| Delaware                                                      | 98-0506246                           |
|---------------------------------------------------------------|--------------------------------------|
| (State or other jurisdiction of incorporation ororganization) | (I.R.S. Employer Identification No.) |

| Large accelerated filer  ̈                | Accelerated filer  ̈    |
|-----------------------------------------------|-----------------------------|
| Non-accelerated filer  ̈                  | Smaller reporting company x |
| (Do not check if a smaller reporting company) |                        |

----

| PART I.  | FINANCIAL INFORMATION |                                                                                                                                                                      |
|----------|-----------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|     |                  |                                                                                                                                                                      |   |
|     | ITEM 1                | Financial Statements                                                                                                                                                      |   |
|     |                  | Consolidated Balance Sheets as of March 31, 2011 and December 31, 2010 (Unaudited)                                                                                        | 3 |
|     |                  |                                                                                                                                                                      |   |
|     |                  | Consolidated Statements of Operations for the Three Months Ended March 31, 2011 and 2010 and the Period from Inception (April 25, 2003) to March 31, 2011 (Unaudited)     | 4 |
|     |                  |                                                                                                                                                                      |   |
|     |                  | Consolidated Statement of Changes in Members’ and Stockholders’ Equity (Deficit) for the Period from Inception (April 25, 2003) to March 31, 2011 (Unaudited) | 5-6 |
|     |                  |                                                                                                                                                                      |   |
|     |                  | Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2011 and 2010 and the Period from Inception (April 25, 2003) to March 31, 2011 (Unaudited)     | 7-8 |
|     |                  |                                                                                                                                                                      |   |
|     |                  | Notes to Consolidated Financial Statements (Unaudited)                                                                                                                    | 9-19 |
|     |                  |                                                                                                                                                                      |   |
|     | ITEM 2.               | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                                                               | 20-26 |
|     |                  |                                                                                                                                                                      |   |
|     | ITEM 3.               | Quantitative and Qualitative Disclosures about Market Risk                                                                                                                | 27 |
|     |                  |                                                                                                                                                                      |   |
|     | ITEM 4.               | Controls and Procedures                                                                                                                                                   | 27 |
|     |                  |                                                                                                                                                                      |   |
| PART II. | OTHER INFORMATION     |                                                                                                                                                                      |
|     |                  |                                                                                                                                                                      |   |
|     | ITEM 1.               | Legal Proceedings                                                                                                                                                         | 29 |
|     | ITEM 1A.              | Risk Factors                                                                                                                                                              | 29 |
|     | ITEM 2.               | Unregistered Sales of Equity Securities and Use of Proceeds                                                                                                               | 29 |
|     | ITEM 3.               | Defaults Upon Senior Securities                                                                                                                                           | 29 |
|     | ITEM 4.               | (Reserved)                                                                                                                                                                | 29 |
|     | ITEM 5.               | Other Information                                                                                                                                                         | 29 |
|     | ITEM 6.               | Exhibits                                                                                                                                                                  | 30 |
|     |                  |                                                                                                                                                                      |   |
|     | SIGNATURES            | 31                                                                                                                                                                        |

----

|                                                                                                                                  |   | March 31, 2011 |       |   | December 31, 2010 |   |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|------------|--------|-----------------------------|--------|
|                                                                                                                                  |   |                     |       |   |                        |   |
| ASSETS                                                                                                                                |   |                     |       |   |                        |   |
|                                                                                                                                  |   |                     |       |   |                        |   |
| Current assets                                                                                                                        |   |                     |       |   |                        |   |
| Cash and cash equivalents                                                                                                             |   | $                        | 12,558     |   |                        | $      | 6,096 |   |
| Accounts receivable                                                                                                                   |   |                     | 8,321      |   |                        |   | 8,348 |   |
| Deferred financing cost, current                                                                                                      |   |                     | 35,242     |   |                        |   | 135,552 |   |
| Prepaid expenses                                                                                                                      |   |                     | 5,479      |   |                        |   | 3,750 |   |
| TOTAL CURRENT ASSETS                                                                                                                  |   |                     | 61,600     |   |                        |   | 153,746 |   |
|                                                                                                                                  |   |                     |       |   |                        |   |   |   |
| Oil and gas properties, using successful efforts accounting:                                                                          |   |                     |       |   |                        |   |   |   |
| Properties not subject to amortization, less accumulated impairment of $247,500                                                       |   |                     | -          |   |                        |   | - |   |
| Properties subject to amortization, less accumulated depletion and impairment of $519,116                                             |   |                     | -          |   |                        |   | - |   |
| Pipeline property, less accumulated depreciation and impairment of $379,367                                                           |   |                     | -          |   |                        |   | - |   |
| Land                                                                                                                                  |   |                     | 38,345     |   |                        |   | 38,345 |   |
| Net oil and gas properties                                                                                                            |   |                     | 38,345     |   |                        |   | 38,345 |   |
|                                                                                                                                  |   |                     |       |   |                        |   |   |   |
| Prepaid asset retirement cost                                                                                                         |   |                     | 40,000     |   |                        |   | 40,000 |   |
| TOTAL ASSETS                                                                                                                          |   | $                        | 139,945    |   |                        | $      | 232,091 |   |
|                                                                                                                                  |   |                     |       |   |                        |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ DEFICIT                                                                                           |   |                     |       |   |                        |   |   |   |
|                                                                                                                                  |   |                     |       |   |                        |   |   |   |
| Current liabilities                                                                                                                   |   |                     |       |   |                        |   |   |   |
| Accounts payable trade                                                                                                                |   | $                        | 114,385    |   |                        | $      | 67,409 |   |
| Accrued expenses                                                                                                                      |   |                     | 728,656    |   |                        |   | 778,240 |   |
| Accrued expenses-related parties                                                                                                      |   |                     | 138,860    |   |                        |   | 131,832 |   |
| Note payable                                                                                                                          |   |                     | 40,000     |   |                        |   | 20,000 |   |
| Notes payable-related parties                                                                                                         |   |                     | 26,000     |   |                        |   | 21,000 |   |
| Convertible note payable                                                                                                              |   |                     | 850,000    |   |                        |   | 1,480,000 |   |
| TOTAL CURRENT LIABILITIES                                                                                                             |   |                     | 1,897,901  |   |                        |   | 2,498,481 |   |
|                                                                                                                                  |   |                     |       |   |                        |   |   |   |
| Non-current liabilities                                                                                                               |   |                     |       |   |                        |   |   |   |
| Long term debt-related parties                                                                                                        |   |                     | 451,400    |   |                        |   | 451,400 |   |
| Convertible note payable                                                                                                              |   |                     | -          |   |                        |   | 665,000 |   |
| Asset retirement obligations                                                                                                          |   |                     | 82,022     |   |                        |   | 80,217 |   |
| TOTAL LIABILITIES                                                                                                                     |   |                     | 2,431,323  |   |                        |   | 3,695,098 |   |
|                                                                                                                                  |   |                     |       |   |                        |   |   |   |
| Commitments and contingencies                                                                                                         |   |                     | -          |   |                        |   | - |   |
|                                                                                                                                  |   |                     |       |   |                        |   |   |   |
| Stockholders’ deficit                                                                                                           |   |                     |       |   |                        |   |   |   |
| Preferred stock, par value $0.0001, 10,000,000 shares authorized, -0- shares issued and outstanding                                   |   |                     | -          |   |                        |   | - |   |
| Common stock, par value $0.0001, 300,000,000 shares authorized, 48,045,351 and 40,232,021 shares issued and outstanding, respectively |   |                     | 4,805      |   |                        |   | 4,023 |   |
| Additional paid-in capital                                                                                                            |   |                     | (5,219,505 | )      |                        |   | (6,676,229 | ) |
| Accumulated earnings during the exploration stage                                                                                     |   |                     | 2,923,322  |   |                        |   | 3,209,199 |   |
| TOTAL STOCKHOLDERS’ DEFICIT                                                                                                     |   |                     | (2,291,378 | )      |                        |   | (3,463,007 | ) |
| TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT                                                                                     |   | $                        | 139,945    |   |                        | $      | 232,091 |   |

