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

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

----

| PART I.  | FINANCIAL INFORMATION |                                                                                                                                                                        |
|----------|-----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|     |                  |                                                                                                                                                                        |   |
|     | ITEM 1                | Financial Statements                                                                                                                                                        |   |
|     |                  | Consolidated Balance Sheets as of June 30, 2011 and December 31, 2010 (Unaudited)                                                                                           | 3 |
|     |                  |                                                                                                                                                                        |   |
|     |                  | Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2011 and 2010 and the Period from Inception (April 25, 2003) to June 30, 2011 (Unaudited) | 4 |
|     |                  |                                                                                                                                                                        |   |
|     |                  | Consolidated Statement of Changes in Members’ and Stockholders’ Equity (Deficit) for the Period from Inception (April 25, 2003) to June 30, 2011 (Unaudited)    | 5-6 |
|     |                  |                                                                                                                                                                        |   |
|     |                  | Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2011 and 2010 and the Period from Inception (April 25, 2003) to June 30, 2011 (Unaudited)           | 7-8 |
|     |                  |                                                                                                                                                                        |   |
|     |                  | Notes to Consolidated Financial Statements (Unaudited)                                                                                                                      | 9-21 |
|     |                  |                                                                                                                                                                        |   |
|     | ITEM 2.               | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                                                                 | 22-28 |
|     |                  |                                                                                                                                                                        |   |
|     | ITEM 3.               | Quantitative and Qualitative Disclosures about Market Risk                                                                                                                  | 29 |
|     |                  |                                                                                                                                                                        |   |
|     | ITEM 4.               | Controls and Procedures                                                                                                                                                     | 29-30 |
|     |                  |                                                                                                                                                                        |   |
| PART II. | OTHER INFORMATION     |                                                                                                                                                                        |
|     |                  |                                                                                                                                                                        |   |
|     | ITEM 1.               | Legal Proceedings                                                                                                                                                           | 31 |
|     | ITEM 1A.              | Risk Factors                                                                                                                                                                | 31 |
|     | ITEM 2.               | Unregistered Sales of Equity Securities and Use of Proceeds                                                                                                                 | 31 |
|     | ITEM 3.               | Defaults Upon Senior Securities                                                                                                                                             | 31 |
|     | ITEM 4.               | (Reserved)                                                                                                                                                                  | 31 |
|     | ITEM 5.               | Other Information                                                                                                                                                           | 32 |
|     | ITEM 6.               | Exhibits                                                                                                                                                                    | 32 |
|     |                  |                                                                                                                                                                        |   |
|     | SIGNATURES            | 33                                                                                                                                                                          |

