________________________________________________________________________________

                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-Q

[X]     Quarterly report pursuant to Section 13 or 15(d) of the Securities
        Exchange Act of 1934
        For the quarterly period ended: March 31, 2008

[ ]     Transition report pursuant to Section 13 or 15(d) of the Securities
        Exchange Act of 1934
        For the transition period from _______ to _________

                       Commission file number: 000-53124

                              COLONY ENERGY, INC.
             (Exact name of registrant as specified in its charter)

                 Delaware                               76-0662309
     (State or other jurisdiction of                     (I.R.S.
       incorporation or organization)             Employer Identification No.)


     2100 West Loop South, Suite 900, Houston, Texas      77027
         (Address of principal executive offices)       (Zip Code)

                                  713/590-5060
              (Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes [X]   No [ ]

Indicate  by  check mark whether the registrant is a large accelerated filer, an
accelerated  filer, a non-accelerated filer, or a smaller reporting company. See
the  definitions  of "large accelerated filer," "accelerated filer" and "smaller
reporting  company"  in  Rule  12b-2  of  the  Exchange  Act.

     Large  accelerated  filer [ ]               Accelerated  filer [ ]

     Non-accelerated  filer [ ]                  Smaller  Reporting  Company [X]
     (Do  not  check  if  a  smaller  reporting  company)

Indicate  by check mark whether the registrant is a shell company (as defined in
Rule  12b-2  of  the  Exchange  Act).  Yes [ ]   No [X]

The number of shares of common stock, $.001 par value, outstanding as of June
04, 2008: 6,375,000 shares

________________________________________________________________________________


<PAGE>
                              COLONY ENERGY, INC.
                          PERIOD ENDED MARCH 31, 2008

                                     INDEX

PART I.  FINANCIAL INFORMATION                                             Page

    ITEM 1.     FINANCIAL STATEMENTS                                         1

    Financial statements of Colony Energy, Inc. (unaudited):

         Balance sheets as of March 31, 2008 and December 31, 2007           1

         Statements of expenses for the three months ended March 31,
         2008 and 2007 and period from July 20, 2000 (inception)
         through March 31, 2008                                              2

         Statements of cash flows for the three months ended March
         31, 2008 and 2007 and 2007 and period from July 20, 2000
         (inception) through March 31, 2008                                  3

         Notes to financial statements                                       4

    ITEM 2.     MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                CONDITION AND RESULTS OF OPERATIONS                          5

    ITEM 4T.    CONTROLS AND PROCEDURES                                      8

PART II.   OTHER INFORMATION

    ITEM 1.     LEGAL PROCEEDINGS                                            9

    ITEM 6.     EXHIBITS                                                     9

SIGNATURES                                                                   9

<PAGE>

PART I.   FINANCIAL INFORMATION

ITEM 1.   FINANCIAL STATEMENTS

                              COLONY ENERGY, INC.
                         (AN EXPLORATION STAGE COMPANY)
                                 BALANCE SHEETS
                                  (UNAUDITED)



                                             MARCH 31,          DECEMBER 31,
                                              2008                 2007
                                           ------------        --------------
ASSETS

Current Assets
     Cash                                  $     85,551        $     136,168
     Prepaid expenses                             5,000                1,470
                                            -----------        -------------

                Total Current Assets             90,551              137,638

OIL AND GAS PROPERTIES, full cost method
     Unevaluated properties, Net of
        Impairment Expense                      277,172              277,383
                                             ----------        -------------

TOTAL ASSETS                                 $  367,723        $     415,021
                                             ==========        =============

LIABILITIES AND STOCKHOLDERS' DEFICIT

CURRENT LIABILITIES
     Accounts payable                        $   32,573        $       6,532
     Accrued interest payable - related party    19,856                6,767
     Notes payable - related parties            525,000              525,000
                                              ---------        -------------
         Total Current Liabilities and
            Total Liabilities                   577,429              538,299

STOCKHOLDERS'  DEFICIT

Preferred stock, $0.01 par value, 10,000,000
   shares authorized, none outstanding                -                    -