----

|                                                             |   | For the Three Months Ended March 31, |       |   | Inception toMarch 31, |   |
|------------------------------------------------------------------|--------|--------------------------------------------------------------------|------------|--------|---------------------------------|--------|
|                                                             |   | 2011                                                               |       |   | 2010                            |   |   | 2011 |   |
|                                                             |   |                                                               |       |   |                            |   |   |   |   |
| Revenues                                                         |   | $                                                                  | 18,409     |   |                            | $      | 9,817 |   |   | $ | 96,695 |   |
|                                                             |   |                                                               |       |   |                            |   |   |   |   |   |   |   |
| Operating expenses                                               |   |                                                               |       |   |                            |   |   |   |   |   |   |   |
| Lease operating costs                                            |   |                                                               | 4,380      |   |                            |   | 10,008 |   |   |   | 40,216 |   |
| Exploration cost                                                 |   |                                                               | 13,746     |   |                            |   | 5,468 |   |   |   | 510,176 |   |
| Dry hole cost                                                    |   |                                                               | -          |   |                            |   | - |   |   |   | 466,066 |   |
| Depreciation, depletion, amortization, accretion, and impairment |   |                                                               | 1,805      |   |                            |   | 7,178 |   |   |   | 1,238,545 |   |
| General and administrative expenses                              |   |                                                               | 146,033    |   |                            |   | 574,281 |   |   |   | 4,853,904 |   |
| Loss on sale of Poydras Energy, LLC                              |   |                                                               | -          |   |                            |   | - |   |   |   | 1,151,997 |   |
| Gain on sale of oil and gas properties                           |   |                                                               | -          |   |                            |   | - |   |   |   | (1,673,620 | ) |
| Total operating expenses                                         |   |                                                               | 165,964    |   |                            |   | 596,935 |   |   |   | 6,587,284 |   |
|                                                             |   |                                                               |       |   |                            |   |   |   |   |   |   |   |
| Loss from operations                                             |   |                                                               | (147,555   | )      |                            |   | (587,118 | ) |   |   | (6,490,589 | ) |
|                                                             |   |                                                               |       |   |                            |   |   |   |   |   |   |   |
| Other income (expenses)                                          |   |                                                               |       |   |                            |   |   |   |   |   |   |   |
| Interest expense                                                 |   |                                                               | (249,008   | )      |                            |   | (759,294 | ) |   |   | (3,326,243 | ) |
| Interest income                                                  |   |                                                               | -          |   |                            |   | 2,300 |   |   |   | 27,824 |   |
| Gain (loss) on change of derivative value                        |   |                                                               | -          |   |                            |   | (9,024,975 | ) |   |   | 12,695,200 |   |
| Other income                                                     |   |                                                               | -          |   |                            |   | - |   |   |   | 17,130 |   |
| Total other income                                               |   |                                                               | (249,008   | )      |                            |   | (9,781,969 | ) |   |   | 9,413,911 |   |
|                                                             |   |                                                               |       |   |                            |   |   |   |   |   |   |   |
| Net income (loss)                                                |   | $                                                                  | (396,563   | )      |                            | $      | (10,369,087 | ) |   | $ | 2,923,322 |   |
|                                                             |   |                                                               |       |   |                            |   |   |   |   |   |   |   |
|                                                             |   |                                                               |       |   |                            |   |   |   |   |   |   |   |
| Net income (loss) per share:                                     |   |                                                               |       |   |                            |   |   |   |   |   |   |   |
| Basic                                                            |   | $                                                                  | (0.01      | )      |                            | $      | (0.26 | ) |   |   |   |   |
| Diluted                                                          |   | $                                                                  | (0.01      | )      |                            | $      | (0.26 | ) |   |   |   |   |
|                                                             |   |                                                               |       |   |                            |   |   |   |   |   |   |   |
| Weighted average number of shares outstanding:                   |   |                                                               |       |   |                            |   |   |   |   |   |   |   |
| Basic                                                            |   |                                                               | 45,363,307 |   |                            |   | 39,542,929 |   |   |   |   |   |
| Diluted                                                          |   |                                                               | 45,363,307 |   |                            |   | 39,542,929 |   |   |   |   |   |

