----

| ý | Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934: For the quarterly period ended April 30, 2015 |
|--------|----------------------------------------------------------------------------------------------------------------------------------------|

| ☐ | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934: For the transition period from _______ to _________ |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| NEVADA                                                         |   | 30-0420930                        |
|----------------------------------------------------------------|--------|-----------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (IRS Employer Identification No.) |

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

----

----

| Item 1.                    | Financial Statements                                                                        | 3      |
|----------------------------|---------------------------------------------------------------------------------------------|--------|
|                       |                                                                                        |   |
| Item 2.                    | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 26     |
|                       |                                                                                        |   |
| Item 3.                    | Quantitative and Qualitative Disclosures About Market Risk                                  | 32     |
|                       |                                                                                        |   |
| Item 4.                    | Controls and Procedures                                                                     | 32     |
|                       |                                                                                        |   |
| Part II. Other Information |
|                       |                                                                                        |   |
| Item 1.                    | Legal Proceedings                                                                           | 32     |
|                       |                                                                                        |   |
| Item 1A.                   | Risk Factors                                                                                | 32     |
|                       |                                                                                        |   |
| Item 2.                    | Unregistered Sales of Equity Securities and Use of Proceeds                                 | 34     |
|                       |                                                                                        |   |
| Item 3.                    | Defaults Upon Senior Securities                                                             | 35     |
|                       |                                                                                        |   |
| Item 4.                    | Mine Safety Disclosures                                                                     | 35     |
|                       |                                                                                        |   |
| Item 5.                    | Other Information                                                                           | 35     |
|                       |                                                                                        |   |
| Item 6.                    | Exhibits                                                                                    | 35     |

----

| Item 1. | Financial Statements |
|---------|----------------------|

| 1.     | Consolidated Balance Sheets (unaudited)                                  | 4      |
|--------|--------------------------------------------------------------------------|--------|
|   |                                                                     |   |
| 2..    | Consolidated Statements of Operations and Comprehensive Loss (unaudited) | 5      |
|   |                                                                     |   |
| 3.     | Consolidated Statements of Cash Flows (unaudited)                        | 6      |
|   |                                                                     |   |
| 4.     | Notes to Consolidated Financial Statements (unaudited)                   | 7      |

----

Table of Contents

|                                                                                                                                                                      |   | April 30, 2015 |        |   | July 31, 2014 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|-------------|--------|---------------|--------|
| ASSETS                                                                                                                                                                    |   |                |        |   |               |   |
| Current assets:                                                                                                                                                           |   |                |        |   |               |   |
| Cash and cash equivalents                                                                                                                                                 |   | $              | 90,261      |   |          | $      | 144,258 |   |
| Oil and gas revenues receivable                                                                                                                                           |   |           | 323,839     |   |          |   | 372,120 |   |
| Accounts receivable - related party                                                                                                                                       |   |           | 2,722       |   |          |   | 58,014 |   |
| Other current assets                                                                                                                                                      |   |           | 639,005     |   |          |   | 446,320 |   |
| Other receivables, net                                                                                                                                                    |   |           | 139,542     |   |          |   | 38,455 |   |
| Total current assets                                                                                                                                                      |   |           | 1,195,369   |   |          |   | 1,059,167 |   |
|                                                                                                                                                                      |   |           |        |   |          |   |   |   |
| Oil and gas properties, accounted for using the full cost method of accounting                                                                                            |   |           |        |   |          |   |   |   |
| Evaluated property, net of accumulated depletion of $4,221,633 and $3,491,420, respectively; and accumulated impairment of $373,335 and $373,335, respectively            |   |           | 16,765,761  |   |          |   | 15,288,370 |   |
| Unevaluated property                                                                                                                                                      |   |           | 2,260,912   |   |          |   | 2,119,769 |   |
| Restricted cash                                                                                                                                                           |   |           | 6,857,002   |   |          |   | 6,877,944 |   |
| Other assets                                                                                                                                                              |   |           | 404,264     |   |          |   | 219,942 |   |
| Property and equipment, net of accumulated depreciation of $175,620 and $135,590, respectively                                                                            |   |           | 126,060     |   |          |   | 166,963 |   |
| TOTAL ASSETS                                                                                                                                                              |   | $              | 27,609,368  |   |          | $      | 25,732,155 |   |
|                                                                                                                                                                      |   |           |        |   |          |   |   |   |
| LIABILITIES AND EQUITY                                                                                                                                                    |   |           |        |   |          |   |   |   |
| Current liabilities:                                                                                                                                                      |   |           |        |   |          |   |   |   |
| Accounts payable and accrued expenses                                                                                                                                     |   | $              | 3,631,169   |   |          | $      | 2,795,675 |   |
| Short term notes payable, net of discount $280,210 and $0                                                                                                                 |   |           | 1,228,305   |   |          |   | 334,688 |   |
| Derivative Liability                                                                                                                                                      |   |           | 1,940,460   |   |          |   | - |   |
| Asset retirement obligation – short term                                                                                                                            |   |           | 60,000      |   |          |   | 1,133,690 |   |
| Advances                                                                                                                                                                  |   |           | 195,904     |   |          |   | 195,904 |   |
| Due to related parties                                                                                                                                                    |   |           | 78,585      |   |          |   | 165,542 |   |
| Total current liabilities                                                                                                                                                 |   |           | 7,134,423   |   |          |   | 4,625,499 |   |
|                                                                                                                                                                      |   |           |        |   |          |   |   |   |
| Notes payable, net of discount of $491,374 and $0                                                                                                                         |   |           | 4,054,080   |   |          |   | - |   |
| Notes payable - related party                                                                                                                                             |   |           | 600,000     |   |          |   | 600,000 |   |
| Asset retirement obligation – long term                                                                                                                             |   |           | 12,394,349  |   |          |   | 10,582,540 |   |
| Total liabilities                                                                                                                                                         |   |           | 24,182,852  |   |          |   | 15,808,039 |   |
|                                                                                                                                                                      |   |           |        |   |          |   |   |   |
| Stockholders' Deficit:                                                                                                                                                    |   |           |        |   |          |   |   |   |
|                                                                                                                                                                      |   |           | -           |   |          |   | - |   |
| Common stock: $001 par value; 333,333,333 shares authorized; 21,272,785 and 21,081,602 shares issued and outstanding as of April 30, 2015 and July 31, 2014, respectively |   |           | 21,273      |   |          |   | 21,082 |   |
| Receivable for common stock                                                                                                                                               |   |           | (2,184,879  | )      |          |   | (2,184,879 | ) |
| Additional paid-in capital                                                                                                                                                |   |           | 82,920,196  |   |          |   | 82,228,799 |   |
| Accumulated deficit                                                                                                                                                       |   |           | (77,294,234 | )      |          |   | (70,106,351 | ) |
| Total stockholders' equity                                                                                                                                                |   |           | 3,462,356   |   |          |   | 9,958,651 |   |
| Noncontrolling interests                                                                                                                                                  |   |           | (35,840     | )      |          |   | (34,535 | ) |
| Total equity                                                                                                                                                              |   |           | 3,426,516   |   |          |   | 9,924,116 |   |
|                                                                                                                                                                      |   |           |        |   |          |   |   |   |
| TOTAL LIABILITIES AND EQUITY                                                                                                                                              |   | $              | 27,609,368  |   |          | $      | 25,732,155 |   |

