |   |   |   |
| October                17, 2007               |   | $                                                                                                | 0.55   |                                           |   | 1,443,712                                                               |   | $                                                                | 0.57   |   | $ | 822,916 |   |
| October                31, 2007               |   | $                                                                                                | 0.43   |                                           |   | 861,085                                                                 |   | $                                                                | 0.47   |   |   | 404,710 |   |
|                                          |   |                                                                                             |   |                                           |   | 2,304,797                                                               |   |                                                             |   |   | $ | 1,227,626 |   |

*Accounting      for Registration Payment Arrangements*

| Balance,                April 1, 2007                        |   | $      | 2,705,531  |   |
|--------------------------------------------------------------|--------|--------|------------|--------|
| Obligations                incurred                          |   |   | 2,645,393  |   |
| Imputed                interest expense                      |   |   | 112,489    |   |
| Common                stock issued in payment of obligations |   |   | (4,235,787 | )      |
| Balance,                September 30, 2007                   |   | $      | 1,227,626  |   |
|                                                         |   |   |            |   |

      During      the Company’s third fiscal quarter, the portion of the current liability      attributable to the issuance of shares of the Company’s common stock on October      17, 2007 and October 31, 2007 will be reclassified to stockholders’equity.

| ·   | Common                stock is designated for quotation on OTC Bulletin Board, the New                York                Stock Exchange, the NASDAQ Global Select Market, the NASDAQ Global                Market,                the NASDAQ Capital Market, or the American Stock                Exchange; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Common                stock has not been suspended from trading, other than for two days                due to                business announcements; and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Delisting                or suspension has not been threatened, or is not                pending. |
|--------------------|---------------------------------------------------------------------------------------------------|

| ·   | Shares                of common stock have been delivered upon conversion of Notes and                Warrants                on a timely basis; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Shares                may be issued in full without violating the rules and regulations                of the                exchange or market upon which they are listed or                quoted; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Payments                have been made within five business days of when due pursuant to                the                Securities Purchase Agreement, the Convertible Notes, the Registration                Rights Agreement, the Transfer Agent Instructions, or the Warrants                (Transaction Documents); |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | There                has not been a change in control of the company, a merger of the                company                or an event of default as defined in the Notes;                and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | There                is material compliance with the provisions, covenants, representations                or                warranties of all Transaction                Documents. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Note      6—Share-Based Compensation**

| Volatility                             |   | 76.00%                          |
|----------------------------------------|--------|---------------------------------|
| Expected                option term    |   | Five                to 10 years |
| Risk-free                interest rate |   | 4.63%                to 4.68%   |
| Expected                dividend yield |   | 0.00%                           |

On      April 20, 2007, four new members were appointed to our Board of Directors.      Each newly appointed director received a stock grant of 100,000 shares of the      Company’s common stock that vests 20% (20,000 shares) on the date of grant with      vesting 20% per year thereafter. On May 31, 2007, the remaining independent      Board member not covered by the April 20, 2007 award received a stock grant      of 100,000 shares of the Company’s common stock that vests 20% (20,000 shares)      on the date of grant with vesting 20% per year thereafter.