----

|                                              |   |                 |     |   | Common Stock |   |       |     |   |   |                              |   |   |               |      |
|--------------------------------------------------------|--------|----------------------|----------|--------|-------------------|--------|------------|----------|--------|--------|-----------------------------------|--------|--------|--------------------|-----------|
|                                                   |   | Members’Equity |     |   | Shares            |   |       | ParValue |   |   | AdditionalPaid-inCapital(Deficit) |   |   | AccumulatedDeficit |      |   | Totals |   |
| Balances at April 25, 2003 (inception)                 |   | $                    | -        |   |              |   | -          |     |   | $      | -                                 |   |   | $                  | -         |   |   | $ | - |   |   | $ | - |   |
|                                                   |   |                 |     |   |              |   |       |     |   |   |                              |   |   |               |      |   |   |   |   |   |   |   |   |   |
| Contributions                                          |   |                 | 157,416  |   |              |   | -          |     |   |   | -                                 |   |   |               | -         |   |   |   | - |   |   |   | 157,416 |   |
|                                                   |   |                 |     |   |              |   |       |     |   |   |                              |   |   |               |      |   |   |   |   |   |   |   |   |   |
| Net loss                                               |   |                 | (152,274 | )      |              |   | -          |     |   |   | -                                 |   |   |               | -         |   |   |   | - |   |   |   | (152,274 | ) |
|                                                   |   |                 |     |   |              |   |       |     |   |   |                              |   |   |               |      |   |   |   |   |   |   |   |   |   |
| Balances at December 31, 2003                          |   |                 | 5,142    |   |              |   | -          |     |   |   | -                                 |   |   |               | -         |   |   |   | - |   |   |   | 5,142 |   |
|                                                   |   |                 |     |   |              |   |       |     |   |   |                              |   |   |               |      |   |   |   |   |   |   |   |   |   |
| Contributions                                          |   |                 | 372,673  |   |              |   | -          |     |   |   | -                                 |   |   |               | -         |   |   |   | - |   |   |   | 372,673 |   |
|                                                   |   |                 |     |   |              |   |       |     |   |   |                              |   |   |               |      |   |   |   |   |   |   |   |   |   |
| Draws                                                  |   |                 | (70,000  | )      |              |   | -          |     |   |   | -                                 |   |   |               | -         |   |   |   | - |   |   |   | (70,000 | ) |
|                                                   |   |                 |     |   |              |   |       |     |   |   |                              |   |   |               |      |   |   |   |   |   |   |   |   |   |
| Imputed Interest                                       |   |                 | 11,508   |   |              |   | -          |     |   |   | -                                 |   |   |               | -         |   |   |   | - |   |   |   | 11,508 |   |
|                                                   |   |                 |     |   |              |   |       |     |   |   |                              |   |   |               |      |   |   |   |   |   |   |   |   |   |
| Net loss                                               |   |                 | (166,278 | )      |              |   | -          |     |   |   | -                                 |   |   |               | -         |   |   |   | - |   |   |   | (166,278 | ) |
|                                                   |   |                 |     |   |              |   |       |     |   |   |                              |   |   |               |      |   |   |   |   |   |   |   |   |   |
| Balances at December 31, 2004                          |   |                 | 153,045  |   |              |   | -          |     |   |   | -                                 |   |   |               | -         |   |   |   | - |   |   |   | 153,045 |   |
|                                                   |   |                 |     |   |              |   |       |     |   |   |                              |   |   |               |      |   |   |   |   |   |   |   |   |   |
| Contributions                                          |   |                 | 94,766   |   |              |   | -          |     |   |   | -                                 |   |   |               | -         |   |   |   | - |   |   |   | 94,766 |   |
|                                                   |   |                 |     |   |              |   |       |     |   |   |                              |   |   |               |      |   |   |   |   |   |   |   |   |   |
| Imputed Interest                                       |   |                 | 5,134    |   |              |   | -          |     |   |   | -                                 |   |   |               | -         |   |   |   | - |   |   |   | 5,134 |   |
|                                                   |   |                 |     |   |              |   |       |     |   |   |                              |   |   |               |      |   |   |   |   |   |   |   |   |   |
| Net loss                                               |   |                 | (210,929 | )      |              |   | -          |     |   |   | -                                 |   |   |               | -         |   |   |   | - |   |   |   | (210,929 | ) |
|                                                   |   |                 |     |   |              |   |       |     |   |   |                              |   |   |               |      |   |   |   |   |   |   |   |   |   |
| Balances at December 31, 2005                          |   |                 | 42,016   |   |              |   | -          |     |   |   | -                                 |   |   |               | -         |   |   |   | - |   |   |   | 42,016 |   |
|                                                   |   |                 |     |   |              |   |       |     |   |   |                              |   |   |               |      |   |   |   |   |   |   |   |   |   |
| Contributions                                          |   |                 | 22,743   |   |              |   | -          |     |   |   | -                                 |   |   |               | -         |   |   |   | - |   |   |   | 22,743 |   |