----

Table of Contents

|                                                                |   | Three Months Ended April 30, |       |   | Nine Months End April 30, |   |
|---------------------------------------------------------------------|--------|------------------------------|------------|--------|---------------------------|--------|
|                                                                |   | 2015                         |       |   | 2014                      |   |   | 2015 |   |   | 2014 |   |
|                                                                |   |                              |       |   |                           |   |   |  |   |   |  |   |
| Revenues                                                            |   | $                            | 1,139,278  |   |                      | $      | 1,057,550 |   |   | $ | 2,991,055 |   |   | $ | 3,887,493 |   |
|                                                                |   |                         |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses                                                  |   |                         |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Lease operating expense                                             |   |                         | 1,043,956  |   |                      |   | 1,559,339 |   |   |   | 3,254,801 |   |   |   | 3,487,798 |   |
| Depreciation, depletion, and amortization                           |   |                         | 385,058    |   |                      |   | 179,678 |   |   |   | 771,480 |   |   |   | 673,357 |   |
| Accretion                                                           |   |                         | 229,560    |   |                      |   | 242,608 |   |   |   | 790,550 |   |   |   | 731,093 |   |
| Consulting fees - related party                                     |   |                         | -          |   |                      |   | - |   |   |   | - |   |   |   | 6,754 |   |
| General and administrative expense                                  |   |                         | 749,154    |   |                      |   | 645,496 |   |   |   | 2,672,914 |   |   |   | 3,383,820 |   |
| Total operating expenses                                            |   |                         | 2,407,728  |   |                      |   | 2,627,121 |   |   |   | 7,489,745 |   |   |   | 8,282,822 |   |
|                                                                |   |                         |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Loss from operations                                                |   |                         | (1,268,450 | )      |                      |   | (1,569,571 | ) |   |   | (4,498,690 | ) |   |   | (4,395,329 | ) |
|                                                                |   |                         |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Consulting and other income (expense)                               |   |                         | 14,126     |   |                      |   | 712 |   |   |   | 20,906 |   |   |   | 68,912 |   |
| Gain or Loss on derivatives                                         |   |                         | (1,468,016 | )      |                      |   | - |   |   |   | (1,468,016 | ) |   |   | - |   |
| Interest income (expense), net                                      |   |                         | (697,291   | )      |                      |   | (20,905 | ) |   |   | (1,204,795 | ) |   |   | (98,033 | ) |
| Foreign currency transaction gain (loss)                            |   |                         | (36,951    | )      |                      |   | (3,380 | ) |   |   | (38,593 | ) |   |   | (34,006 | ) |
|                                                                |   |                         |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net loss before income taxes                                        |   |                         | (3,456,582 | )      |                      |   | (1,593,144 | ) |   |   | (7,189,188 | ) |   |   | (4,458,456 | ) |
|                                                                |   |                         |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Income tax provision                                                |   |                         | -          |   |                      |   | - |   |   |   | - |   |   |   | (4,599 | ) |
|                                                                |   |                         |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                            |   |                         | (3,456,582 | )      |                      |   | (1,593,144 | ) |   |   | (7,189,188 | ) |   |   | (4,463,055 | ) |
|                                                                |   |                         |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Less:  Net loss attributable to noncontrolling interests       |   |                         | -          |   |                      |   | (1,602 | ) |   |   | (1,305 | ) |   |   | (4,962 | ) |
|                                                                |   |                         |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net loss attributable to Hydrocarb Corporation                      |   |                         | (3,456,582 | )      |                      |   | (1,591,542 | ) |   |   | (7,187,883 | ) |   |   | (4,458,093 | ) |
|                                                                |   |                         |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted loss per common share:                            |   | $                            | (0.16      | )      |                      | $      | (0.08 | ) |   | $ | (0.34 | ) |   | $ | (0.34 | ) |
|                                                                |   |                         |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares  outstanding  (basic and diluted) |   |                         | 21,270,879 |   |                      |   | 20,963,759 |   |   |   | 21,184,600 |   |   |   | 13,111,626 |   |