----

*Consulting      Agreement*

*Board      of Director Fees*

**Note      7—Subsequent Events - Short Term Debt**

----

**Item      2. Management's Discussion and Analysis of Financial Condition and Results      of      Operations.**

**Forward-Looking      Statements**

|         | · |   | business                strategy; water                availability and waterflood production targets                                       |
|--------------|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------|
|         |   |   |                                                                                                                                        |
|    | · |   | carbon                dioxide (CO2)                availability, deliverability, and tertiary production                targets;            |
|         |   |   |                                                                                                                                        |
|         | · |   | construction                of a CO2                pipeline                and surface facilities;                                         |
|         |   |   |                                                                                                                                        |
|    | · |   | inventories,                projects, and programs;                                                                                         |
|         |   |   |                                                                                                                                        |
|         | · |   | other                anticipated capital expenditures and budgets;                                                                          |
|         |   |   |                                                                                                                                        |
|         | · |   | future                cash flows and borrowings;                                                                                            |
|         |   |   |                                                                                                                                        |
|         | · |   | the                availability and terms of financing;                                                                                     |
|         |   |   |                                                                                                                                        |
|         | · |   | oil                reserves;                                                                                                                |
|         |   |   |                                                                                                                                        |
|         | · |   | reservoir                response to CO2                injection;                                                                          |
|         |   |   |                                                                                                                                        |
|         | · |   | ability                to obtain permits and governmental approvals;                                                                        |
|         |   |   |                                                                                                                                        |
|         | · |   | technology;                                                                                                                                 |
|         |   |   |                                                                                                                                        |
|         | · |   | financial                strategy;                                                                                                          |
|         |   |   |                                                                                                                                        |
|         | · |   | realized                oil prices;                                                                                                         |
|         |   |   |                                                                                                                                        |
|         | · |   | production;                                                                                                                                 |
|         |   |   |                                                                                                                                        |
|         | · |   | lease                operating expenses, general and administrative costs, and finding                and                development costs; |
|         |   |   |                                                                                                                                        |
|         | · |   | availability                and costs of drilling rigs and field services;                                                                  |
|         |   |   |                                                                                                                                        |
|         | · |   | future                operating results; and                                                                                                |
|         |   |   |                                                                                                                                        |
|         | · |   | plans,                objectives, expectations, and intentions.                                                                             |

----

**Organization**

**Outlook      for the Coming Year**

| ·   | To                utilize a portion of the funds raised in the October 2007 short term                financing to enhance production in two of our fields, to initiate                waterflood operations on one of our fields and to continue permitting                for                our CO2                pipeline                project; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Borrow                additional funds on a long-term fixed rate basis to conduct 3-D seismic                surveys on our fields and to complete our waterflood plan on our                Big Muddy                Field; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Continue                to seek long-term financing for our CO2                pipeline and EOR development plan for all our                fields. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Pursue                additional asset and project opportunities that are expected to be                accretive to stockholder value. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------|

*Short      term production enhancement plan - commencing late 2007*

| ·   | Install                down-hole pumps in six wells in our Cole Creek South Field that are                currently flowing oil wells, at an estimated cost of approximately                $1.7                million; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Drill                two wells in our Big Muddy Field as part of the waterflood plan and                evaluation to be conducted later in the year, at a cost of approximately                $2.1 million; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Drill                one well in our South Glenrock B Field to access oil reserves that                are                currently classified as proved undeveloped, at a cost of approximately                $1                million; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Continue                permit process for CO2                pipeline project at a cost of approximately $0.5 million;                and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Allocate                the remainder of the funds to working capital, general corporate                purposes,                and cash reserves. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Waterflood      development plan - Big Muddy Field - commencing 1*
*st*

*      or 2*
*nd*

*      quarter of 2008*

| ·   | Conduct                up to 100 square miles of 3-D seismic surveys and processing to                better                determine injection pattern locations and alignment of                the waterflood and CO2 EOR                project, at a cost of approximately $3.5                million; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Drill,                complete and equip 70 wells as water injectors or oil producers at                a cost                of approximately $46 million; and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Acquire                and construct waterflood surface facilities, at a cost of approximately                $11.5 million. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

*CO*
*2*

*EOR      development plan - commencing 2009 to 2010*

| ·   | Construct                a pipeline to transport CO2 from                the source to our Big Muddy Field at a cost of approximately $50                to $100                million; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Acquire                and construct surface and compression facilities at our Big Muddy                Field to                compress, inject and recycle CO2                at                a cost of approximately $20 to $30                million; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Drill,                complete and equip 70-80 wells as CO2                injectors or oil producers on our Big Muddy Field at a cost of                approximately $48 million. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Results      of Operations**