|                                                   |   |                 |     |   |              |   |       |     |   |   |                              |   |   |               |      |   |   |   |   |   |   |   |   |   |
| Net loss from January 1, 2006 to March 3, 2006         |   |                 | (50,495  | )      |              |   | -          |     |   |   | -                                 |   |   |               | -         |   |   |   | - |   |   |   | (50,495 | ) |
|                                                   |   |                 |     |   |              |   |       |     |   |   |                              |   |   |               |      |   |   |   |   |   |   |   |   |   |
| Merger with Mesa Energy, Inc. (Co.)                    |   |                 | (14,264  | )      |              |   | 19,286,248 |     |   |   | 1,929                             |   |   |               | 592,311   |   |   |   | (579,976 | ) |   |   | - |   |
|                                                   |   |                 |     |   |              |   |       |     |   |   |                              |   |   |               |      |   |   |   |   |   |   |   |   |   |
| Fair value of options and warrants issued for services |   |                 | -        |   |              |   | -          |     |   |   | -                                 |   |   |               | 19,075    |   |   |   | - |   |   |   | 19,075 |   |
|                                                   |   |                 |     |   |              |   |       |     |   |   |                              |   |   |               |      |   |   |   |   |   |   |   |   |   |
| Shares issued for cash                                 |   |                 | -        |   |              |   | 1,214,484  |     |   |   | 122                               |   |   |               | 265,278   |   |   |   | - |   |   |   | 265,400 |   |
|                                                   |   |                 |     |   |              |   |       |     |   |   |                              |   |   |               |      |   |   |   |   |   |   |   |   |   |
| Net loss from March 4, 2006 to December 31, 2006       |   |                 | -        |   |              |   | -          |     |   |   | -                                 |   |   |               | -         |   |   |   | (338,074 | ) |   |   | (338,074 | ) |
|                                                   |   |                 |     |   |              |   |       |     |   |   |                              |   |   |               |      |   |   |   |   |   |   |   |   |   |
| Balances at December 31, 2006                          |   |                 |     |   |              |   | 20,500,732 |     |   |   | 2,051                             |   |   |               | 876,664   |   |   |   | (918,050 | ) |   |   | (39,335 | ) |
|                                                   |   |                 |     |   |              |   |       |     |   |   |                              |   |   |               |      |   |   |   |   |   |   |   |   |   |
| Shares issued for cash                                 |   |                 | -        |   |              |   | 803,079    |     |   |   | 80                                |   |   |               | 208,120   |   |   |   | - |   |   |   | 208,200 |   |
|                                                   |   |                 |     |   |              |   |       |     |   |   |                              |   |   |               |      |   |   |   |   |   |   |   |   |   |
| Discount on convertible debt                           |   |                 | -        |   |              |   | -          |     |   |   | -                                 |   |   |               | 187,427   |   |   |   | - |   |   |   | 187,427 |   |
|                                                   |   |                 |     |   |              |   |       |     |   |   |                              |   |   |               |      |   |   |   |   |   |   |   |   |   |
| Net loss                                               |   |                 | -        |   |              |   | -          |     |   |   | -                                 |   |   |               | -         |   |   |   | (506,940 | ) |   |   | (506,940 | ) |
|                                                   |   |                 |     |   |              |   |       |     |   |   |                              |   |   |               |      |   |   |   |   |   |   |   |   |   |
| Balances at December 31, 2007                          |   |                 | -        |   |              |   | 21,303,811 |     |   |   | 2,131                             |   |   |               | 1,272,211 |   |   |   | (1,424,990 | ) |   |   | (150,648 | ) |
|                                                   |   |                 |     |   |              |   |       |     |   |   |                              |   |   |               |      |   |   |   |   |   |   |   |   |   |
| Shares issued for purchase of stock of Poydras Energy  |   |                 | -        |   |              |   | 2,892,937  |     |   |   | 289                               |   |   |               | 749,711   |   |   |   | - |   |   |   | 750,000 |   |
|                                                   |   |                 |     |   |              |   |       |     |   |   |                              |   |   |               |      |   |   |   |   |   |   |   |   |   |
| Warrants issued with sale of oil and gas property      |   |                 | -        |   |              |   | -          |     |   |   | -                                 |   |   |               | 31,071    |   |   |   | - |   |   |   | 31,071 |   |
|                                                   |   |                 |     |   |              |   |       |     |   |   |                              |   |   |               |      |   |   |   |   |   |   |   |   |   |
| Shares issued for legal fees                           |   |                 | -        |   |              |   | 9,643      |     |   |   | 1                                 |   |   |               | 3,749     |   |   |   | - |   |   |   | 3,750 |   |
|                                                   |   |                 |     |   |              |   |       |     |   |   |                              |   |   |               |      |   |   |   |   |   |   |   |   |   |
| Net income                                             |   |                 | -        |   |              |   | -          |     |   |   | -                                 |   |   |               | -         |   |   |   | 115,179 |   |   |   | 115,179 |   |
|                                                   |   |                 |     |   |              |   |       |     |   |   |                              |   |   |               |      |   |   |   |   |   |   |   |   |   |
| Balances at December 31, 2008                          |   |                 | -        |   |              |   | 24,206,391 |     |   |   | 2,421                             |   |   |               | 2,056,742 |   |   |   | (1,309,811 | ) |   |   | 749,352 |   |