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Table of Contents

|                                                                                                            |   | Nine Months Ended April 31, |       |
|-----------------------------------------------------------------------------------------------------------------|--------|-----------------------------|------------|
|                                                                                                            |   |                             |       |   |  |   |
|                                                                                                            |   | 2015                        |       |   | 2014 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                                                            |   |                             |       |   |  |   |
| Net income (loss)                                                                                               |   | $                           | (7,189,188 | ) |   | $ | (4,463,055 | ) |
| Adjustments to reconcile net income loss to net cash used in operating activities:                              |   |                        |       |   |   |   |   |   |
| Depreciation, depletion and amortization                                                                        |   |                        | 771,480    |   |   |   | 673,357 |   |
| Accretion                                                                                                       |   |                        | 790,550    |   |   |   | 731,093 |   |
| Amortization of debt discount                                                                                   |   |                        | 820,448    |   |   |   | - |   |
| Amortization of debt issuance cost                                                                              |   |                        | 205,131    |   |   |   |   |   |
| Change in Derivative Liabilities                                                                                |   |                        | 1,468,016  |   |   |   | - |   |
| Loss on settlement shares                                                                                       |   |                        | 65,000     |   |   |   | - |   |
| Warrants granted to related party                                                                               |   |                        | -          |   |   |   | 6,754 |   |
| Share based compensation                                                                                        |   |                        | 396,475    |   |   |   | 1,251,212 |   |
| Changes in operating assets and liabilities:                                                                    |   |                        |       |   |   |   |   |   |
| Accounts receivable                                                                                             |   |                        | 48,281     |   |   |   | 366,220 |   |
| Other receivables                                                                                               |   |                        | (101,087   | ) |   |   | - |   |
| Accounts receivable - related party                                                                             |   |                        | 55,292     |   |   |   | 120,816 |   |
| Payments on borrowings from related parties                                                                     |   |                        | (86,957    | ) |   |   | - |   |
| Other assets                                                                                                    |   |                        | 77,862     |   |   |   | 428,971 |   |
| Accounts payable and accrued expenses                                                                           |   |                        | 790,702    |   |   |   | 128,352 |   |
| Advances                                                                                                        |   |                        | -          |   |   |   | 15,100 |   |
| Settlement of asset retirement obligation                                                                       |   |                        | -          |   |   |   | (84,618 | ) |
| NET CASH USED IN OPERATIONS                                                                                     |   |                        | (1,887,995 | ) |   |   | (825,798 | ) |
|                                                                                                            |   |                        |       |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                                                            |   |                        |       |   |   |   |   |   |
| Purchases of oil and gas properties                                                                             |   |                        | (2,401,177 | ) |   |   | (1,031,171 | ) |
| Purchases of property and equipment                                                                             |   |                        | -          |   |   |   | (156,560 | ) |
| Proceeds from sale of property and equipment                                                                    |   |                        | 2,366      |   |   |   | - |   |
| Proceeds from sale of oil and gas properties                                                                    |   |                        | -          |   |   |   | 625,000 |   |
| Change in restricted cash                                                                                       |   |                        | 20,942     |   |   |   | 40,000 |   |
| CASH USED IN INVESTING ACTIVITIES                                                                               |   |                        | (2,377,869 | ) |   |   | (522,731 | ) |
|                                                                                                            |   |                        |       |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                                                            |   |                        |       |   |   |   |   |   |
| Payments on notes payable                                                                                       |   |                        | (596,672   | ) |   |   | (311,995 | ) |
| Proceeds from note payable to related party                                                                     |   |                        | -          |   |   |   | 300,000 |   |
| Proceeds from collections on receivable for stock sale                                                          |   |                        | -          |   |   |   | 675,000 |   |
| Dividend on HCN preferred stock                                                                                 |   |                        | -          |   |   |   | (34,254 | ) |
| Payments on borrowings from Related Parties                                                                     |   |                        | -          |   |   |   | (610,514 | ) |
| Proceeds from borrowings                                                                                        |   |                        | 4,808,539  |   |   |   | 1,736,437 |   |
| Proceeds from subsidiary sale of its common stock                                                               |   |                        | -          |   |   |   | 31,071 |   |
| CASH PROVIDED BY FINANCING ACTIVITIES                                                                           |   |                        | 4,211,867  |   |   |   | 1,785,745 |   |
|                                                                                                            |   |                        |       |   |   |   |   |   |
| NET CHANGE IN CASH AND CASH EQUIVALENTS                                                                         |   |                        | (53,997    | ) |   |   | 437,216 |   |
|                                                                                                            |   |                        |       |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                                                |   |                        | 144,258    |   |   |   | 354,829 |   |
|                                                                                                            |   |                        |       |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD                                                                      |   | $                           | 90,261     |   |   | $ | 792,045 |   |
|                                                                                                            |   |                        |       |   |   |   |   |   |
| SUPPLEMENTAL CASH FLOW INFORMATION                                                                              |   |                        |       |   |   |   |   |   |
| Cash paid during the period for:                                                                                |   |                        |       |   |   |   |   |   |
| Income taxes                                                                                                    |   | $                           | -          |   |   | $ | 10,000 |   |
| Interest                                                                                                        |   | $                           | 8,331      |   |   | $ | 15,271 |   |
|                                                                                                            |   |                        |       |   |   |   |   |   |
| NONCASH INVESTING AND FINANCING ACTIVITIES                                                                      |   |                        |       |   |   |   |   |   |
| Asset retirement obligation sold                                                                                |   | $                           | -          |   |   | $ | 33,195 |   |
| Asset retirement obligations incurred                                                                           |   |                        | -          |   |   |   | 100,932 |   |
| Asset retirement obligations - change in estimate                                                               |   |                        | (52,431    | ) |   |   | - |   |
| Discount from derivatives                                                                                       |   |                        | 454,903    |   |   |   | - |   |
| Note payable for prepaid insurance                                                                              |   |                        | 309,212    |   |   |   | 403,104 |   |
| Settlement of HCN debt with HCN preferred stock                                                                 |   |                        | -          |   |   |   | 1,585,200 |   |
| Tainted warrant liability                                                                                       |   |                        | 17,541     |   |   |   | - |   |
| Common stock exchanged for HCN common stock for acquisition of HCN                                              |   |                        | -          |   |   |   | 8,397 |   |
| Receivable for common stock - related party                                                                     |   |                        |       |   |   |   | 1,000,000 |   |
| Receivable for common stock - related party                                                                     |   |                        | -          |   |   |   | 1,859,879 |   |
| Common stock issued to satisfy contingently issuable shares from 2012 acquisition of Namibia Exploration , Inc. |   |                        | -          |   |   | $ | 7,410 |   |
| Value of shares issued to lenders as part of debt financing                                                     |   | $                           | 247,655    |   |   | $ | - |   |
| Debt issue costs                                                                                                |        | $                           | 308,729    |  |  |  | - |  |

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Table of Contents

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Table of Contents

| Assets acquired                                     |   | $      | 1,529,246  |   |
|-----------------------------------------------------|--------|--------|------------|--------|
| Liabilities assumed                                 |   |   | (161,599   | )      |
| Noncontrolling interest in 95% owned HCN subsidiary |   |   | 30,480     |   |
|                                                |   | $      | 1,398,127  |   |
| Common stock, at par                                |   |   | 8,397      |   |
| Receivable for common stock                         |   |   | (2,484,879 | )      |
| Additional paid-in capital                          |   |   | 3,874,609  |   |
|                                                |   | $      | 1,398,127  |   |

|  | 1) | Initial Exploration Period (expires September 2015): Perform a hydrocarbon potential study, gather and review existing technical data including reprocessing of available seismic lines, and acquire and process 750 kilometers of new 2D seismic data.  The minimum expenditure is $4,505,000. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 2) | First Renewal Exploration Period (two years from end of the Initial Exploration Period):  Acquire 200 square kilometers of 3D seismic data, interpret and map the data, design a drilling program, drill one well, conduct an environmental study, and relinquish 25% of the exploration license area.  The minimum expenditure is $17,350,000. |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 3) | Second Renewal (Production License) Exploration Period (25 years):  Report on reserves and production and conduct an environmental study.  The minimum expenditure is $300,000. |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

|                                                                                                                                |   | As Previously Reported |       |   | Adjustment |   |       | July 31, 2014 |   |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|------------|--------|------------|--------|------------|---------------|--------|
| ASSETS                                                                                                                              |   |                        |       |   |            |   |       |               |   |
|                                                                                                                                |   |                        |       |   |            |   |       |               |   |
| Stockholders' Deficit:                                                                                                              |   |                        |       |   |            |   |       |               |   |
| Series A 7% Convertible Preferred Stock, 10,000 shares authorized $400 par, 8,188 shares issued and outstanding as of July 31, 2014 |   |                   | 3,275,200  |   |       |   | (3,275,200 | )             |   |   | - |   |
| Additional paid-in capital                                                                                                          |   |                   | 78,953,599 |   |       |   | 3,275,200  |          |   |   | 82,228,799 |   |
| Total stockholders' equity                                                                                                          |   |                   | 9,958,651  |   |       |   |       |          |   |   | 9,958,651 |   |
| Noncontrolling interests                                                                                                            |   |                   | (34,535    | )      |       |   |       |          |   |   | (34,535 | ) |
| Total equity                                                                                                                        |   |                   | 9,924,116  |   |       |   |       |          |   |   | 9,924,116 |   |
|                                                                                                                                |   |                   |       |   |       |   |       |          |   |   |   |   |
| TOTAL LIABILITIES AND EQUITY                                                                                                        |   | $                      | 25,732,155 |   |       |   |       |          |   | $ | 25,732,155 |   |