*Three      Months Ended September 30, 2007 Compared to Three Months September 30,      2006*

|                                                                          |   | Three                Months EndedSeptember                30, |       |
|-------------------------------------------------------------------------------|--------|---------------------------------------------------------------|------------|
|                                                                          |   | 2007                                                          |       | 2006 |   |
|                                                                          |   |                                                          |       |   |   |
| Revenues:                                                                     |   |                                                          |       |   |   |
| Oil                production (in barrels)                                    |   |  23,622                                                  |       |  - |   |
| Oil                price (per barrel)                                         |   | $                                                             | 69.88      |   | $ | - |   |
| Oil                sales                                                      |   |                                                          | 1,650,628  |   |   | - |   |
|                                                                          |   |                                                          |       |   |   |   |   |
| Operating                expenses:                                            |   |                                                          |       |   |   |   |   |
| Production                taxes                                               |   |                                                          | 201,182    |   |   | - |   |
| Lease                operating expenses                                       |   |                                                          | 712,195    |   |   | - |   |
| Depreciation,                depletion, and amortization                      |   |                                                          | 368,724    |   |   | - |   |
| Impairment                of unproved properties                              |   |                                                          | -          |   |   | 395,785 |   |
| Accretion                expense                                              |   |                                                          | 31,618     |   |   | - |   |
| Exploration                expense                                            |   |                                                          | 89,670     |   |   | - |   |
| General                and administrative expense                             |   |                                                          | 1,545,734  |   |   | 395,214 |   |
|                   Total                operating expenses           |   |                                                          | 2,949,123  |   |   | 790,999 |   |
|                                                                          |   |                                                          |       |   |   |   |   |
| Loss                from operations                                           |   |                                                          | (1,298,495 | ) |   | (790,999 | ) |
|                                                                          |   |                                                          |       |   |   |   |   |
| Other                income (expense):                                        |   |                                                          |       |   |   |   |   |
| Liquidated                damages pursuant to registration rights arrangement |   |                                                          | (1,268,283 | ) |   | - |   |
| Interest                expense                                               |   |                                                          | (41,941    | ) |   | 1,644 |   |
| Write-off                of deferred financing costs                          |   |                                                          | (99,254    | ) |   | - |   |
| Interest                and other income                                      |   |                                                          | 78,943     |   |   | 22,120 |   |
| Total                other income (expense)                                   |   |                                                          | (1,330,535 | ) |   | 23,764 |   |
|                                                                          |   |                                                          |       |   |   |   |   |
| Net                loss                                                       |   | $                                                             | (2,629,030 | ) | $ | (767,235 | ) |

----

*Overview*

*Revenue,      production taxes, and lease operating expenses*

*Depreciation,      depletion, and amortization*

*Impairment      expense*

*Accretion      expense*

*Exploration      expense*

*General      and administrative expense*

*Liquidated      damages pursuant to registration rights agreement*

*Interest      expense.*

*Write      off of deferred financing costs.*

*Interest      and other income*

----

*Six      Months Ended September 30, 2007 Compared to Six Months September 30,      2006*

|                                                                          |   | Six                Months EndedSeptember                30, |       |
|-------------------------------------------------------------------------------|--------|-------------------------------------------------------------|------------|
|                                                                          |   | 2007                                                        |       | 2006 |   |
|                                                                          |   |                                                        |       |   |   |
| Revenues:                                                                     |   |                                                        |       |   |   |
| Oil                production (in barrels)                                    |   |  46,056                                                |       |  - |   |
| Oil                price (per barrel)                                         |   | $                                                           | 64.73      |   | $ | - |   |
| Oil                sales                                                      |   |                                                        | 2,981,107  |   |   | - |   |
|                                                                          |   |                                                        |       |   |   |   |   |
| Operating                expenses:                                            |   |                                                        |       |   |   |   |   |
| Production                taxes                                               |   |                                                        | 362,651    |   |   | - |   |
| Lease                operating expenses                                       |   |                                                        | 1,312,109  |   |   | - |   |
| Depreciation,                depletion, and amortization                      |   |                                                        | 700,256    |   |   | - |   |
| Impairment                of unproved properties                              |   |                                                        | -          |   |   | 395,785 |   |
| Accretion                expense                                              |   |                                                        | 77,608     |   |   | - |   |
| Exploration                expense                                            |   |                                                        | 130,828    |   |   | - |   |
| General                and administrative expense                             |   |                                                        | 4,130,160  |   |   | 966,282 |   |
|                   Total                operating expenses           |   |                                                        | 6,713,612  |   |   | 1,362,067 |   |
|                                                                          |   |                                                        |       |   |   |   |   |
| Loss                from operations                                           |   |                                                        | (3,732,505 | ) |   | (1,362,067 | ) |
|                                                                          |   |                                                        |       |   |   |   |   |
| Other                income (expense):                                        |   |                                                        |       |   |   |   |   |
| Liquidated                damages pursuant to registration rights arrangement |   |                                                        | (2,645,393 | ) |   | - |   |
| Interest                expense                                               |   |                                                        | (113,180   | ) |   | (33,000 | ) |
| Write-off                of deferred financing costs                          |   |                                                        | (99,254    | ) |   | - |   |
| Interest                and other income                                      |   |                                                        | 183,381    |   |   | 23,485 |   |
| Total                other income (expense)                                   |   |                                                        | (2,674,446 | ) |   | (9,515 | ) |
|                                                                          |   |                                                        |       |   |   |   |   |
| Net                loss                                                       |   | $                                                           | (6,406,951 | ) | $ | (1,371,582 | ) |