----

|                                           |   | Members’Equity |   |   | Shares |   |       | ParValue |   |   | AdditionalPaid-inCapital(Deficit) |   |   | AccumulatedDeficit |       |   | Totals |   |
|-----------------------------------------------------|--------|----------------------|--------|--------|--------|--------|------------|----------|--------|--------|-----------------------------------|--------|--------|--------------------|------------|--------|--------|--------|
|                                                |   |                 |   |   |   |   |       |     |   |   |                              |   |   |               |       |   |   |   |
| Balances at December 31, 2008                       |   | $                    | -      |   |   |   | 24,206,391 |     |   | $      | 2,421                             |   |   | $                  | 2,056,742  |   |   | $      | (1,309,811 | ) |   | $ | 749,352 |   |
|                                                |   |                 |   |   |   |   |       |     |   |   |                              |   |   |               |       |   |   |   |   |   |   |   |   |   |
| Shares issued for warrants held by MEI shareholders |   |                 | -      |   |   |   | 829,309    |     |   |   | 83                                |   |   |               | (83        | )      |   |   | - |   |   |   | - |   |
|                                                |   |                 |   |   |   |   |       |     |   |   |                              |   |   |               |       |   |   |   |   |   |   |   |   |   |
| Reverse merger with Mesa Energy Holdings            |   |                 | -      |   |   |   | 14,000,000 |     |   |   | 1,400                             |   |   |               | (1,400     | )      |   |   | - |   |   |   | - |   |
|                                                |   |                 |   |   |   |   |       |     |   |   |                              |   |   |               |       |   |   |   |   |   |   |   |   |   |
| Share-based compensation                            |   |                 | -      |   |   |   | 350,000    |     |   |   | 35                                |   |   |               | 340,965    |   |   |   | - |   |   |   | 341,000 |   |
|                                                |   |                 |   |   |   |   |       |     |   |   |                              |   |   |               |       |   |   |   |   |   |   |   |   |   |
| Discount on convertible debt                        |   |                 | -      |   |   |   | -          |     |   |   | -                                 |   |   |               | 1,530,000  |   |   |   | - |   |   |   | 1,530,000 |   |
|                                                |   |                 |   |   |   |   |       |     |   |   |                              |   |   |               |       |   |   |   |   |   |   |   |   |   |
| Derivative liability on convertible debt            |   |                 | -      |   |   |   | -          |     |   |   | -                                 |   |   |               | (9,383,380 | )      |   |   | - |   |   |   | (9,383,380 | ) |
|                                                |   |                 |   |   |   |   |       |     |   |   |                              |   |   |               |       |   |   |   |   |   |   |   |   |   |
| Net loss                                            |   |                 | -      |   |   |   | -          |     |   |   | -                                 |   |   |               | -          |   |   |   | (1,931,539 | ) |   |   | (1,931,539 | ) |
|                                                |   |                 |   |   |   |   |       |     |   |   |                              |   |   |               |       |   |   |   |   |   |   |   |   |   |
| Balances at December 31, 2009                       |   |                 | -      |   |   |   | 39,385,700 |     |   |   | 3,939                             |   |   |               | (5,457,156 | )      |   |   | (3,241,350 | ) |   |   | (8,694,567 | ) |
|                                                |   |                 |   |   |   |   |       |     |   |   |                              |   |   |               |       |   |   |   |   |   |   |   |   |   |
| Share-based compensation                            |   |                 | -      |   |   |   | 372,900    |     |   |   | 37                                |   |   |               | 1,131,504  |   |   |   | - |   |   |   | 1,131,541 |   |
|                                                |   |                 |   |   |   |   |       |     |   |   |                              |   |   |               |       |   |   |   |   |   |   |   |   |   |
| Conversion of convertible debt and accrued interest |   |                 | -      |   |   |   | 473,421    |     |   |   | 47                                |   |   |               | 185,557    |   |   |   | - |   |   |   | 185,604 |   |
|                                                |   |                 |   |   |   |   |       |     |   |   |                              |   |   |               |       |   |   |   |   |   |   |   |   |   |
| Discount on convertible debt                        |   |                 | -      |   |   |   | -          |     |   |   | -                                 |   |   |               | 665,000    |   |   |   | - |   |   |   | 665,000 |   |
|                                                |   |                 |   |   |   |   |       |     |   |   |                              |   |   |               |       |   |   |   |   |   |   |   |   |   |
| Derivative liability on convertible debt            |   |                 | -      |   |   |   | -          |     |   |   | -                                 |   |   |               | (3,311,820 | )      |   |   | - |   |   |   | (3,311,820 | ) |
|                                                |   |                 |   |   |   |   |       |     |   |   |                              |   |   |               |       |   |   |   |   |   |   |   |   |   |
| Net income                                          |   |                 | -      |   |   |   | -          |     |   |   | -                                 |   |   |               | -          |   |   |   | 6,561,235 |   |   |   | 6,561,235 |   |
|                                                |   |                 |   |   |   |   |       |     |   |   |                              |   |   |               |       |   |   |   |   |   |   |   |   |   |
| Balances at December 31, 2010                       |   |                 | -      |   |   |   | 40,232,021 |     |   |   | 4,023                             |   |   |               | (6,786,915 | )      |   |   | 3,319,885 |   |   |   | (3,463,007 | ) |
|                                                |   |                 |   |   |   |   |       |     |   |   |                              |   |   |               |       |   |   |   |   |   |   |   |   |   |
| Share-based compensation                            |   |                 | -      |   |   |   | 18,000     |     |   |   | 3                                 |   |   |               | 39,812     |   |   |   | - |   |   |   | 39,815 |   |
|                                                |   |                 |   |   |   |   |       |     |   |   |                              |   |   |               |       |   |   |   |   |   |   |   |   |   |
| Conversion of convertible debt and accrued interest |   |                 | -      |   |   |   | 6,759,330  |     |   |   | 675                               |   |   |               | 1,415,728  |   |   |   | - |   |   |   | 1,416,403 |   |
|                                                |   |                 |   |   |   |   |       |     |   |   |                              |   |   |               |       |   |   |   |   |   |   |   |   |   |
| Common shares issued to induce debt conversion      |   |                 | -      |   |   |   | 1,036,000  |     |   |   | 104                               |   |   |               | 111,870    |   |   |   | - |   |   |   | 111,974 |   |
|                                                |   |                 |   |   |   |   |       |     |   |   |                              |   |   |               |       |   |   |   |   |   |   |   |   |   |
| Net loss                                            |   |                 | -      |   |   |   | -          |     |   |   | -                                 |   |   |               | -          |   |   |   | (396,563 | ) |   |   | (396,563 | ) |
|                                                |   |                 |   |   |   |   |       |     |   |   |                              |   |   |               |       |   |   |   |   |   |   |   |   |   |
| Balances at March 31, 2011                          |   | $                    | -      |   |   |   | 48,045,351 |     |   | $      | 4,805                             |   |   | $                  | (5,219,505 | )      |   | $      | 2,923,322 |   |   | $ | (2,291,378 | ) |