----

|                                                                                                                                  |   | June 30, 2011 |       |   | December 31, 2010 |   |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|------------|--------|-----------------------------|--------|
|                                                                                                                                  |   |               |       |   |                        |   |
| ASSETS                                                                                                                                |   |               |       |   |                        |   |
|                                                                                                                                  |   |               |       |   |                        |   |
| Current assets                                                                                                                        |   |               |       |   |                        |   |
| Cash and cash equivalents                                                                                                             |   | $                  | 35,636     |   |                        | $      | 6,096 |   |
| Accounts receivable                                                                                                                   |   |               | 9,327      |   |                        |   | 8,348 |   |
| Deferred financing cost, current                                                                                                      |   |               | 17,620     |   |                        |   | 135,552 |   |
| Prepaid expenses                                                                                                                      |   |               | 12,361     |   |                        |   | 3,750 |   |
| TOTAL CURRENT ASSETS                                                                                                                  |   |               | 74,944     |   |                        |   | 153,746 |   |
|                                                                                                                                  |   |               |       |   |                        |   |   |   |
| Oil and gas properties, using successful efforts accounting:                                                                          |   |               |       |   |                        |   |   |   |
| Properties not subject to amortization, less accumulated impairment of $247,500                                                       |   |               | -          |   |                        |   | - |   |
| Properties subject to amortization, less accumulated depletion and impairment of $519,116                                             |   |               | -          |   |                        |   | - |   |
| Pipeline property, less accumulated depreciation and impairment of $379,367                                                           |   |               | -          |   |                        |   | - |   |
| Land                                                                                                                                  |   |               | 38,345     |   |                        |   | 38,345 |   |
| Net oil and gas properties                                                                                                            |   |               | 38,345     |   |                        |   | 38,345 |   |
|                                                                                                                                  |   |               |       |   |                        |   |   |   |
| Prepaid asset retirement cost                                                                                                         |   |               | 40,000     |   |                        |   | 40,000 |   |
| TOTAL ASSETS                                                                                                                          |   | $                  | 153,289    |   |                        | $      | 232,091 |   |
|                                                                                                                                  |   |               |       |   |                        |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ DEFICIT                                                                                           |   |               |       |   |                        |   |   |   |
|                                                                                                                                  |   |               |       |   |                        |   |   |   |
| Current liabilities                                                                                                                   |   |               |       |   |                        |   |   |   |
| Accounts payable trade                                                                                                                |   | $                  | 142,356    |   |                        | $      | 67,409 |   |
| Accrued expenses                                                                                                                      |   |               | 296,345    |   |                        |   | 778,240 |   |
| Accrued expenses-related parties                                                                                                      |   |               | 78,663     |   |                        |   | 131,832 |   |
| Note payable                                                                                                                          |   |               | -          |   |                        |   | 20,000 |   |
| Notes payable-related parties                                                                                                         |   |               | 93,000     |   |                        |   | 21,000 |   |
| Convertible note payable                                                                                                              |   |               | -          |   |                        |   | 1,480,000 |   |
| TOTAL CURRENT LIABILITIES                                                                                                             |   |               | 610,364    |   |                        |   | 2,498,481 |   |
|                                                                                                                                  |   |               |       |   |                        |   |   |   |
| Non-current liabilities                                                                                                               |   |               |       |   |                        |   |   |   |
| Long term debt-related parties                                                                                                        |   |               | -          |   |                        |   | 451,400 |   |
| Convertible note payable, net of discount                                                                                             |   |               | 37,549     |   |                        |   | 665,000 |   |
| Asset retirement obligations                                                                                                          |   |               | 83,801     |   |                        |   | 80,217 |   |
| TOTAL LIABILITIES                                                                                                                     |   |               | 731,714    |   |                        |   | 3,695,098 |   |
|                                                                                                                                  |   |               |       |   |                        |   |   |   |
| Commitments and contingencies                                                                                                         |   |               | -          |   |                        |   | - |   |
|                                                                                                                                  |   |               |       |   |                        |   |   |   |
| Stockholders’ deficit                                                                                                           |   |               |       |   |                        |   |   |   |
| Preferred stock, par value $0.0001, 10,000,000 shares authorized, -0- shares issued and outstanding                                   |   |               | -          |   |                        |   | - |   |
| Common stock, par value $0.0001, 300,000,000 shares authorized, 54,052,649 and 40,232,021 shares issued and outstanding, respectively |   |               | 5,411      |   |                        |   | 4,023 |   |
| Additional paid-in capital                                                                                                            |   |               | (3,485,880 | )      |                        |   | (6,786,915 | ) |
| Accumulated deficit during the exploration stage                                                                                      |   |               | 2,902,044  |   |                        |   | 3,319,885 |   |
| TOTAL STOCKHOLDERS’ DEFICIT                                                                                                     |   |               | (578,425   | )      |                        |   | (3,463,007 | ) |
| TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT                                                                                     |   | $                  | 153,289    |   |                        | $      | 232,091 |   |