|                                                           |   | As Previously Reported |       |   | Adjustment |   |      | July 31, 2014 |   |
|----------------------------------------------------------------|--------|------------------------|------------|--------|------------|--------|-----------|---------------|--------|
| Net loss attributable to Hydrocarb Corporation                 |   |                   | (6,549,322 | )      |       |        |      |          |   | (6,549,322 | ) |
| Dividend on preferred stock                                    |   |                   |       |   |       |        |      |          |   |   |   |
| Deemed dividend on preferred stock                             |   |                   | (34,254    | )      |       |   | 34,254    |          |   |   | - |   |
| Accretion dividend-Beneficial Cash Feature on preferred stock  |   |                   | (150,548   | )      |       |   | 150,548   |          |   |   | - |   |
| Net loss attributable to Hydrocarb Energy Corp after dividends |   |                   | (949,808   | )      |       |   | 949,808   |          |   |   | - |   |
|                                                           |   | $                      | (7,683,932 | )      |       | $      | 1,134,610 |          |   | $ | (6,549,322 | ) |

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Table of Contents

|                                           |   | As Previously Reported |       |   | Adjustment |   |   | April 30, 2014 |   |
|------------------------------------------------|--------|------------------------|------------|--------|------------|--------|--------|----------------|--------|
| Net loss attributable to Hydrocarb Corporation |   |                   | (1,591,542 | )      |       |        |   |           |   | (1,591,542 | ) |
| Dividend on preferred stock                    |   |                   |       |   |       |        |   |           |   |   |   |
| Deemed dividend on preferred stock             |   |                   | (57,609    | )      |       |   | 57,609 |           |   |   | - |   |
|                                           |   | $                      | (1,649,151 | )      |       | $      | 57,609 |           |   | $ | (1,591,542 | ) |

|                       |   | April 30,2015 |       |   | July 31,2014 |   |
|----------------------------|--------|---------------|------------|--------|--------------|--------|
| Evaluated Properties       |   |               |       |   |              |   |
| Costs subject to depletion |   | $             | 21,360,727 |   |         | $      | 19,153,125 |   |
| Accumulated impairment     |   |          | (373,335   | )      |         |   | (373,335 | ) |
| Accumulated depletion      |   |          | (4,221,631 | )      |         |   | (3,491,420 | ) |
| Total evaluated properties |   |          | 16,765,761 |   |         |   | 15,288,370 |   |
|                       |   |          |       |   |         |   |   |   |
| Unevaluated properties     |   |          | 2,260,912  |   |         |   | 2,119,769 |   |
| Net oil and gas properties |   | $             | 19,026,673 |   |         | $      | 17,408,139 |   |

|  | · | Approximately $182,000 of leasehold costs, specifically payment of the annual concession fee to the Government of Namibia. As of April 30, 2015, approximately $2.2 million has been expended towards the initial exploration period. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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|                                                           |   | April 30, 2015 |       |   | July 31,2014 |   |
|----------------------------------------------------------------|--------|----------------|------------|--------|--------------|--------|
| Liability for asset retirement obligation, beginning of period |   | $              | 11,716,230 |   |         | $      | 10,933,398 |   |
| Asset retirement obligations sold                              |   |           | -          |   |         |   | (33,195 | ) |
| Asset retirement obligations incurred on properties drilled    |   |           | -          |   |         |   | - |   |
| Accretion                                                      |   |           | 790,550    |   |         |   | 1,043,928 |   |
| Revisions in estimated cash flows                              |   |           | (52,431    | )      |         |   | (104,237 | ) |
| Costs incurred                                                 |   |           | -          |   |         |   | (123,664 | ) |
| Liability for asset retirement obligation, end of period       |   | $              | 12,454,349 |   |         | $      | 11,716,230 |   |
|                                                           |   |           |       |   |         |   |   |   |
| Current portion of asset retirement obligation                 |   | $              | 60,000     |   |         | $      | 1,133,690 |   |
| Noncurrent portion of asset retirement obligation              |   |           | 12,394,349 |   |         |   | 10,582,540 |   |
| Total liability for asset retirement obligation                |   | $              | 12,454,349 |   |         | $      | 11,716,230 |   |

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|                                                     |   | 2015   |    |   | 2014   |   |
|----------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Number of options granted                                |   |   | 25,000  |   |   |   | - |   |
| Compensation expense recognized                          |   | $      | 112,500 |   |   | $      | 56,208 |   |
| Weighted average exercise price of options  granted |   | $      | 4.50    |   |   | $      | N/A |   |

|                               |   | Options |    |   | WeightedAverageShare Price |   |      | Aggregateintrinsicvalue |  |   | Weightedaverageremainingcontractuallife (years) |   |
|------------------------------------|--------|---------|---------|--------|----------------------------|--------|------|-------------------------|--|--------|-------------------------------------------------|--------|
| Outstanding at  July 31, 2014 |   |    | 265,333 |   |                       | $      | 6.81 |                    |  | $      |                                            |        |   |  | 7.95 |   |
| Granted                            |   |    | 25,000  |   |                       |   | 4.50 |                    |  |        |                                            |        |   |   | 5.00 |   |
| Exercised                          |   |    | -       |   |                       |   | -    |                    |  |        |                                            |        |   |   |   |   |
| Expired                            |   |    | (92,000 | )      |                       |   | 6.85 |                    |  |        |                                            |        |   |   |   |   |
| Outstanding at April 30, 2015      |   |    | 198,333 |   |                       | $      | 6.52 |                    |  | $      |                                            |        |   |   | 7.51 |   |

----

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|                                        |   | Warrants |      |   | WeightedAverageExercise Price |   |   | Aggregateintrinsicvalue |   |   | Weightedaverageremainingcontractuallife (years) |   |
|---------------------------------------------|--------|----------|-----------|--------|-------------------------------|--------|--------|-------------------------|--------|--------|-------------------------------------------------|--------|
| Outstanding at year ended July 31,2014      |   |     | 1,084,584 |   |                          | $      | 7.50   |                    |   | $      | -                                               |   |   |   | 1.04 |   |
| Granted                                     |   |     | 311,632   |   |                          |   | 0.28   |                    |   |   | 0.92                                            |   |   |   | 4.85 |   |
| Exercised                                   |   |     | -         |   |                          |   | -      |                    |   |   |                                            |   |   |   |   |   |
| Expired                                     |   |     | (417,917  | )      |                          |   | -      |                    |   |   |                                            |   |   |   |   |   |
| Outstanding at quarter ended April 30, 2015 |   |     | 978,299   |   |                          | $      | 5.20   |                    |   | $      | 0.92                                            |   |   |   | 2.08 |   |

|       |        | Warrant B |    |        | Warrant C |   |
|------------|--------|-----------|---------|--------|-----------|--------|
| Fair value |   | $         | 266,017 |   |      | $      | 206,245 |   |

|                            |        | 2015 |   |        | 2014   |   |
|---------------------------------|--------|------|--------|--------|--------|--------|
| Compensation expense recognized |   | $    | -      |   |   | $      | 6,754 |   |