*Overview*

*Revenue,      production taxes, and lease operating expenses*

*Depreciation,      depletion, and amortization*

*Impairment      expense*

----

*Accretion      expense*

*Exploration      expense*

*General      and administrative expense*

*Liquidated      damages pursuant to registration rights agreement*

*Interest      expense.*

*Write      off of deferred financing costs.*

*Interest      and other income*

**Liquidity      and Capital Resources**

*Short-Term      Financing*

----

*Long-Term      Debt Financings*

----

*Cash      Flows*

|                                |   | For                the Six Months EndedSeptember                30, |       |
|-------------------------------------|--------|---------------------------------------------------------------------|------------|
|                                |   | 2007                                                                |       | 2006 |   |
| Cash                flows from:     |   |                                                                |       |   |   |
| Operating                activities |   | $                                                                   | (1,855,577 | ) | $ | (322,595 | ) |
| Investing                activities |   |                                                                | (1,593,935 | ) |   | (2,837,875 | ) |
| Financing                activities |   |                                                                | (235,951   | ) |   | 8,593,397 |   |

**Item      3.**
**Quantitative      and Qualitative Disclosure About Market Risk.**

**Commodity      Price Risk** 

**Item      4.**
**Controls      and Procedures.**

**Disclosure      Controls and Procedures**

| 1.   | The                appointment of a Chief Accounting Officer with significant experienced                in                financial reporting: |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 2.   | The                implementation of quarterly fraud assessments carried out by management                as                part of our financial closing process; |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |
|--------|--------|

| 3.   | The                appointment of an independent, experienced accounting and business                advisory firm to review public filings for completeness and to consult                on                complex or emerging accounting issues; |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |
|--------|--------|

| 4.   | The                appointment of an experienced consulting firm to assist in the development                of internal control process documentation and to conduct independent                testing of such controls and processes; |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |
|--------|--------|

| 5.   | The                implementation of a new accounting software system, with significantly                enhanced segregation of duties and formal authority                processes. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

** **
**Changes      in Internal Control over Financial Reporting**

| 1.   | The                appointment of four new independent                directors; |
|----------------|----------------------------------------------------------------------------------|
|   |   |
|--------|--------|

| 2.   | The                establishment of an Audit Committee; |
|----------------|---------------------------------------------------------|
|   |   |
|--------|--------|

| 3.   | The                establishment of a Compensation                Committee; |
|----------------|------------------------------------------------------------------------------|
|   |   |
|--------|--------|

| 4.   | The                establishment of a Nominating and Corporate Governance                Committee; |
|----------------|-----------------------------------------------------------------------------------------------------|
|   |   |
|--------|--------|

| 5.   | The                adoption of an updated Code of Business Conduct and Ethics;                and |
|----------------|---------------------------------------------------------------------------------------------------|
|   |   |
|--------|--------|

| 6.   | The                adoption of an Insider Trading Policy,                and: |
|----------------|-------------------------------------------------------------------------------|
|   |   |
|--------|--------|

| 7.   | The                appointment of a Chief Accounting                Officer. |
|----------------|------------------------------------------------------------------------------|