----

|                                                             |   | For the Three Months EndedJune 30, |       |   | For the Six Months EndedJune 30, |   |       | Inception toJune 30, |   |
|------------------------------------------------------------------|--------|------------------------------------|------------|--------|---------------------------------------|--------|------------|----------------------|--------|
|                                                             |   | 2011                               |       |   | 2010                                  |   |       | 2011                 |   |   | 2010 |   |   | 2011 |   |
|                                                             |   |                               |       |   |                                  |   |       |                 |   |   |   |   |   |   |   |
| Revenues                                                         |   | $                                  | 18,679     |   |                                  | $      | 9,463      |                 |   | $ | 37,088 |   |   | $ | 19,280 |   |   | $ | 115,374 |   |
|                                                             |   |                               |       |   |                                  |   |       |                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses                                               |   |                               |       |   |                                  |   |       |                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Exploration cost                                                 |   |                               | 7,802      |   |                                  |   | 6,648      |                 |   |   | 25,928 |   |   |   | 22,260 |   |   |   | 558,194 |   |
| Dry hole cost                                                    |   |                               | -          |   |                                  |   | -          |                 |   |   | - |   |   |   | - |   |   |   | 466,066 |   |
| Depreciation, depletion, amortization, accretion, and impairment |   |                               | 1,779      |   |                                  |   | 7,178      |                 |   |   | 3,584 |   |   |   | 14,356 |   |   |   | 1,240,324 |   |
| General and administrative expenses                              |   |                               | 203,811    |   |                                  |   | 750,792    |                 |   |   | 349,844 |   |   |   | 1,324,938 |   |   |   | 5,057,715 |   |
| Loss on sale of Poydras Energy, LLC                              |   |                               | -          |   |                                  |   | -          |                 |   |   | - |   |   |   | - |   |   |   | 1,151,997 |   |
| Gain on sale of oil and gas properties                           |   |                               | -          |   |                                  |   | -          |                 |   |   | - |   |   |   | - |   |   |   | (1,673,620 | ) |
| Total operating expenses                                         |   |                               | 213,392    |   |                                  |   | 764,618    |                 |   |   | 379,356 |   |   |   | 1,361,554 |   |   |   | 6,800,676 |   |
|                                                             |   |                               |       |   |                                  |   |       |                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss from operations                                             |   |                               | (194,713   | )      |                                  |   | (755,155   | )                    |   |   | (342,268 | ) |   |   | (1,324,274 | ) |   |   | (6,685,302 | ) |
|                                                             |   |                               |       |   |                                  |   |       |                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expenses)                                          |   |                               |       |   |                                  |   |       |                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                                 |   |                               | (50,301    | )      |                                  |   | (96,860    | )                    |   |   | (299,309 | ) |   |   | (856,155 | ) |   |   | (3,376,544 | ) |
| Interest income                                                  |   |                               | -          |   |                                  |   | 1,415      |                 |   |   | - |   |   |   | 3,714 |   |   |   | 27,824 |   |
| Gain on change of derivative value                               |   |                               | -          |   |                                  |   | 18,045,075 |                 |   |   | - |   |   |   | 9,020,100 |   |   |   | 12,695,200 |   |
|                                                             |   |                               |       |   |                                  |   |       |                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Gain / loss on settlement of debt                                |   |                               | 223,736    |   |                                  |   | -          |                 |   |   | 223,736 |   |   |   | - |   |   |   | 223,736 |   |
| Other income                                                     |   |                               | -          |   |                                  |   | -          |                 |   |   | - |   |   |   | - |   |   |   | 17,130 |   |
| Total other income (expense)                                     |   |                               | 173,435    |   |                                  |   | 17,949,630 |                 |   |   | (75,573 | ) |   |   | 8,167,659 |   |   |   | 9,587,346 |   |
|                                                             |   |                               |       |   |                                  |   |       |                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)                                                |   | $                                  | (21,278    | )      |                                  | $      | 17,194,475 |                 |   | $ | (417,841 | ) |   | $ | 6,825,385 |   |   | $ | 2,902,044 |   |
|                                                             |   |                               |       |   |                                  |   |       |                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss) per share:                                     |   |                               |       |   |                                  |   |       |                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                            |   | $                                  | 0.00       |   |                                  | $      | 0.43       |                 |   | $ | (0.01 | ) |   | $ | 0.17 |   |   |   |   |   |
| Diluted                                                          |   | $                                  | 0.00       |   |                                  | $      | 0.35       |                 |   | $ | (0.01 | ) |   | $ | 0.14 |   |   |   |   |   |
|                                                             |   |                               |       |   |                                  |   |       |                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of shares outstanding:                   |   |                               |       |   |                                  |   |       |                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                            |   |                               | 49,079,448 |   |                                  |   | 40,132,021 |                 |   |   | 47,229,124 |   |   |   | 40,132,021 |   |   |   |   |   |
| Diluted                                                          |   |                               | 49,079,448 |   |                                  |   | 48,577,384 |                 |   |   | 47,229,124 |   |   |   | 48,757,869 |   |   |   |   |   |