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|                    |   | Three months endedApril 30, |   |   | Nine months endedApril 30, |   |
|-------------------------|--------|-----------------------------|--------|--------|----------------------------|--------|
|                    |   | 2015                        |   |   | 2014                       |   |   | 2015 |   |   | 2014 |   |
| Revenues                |   | $                           | -      |   |                       | $      | - |   |   | $ |   |   |   | $ | 39,274 |   |
| Lease operating costs   |   | $                           | -      |   |                       | $      | - |   |   | $ |   |   |   | $ | 23,259 |   |
| Overhead costs incurred |   | $                           | -      |   |                       | $      | - |   |   | $ |   |   |   | $ | 4,687 |   |

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| Description                                 |   | (Level 1) |   |   | (Level 2) |   |   | (Level 3) |   |   | Total CarryingValue |   |
|---------------------------------------------|--------|-----------|--------|--------|-----------|--------|--------|-----------|--------|--------|---------------------|--------|
| Convertible Notes                           |   | $         |   |   |      | $      | -      |      |   | $      | 1,648,407           |   |   | $ | 1,648,407 |   |
| Typenex Co-Warrants                         |   | $         | -      |   |      | $      | -      |      |   | $      | 243,478             |   |   | $ | 243,478 |   |
| Tainted Warrants – Georserve (Note 7) |   | $         |   |   |      | $      | -      |      |   | $      | 48,575              |   |   | $ | 48,575 |   |
| Total                                       |   | $         | -      |   |      | $      | -      |      |   | $      | 1,940,460           |   |   | $ | 1,940,460 |   |

|  | · | LG Capital Convertible Note |
|--|--------|-----------------------------|

|  | · | Adar Bays, LLC Convertible Note |
|--|--------|---------------------------------|

|  | · | JSJ Investments Inc. Convertible Note |
|--|--------|---------------------------------------|

|  | · | Typenex Co-Investment, LLC Convertible Note |
|--|--------|---------------------------------------------|

|                                                 |   | Initial |              |   | April 30, 2015 |   |
|------------------------------------------------------|--------|---------|-------------------|--------|----------------|--------|
| Common stock issuable                                |   |    | 744,835           |   |           |   | 1,771,432 |   |
| Market value of common stock on measurement date (1) |   | $       | 0.91 – 1.07 |   |           | $      | 1.20 |   |
| Adjusted exercise price                              |   | $       | 0.52 – 2.25 |   |           | $      | 0.26-$0.28 |   |
| Risk free interest rate (2)                          |   |    | 0.08% - 0.25      | %      |           |   | 0.01%-0.06 | % |
| Instrument lives in years                            |   |    | 0.50 – 1.00 |   |           |   | 0.32 – 0.68 |   |
| Expected volatility (3)                              |   |    | 103%-114          | %      |           |   | 126%-137 | % |
| Expected dividend yields (4)                         |   | None    |              |   | None           |   |

| (1) | The market value of common stock is the stock price at the close of trading on the date of issuance or at period-end, as applicable. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The risk-free interest rate was determined by management using between the 0.5 and 5 - year Treasury Bill as of the respective offering or measurement date. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The historical trading volatility was determined by the Company’s trading history. |
|-----|------------------------------------------------------------------------------------------|

| (4) | Management determined the dividend yield to be -0-% based upon its expectation that it will not pay dividends for the foreseeable future. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------|

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|                  |   | Balance atJuly 31,2014 |   |   | Initial Valuationof EmbeddedDerivativeInstrumentsIssued Duringthe Period |   |    | Increase(Decrease) inFair Value ofDerivativeLiabilities |   |   | Fair Value ofDerivativeLiabilitieson Repaymentof Debt |   |   | Balance atApril 30,2015 |     |
|-----------------------|--------|------------------------|--------|--------|--------------------------------------------------------------------------|--------|---------|---------------------------------------------------------|--------|--------|-------------------------------------------------------|--------|--------|-------------------------|----------|
| LG Capital            |   | $                      | -      |   |                                                                     | $      | 80,433  |                                                    |   | $      | 192,313                                               |   |   | $                       | (272,745 | ) |   | $ | - |   |
| Adar Bays, LLC        |   |                   | -      |   |                                                                     |   | 109,170 |                                                    |   |   | 163,576                                               |   |   |                    | (272,745 | ) |   |   | - |   |
| JSJ Investments, Inc. |   |                   | -      |   |                                                                     |   | 110,825 |                                                    |   |   | 382,064                                               |   |   |                    | -        |   |   |   | 492,889 |   |
| Typenex Co-Investment |   |                   |   |   |                                                                     |   | 66,720  |                                                    |   |   | 1,088,798                                             |   |   |                    | -        |   |   |   | 1,155,518 |   |
|                  |   |                   |   |   |                                                                     |   |    |                                                    |   |   |                                                  |   |   |                    |     |   |   |   |   |   |
|                  |   | $                      | -      |   |                                                                     | $      | 367,147 |                                                    |   | $      | 1,826,751.                                            |   |   | $                       | (545,490 | ) |   | $ | 1,648,407 |   |

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|                               |   | Balance atJuly 312014 |   |   | Initial Valuation |   |    | Increase(Decrease) inFair Value ofDerivativeLiabilities |   |   | Balance atApril 30,2015 |   |
|------------------------------------|--------|-----------------------|--------|--------|-------------------|--------|---------|---------------------------------------------------------|--------|--------|-------------------------|--------|
| Tainted Warrant-Georserve (Note 7) |   |                  | -      |   |              |   | 17,541  |                                                    |   |   | 31,034                  |   |   |   | 48,575 |   |
| Typenex Co-Warrants                |   | $                     | -      |   |              | $      | 91,925  |                                                    |   | $      | 151,553                 |   |   | $ | 243,478 |   |
|                               |   | $                     | -      |   |              | $      | 109,466 |                                                    |   | $      | 182,587                 |   |   | $ | 292,053 |   |

|                                                 |   | Initial |    |   | April 30, 2015 |   |
|------------------------------------------------------|--------|---------|---------|--------|----------------|--------|
| Common stock issuable                                |   |    | 705,556 |   |           |   | 978,299 |   |
| Market value of common stock on measurement date (1) |   | $       | 0.92    |   |           | $      | 1.20 |   |
| Adjusted exercise price                              |   | $       | 2.25    |   |           | $      | 0.28 |   |
| Risk free interest rate (3)                          |   |    | 1.57    | %      |           |   | 1.43 | % |
| Instrument lives in years                            |   |    | 5       |   |           |   | 4.85 |   |
| Expected volatility (4)                              |   |    | 112     | %      |           |   | 114 | % |
| Expected dividend yields (5)                         |   | None    |    |   | None           |   |

| (1) | The market value of common stock is the stock price at the close of trading on the date of issuance or at period-end, as applicable. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Upon the issuance of Vis Vires convertible note on March 31, 2015, it was assumed that the anti-provision was triggered as the note conversion price of $0.28 was below the then-current warrant exercise price of $2.25. The adjusted exercise price was lowered to the note conversion price. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The risk-free interest rate was determined by management using the 5 - year Treasury Bill as of the respective offering or measurement date. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | The historical trading volatility was determined by the Company’s trading history. |
|-----|------------------------------------------------------------------------------------------|

| (5) | Management determined the dividend yield to be -0-% based upon its expectation that it will not pay dividends for the foreseeable future. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------|