----

**PART      II - OTHER INFORMATION**

**Item      1A. Risk Factors.**

***If      we are unable to obtain additional financing our business plans will not be      achievable*****.**

***Our      October 2007 short-term debt financing required the imposition of a mortgage      interest in favor of our lender on our three fields and a default by us of      the      financing terms could result in the foreclosure and loss of one or more of      our      fields and other assets.***

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

**Item      6. Exhibits. **

| **Exhibit** |   | **Description**                                                                                                                       |
|-------------|--------|---------------------------------------------------------------------------------------------------------------------------------------|
| 3.1         |   | Amended                and Restated Articles of Incorporation (17)                                                                    |
| 3.2         |   | Articles                of Correction (22)                                                                                            |
| 3.3         |   | Amended                and Restated Bylaws (2)                                                                                        |
| 4.1         |   | Form                of Stock Certificate for Fully Paid, Non-Assessable Common Stock                of the                Company (1) |
| 4.2         |   | Form                of Unit Purchase Agreement (2)                                                                                    |
| 4.3         |   | Form                of Warrant Certificate (2)                                                                                        |
| 4.4         |   | Form                of Registration Rights Agreement, dated December 21, 2006                (3)                                 |

----

| **Exhibit** |   | **Description**                                                                                                                                                                                                                                            |
|-------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.5         |   | Form                of Warrant to Purchase Common Stock (3)                                                                                                                                                                                                |
| 10.1        |   | Burke                Ranch Unit Purchase and Participation Agreement between Hot Springs                Resources Ltd. and PIN Petroleum Partners Ltd., dated February 6,                2006                (4)                                      |
| 10.2        |   | Employment                Agreement between John Works and Rancher Energy Corp., dated June 1,                2006 (5)                                                                                                                                |
| 10.3        |   | Assignment                Agreement between PIN Petroleum Partners Ltd. and Rancher Energy                Corp.,                dated June 6, 2006 (5)                                                                                                |
| 10.4        |   | Loan                Agreement between Enerex Capital, Corp. and Rancher Energy Corp.,                dated                June 6, 2006 (5)                                                                                                            |
| 10.5        |   | Letter                Agreement between NITEC LLC and Rancher Energy Corp., dated June 7,                2006 (5)                                                                                                                                     |
| 10.6        |   | Loan                Agreement between Venture Capital First LLC and Rancher Energy Corp.,                dated June 9, 2006 (6)                                                                                                                       |
| 10.7        |   | Exploration                and Development Agreement between Big Snowy Resources, LP and Rancher                Energy Corp., dated June 15, 2006 (5)                                                                                                 |
| 10.8        |   | Assignment                Agreement between PIN Petroleum Partners Ltd. and Rancher Energy                Corp.,                dated June 21, 2006 (5)                                                                                               |
| 10.9        |   | Purchase                and Sale Agreement between Wyoming Mineral Exploration, LLC and Rancher                Energy Corp., dated August 10, 2006 (4)                                                                                                |
| 10.10       |   | South                Glenrock and South Cole Creek Purchase and Sale Agreement by and                between                Nielson & Associates, Inc. and Rancher Energy Corp., dated                October 1, 2006 (7)                         |
| 10.11       |   | Rancher                Energy Corp. 2006 Stock Incentive Plan                (7)                                                                                                                                                                           |
| 10.12       |   | Rancher                Energy Corp. 2006 Stock Incentive Plan Form of Option Agreement                (7)                                                                                                                                                  |
| 10.13       |   | Employment                Agreement by and between John Dobitz and Rancher Energy Corp., dated                October 2, 2006 (7)                                                                                                                     |
| 10.14       |   | Denver                Place Office Lease between Rancher Energy Corp. and Denver Place                Associates Limited Partnership, dated October 30, 2006 (8)                                                                                      |
| 10.15       |   | Employment                Agreement between Andrew Casazza and Rancher Energy Corp., dated                October 23, 2006 (9)                                                                                                                        |
| 10.16       |   | Finder’s                Fee Agreement between Falcon Capital and Rancher Energy Corp. (10)                                                                                                                                                           |
| 10.17       |   | Amendment                to Purchase and Sale Agreement between Wyoming Mineral Exploration,                LLC                and Rancher Energy Corp. (11)                                                                                               |