----

|                                                                                 |   | For the Three Months Ended March 31, |     |   | Inception toMarch 31, |   |
|--------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------|----------|--------|---------------------------------|--------|
|                                                                                 |   | 2011                                                               |     |   | 2010                            |   |   | 2011 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                                 |   |                                                               |     |   |                            |   |   |   |   |
| Net income (loss)                                                                    |   | $                                                                  | (396,563 | )      |                            | $      | (10,369,087 | ) |   | $ | 2,923,322 |   |
| Adjustments to reconcile net income (loss) to net cash used in operating activities: |   |                                                               |     |   |                            |   |   |   |   |   |   |   |
| Loss on sale of oil and gas properties                                               |   |                                                               | -        |   |                            |   | - |   |   |   | 1,151,997 |   |
| Unrealized (gain) loss on change in derivative value                                 |   |                                                               | -        |   |                            |   | 9,024,975 |   |   |   | (12,695,200 | ) |
| Gain on sale of assets                                                               |   |                                                               | -        |   |                            |   | - |   |   |   | (1,673,620 | ) |
| Dry hole cost                                                                        |   |                                                               | -        |   |                            |   | - |   |   |   | 466,066 |   |
| Imputed interest                                                                     |   |                                                               | -        |   |                            |   | - |   |   |   | 16,641 |   |
| Amortization of debt discount                                                        |   |                                                               | -        |   |                            |   | 665,000 |   |   |   | 2,382,427 |   |
| Depreciation, depletion, amortization, accretion and impairment expense              |   |                                                               | 1,805    |   |                            |   | 7,178 |   |   |   | 1,238,545 |   |
| Amortization of deferred financing cost                                              |   |                                                               | 100,310  |   |                            |   | 35,369 |   |   |   | 285,579 |   |
| Share-based compensation                                                             |   |                                                               | 39,815   |   |                            |   | 309,280 |   |   |   | 1,535,181 |   |
| Induced debt conversion expense                                                      |   |                                                               | 111,974  |   |                            |   | - |   |   |   | 111,974 |   |
| Changes in operating assets and liabilities:                                         |   |                                                               |     |   |                            |   |   |   |   |   |   |   |
| Accounts receivable and prepaid assets                                               |   |                                                               | (1,702   | )      |                            |   | 7,882 |   |   |   | (13,800 | ) |
| Accounts payable and accrued expenses                                                |   |                                                               | 118,795  |   |                            |   | 45,991 |   |   |   | 1,130,142 |   |
| Accrued expenses – related parties                                             |   |                                                               | 7,028    |   |                            |   | 6,679 |   |   |   | 138,860 |   |
| CASH USED IN OPERATING ACTIVITIES                                                    |   |                                                               | (18,538  | )      |                            |   | (266,733 | ) |   |   | (3,001,886 | ) |
|                                                                                 |   |                                                               |     |   |                            |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                                 |   |                                                               |     |   |                            |   |   |   |   |   |   |   |
| Release of restricted cash                                                           |   |                                                               | -        |   |                            |   | 20,000 |   |   |   | - |   |
| Payments for oil and gas development costs                                           |   |                                                               | -        |   |                            |   | (40,901 | ) |   |   | (2,740,463 | ) |
| Cash paid for asset retirement obligations                                           |   |                                                               | -        |   |                            |   | - |   |   |   | (46,494 | ) |
| Cash acquired from purchase of Poydras Energy, LLC                                   |   |                                                               | -        |   |                            |   | - |   |   |   | 1,326 |   |
| Proceeds from sale of assets                                                         |   |                                                               | -        |   |                            |   | - |   |   |   | 2,562,500 |   |
| Purchases of fixed assets                                                            |   |                                                               | -        |   |                            |   | - |   |   |   | (5,203 | ) |
| CASH USED IN INVESTING ACTIVITIES                                                    |   |                                                               | -        |   |                            |   | (20,901 | ) |   |   | (228,334 | ) |
|                                                                                 |   |                                                               |     |   |                            |   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                                 |   |                                                               |     |   |                            |   |   |   |   |   |   |   |
| Proceeds from the sale of stock                                                      |   |                                                               | -        |   |                            |   | - |   |   |   | 473,600 |   |
| Borrowings on debt from related parties                                              |   |                                                               | 5,000    |   |                            |   | - |   |   |   | 749,400 |   |
| Principal payments on debt from related parties                                      |   |                                                               | -        |   |                            |   | (43,000 | ) |   |   | (472,000 | ) |
| Borrowings on debt from third parties, net of financing cost                         |   |                                                               | 20,000   |   |                            |   | 573,444 |   |   |   | 1,914,180 |   |
| Members contributions                                                                |   |                                                               | -        |   |                            |   | - |   |   |   | 647,598 |   |
| Members distributions                                                                |   |                                                               | -        |   |                            |   | - |   |   |   | (70,000 | ) |
| CASH PROVIDED BY FINANCING ACTIVITIES                                                |   |                                                               | 25,000   |   |                            |   | 530,444 |   |   |   | 3,242,778 |   |
|                                                                                 |   |                                                               |     |   |                            |   |   |   |   |   |   |   |
| NET CHANGE IN CASH                                                                   |   |                                                               | 6,462    |   |                            |   | 242,810 |   |   |   | 12,558 |   |
|                                                                                 |   |                                                               |     |   |                            |   |   |   |   |   |   |   |
| CASH AT BEGINNING OF PERIOD                                                          |   |                                                               | 6,096    |   |                            |   | 267,141 |   |   |   | - |   |
| CASH AT END OF PERIOD                                                                |   | $                                                                  | 12,558   |   |                            | $      | 509,951 |   |   | $ | 12,558 |   |

----

|                                                                      |   | For the Three Months EndedMarch 31, |      |   | Inception to March 31, |   |
|---------------------------------------------------------------------------|--------|--------------------------------------------------------------|-----------|--------|---------------------------------------|--------|
|                                                                      |   | 2011                                                         |      |   | 2010                                  |   |   | 2011 |   |
| Supplemental disclosures of cash flow information:                        |   |                                                         |      |   |                                  |   |   |   |   |
| Cash paid for interest                                                    |   | $                                                            | 50        |   |                                  | $      | - |   |   | $ | 86,987 |   |
| Cash paid for income taxes                                                |   | $                                                            | -         |   |                                  | $      | - |   |   | $ | - |   |
|                                                                      |   |                                                         |      |   |                                  |   |   |   |   |   |   |   |
| Non-cash disclosures:                                                     |   |                                                         |      |   |                                  |   |   |   |   |   |   |   |
| Accrued oil and gas acquisition and development cost                      |   | $                                                            | -         |   |                                  | $      | - |   |   | $ | 25,000 |   |
| Sale of pipeline right-of-way for payables                                |   | $                                                            | -         |   |                                  | $      | - |   |   | $ | 60,000 |   |
| Note payable issued for purchase of Poydras Energy, LLC                   |   | $                                                            | -         |   |                                  | $      | - |   |   | $ | 100,000 |   |
| Common stock issued for purchase of Poydras Energy, LLC                   |   | $                                                            | -         |   |                                  | $      | - |   |   | $ | 750,000 |   |
| Stock issued in reverse merger                                            |   | $                                                            | -         |   |                                  | $      | - |   |   | $ | 1,400 |   |
| Warrants issued with the sale of oil and gas property                     |   | $                                                            | -         |   |                                  | $      | - |   |   | $ | 31,071 |   |
| Change in asset retirement obligation                                     |   | $                                                            | -         |   |                                  | $      | - |   |   | $ | 47,976 |   |
| Initial valuation of derivative liability upon issuance of debt           |   | $                                                            | -         |   |                                  | $      | 3,311,821 |   |   | $ | 12,695,200 |   |
| Common stock issued for conversions of notes payable and accrued interest |   | $                                                            | 1,416,403 |   |                                  | $      | 84,891 |   |   | $ | 1,602,007 |   |