Common stock, 50,000,000 common shares
   authorized with a par value of $0.001,
   6,375,000 common shares issued and
   outstanding                                     6,375               6,375
Subscription receivable                           (9,000)             (9,000)
Additional paid-in capital                         5,693               5,693
Deficit accumulated during the exploration
   stage                                        (212,774)           (126,346)
                                              ----------        ------------
            Total Stockholders' Deficit         (209,706)           (123,278)
                                              ----------        ------------
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $    367,723             415,021
                                            ============        ============

                                       1
<PAGE>
                               COLONY ENERGY, INC.
                        ( An Exploration Stage Company)
                             Statements of Expenses
                 Three months ended March 31, 2008 and 2007 and
          Period from July 20, 2000 (inception) through March 31, 2008
                                  (Unaudited)


                                                                For the period
                                                                 July 20, 2000
                               Three months   Three months        (Inception)
                                   ended           ended            through
                                 March 31,       March 31,         March 31,
                                  2008            2007              2008

OPERATING EXPENSES:

   General and administrative  $   73,339     $         -       $     120,431

   Impairment of unevaluated
     oil and gas properties             -               -              64,383
                               ----------      ----------       -------------
      Total Operating Expenses     73,339               -             184,814
                               ----------      ----------       -------------
        LOSS FROM OPERATIONS      (73,339)              -            (184,814)
                               ----------      ----------       -------------

OTHER EXPENSE
   Interest expense               (13,089)           (123)            (27,960)
                               ----------      ----------       -------------
      Total Other Expenses        (13,089)           (123)            (27,960)
                               ----------      ----------       -------------

       NET LOSS                $  (86,428)     $     (123)      $    (212,774)
                               ==========      ==========       =============


Net loss per common share      $    (0.01)     $    (0.00)
                               ==========      ==========

Weighted average shares
  outstanding - basic and
  diluted                       6,375,000       5,100,000
                                =========      ==========

                                       2

<PAGE>
                              COLONY ENERGY, INC.
                         (AN EXPLORATION STAGE COMPANY)
                            STATEMENTS OF CASH FLOWS
                 THREE MONTHS ENDED MARCH 31, 2008 AND 2007 AND
          PERIOD FROM JULY 20, 2000 (INCEPTION) THROUGH MARCH 31, 2008
                                  (Unaudited)


                                                                For the period
                                                                 July 20, 2000
                               Three months   Three months        (Inception)
                                   ended           ended            through
                                 March 31,       March 31,         March 31,
                                  2008            2007              2008

CASH FLOWS FROM OPERATING ACTIVITIES

Net loss                    $     (86,428) $        (123)    $    (212,774)
Adjustments to reconcile net
  loss to cash provided by
  (used in) operating
  activities:
    Change in:
    Warrants issued for
      compensation                      -              -               593
    Impairment of unevaluated
      oil and gas properties            -              -            64,383
Changes in assets and
  liabilities:
    Prepaid expenses               (3,530)             -            (5,000)
    Accounts payable and
      accrued liabilities          39,130            123            46,097
                            -------------   ------------      ------------
Net Cash Provided by (Used
  in) Operating Activities        (50,828)             -          (106,701)
                            -------------   ------------      ------------

CASH FLOWS FROM INVESTING ACTIVITIES
Sale (purchase) of  oil and gas
  property                            211              -          (335,023)
                            -------------    -----------      ------------
Net Cash Provided by  (Used
  in)  Investing Activities           211              -          (335,023)
                            -------------    -----------      ------------

CASH FLOWS FROM FINANCING
  ACTIVITIES
Proceeds from the sale of
  common stock                          -              -             2,275
Proceeds of note payable                -              -           987,500
Repayment of note payable               -              -          (462,500)
                            -------------    -----------     -------------
Net cash Provided by
  Financing Activities                  -              -           527,275
                            -------------    -----------     -------------

NET INCREASE IN CASH              (50,617)             -            85,551

CASH AT BEGINNING OF PERIOD       136,168            972                 -
                           --------------    -----------     -------------