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|                              |   | April 30, 2015 |    |
|-----------------------------------|--------|----------------|---------|
| Prepaid letter of credit fees     |   | $              | 101,250 |   |
| Amortization                      |   |           | (84,875 | ) |
| Net prepaid letter of credit fees |   | $              | 16,375  |   |

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| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
|---------|---------------------------------------------------------------------------------------------|

|                                                                |   | Three Months Ended April 30, |       |   | Increase/ |   |       | %          |   |
|---------------------------------------------------------------------|--------|------------------------------|------------|--------|-----------|--------|------------|------------|--------|
|                                                                |   | 2015                         |       |   | 2014      |   |       | (Decrease) |   |   | Change |   |
|                                                                |   |                              |       |   |           |   |       |            |   |   |  |   |
| Revenues                                                            |   | $                            | 1,139,278  |   |      | $      | 1,057,550  |       |   |   | 81,728 |   |   |   | 8 | % |
|                                                                |   |                         |       |   |      |   |       |       |   |   |   |   |   |   |   |   |
| Operating expenses                                                  |   |                         |       |   |      |   |       |       |   |   |   |   |   |   |   |   |
| Lease operating expense                                             |   |                         | 1,043,956  |   |      |   | 1,559,339  |       |   |   | (515,383 | ) |   |   | -33 | % |
| Depreciation, depletion, and amortization                           |   |                         | 385,058    |   |      |   | 179,678    |       |   |   | 205,380 |   |   |   | 114 | % |
| Accretion                                                           |   |                         | 229,560    |   |      |   | 242,608    |       |   |   | (13,048 | ) |   |   | -5 | % |
| Consulting fees - related party                                     |   |                         | -          |   |      |   | -          |       |   |   | - |   |   |   |   |   |
| General and administrative expense                                  |   |                         | 749,154    |   |      |   | 645,496    |       |   |   | 103,658 |   |   |   | 16 | % |
| Total operating expenses                                            |   |                         | 2,407,728  |   |      |   | 2,627,121  |       |   |   | (219,393 | ) |   |   | -8 | % |
|                                                                |   |                         |       |   |      |   |       |       |   |   |   |   |   |   |   |   |
| Loss from operations                                                |   |                         | (1,268,450 | )      |      |   | (1,569,571 | )          |   |   | 301,121 |   |   |   | 19 | % |
|                                                                |   |                         |       |   |      |   |       |       |   |   |   |   |   |   |   |   |
| Consulting and other income (expense)                               |   |                         | 14,126     |   |      |   | 712        |       |   |   | 13,414 |   |   |   | 1,884 | % |
| Gain or Loss on derivatives                                         |   |                         | (1,468,016 | )      |      |   | -          |       |   |   | (1,468,016 | ) |   |   | -100 | % |
| Interest income (expense), net                                      |   |                         | (697,291   | )      |      |   | (20,905    | )          |   |   | (675,441 | ) |   |   | -3,236 | % |
| Foreign currency transaction gain (loss)                            |   |                         | (36,951    | )      |      |   | (3,380     | )          |   |   | (33,571 | ) |   |   | -993 | % |
|                                                                |   |                         |       |   |      |   |       |       |   |   |   |   |   |   |   |   |
| Net loss before income taxes                                        |   |                         | (3,456,582 | )      |      |   | (1,593,144 | )          |   |   | (1,863,437 | ) |   |   | -117 | % |
|                                                                |   |                         |       |   |      |   |       |       |   |   |   |   |   |   |   |   |
| Income tax provision                                                |   |                         | -          |   |      |   | -          |       |   |   | - |   |   |   |   |   |
|                                                                |   |                         |       |   |      |   |       |       |   |   |   |   |   |   |   |   |
| Net loss                                                            |   |                         | (3,456,582 | )      |      |   | (1,593,144 | )          |   |   | (1,863,437 | ) |   |   | -117 | % |
|                                                                |   |                         |       |   |      |   |       |       |   |   |   |   |   |   |   |   |
| Less:  Net loss attributable to noncontrolling interests       |   |                         | -          |   |      |   | (1,602     | )          |   |   | 1,602 |   |   |   | 100 | % |
|                                                                |   |                         |       |   |      |   |       |       |   |   |   |   |   |   |   |   |
| Net loss attributable to Hydrocarb Corporation                      |   |                         | (3,456,582 | )      |      |   | (1,591,542 | )          |   |   | (1,865,039 | ) |   |   | -110 | % |
|                                                                |   |                         |       |   |      |   |       |       |   |   |   |   |   |   |   |   |
| Basic and diluted loss per common share:                            |   | $                            | (0.16      | )      |      | $      | (0.08      | )          |   |   |   |   |   |   |   |   |
|                                                                |   |                         |       |   |      |   |       |       |   |   |   |   |   |   |   |   |
| Weighted average shares  outstanding  (basic and diluted) |   |                         | 21,270,879 |   |      |   | 20,963,759 |       |   |   |   |   |   |   |   |   |

----

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|  | · | Revenues decreased due to lower sales prices. Production volume was higher as the workover and recompletion wells were primarily completed.  This is reflected in the production volume. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Lease operating expenses decreased due to lower nonrecurring expenses. |
|--|--------|------------------------------------------------------------------------|

|  | · | Depreciation, depletion, and amortization increased because of higher production in the current year versus production in the same quarter of the comparable period prior year. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | General and administrative expenses increased primarily due to increased legal fees for the period.. |
|--|--------|------------------------------------------------------------------------------------------------------|