----

----

| Prospect            |   | March 31,2011 |   |   | December 31, 2010 |   |
|---------------------|--------|--------------------|--------|--------|-----------------------------|--------|
|                |   |               |   |   |                        |   |
| Coal Creek Prospect |   | $                  | -      |   |                        | $      | - |   |
| Java Field          |   |               | 38,345 |   |                        |   | 38,345 |   |
| Total               |   | $                  | 35,345 |   |                        | $      | 38,345 |   |

| YearIncurred   |   | AcquisitionCosts |    |   | ExplorationCosts |   |      | Dry HoleCost |   |   | Dispositionof assets |   |   | Depletion,Depreciation,andImpairment |       |   | Total  |   |
|----------------|--------|------------------|---------|--------|------------------|--------|-----------|-------------------|--------|--------|---------------------------|--------|--------|--------------------------------------|------------|--------|--------|--------|
| 2007 and prior |   | $                | 236,963 |   |             | $      | 458,958   |              |   | $      | -                         |   |   | $                                    | -          |   |   | $      | (27,140 | ) |   | $ | 668,781 |   |
| 2008           |   |             | -       |   |             |   | 1,595,099 |              |   |   | (466,066                  | )      |   |                                 | -          |   |   |   | - |   |   |   | 1,129,033 |   |
| 2009           |   |             | 556,260 |   |             |   | 488,035   |              |   |   | -                         |   |   |                                 | (2,090,383 | )      |   |   | (7,624 | ) |   |   | (1,053,712 | ) |
| 2010           |   |             | -       |   |             |   | 405,462   |              |   |   | -                         |   |   |                                 | -          |   |   |   | (1,111,219 | ) |   |   | (705,757 | ) |
| 2011           |   |             | -       |   |             |   | -         |              |   |   | -                         |   |   |                                 | -          |   |   |   | - |   |   |   | - |   |
| Total          |   | $                | 793,223 |   |             | $      | 2,947,554 |              |   | $      | (466,066                  | )      |   | $                                    | (2,090,383 | )      |   | $      | (1,145,983 | ) |   | $ | 38,345 |   |

----

----

|                          |   | Balance atJanuary 1, 2011 |   |   | Activity duringthe period |   |   | Decrease in fairvalue ofderivativeliability |   |   | Balance atMarch 31, 2011 |   |
|-------------------------------|--------|------------------------------------------|--------|--------|-------------------------------------|--------|--------|------------------------------------------------------------|--------|--------|-----------------------------------------|--------|
|                          |   |                                     |   |   |                                |   |   |                                                       |   |   |                                    |   |
| Derivative conversion feature |   | $                                        | -      |   |                                | $      | -      |                                                       |   | $      | -                                       |   |   | $ | - |   |

| Date       |   | Probability ofissuance ofinstruments at aprice lower than theconversion price |   |   | Probable prices atwhich instrumentswill be issued |   |
|------------|--------|-----------------------------------------------------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------|--------|
|       |   |                                                                                                                  |   |   |                                                                       |   |
| March 2011 |   |                                                                                                                  | 50     | %      |                                                                       | $      | 0.24 - $0.15 |   |
| Thereafter |   |                                                                                                                  | 50     | %      |                                                                       | $      | 0.24 - $0.15 |   |

|                                                                       |   | March 31, 2011 |      |
|----------------------------------------------------------------------------|--------|----------------|-----------|
|                                                                       |   |           |      |
| Common stock issuable upon conversion                                      |   |           | 3,400,000 |   |
| Market price of common stock on measurement date, per posted closing price |   | $              | 0.15      |   |
| Conversion price                                                           |   | $              | 0.25      |   |
| Conversion period in years                                                 |   |           | 2         |   |
| Expected volatility (1)                                                    |   |           | 149.8     | % |
| Expected dividend yield (2)                                                |   |           | 0         | % |
| Risk free interest rate (3)                                                |   |           | 3         | % |

|                          |   | Balance atJanuary 1, 2010 |      |   | Activity duringthe period |   |      | Decrease in fairvalue ofderivativeliability |   |   | Balance atDecember 31,2010 |   |
|-------------------------------|--------|------------------------------------------|-----------|--------|-------------------------------------|--------|-----------|------------------------------------------------------------|--------|--------|--------------------------------------|--------|
|                          |   |                                     |      |   |                                |   |      |                                                       |   |   |                                 |   |
| Derivative conversion feature |   | $                                        | 7,461,680 |   |                                | $      | 3,311,820 |                                                       |   | $      | (10,773,500                          | )      |   | $ | - |   |

----

| Date          |   | Probability ofissuance ofinstruments at aprice lower than theconversion price |   |   | Probable prices atwhich instrumentswill be issued |   |
|---------------|--------|-----------------------------------------------------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------|--------|
|          |   |                                                                                                                  |   |   |                                                                       |   |
| December 2010 |   |                                                                                                                  | 50     | %      |                                                                       | $      | 0.24 - $0.15 |   |
| Thereafter    |   |                                                                                                                  | 50     | %      |                                                                       | $      | 0.24 - $0.15 |   |

|                                                                       |   | December 31,2010 |      |
|----------------------------------------------------------------------------|--------|-----------------------|-----------|
|                                                                       |   |                  |      |
| Common stock issuable upon conversion                                      |   |                  | 8,780,000 |   |
| Market price of common stock on measurement date, per posted closing price |   | $                     | 0.08      |   |
| Conversion price                                                           |   | $                     | 0.25      |   |
| Conversion period in years                                                 |   |                  | 2         |   |
| Expected volatility (1)                                                    |   |                  | 149.8     | % |
| Expected dividend yield (2)                                                |   |                  | 0         | % |
| Risk free interest rate (3)                                                |   |                  | 3         | % |

| 2011  |   |   | 850,000   |   |
|-------|--------|--------|-----------|--------|
| 2012  |   |   | 451,400   |   |
| Total |   | $      | 1,301,400 |   |

|                                               |   | March 31, 2011 |   |   | December 31, 2010 |   |
|---------------------------------------------------------|--------|--------------------------|--------|--------|-----------------------------|--------|
| Asset retirement obligations at beginning of the period |   | $                        | 80,217 |   |                        | $      | 55,280 |   |
| Accretion expense                                       |   |                     | 1,805  |   |                        |   | 24,937 |   |
| Asset retirement obligations at end of the period       |   | $                        | 82,022 |   |                        | $      | 80,217 |   |

----

----

|   | · | The former MEI stockholders held 25,035,700 shares of common stock; |
|--------|--------|---------------------------------------------------------------------|

|   | · | The stockholders of Mesquite Mining prior to the Merger held 14,000,000 shares of common stock; |
|--------|--------|-------------------------------------------------------------------------------------------------|

|   | · | An IR Consultant held 150,000 shares of common stock; and |
|--------|--------|----------------------------------------------------------------|

|   | · | 850,000 shares of common stock were required to be issued to the escrow agent pursuant to an IR Shares Escrow Agreement. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------|