CASH AT END OF PERIOD      $       85,551    $       972     $      85,551
                           ==============    ===========     =============


Supplemental cash flow Disclosures

Interest Paid              $            -    $         -     $       8,104
Income taxes Paid          $            -    $         -     $           -
                           ==============    ===========     =============

                                       3

<PAGE>

                              COLONY ENERGY, INC.
                         (AN EXPLORATION STAGE COMPANY)
                         NOTES TO FINANCIAL STATEMENTS
                               (Unaudited)

NOTE 1.   ORGANIZATION AND BASIS OF PRESENTATION

Organization

Colony  Energy,  Inc. ("Colony" or the "Company") was originally incorporated in
the  State  of  Delaware  on  July  7,  2000 as "DirectMoviesOnline.Com Inc" but
changed  its  name  to  Colony  Energy,  Inc. on September 12, 2006. The Company
engages  primarily  in the exploration and development of oil and gas properties
in  the  United States. The Company currently participates in the exploration of
several  unevaluated  oil  and  gas  properties.

Basis of Presentation

The  accompanying  unaudited  interim  financial  statements of Colony have been
prepared  in  accordance  with  accounting  principles generally accepted in the
United  States  of  America  and  the  rules  of  the  Securities  and  Exchange
Commission,  and  should  be  read  in  conjunction  with  the audited financial
statements  and  notes thereto contained in Colony's Form 10-12G. In the opinion
of  management,  all  adjustments,  consisting  of normal recurring adjustments,
necessary  for  a  fair  presentation  of  financial position and the results of
operations  for  the  interim  periods presented have been reflected herein. The
results  of operations for the interim periods are not necessarily indicative of
the  results to be expected for the full year. Notes to the financial statements
that  would  substantially  duplicate  the  disclosures contained in the audited
financial  statements  for fiscal 2007 as reported in the Form 10-12G, have been
omitted.

Certain  prior  period  numbers  are  reclassified  to conform to current period
presentation.

NOTE 2.   GOING CONCERN

Colony  has  been  in  the exploration stage since its formation and has not yet
realized  any  revenues  from its planned operations. It is primarily engaged in
the  acquisition,  exploration  and  development  of oil and gas properties. The
ability  of the Company to emerge from the exploration stage with respect to its
principal  business  activity  is dependent upon its successful efforts to raise
additional debt and/or equity financing and generate significant revenue. Colony
has incurred losses of $212,774 since inception. These factors raise substantial
doubt  regarding  Colony's  ability  to  continue  as  a  going  concern.

Management  plans  to  raise  additional  capital  through  equity  and/or  debt
financings.  Colony  cannot  offer  any assurances that it will be successful in
executing  its  plans  to  continue  as  a  going  concern.  Colony's  financial
statements  at  March  31, 2008 do not include any adjustments that might result
from  the  inability  to  continue  as  a  going  concern.

NOTE 3.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

See the audited financials statements and notes thereto contained in Colony's
Form 10-12G filed with SEC on March 6, 2008.

                                       4

<PAGE>
ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

                                    GENERAL

     Colony  Energy, Inc. is an early-stage, independent oil and gas exploration
and  production company based in Houston, Texas.  Our company was formed for the
purpose  of providing video-on-demand service to consumers by means of broadband
or  high-speed  Internet  connections.  This  business  did not succeed, and our
company  had been inactive from a business perspective since early 2001.  During
the  summer  of  2006,  we  began  considering  the  possible  re-activation  of
operations  with  a focus on the acquisition of attractive crude oil and natural
gas prospects, and the exploration, development and production of oil and gas on
these  prospects.  We  entered  into our first project related to oil and gas in
August  2007.