----

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

----

|                                           |   | Members’Equity |   |   | Shares |   |       | ParValue |   |   | AdditionalPaid-inCapital(Deficit) |   |   | AccumulatedDeficit |       |   | Totals |   |
|-----------------------------------------------------|--------|----------------------|--------|--------|--------|--------|------------|----------|--------|--------|-----------------------------------|--------|--------|--------------------|------------|--------|--------|--------|
|                                                |   |                 |   |   |   |   |       |     |   |   |                              |   |   |               |       |   |   |   |
| Balances at December 31, 2008                       |   | $                    | -      |   |   |   | 24,206,391 |     |   | $      | 2,421                             |   |   | $                  | 2,056,742  |   |   | $      | (1,309,811 | ) |   | $ | 749,352 |   |
|                                                |   |                 |   |   |   |   |       |     |   |   |                              |   |   |               |       |   |   |   |   |   |   |   |   |   |
| Shares issued for warrants held by MEI shareholders |   |                 | -      |   |   |   | 829,309    |     |   |   | 83                                |   |   |               | (83        | )      |   |   | - |   |   |   | - |   |
|                                                |   |                 |   |   |   |   |       |     |   |   |                              |   |   |               |       |   |   |   |   |   |   |   |   |   |
| Reverse merger with Mesa Energy Holdings            |   |                 | -      |   |   |   | 14,000,000 |     |   |   | 1,400                             |   |   |               | (1,400     | )      |   |   | - |   |   |   | - |   |
|                                                |   |                 |   |   |   |   |       |     |   |   |                              |   |   |               |       |   |   |   |   |   |   |   |   |   |
| Share-based compensation                            |   |                 | -      |   |   |   | 350,000    |     |   |   | 35                                |   |   |               | 340,965    |   |   |   | - |   |   |   | 341,000 |   |
|                                                |   |                 |   |   |   |   |       |     |   |   |                              |   |   |               |       |   |   |   |   |   |   |   |   |   |
| Discount on convertible debt                        |   |                 | -      |   |   |   | -          |     |   |   | -                                 |   |   |               | 1,530,000  |   |   |   | - |   |   |   | 1,530,000 |   |
|                                                |   |                 |   |   |   |   |       |     |   |   |                              |   |   |               |       |   |   |   |   |   |   |   |   |   |
| Derivative liability on convertible debt            |   |                 | -      |   |   |   | -          |     |   |   | -                                 |   |   |               | (9,383,380 | )      |   |   | - |   |   |   | (9,383,380 | ) |
|                                                |   |                 |   |   |   |   |       |     |   |   |                              |   |   |               |       |   |   |   |   |   |   |   |   |   |
| Net loss                                            |   |                 | -      |   |   |   | -          |     |   |   | -                                 |   |   |               | -          |   |   |   | (1,931,539 | ) |   |   | (1,931,539 | ) |
|                                                |   |                 |   |   |   |   |       |     |   |   |                              |   |   |               |       |   |   |   |   |   |   |   |   |   |
| Balances at December 31, 2009                       |   |                 | -      |   |   |   | 39,385,700 |     |   |   | 3,939                             |   |   |               | (5,457,156 | )      |   |   | (3,241,350 | ) |   |   | (8,694,567 | ) |
|                                                |   |                 |   |   |   |   |       |     |   |   |                              |   |   |               |       |   |   |   |   |   |   |   |   |   |
| Share-based compensation                            |   |                 | -      |   |   |   | 372,900    |     |   |   | 37                                |   |   |               | 1,131,504  |   |   |   | - |   |   |   | 1,131,541 |   |
|                                                |   |                 |   |   |   |   |       |     |   |   |                              |   |   |               |       |   |   |   |   |   |   |   |   |   |
| Conversion of convertible debt and accrued interest |   |                 | -      |   |   |   | 473,421    |     |   |   | 47                                |   |   |               | 185,557    |   |   |   | - |   |   |   | 185,604 |   |