| 10.18       |   | Letter                Agreement between Certain Unit Holders and Rancher Energy Corp.,                dated                December 8, 2006 (2)                                                                                                       |
| 10.19       |   | Letter                Agreement between Certain Option Holders and Rancher Energy Corp.,                dated                December 13, 2006                (2)                                                                                     |
| 10.20       |   | Product                Sale and Purchase Contract by and between Rancher Energy Corp. and                the                Anadarko Petroleum Corporation, dated December 15, 2006 (12)                                                              |
| 10.21       |   | Amendment                to Purchase and Sale Agreement between Nielson & Associates, Inc. and                Rancher Energy Corp. (13)                                                                                                                |
| 10.22       |   | Securities                Purchase Agreement by and among Rancher Energy Corp. and the Buyers                identified therein, dated December 21, 2006 (3)                                                                                     |
| 10.23       |   | Lock-Up                Agreement between Rancher Energy Corp. and Stockholders identified                therein, dated December 21, 2006 (3)                                                                                                         |
| 10.24       |   | Voting                Agreement between Rancher Energy Corp. and Stockholders identified                therein, dated as of December 13, 2006 (3)                                                                                                    |
| 10.25       |   | Form                of Convertible Note (14)                                                                                                                                                                                                               |
| 10.26       |   | Employment                Agreement between Daniel Foley and Rancher Energy Corp., dated                January 12, 2007 (15)                                                                                                                         |
| 10.27       |   | First                Amendment to Securities Purchase Agreement by and among Rancher Energy                Corp. and the Buyers identified therein, dated as of January 18, 2007                (16)                                                  |
| 10.28       |   | Rancher                Energy Corp. 2006 Stock Incentive Plan Form of Restricted Stock Agreement                (19)                                                                                                                                       |
| 10.29       |   | First                Amendment to Employment Agreement by and between John Works and Rancher                Energy Corp., dated March 14, 2007 (18)                                                                                                        |
| 10.30       |   | Employment                Agreement between Richard Kurtenbach and Rancher Energy Corp., dated                August 3, 2007(20)                                                                                                                           |
| 10.31       |   | Term                Credit Agreement between Rancher Energy Corp. and GasRock Capital                LLC,                dated as of October 16, 2007 (22)                                                                                                 |
| 10.32       |   | Term                Note made by Rancher Energy Corp. in favor of GasRock Capital LLC,                dated                October 16, 2007 (22)                                                                                                           |
| 10.33       |   | Mortgage,                Security Agreement, Financing Statement and Assignment of Production                and                Revenues from Rancher Energy Corp. to GasRock Capital LLC, dated                as of                October 16, 2007 (22) |

----

| **Exhibit** |   | **Description**                                                                                                                                                                                                                                |
|-------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.34       |   | Security                Agreement between Rancher Energy Corp. and GasRock Capital LLC, dated                as                of October 16, 2007 (22)                                                                                        |
| 10.35       |   | Conveyance                of Overriding Royalty Interest by Rancher Energy Corp. in favor of GasRock                Capital LLC, dated as of October 16, 2007 (22)                                                                             |
| 10.36       |   | ISDA                Master Agreement between Rancher Energy Corp. and BP Corporation                North                America Inc., dated as of October 16, 2007 (22)                                                                       |
| 10.37       |   | Restricted                Account and Securities Account Control Agreement by and among Rancher                Energy Corp., GasRock Capital LLC, and Wells Fargo Bank, National                Association, dated as of October 16, 2007 (22) |
| 10.38       |   | Intercreditor                Agreement by and among Rancher Energy Corp., GasRock Capital LLC,                and BP                Corporation North America Inc., dated as of October 16, 2007 (22)                                          |
| 31.1        |   | Certification                Pursuant to Rule 13a-14(a)/15d-14(a) (Chief Executive Officer)                (21)                                                                                                                                |
| 31.2        |   | Certification                Pursuant to Rule 13a-14(a)/15d-14(a) (Chief Accounting                Officer)                (21)                                                                                                                |
| 32.1        |   | Certification                pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section                906 of                the Sarbanes-Oxley Act of 2002 (21)                                                                       |
| 32.2        |   | Certification                pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section                906 of                the Sarbanes-Oxley Act of 2002 (21)                                                                       |