     On  August  29, 2007, we entered into an agreement (the "Enexco Agreement")
with  Enexco,  Inc.  ("Enexco"), a privately held entity engaged in the drilling
and completion of wells on oil and gas leases covering lands located in Oklahoma
and  Texas.  Under the terms of the Enexco Agreement, we will make available, at
our  discretion, to Enexco funds to cover 65% of the costs incurred by Enexco in
connection  with  its  acquisition  of  three certain oil and gas leases, two in
Oklahoma  and one in Texas. In consideration of our providing this financing, we
received  an  interest in each of the three leases, and an option to participate
in  the  drilling  of  each well on any of these leases.  Before any well can be
drilled  on  any  of  these leases, Enexco must repay the amount loaned by us to
acquire  the  lease.  We  have  acquired  our  only  oil and gas assets thus far
pursuant to the Enexco Agreement, although we are currently seeking other assets
to  acquire.  The  first  well  in  which we participated pursuant to the Enexco
Agreement  was  drilled  to  its  target  depth and encountered the target sand.
However,  the  sand  was "tight," and this well on the lease in Okfuskee County,
Oklahoma  was  plugged  and abandoned.  As of the date of this Quarterly Report,
the  second  well,  located  in  Seminole  County,  Oklahoma and in which we are
participating  pursuant  to  the  Enexco  Agreement,  is  awaiting  fracture
stimulation.  The  results  of  this  second  well  cannot  now  be  determined.

     There  can  be  no assurance that we will be successful in our exploration,
development,  and  production  activities.  The  oil  and  gas business involves
numerous  risks,  the  principal  ones  of  which  are  described in the section
captioned  "Risk  Factors" in our General Form for Registration of Securities on
Form  10.

     The  following  discussion  and  analysis  of  our  financial condition and
results  of  operations  should  be  read  in  conjunction  with  our  financial
statements  and  related notes included elsewhere in this Report. In addition to
historical  information,  the discussion in this Report contains forward-looking
statements  that  involve  risks  and uncertainties. Actual results could differ
materially  from  those  anticipated  by these forward-looking statements due to
factors including, but not limited to, those factors set forth elsewhere in this
Report  and  in  the  section  captioned  "RISK FACTORS" in our General Form for
Registration  of  Securities  on  Form  10.

                             RESULTS OF OPERATIONS

   Quarter Ended March 31, 2008 Compared to the Quarter Ended March 31, 2007
   -------------------------------------------------------------------------

     We  had  minimal  operations in the first quarter of 2008 consisting of the
continuation  of  the  activation  of our oil and gas exploration and production
activities.  In  first quarter of 2007, our activities were even more minimal as
we  merely  prepared  to activate our exploration and production activities.  We
had  no  revenues  in  either  the first quarter of 2008 or the first quarter of
2007.  In  the  first  quarter  of  2007, our only expenses consisted of $123 in
interest expense.  In the first quarter of 2008, our largest expense was $73,339
in  general  and  administrative  expenses.  Our  interest  expense in the first
quarter of 2008 increased to $13,089 as a result of a larger outstanding balance
of  indebtedness.  As  a  result of these two expenses, we experienced a $86,428
loss  for  the  first  quarter  of  2008,  or  $.01  per  share.

                                       5

<PAGE>
                        LIQUIDITY AND CAPITAL RESOURCES

As of March 31, 2008, we had cash, cash equivalents and marketable securities of
approximately  $85,551,  representing  a  decrease  of  $50,617  versus  cash of
$136,168  as  of  December  31,  2007.

     We  have  already raised "seed" capital in the form of a loan in the amount
of  approximately  $525,000. The party who made this loan was CEI Ventures, LLC,
an  entity  owned  by Kent E. Lovelace, Jr. (a director and an officer of ours),
the  F.E.I.  Energy  Trust (a  significant  stockholder  of  ours), and Westside
Resources,  L.P.  ("WRLP"),  an  entity  of which Jimmy D. Wright (a director of
ours)  is the sole owner. The bulk of the proceeds of this loan went to fund our
obligations  under  the  Enexco  Agreement.  This  loan is secured by all of our
assets,  including  our  oil and gas interests heretofore received in connection
with the Enexco Agreement, as well as all future oil and gas interests. Interest
accrues  on  this  loan at a rate of 10% per annum. This loan can become due and
payable  at  any  time upon the demand of the lender. In consideration of making
the  loan, we granted warrants to the owners of CEI Ventures, LLC to purchase up
to an aggregate of 1,050,001 shares of our common stock for a per-share exercise
price of $.50. These warrants have a term of and are exercisable for five years.
In  connection with this loan, we agreed to register all shares separately owned
by  the  owners  of  CEI  Ventures, LLC or to be acquired pursuant to derivative
securities,  including  the  shares to be acquired upon exercise of the warrants
issued  in  connection  with  the loans described above. In connection with this
loan,  we  entered  into  a "piggy back" registration rights agreements with the
owners of CEI Ventures, LLC, whereby each of them will have the right to include
in any registration with the U.S. Securities and Exchange Commission any and all
shares  owned  by  them  or  to  be  acquired pursuant to derivative securities,
including  the  shares  to  be  acquired upon exercise of the warrants issued in
connection  with  the  loan  described  above.