|                                                |   |                 |   |   |   |   |       |     |   |   |                              |   |   |               |       |   |   |   |   |   |   |   |   |   |
| Discount on convertible debt                        |   |                 | -      |   |   |   | -          |     |   |   | -                                 |   |   |               | 665,000    |   |   |   | - |   |   |   | 665,000 |   |
|                                                |   |                 |   |   |   |   |       |     |   |   |                              |   |   |               |       |   |   |   |   |   |   |   |   |   |
| Derivative liability on convertible debt            |   |                 | -      |   |   |   | -          |     |   |   | -                                 |   |   |               | (3,311,820 | )      |   |   | - |   |   |   | (3,311,820 | ) |
|                                                |   |                 |   |   |   |   |       |     |   |   |                              |   |   |               |       |   |   |   |   |   |   |   |   |   |
| Net income                                          |   |                 | -      |   |   |   | -          |     |   |   | -                                 |   |   |               | -          |   |   |   | 6,561,235 |   |   |   | 6,561,235 |   |
|                                                |   |                 |   |   |   |   |       |     |   |   |                              |   |   |               |       |   |   |   |   |   |   |   |   |   |
| Balances at December 31, 2010                       |   |                 | -      |   |   |   | 40,232,021 |     |   |   | 4,023                             |   |   |               | (6,786,915 | )      |   |   | 3,319,885 |   |   |   | (3,463,007 | ) |
|                                                |   |                 |   |   |   |   |       |     |   |   |                              |   |   |               |       |   |   |   |   |   |   |   |   |   |
| Shares issued for cash                         |   |                 |   |   |   |   | 320,000    |     |   |   | 32                                |   |   |               | 39,968     |   |   |   |   |   |   |   | 40,000 |   |
|                                                |   |                 |   |   |   |   |       |     |   |   |                              |   |   |               |       |   |   |   |   |   |   |   |   |   |
| Share-based compensation                            |   |                 | -      |   |   |   | 1,274,000  |     |   |   | 129                               |   |   |               | 254,490    |   |   |   | - |   |   |   | 254,619 |   |
|                                                |   |                 |   |   |   |   |       |     |   |   |                              |   |   |               |       |   |   |   |   |   |   |   |   |   |
| Conversion of convertible debt and accrued interest |   |                 | -      |   |   |   | 11,246,628 |     |   |   | 1,124                             |   |   |               | 2,038,963  |   |   |   | - |   |   |   | 2,040,087 |   |
|                                                |   |                 |   |   |   |   |       |     |   |   |                              |   |   |               |       |   |   |   |   |   |   |   |   |   |
| Common shares issued to induce debt conversion      |   |                 | -      |   |   |   | 1,036,000  |     |   |   | 103                               |   |   |               | 111,871    |   |   |   | - |   |   |   | 111,974 |   |
|                                                |   |                 |   |   |   |   |       |     |   |   |                              |   |   |               |       |   |   |   |   |   |   |   |   |   |
| Debt discount                                       |   |                 | -      |   |   |   | -          |     |   |   | -                                 |   |   |               | 855,743    |   |   |   | - |   |   |   | 855,743 |   |
|                                                |   |                 |   |   |   |   |       |     |   |   |                              |   |   |               |       |   |   |   |   |   |   |   |   |   |
| Net loss                                            |   |                 | -      |   |   |   | -          |     |   |   | -                                 |   |   |               | -          |   |   |   | (417,841 | ) |   |   | (417,841 | ) |
|                                                |   |                 |   |   |   |   |       |     |   |   |                              |   |   |               |       |   |   |   |   |   |   |   |   |   |
| Balances at June 30, 2011                           |   | $                    | -      |   |   |   | 54,108,649 |     |   | $      | 5,411                             |   |   | $                  | (3,485,880 | )      |   | $      | 2,902,044 |   |   | $ | (578,425 | ) |