----

|   | · | The investor in the initial closing of the 2009 Private Placement held a $500,000 Convertible Note convertible into 2,000,000 shares of common stock, subject to adjustment in certain circumstances as provided therein; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | MEI had an outstanding convertible promissory note (the “Old Note”), in the principal amount of $250,000, which was convertible into an aggregate of 964,300 shares of common stock, subject to adjustment in certain circumstances as provided. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the 2009 Plan authorized issuance of up to 5,000,000 shares of common stock as incentive awards to executive officers, key employees, consultants and directors of the Company and its subsidiaries; however, no awards had been granted under the 2009 Plan. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                             |   | Number ofShares |    |    | Weighted AverageExercise Price |   |
|----------------------------------|--------|----------------------|--------------|--------------|------------------------------------------|--------|
| Outstanding at December 31, 2010 |   |                 | 1,048,000    |         |                                     | $      | 0.25 |   |
| Issued                           |   |                 | -            |         |                                     |   | - |   |
| Exercised                        |   |                 | -            |         |                                     |   | - |   |
| Cancelled/Expired                |   |                 | -            |         |                                     |   | - |   |
| Outstanding at March 31, 2011    |   |                 | 1,048,000    |         |                                     | $      | 0.25 |   |
| Exercisable at March 31, 2011    |   |                 | 848,500      |         |                                     | $      | 0.25 |   |

| Exercise price |   | Number ofoptions |    | Remaining life |       | Aggregate IntrinsicValue (In-the-money) Options |   |
|----------------|--------|------------------|---------|----------------|------------|-------------------------------------------------|--------|
| $0.25          |   |             | 298,000 |           | 1.76 years |                                            | $      | - |   |
| $0.25          |   |             | 500,000 |           | 3.77 years |                                            |   | - |   |
| $0.25          |   |             | 250,000 |           | 3.83 years |                                            |   | - |   |

----

----

----

----

----

|                                              |   | For the Three Months Ended |     |
|---------------------------------------------------|--------|------------------------------------------------|----------|
|                                              |   | March 31,                                 |     |
|                                              |   | 2011                                           |     |   | 2010 |   |
|                                              |   |                                           |     |   |   |   |
| Net loss                                          |   | $                                              | (396,563 | ) |   | $ | (10,369,087 | ) |
|                                              |   |                                           |     |   |   |   |   |   |
| Add Back:                                         |   |                                           |     |   |   |   |   |   |
|                                              |   |                                           |     |   |   |   |   |   |
| Interest expense                                  |   |                                           | 148,698  |   |   |   | 723,925 |   |
| Amortization of deferred financing costs          |   |                                           | 100,310  |   |   |   | 35,369 |   |
| Depreciation, depletion, accretion and impairment |   |                                           | 1,805    |   |   |   | 7,178 |   |
| Gain on change in derivative value                |   |                                           | -        |   |   |   | 9,024,975 |   |
| Stock based compensation                          |   |                                           | 39,815   |   |   |   | 309,280 |   |
|                                              |   |                                           |     |   |   |   |   |   |
| Adjusted EBITDA                                   |   | $                                              | (105,935 | ) |   | $ | (268,360 | ) |

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|   | · | On June 13, 2011, we sold 320,000 shares of restricted common stock to two of our Directors, Jim Cerna and Ray Unruh, for a total of $40,000 in cash; |
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|   | · | On June 14, 2011, we executed an agreement with Cherokee Financial Corp. (owned by Ray L. Unruh, our CFO) wherein Cherokee agreed to accept payment in restricted common stock for the outstanding balance of principal and accrued interest on its long term note receivable.  A total of 2,249,722 shares, with a fair market value of $314,961, were issued in full payment of outstanding principal of $213,400 and accrued interest of $67,815.  Also on June 14, 2011, we executed an agreement with Sycamore Resources, Inc. (owned by Randy M. Griffin, our CEO) to convert the note payable owed to Sycamore to common stock.  A total of 1,904,000 shares, with a fair market value of $266,560, were issued in full payment of the outstanding principal of $238,000; |
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|   | · | On June 16, 2011, we entered into a settlement agreement with Gottbetter & Partners, LLP (“GP”) wherein GP agreed to accept 1,200,000 shares of restricted common stock, with a fair market value of $171,000, as payment in full of the outstanding balance of $455,861 in accrued legal fees owed to GP for legal work performed in 2010 and 2011; and |
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|   | · | On June 16, 2011, we entered into an Exchange Agreement wherein Whalehaven Capital Fund, Ltd. agreed to exchange its promissory note with a principal balance of $40,000 plus $1,019 in accrued interest for two convertible debentures totaling $41,019.  These convertible debentures have a maturity date of July 31, 2013 and are convertible at any time at a conversion price of $0.125.  The note will bear interest at 6% per annum payable in cash or shares at maturity. |
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| a) | As of March 31, 2011, we did not maintain effective controls over financial statement disclosure and the recording of equity and debt transactions. Specifically, controls were not designed and in place to ensure that all disclosures required were originally addressed in our financial statements. Accordingly, management concluded that this control deficiency constituted a material weakness; and |
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| b) | As of March 31, 2011, we did not adequately segregate, or mitigate the risks associated with, incompatible functions among personnel to reduce the risk that a potential material misstatement of the financial statements would occur without being prevented or detected. Accordingly, management concluded that this control deficiency constituted a material weakness. |
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| 31.01  | Certification of Chief Executive Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.               |
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| 31.02  | Certification of Chief Financial Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.               |
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| 32.01  | Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |

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|                | MESA ENERGY HOLDINGS, INC. |                                                                                   |
|---------------------|----------------------------|----------------------------------------------------------------------------------------|
|                |                       |                                                                                   |   |
| Date: July 15, 2011 | By:                        | /s/ RANDY M. GRIFFIN                                                              |   |
|                |                       | Randy M. Griffin                                                                       |   |
|                |                       | Chief Executive Officer (Principal Executive Officer)                                  |   |
|                |                       |                                                                                   |   |
| Date: July 15, 2011 | By:                        | /s/ RAY L. UNRUH                                                                  |   |
|                |                       | Ray L. Unruh                                                                           |   |
|                |                       | Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) |   |

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