     Currently,  we  can  finance  only  the limited exploration activity by the
Enexco  Agreement  described above.  We will have to obtain additional financing
to  pursue  additional  opportunities.  At  the  present  time, we are currently
trying to determine the scope of the business activities that we wish to pursue.
The amount of capital that we will need will depend on the scope of the business
activities  that  we  ultimately  decides  to pursue, which is uncertain at this
time.  However,  for  us  to  pursue business activities much greater than those
related  to  the  Enexco  Agreement,  we  would be required to undertake certain
financing  activities.  We currently do not have any binding commitments for, or
readily  available  sources  of,  additional financing.  We cannot assure anyone
that  additional financing will be available to us when needed or, if available,
that  it  can be obtained on commercially reasonably terms.  If we do not obtain
additional  financing we will not be able to expand the scope of our business or
even  stay  in  business for that matter.  If we are unable to obtain additional
funds,  we  may  have to reduce the scope our business activities.  If we do not
obtain  additional  financing,  we may be constrained to attempt to sell our oil
and  gas  interests  that we have accumulated.  However, we cannot assure anyone
that  we  will be able to find interested buyers or that the funds received from
any  such  sale  would  be  adequate  to  fund  our  activities.  Under  certain
circumstances,  we  could  be  forced  to cease our operations and liquidate our
remaining  assets,  if  any.

     Production  from our exploration and drilling efforts would provide us with
cash  flow,  and  a proven reserve would increase the value of our leased rights
and should enable us to obtain bank financing (after the wells have produced for
a  period  of  time  to  satisfy  the  related  lender).

     To  conserve  on  our  capital requirements, we intend occasionally to seek
other  industry  investors who are willing to participate in our exploration and
production  activities.  We  expect  to  retain  a promotional interest in these
prospects,  but  generally  we  will  have to finance a portion (and sometimes a
significant  portion)  of  the  acquisition  and  drilling  costs.  Also, we may
acquire  interests  in  properties  by  issuing  shares  of  our  common  stock.

                                       6

<PAGE>
                   CRITICAL ACCOUNTING POLICIES AND ESTIMATES

     Our  discussion  of  our  financial  condition and results of operations is
based  on  the information reported in our financial statements. The preparation
of  our  financial statements requires us to make assumptions and estimates that
affect  the  reported  amounts  of assets, liabilities, revenues and expenses as
well  as  the  disclosure of contingent assets and liabilities as of the date of
our  financial  statements.  We base our assumptions and estimates on historical
experience  and  other  sources  that  we  believe to be reasonable at the time.
Actual  results  may  vary  from  our estimates due to changes in circumstances,
weather,  politics,  global  economics,  mechanical  problems,  general business
conditions  and  other factors. Our significant accounting policies are detailed
in  Note  3  to  our financial statements included in this Quarterly Report.  We
have outlined below certain of these policies that have particular importance to
the  reporting  of  our  financial  condition and results of operations and that
require  the  application  of  significant  judgment  by  our  management.

     KEY  DEFINITIONS
     ----------------

     Proved  reserves,  as  defined  by the SEC, are the estimated quantities of
crude  oil,  condensate, natural gas and natural gas liquids that geological and
engineering data demonstrate with reasonable certainty are recoverable in future
years  from  known  reservoirs under existing economic and operating conditions.
Valuations  include consideration of changes in existing prices provided only by
contractual  arrangements,  but not on escalations based upon future conditions.
Prices do not include the effect of derivative instruments, if any, entered into
by  us.