----

|                                                                                 |   | For the Six Months Ended June 30, |     |   | Inception toJune 30, |   |
|--------------------------------------------------------------------------------------|--------|------------------------------------------------------------|----------|--------|---------------------------|--------|
|                                                                                 |   | 2011                                                       |     |   | 2010                      |   |   | 2011 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                                 |   |                                                       |     |   |                      |   |   |   |   |
| Net income (loss)                                                                    |   | $                                                          | (417,841 | )      |                      | $      | 6,825,385 |   |   | $ | 2,902,044 |   |
| Adjustments to reconcile net income (loss) to net cash used in operating activities: |   |                                                       |     |   |                      |   |   |   |   |   |   |   |
| Loss on sale of oil and gas properties                                               |   |                                                       | -        |   |                      |   | - |   |   |   | 1,151,997 |   |
| Gain on sale of assets                                                               |   |                                                       | -        |   |                      |   | - |   |   |   | (1,673,620 |   |
| Dry hole cost                                                                        |   |                                                       | -        |   |                      |   | - |   |   |   | 466,066 |   |
| Depreciation, depletion, amortization, accretion and impairment expense              |   |                                                       | 3,584    |   |                      |   | 14,356 |   |   |   | 1,240,324 |   |
| Share-based compensation                                                             |   |                                                       | 83,619   |   |                      |   | 797,929 |   |   |   | 1,578,985 |   |
| Unrealized (gain) loss on change in derivative value                                 |   |                                                       | -        |   |                      |   | (9,020,100 | ) |   |   | (12,695,200 | ) |
| Imputed interest                                                                     |   |                                                       | -        |   |                      |   | - |   |   |   | 16,641 | ) |
| Amortization of debt discount                                                        |   |                                                       | 2,273    |   |                      |   | 665,000 |   |   |   | 2,384,700 |   |
| Induced debt conversion expense                                                      |   |                                                       | 111,974  |   |                      |   | - |   |   |   | 111,974 |   |
| Gain on conversion of accounts payable                                               |   |                                                       | (286,042 | )      |                      |   | - |   |   |   | (286,042 | ) |
| Loss on conversion of notes payable                                                  |   |                                                       | 62,306   |   |                      |   | - |   |   |   | 62,306 |   |
| Amortization of deferred financing cost                                              |   |                                                       | 117,932  |   |                      |   | 72,606 |   |   |   | 303,201 |   |
| Changes in operating assets and liabilities:                                         |   |                                                       |     |   |                      |   |   |   |   |   |   |   |
| Accounts receivable and prepaid assets                                               |   |                                                       | (9,590   | )      |                      |   | 6,857 |   |   |   | (21,688 | ) |
| Accounts payable and accrued expenses                                                |   |                                                       | 214,679  |   |                      |   | 286,880 |   |   |   | 1,226,026 |   |
| Accrued expenses – related parties                                             |   |                                                       | 14,646   |   |                      |   | 13,358 |   |   |   | 146,478 |   |
| CASH USED IN OPERATING ACTIVITIES                                                    |   |                                                       | (102,460 | )      |                      |   | (337,729 | ) |   |   | (3,085,808 | ) |