| (1)   | Incorporated                by reference from our Form SB-2 Registration Statement filed on                June 9, 2004 (File No.                333-116307). |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Incorporated                by reference from our Current Report on Form 8-K filed on                December 18, 2006 (File No.                000-51425). |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Incorporated                by reference from our Current Report on Form 8-K filed on                December 27, 2006 (File No.                000-51425). |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Incorporated                by reference from our Quarterly Report on Form 10-Q/A filed on                August 28, 2006 (File No.                000-51425). |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)   | Incorporated                by reference from our Annual Report on Form 10-K filed on June 30,                2006 (File No. 000-51425). |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| (6)   | Incorporated                by reference from our Current Report on Form 8-K filed on June 21,                2006 (File No. 000-51425). |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| (7)   | Incorporated                by reference from our Current Report on Form 8-K filed on October 6,                2006 (File No. 000-51425). |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| (8)   | Incorporated                by reference from our Current Report on Form 8-K filed on November 9,                2006 (File No. 000-51425). |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| (9)   | Incorporated                by reference from our Current Report on Form 8-K filed on                November 14, 2006 (File No.                000-51425). |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (10)   | Incorporated                by reference from our Current Report on Form 8-K/A filed on                November 14, 2006 (File No.                000-51425). |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (11)   | Incorporated                by reference from our Current Report on Form 8-K filed on December 4,                2006 (File No. 000-51425). |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| (12)   | Incorporated                by reference from our Current Report on Form 8-K filed on                December 22, 2006 (File No.                000-51425). |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (13)   | Incorporated                by reference from our Current Report on Form 8-K filed on                December 27, 2006 (File No.                000-51425). |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (14)   | Incorporated                by reference from our Current Report on Form 8-K filed on January 8,                2007 (File No. 000-51425). |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| (15)   | Incorporated                by reference from our Current Report on Form 8-K filed on January 16,                2007 (File No. 000-51425). |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| (16)   | Incorporated                by reference from our Current Report on Form 8-K filed on January 25,                2007 (File No. 000-51425). |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| (17)   | Incorporated                by reference from our Current Report on Form 8-K filed on April 3,                2007 (File No. 000-51425). |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| (18)   | Incorporated                by reference from our Current Report on Form 8-K filed on March 20,                2007 (File No. 000-51425). |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------|

| (19)   | Incorporated                by reference from our Annual Report on Form 10-K filed on June 29,                2007 (File No. 000-51425). |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| (20)   | Incorporated                by reference from our Current Report on Form 8-K filed on August                7, 2007                (File No. 000-51425 |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| (21)   | Incorporated                by reference from our Current Report on Form 8-K filed on October                17, 2007                (File No. 000-51425). |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (22)   | Filed                herewith. |
|------------------|--------------------------------|

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**SIGNATURES**

|                                          |                                                                                                                                                                          |                          |
|-----------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------|
|                                          | **RANCHER                ENERGY CORP.**                              (Registrant)                                 |
|                                     |                                                                                                                                                                     |                     |
| Dated:                  November 8, 2007 | By:                                                                                                                                                                 | /s/                John Works |
|                                          | John                Works                                                                                                                                                     |
|                                          | President,                Chief Executive Officer, Chief                Financial                Officer, Secretary and Treasurer(Principal                Executive Officer) |

|                                          |                                                                                 |                                  |
|-----------------------------------------------|--------------------------------------------------------------------------------------|---------------------------------------|
| Dated:                  November 8, 2007 | By:                                                                        | /s/                Richard Kurtenbach |
|                                          | Chief                Accounting Officer(Principal                Accounting Officer) |

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