     Proved  developed  reserves  are  those  reserves  expected to be recovered
through existing equipment and operating methods. Additional oil and gas volumes
expected  to  be  obtained  through  the application of fluid injection or other
improved recovery techniques for supplementing the natural forces and mechanisms
of primary recovery are included as proved developed reserves only after testing
of  a pilot project or after the operation of an installed program has confirmed
through  production  response  that  increased  recovery  will  be  achieved.

     Proved  undeveloped  reserves  are  those  reserves that are expected to be
recovered  from new wells on non-drilled acreage, or from existing wells where a
relatively  major  expenditure  is  required  for  re-completion.  Reserves  on
non-drilled  acreage  are  limited to those drilling units offsetting productive
units  that  are  reasonably certain of production when drilled. Proved reserves
for  other  non-drilled units are claimed only where it can be demonstrated with
certainty  that  there  is continuity of production from the existing productive
formation.

     USE  OF  ESTIMATES
     ------------------

     The  preparation  of  financial  statements  in  conformity with accounting
principles  generally  accepted  in  the  United  States  of  America  requires
management to make estimates and assumptions that affect the reported amounts of
assets  and  liabilities  and disclosure of contingent assets and liabilities at
the  date  of  the financial statements and the reported amounts of revenues and
expenses  during  the  reporting  period. Actual results could differ from those
estimates.

 OIL  AND  GAS  PROPERTIES
 -------------------------

     We  account for our oil and natural gas producing activities using the full
cost  method  of  accounting  as  prescribed by the United States Securities and
Exchange  Commission  (SEC). Accordingly, all costs incurred in the acquisition,
exploration, and development of proved oil and natural gas properties, including
the  costs  of  abandoned  properties,  dry holes, geophysical costs, and annual
lease  rentals  are  capitalized. All general and administrative corporate costs
unrelated  to  drilling  activities  are  expensed  as  incurred. Sales or other
dispositions  of oil and natural gas properties are accounted for as adjustments
to  capitalized costs, with no gain or loss recorded unless the ratio of cost to
proved  reserves  would  significantly  change.  Depletion  of evaluated oil and
natural  gas  properties  is computed on the units of production method based on
proved  reserves.  The  net  capitalized  costs  of  proved  oil and natural gas
properties  are subject to a full cost ceiling limitation in which the costs are
not  allowed to exceed their related estimated future net revenues discounted at
10%,  net  of  tax considerations.  Costs associated with unevaluated properties
are  excluded  from  the full cost pool until we have made a determination as to
the  existence  of  proved reserves. We review our unevaluated properties at the
end  of  each  quarter  to  determine  whether  the  costs  incurred  should  be
transferred  to  the  full  cost  pool  and  thereby subject to amortization and
ceiling  test.

                                       7

<PAGE>
     ASSET  RETIREMENT  OBLIGATIONS
     ------------------------------

     In  August  2001,  the  FASB  issued  SFAS  No.  143,  Accounting for Asset
Retirement  Obligations  (SFAS 143). SFAS 143 requires that the fair value of an
asset  retirement  cost, and corresponding liability, should be recorded as part
of  the  cost  of  the  related  long-lived  asset and subsequently allocated to
expense  using  a  systematic  and  rational  method.

     REVENUE  RECOGNITION
     --------------------

     We  recognize  oil  and  natural  gas  revenue  under  the  sales method of
accounting  for  our  interests  in  producing  wells  as oil and natural gas is
produced  and  sold  from  those  wells.