|                                                                                 |   |                                                       |     |   |                      |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                                 |   |                                                       |     |   |                      |   |   |   |   |   |   |   |
| Release of restricted cash                                                           |   |                                                       | -        |   |                      |   | 20,000 |   |   |   | - |   |
| Payments for oil and gas development costs                                           |   |                                                       | -        |   |                      |   | (353,225 | ) |   |   | (2,740,463 | ) |
| Cash paid for asset retirement obligations                                           |   |                                                       | -        |   |                      |   | - |   |   |   | (46,494 | ) |
| Cash acquired from purchase of Poydras Energy, LLC                                   |   |                                                       | -        |   |                      |   | - |   |   |   | 1,326 |   |
| Proceeds from sale of assets                                                         |   |                                                       | -        |   |                      |   | - |   |   |   | 2,562,500 |   |
| Purchases of fixed assets                                                            |   |                                                       | -        |   |                      |   | - |   |   |   | (5,203 | ) |
| CASH USED IN INVESTING ACTIVITIES                                                    |   |                                                       | -        |   |                      |   | (333,225 | ) |   |   | (228,334 | ) |
|                                                                                 |   |                                                       |     |   |                      |   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                                 |   |                                                       |     |   |                      |   |   |   |   |   |   |   |
| Proceeds from the sale of stock                                                      |   |                                                       | 40,000   |   |                      |   | - |   |   |   | 513,600 |   |
| Borrowings on debt from related parties                                              |   |                                                       | 72,000   |   |                      |   | - |   |   |   | 816,400 |   |
| Principal payments on debt from related parties                                      |   |                                                       |     |   |                      |   | (43,000 | ) |   |   | (472,000 | ) |
| Borrowings on debt from third parties, net of financing cost                         |   |                                                       | 20,000   |   |                      |   | 573,361 |   |   |   | 1, 914,180 |   |
| Members contributions                                                                |   |                                                       | -        |   |                      |   | - |   |   |   | 647,598 |   |
| Members distributions                                                                |   |                                                       | -        |   |                      |   | - |   |   |   | (70,000 | )  |
| CASH PROVIDED BY FINANCING ACTIVITIES                                                |   |                                                       | 132,000  |   |                      |   | 530,361 |   |   |   | 3,349,778 |   |
|                                                                                 |   |                                                       |     |   |                      |   |   |   |   |   |   |   |
| NET CHANGE IN CASH                                                                   |   |                                                       | 29,540   |   |                      |   | (140,593 | ) |   |   | 35,636 |   |
|                                                                                 |   |                                                       |     |   |                      |   |   |   |   |   |   |   |
| CASH AT BEGINNING OF PERIOD                                                          |   |                                                       | 6,096    |   |                      |   | 267,141 |   |   |   | - |   |
| CASH AT END OF PERIOD                                                                |   | $                                                          | 35,636   |   |                      | $      | 126,548 |   |   | $ | 35,636 |   |