|  | · | Consulting and other income for the three months ended April 30, 2015 primarily represents income earned for production handling. Expenses incurred in the comparable prior period included write-offs of previously recognized consulting income. No such write-offs existed during the current reporting period. |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                |   | Nine Months End April 30, |       |   | Increase/ |   |       | %          |   |
|---------------------------------------------------------------------|--------|---------------------------|------------|--------|-----------|--------|------------|------------|--------|
|                                                                |   | 2015                      |       |   | 2014      |   |       | (Decrease) |   |   | Change |   |
|                                                                |   |                           |       |   |           |   |       |            |   |   |  |   |
| Revenues                                                            |   | $                         | 2,991,055  |   |      | $      | 3,887,493  |       |   |   | (896,438 | ) |   |   | -23 | % |
|                                                                |   |                      |       |   |      |   |       |       |   |   |   |   |   |   |   |   |
| Operating expenses                                                  |   |                      |       |   |      |   |       |       |   |   |   |   |   |   |   |   |
| Lease operating expense                                             |   |                      | 3,254,801  |   |      |   | 3,487,798  |       |   |   | (232,997 | ) |   |   | -7 | % |
| Depreciation, depletion, and amortization                           |   |                      | 771,480    |   |      |   | 673,357    |       |   |   | 98,123 |   |   |   | 15 | % |
| Accretion                                                           |   |                      | 790,550    |   |      |   | 731,093    |       |   |   | 59,457 |   |   |   | 8 | % |
| Consulting fees - related party                                     |   |                      | -          |   |      |   | 6,754      |       |   |   | (6,754 | ) |   |   | -100 | % |
| General and administrative expense                                  |   |                      | 2,672,914  |   |      |   | 3,383,820  |       |   |   | (710,906 | ) |   |   | -21 | % |
| Total operating expenses                                            |   |                      | 7,489,745  |   |      |   | 8,282,822  |       |   |   | (793,077 | ) |   |   | -10 | % |
|                                                                |   |                      |       |   |      |   |       |       |   |   |   |   |   |   |   |   |
| Loss from operations                                                |   |                      | (4,498,690 | )      |      |   | (4,395,329 | )          |   |   | (103,361 | ) |   |   | - 2 | % |
|                                                                |   |                      |       |   |      |   |       |       |   |   |   |   |   |   |   |   |
| Consulting and other income (expense)                               |   |                      | 20,905     |   |      |   | 68,912     |       |   |   | (48,007 | ) |   |   | -70 | % |
| Gain or Loss on derivatives                                         |   |                      | (1,468,016 | )      |      |   | -          |       |   |   | (1,468,016 | )  |   |   | -100 | % |
| Interest income (expense), net                                      |   |                      | (1,204,795 | )      |      |   | (98,033    | )          |   |   | (1,106,762 | ) |   |   | - 1,128 | % |
| Foreign currency transaction gain (loss)                            |   |                      | (38,593    | )      |      |   | (34,006    | )          |   |   | (4,587 | ) |   |   | -13 | % |
|                                                                |   |                      |       |   |      |   |       |       |   |   |   |   |   |   |   |   |
| Net loss before income taxes                                        |   |                      | (7,189,188 | )      |      |   | (4,458,456 | )          |   |   | (2,730,732 | ) |   |   | - 61 | % |
|                                                                |   |                      |       |   |      |   |       |       |   |   |   |   |   |   |   |   |
| Income tax provision                                                |   |                      | -          |   |      |   | (4,599     | )          |   |   | 4,599 |   |   |   | 100 | % |
|                                                                |   |                      |       |   |      |   |       |       |   |   |   |   |   |   |   |   |
| Net loss                                                            |   |                      | (7,189,188 | )      |      |   | (4,463,055 | )          |   |   | (2,726,133 | ) |   |   | - 61 | % |
|                                                                |   |                      |       |   |      |   |       |       |   |   |   |   |   |   |   |   |
| Less:  Net loss attributable to noncontrolling interests       |   |                      | (1,305     | )      |      |   | (4,962     | )          |   |   | 3,657 |   |   |   | 74 | % |
|                                                                |   |                      |       |   |      |   |       |       |   |   |   |   |   |   |   |   |
| Net loss attributable to Hydrocarb Corporation                      |   |                      | (7,187,883 | )      |      |   | (4,458,093 | )          |   |   | (2,729,790 | ) |   |   | - 61 | % |
| Basic and diluted loss per common share:                            |   | $                         | (0.34      | )      |      | $      | (0.34      | )          |   |   |   |   |   |   |   |   |
|                                                                |   |                      |       |   |      |   |       |       |   |   |   |   |   |   |   |   |
| Weighted average shares  outstanding  (basic and diluted) |   |                      | 21,184,600 |   |      |   | 13,111,626 |       |   |   |   |   |   |   |   |   |

----

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|  | · | Revenues decreased due to lower sales prices in fiscal 2015. Lease operating expenses decreased due to lower nonrecurring expenses. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Depreciation, depletion, and amortization increased because of increased production in the current year versus production in the same quarter of the comparable period prior year. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | General and administrative expenses decreased primarily as a result of decreased compensation expense related to stock options. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------|

|  | · | Interest expense increased due to the addition of the Shadowtree Capital financing which was entered into in August of 2014. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------|

|  | · | Consulting and other income for the nine months ended April 30, 2015 primarily represents income earned for production handling. Expenses incurred in the comparable prior period included write-offs of previously recognized consulting income. No such write-offs existed during the current reporting period. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                      |   | April 30, 2015 |       |   | July 31, 2014 |   |
|---------------------------|--------|----------------|------------|--------|---------------|--------|
| Cash and cash equivalents |   | $              | 90,261     |   |          | $      | 144,258 |   |
| Working capital (deficit) |   | $              | (5,939,054 | )      |          | $      | (3,566,332 | ) |

----

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|  | 1. | Continue to receive payments on the two receivables for HEC common stock; |
|--|----|---------------------------------------------------------------------------|

|  | 2. | Raise capital by farming down a portion of our Owambo Basin concession in Namibia to an industry partner; |
|--|----|-----------------------------------------------------------------------------------------------------------|

|  | 3. | Release restricted cash from the State Bonding requirement, as shut-in wells are brought back into production and/or as wells are plugged; |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------|

|  | 4. | Continue to enhance production from our four production oil and gas fields in Galveston Bay; and |
|--|----|--------------------------------------------------------------------------------------------------|

|  | 5. | Raising capital through the issuance of additional equity or debt securities (similar to the transactions completed during February and March 2015, as described below). |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
|---------|------------------------------------------------------------|

| Item 4. | Controls and Procedures |
|---------|-------------------------|

| Item 1. | Legal Proceedings |
|---------|-------------------|

| Item 1A. | Risk Factors |
|----------|--------------|

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| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
|---------|-------------------------------------------------------------|

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| Item 3. | Defaults Upon Senior Securities |
|---------|---------------------------------|

| Item 4. | Mine Safety Disclosures |
|---------|-------------------------|

| Item 5. | Other Information |
|---------|-------------------|

| Item 6. | Exhibits |
|---------|----------|

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| HYDROCARB ENERGY CORP.                                   |   |
|----------------------------------------------------------|--------|
| /s/ Kent P. Watts                                        |   |
| Kent P. Watts                                            |   |
| Chief Executive Officer, Executive Chairman and Director |   |
| (Principal Executive Officer)                            |   |
| Date:  June 22, 2015                                |   |