     PROVISIONS  FOR  TAXES
     ----------------------

     We  have  adopted  SFAS  No. 109 "Accounting for Income Taxes". Pursuant to
this  pronouncement, income taxes are accounted for using an asset and liability
approach.  SFAS  No.  109  requires  the  recognition of deferred tax assets and
liabilities  for  the  expected future tax consequences of temporary differences
between  the financial statements and tax bases of assets and liabilities at the
applicable  tax  rates. A valuation allowance is utilized when it is more likely
than  not,  that  some portion of, or all of the deferred tax assets will not be
realized.  Deferred  tax  assets and liabilities are adjusted for the effects of
changes  in  tax  laws  and  rates  on  the  date  of  enactment.

                           FORWARD-LOOKING STATEMENTS

     Statements  in  the  preceding  discussion  relating  to  future  plans,
projections,  events,  or  conditions  are  forward-looking  statements.  Actual
results,  including  production  growth  and  capital  spending,  could  differ
materially  due  to  changes  in long-term oil or gas prices or other changes in
market  conditions  affecting  the  oil  and  gas  industry; political events or
disturbances;  severe  weather  events;  reservoir  performance; changes in OPEC
quotas;  timely  completion  of  development  projects;  changes in technical or
operating  conditions; and other factors including those discussed herein and in
the  section  captioned  "RISK  FACTORS" in our General Form for Registration of
Securities  on  Form  10.

ITEM 4T.  CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

      Our  Principal  Executive  Officer  and Principal Financial Officer, after
evaluating  the  effectiveness  of  our  disclosure  controls and procedures (as
defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of
the  period covered by this report, have concluded that, based on the evaluation
of  these  controls  and procedures, that our disclosure controls and procedures
were  not  effective  due  to  the  lack  of  segregation of duties in financial
reporting,  as  our  accounting  functions  are  performed by one person with no
internal review, as our company does not have an audit committee. This is due to
the  company's lack of working capital to hire additional staff. To remedy this,
we  intend  to  engage  another accountant to assist with financial reporting as
soon  as  our  finances  will  allow.

CHANGE  IN  INTERNAL  CONTROLS  OVER  FINANCIAL  REPORTING

     There have not been any changes in our predecessors' internal controls over
financial  reporting  that  occurred during the quarterly period ended March 31,
2008 that has materially affected, or is reasonably likely to materially affect,
our  internal  controls  over  financial  reporting.

                                       8

<PAGE>
PART II. OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

     We  are  not  now  a  party to any legal proceeding requiring disclosure in
accordance  with  the  rules of the U.S. Securities and Exchange Commission.  In
the  future,  we  may  become involved in various legal proceedings from time to
time,  either  as  a  plaintiff  or as a defendant, and either in or outside the
normal  course  of business.  We are not now in a position to determine when (if
ever)  such  a  legal proceeding may arise. If we ever become involved in such a
legal  proceeding,  our  financial condition, operations, or cash flows could be
materially  and  adversely  affected,  depending  on the facts and circumstances
relating  to  such  proceeding.

ITEM 6.  EXHIBITS

     (a)     The  following exhibits are filed with this Quarterly Report or are
incorporated  herein  by  reference:

Exhibit
Number    Description

31.01     Certification pursuant to Rule 13a-14(a) of the Securities Exchange
          Act of 1934.
31.02     Certification pursuant to Rule 13a-14(a) of the Securities Exchange
          Act of 1934.
32.01     Certification Pursuant to 18 U.S.C. Section 1350, as pursuant to
          Section 906 of the Sarbanes-Oxley Act of 2002.
32.02     Certification Pursuant to 18 U.S.C. Section 1350, as pursuant to
          Section 906 of the Sarbanes-Oxley Act of 2002.

                                   SIGNATURES

     In accordance with the requirements of the Exchange Act, the Registrant has
duly caused this Report to be signed on its behalf by the undersigned, thereunto
duly  authorized.

                                     COLONY ENERGY, INC.
                                     (Registrant)


                                     By: /s/ Kent E. Lovelace, Jr.
                                         -------------------------
                                         Kent E. Lovelace, Jr.,
                                         Chief Executive Officer
                                         (Principal Executive Officer, Principal
                                         Financial Officer and Principal
                                         Accounting Officer)
June ___, 2008

     Kent  E.  Lovelace,  Jr.,
Chief  Executive  Officer

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