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| Exhibit No. | Description of Exhibit                                                                                                                                                                                                                                                                       |
|-------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.1        | Securities Purchase Agreement between Hydrocarb Energy Corp. and LG Capital Funding, LLC (February 17, 2015) (Filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the Commission on March 11, 2015 (File No. 000-53313) and incorporated herein by reference) |
| 10.2        | 8% Convertible Redeemable Note ($105,000 – LG Capital Funding, LLC)(February 17, 2015) (Filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K filed with the Commission on March 11, 2015 (File No. 000-53313) and incorporated herein by reference)                 |
| 10.3        | Securities Purchase Agreement between Hydrocarb Energy Corp. and Adar Bays, LLC (February 17, 2015) (Filed as Exhibit 10.3 to the Company’s Current Report on Form 8-K filed with the Commission on March 11, 2015 (File No. 000-53313) and incorporated herein by reference)          |
| 10.4        | 8% Convertible Redeemable Note ($105,000 – Adar Bays, LLC)(February 17, 2015) (Filed as Exhibit 10.4 to the Company’s Current Report on Form 8-K filed with the Commission on March 11, 2015 (File No. 000-53313) and incorporated herein by reference)                          |
| 10.5        | Securities Purchase Agreement between Hydrocarb Energy Corp. and KBM Worldwide, Inc. (February 17, 2015) (Filed as Exhibit 10.5 to the Company’s Current Report on Form 8-K filed with the Commission on March 11, 2015 (File No. 000-53313) and incorporated herein by reference)     |
| 10.5        | Convertible Promissory Note ($350,000 – KBM Worldwide, Inc.)(February 17, 2015) (Filed as Exhibit 10.6 to the Company’s Current Report on Form 8-K filed with the Commission on March 11, 2015 (File No. 000-53313) and incorporated herein by reference)                        |
| 10.6        | 10% Convertible Promissory Note ($137,000 – JSJ Investments Inc.)(February 23, 2015) (Filed as Exhibit 10.7 to the Company’s Current Report on Form 8-K filed with the Commission on March 11, 2015 (File No. 000-53313) and incorporated herein by reference)                   |
| 10.7        | Securities Purchase Agreement between Hydrocarb Energy Corp. and Typenex Co-Investment, LLC (March 5, 2015) (Filed as Exhibit 10.8 to the Company’s Current Report on Form 8-K filed with the Commission on March 11, 2015 (File No. 000-53313) and incorporated herein by reference)  |
| 10.8        | Secured Convertible Promissory Note ($350,000 – Typenex Co-Investment, LLC.)(March 5, 2015) (Filed as Exhibit 10.9 to the Company’s Current Report on Form 8-K filed with the Commission on March 11, 2015 (File No. 000-53313) and incorporated herein by reference)            |
| 10.9        | Secured Convertible Promissory Note ($350,000 – Typenex Co-Investment, LLC.)(March 5, 2015) (Filed as Exhibit 10.10 to the Company’s Current Report on Form 8-K filed with the Commission on March 11, 2015 (File No. 000-53313) and incorporated herein by reference)           |
| 10.10       | Warrant to Purchase Shares of Common Stock (March 5, 2015 - Typenex Co-Investment, LLC) (Filed as Exhibit 10.11 to the Company’s Current Report on Form 8-K filed with the Commission on March 11, 2015 (File No. 000-53313) and incorporated herein by reference)                     |
| 10.11       | Stock Pledge Agreement between Typenex Co-Investment, LLC and CW Navigation, Inc. (March 5, 2015) (Filed as Exhibit 10.11 to the Company’s Current Report on Form 8-K filed with the Commission on March 11, 2015 (File No. 000-53313) and incorporated herein by reference)           |

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| 10.12  | Executive Agreement with Kent P. Watts (March 9, 2015)(Filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the Commission on March 17, 2015 (File No. 000-53313) and incorporated herein by reference)                                                                                                                                          |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.13  | Convertible Promissory Note dated March 31, 2015 by Hydrocarb Energy Corporation in favor of Vis Vires Group, Inc. in the principal amount of $414,500 (Filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the Commission on June 19, 2015 (File No. 000-53313) and incorporated herein by reference)                                          |
| 10.14  | Securities Purchase Agreement dated March 31, 2015 between Hydrocarb Energy Corporation and Vis Vires Group, Inc. (Filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K filed with the Commission on June 19, 2015 (File No. 000-53313) and incorporated herein by reference)                                                                               |
| 10.15  | Exchange Agreement between Hydrocarb Energy Corporation and Kent P. Watts (June 10, 2015) (Filed as Exhibit 10.3 to the Company’s Current Report on Form 8-K filed with the Commission on June 19, 2015 (File No. 000-53313) and incorporated herein by reference)                                                                                                       |
| 10.16  | Convertible Promissory Note ($3,200,000) owed to Kent P. Watts (Filed as Exhibit 10.4 to the Company’s Current Report on Form 8-K filed with the Commission on June 19, 2015 (File No. 000-53313) and incorporated herein by reference)                                                                                                                                  |
| 10.17  | Amended and Restated Credit Agreement dated as of June 10, 2015, by and among Hydrocarb Energy Corporation, as borrower, Shadow Tree Capital Management, LLC, as agent, and the Lenders thereto (Filed as Exhibit 10.5 to the Company’s Current Report on Form 8-K filed with the Commission on June 19, 2015 (File No. 000-53313) and incorporated herein by reference) |
| 10.18  | First Amendment to Stock Grant Agreement between Hydrocarb Energy Corporation and the Lenders dated June 10, 2015 (Filed as Exhibit 10.6 to the Company’s Current Report on Form 8-K filed with the Commission on June 19, 2015 (File No. 000-53313) and incorporated herein by reference)                                                                               |
| 10.19  | $365,724 Term Loan Note dated June 10, 2015 payable by Hydrocarb Energy Corporation to Shadow Tree Funding Vehicle A-Hydrocarb LLC (Filed as Exhibit 10.7 to the Company’s Current Report on Form 8-K filed with the Commission on June 19, 2015 (File No. 000-53313) and incorporated herein by reference)                                                              |
| 10.20  | $118,908 Term Loan Note dated June 10, 2015 payable by Hydrocarb Energy Corporation to Quintium Private Opportunity Fund, LP (Filed as Exhibit 10.8 to the Company’s Current Report on Form 8-K filed with the Commission on June 19, 2015 (File No. 000-53313) and incorporated herein by reference)                                                                    |
| 31.1*  | Certification of Principal Executive required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                |
| 31.2*  | Certification of Principal Financial Officer required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                        |
| 32.1** | Certification of Principal Executive and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and Section 1350 of 18 U.S.C. 63.                                                                                                                                                                                                               |
| 99.1*  | Form of Certificate of Designation of Hydrocarb Energy Corporation Establishing the Designation, Preferences, Limitations and Relative Rights of Its Series B Convertible Preferred Stock (Filed as Exhibit 99.1 to the Company’s Current Report on Form 8-K filed with the Commission on June 19, 2015 (File No. 000-53313) and incorporated herein by reference)       |

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