----

|                                                                      |   | For the Six Months EndedJune 30, |      |   | Inception to June 30, |   |
|---------------------------------------------------------------------------|--------|------------------------------------------------------|-----------|--------|---------------------------------|--------|
|                                                                      |   | 2011                                                 |      |   | 2010                            |   |   | 2011 |   |
| Supplemental disclosures of cash flow information:                        |   |                                                 |      |   |                            |   |   |   |   |
| Cash paid for interest                                                    |   | $                                                    | 750       |   |                            | $      | - |   |   | $ | 87,687 |   |
| Cash paid for income taxes                                                |   | $                                                    | -         |   |                            | $      | - |   |   | $ | - |   |
|                                                                      |   |                                                 |      |   |                            |   |   |   |   |   |   |   |
| Non-cash disclosures:                                                     |   |                                                 |      |   |                            |   |   |   |   |   |   |   |
| Accrued oil and gas acquisition and development cost                      |   | $                                                    | -         |   |                            | $      | - |   |   | $ | 25,000 |   |
| Sale of pipeline right-of-way for payables                                |   | $                                                    | -         |   |                            | $      | - |   |   | $ | 60,000 |   |
| Note payable issued for purchase of Poydras Energy, LLC                   |   | $                                                    | -         |   |                            | $      | - |   |   | $ | 100,000 |   |
| Common stock issued for purchase of Poydras Energy, LLC                   |   | $                                                    | -         |   |                            | $      | - |   |   | $ | 750,000 |   |
| Stock issued in reverse merger                                            |   | $                                                    | -         |   |                            | $      | - |   |   | $ | 1,400 |   |
| Warrants issued with the sale of oil and gas property                     |   | $                                                    | -         |   |                            | $      | - |   |   | $ | 31,071 |   |
| Change in asset retirement obligation                                     |   | $                                                    | -         |   |                            | $      | - |   |   | $ | 47,976 |   |
| Initial valuation of derivative liability upon issuance of debt           |   | $                                                    | -         |   |                            | $      | 3,311,821 |   |   | $ | 12,695,200 |   |
| Common stock issued for conversions of notes payable and accrued interest |   | $                                                    | 2,040,087 |   |                            | $      | 185,604 |   |   | $ | 2,225,691 |   |
| Common stock issued to settle accounts payable                            |   | $                                                    | 171,000   |   |                            | $      | - |   |   | $ | 171,000 |   |
| Promissory note exchanged for convertible debt, net of discount           |   | $                                                    | 35,276    |   |                            | $      | - |   |   | $ | 35,276 |   |
| Discount on extension and modification of convertible debt                |   | $                                                    | 850,000   |   |                            | $      | - |   |   | $ | 850,000 |   |

----

----

----

| Cash and equivalents         |   | $      | -          |   |
|------------------------------|--------|--------|------------|--------|
| Accounts receivable          |   |   | 20,417     |   |
| Other current assets         |   |   | 20,540     |   |
| Oil and gas property         |   |   | 10,371,599 |   |
| Other assets                 |   |   | 806,881    |   |
| Total assets acquired        |   |   | 11,219,437 |   |
|                         |   |   |       |   |
| Accounts payable             |   |   | 175,407    |   |
| Accrued liabilities          |   |   | 336,802    |   |
| Notes payable                |   |   | 225,844    |   |
| Asset retirement obligations |   |   | 2,386,016  |   |
| Total liabilities assumed    |   |   | 3,124,069  |   |
|                         |   |   |       |   |
| Net assets acquired          |   | $      | 8,095,368  |   |

----

|                                             |   | Mesa Historical |       |   | Acquisition of Samson Properties |   |      | TNR Historical  |   |   | Pro Forma Adjustments |       |   | Pro Forma Combined |       |
|--------------------------------------------------|--------|-----------------|------------|--------|----------------------------------|--------|-----------|-----------------|--------|--------|-----------------------|------------|--------|--------------------|------------|
|                                             |   |            |       |   |                             |   |      |            |   |   |                  |       |   |               |       |
| Balance sheet:                                   |   |            |       |   |                             |   |      |            |   |   |                  |       |   |               |       |
| Cash                                             |   |            | 35,636     |   |                             |   | -         |            |   |   | 474,945               |       |   |               | (474,945   | ) (a) |   |   | 722,231 |   |
|                                             |   |            |       |   |                             |   |      |            |   |   |                  |       |   |               | 5,795,963  |   (b) |   |   |   |   |
|                                             |   |            |       |   |                             |   |      |            |   |   |                  |       |   |               | (5,671,525 | ) (c) |   |   |   |   |
|                                             |   |            |       |   |                             |   |      |            |   |   |                  |       |   |               | 562,157    |   (d) |   |   |   |   |
| Accounts receivable                              |   |            | 9,327      |   |                             |   | -         |            |   |   | 612,495               |       |   |               | (592,078   | ) (e) |   |   | 29,744 |   |
| Other current assets                             |   |            | 29,981     |   |                             |   | -         |            |   |   | 820,540               |       |   |               | (800,000   | ) (e) |   |   | 50,521 |   |
| Oil and gas properties, net                      |   |            | 38,345     |   |                             |   | 6,124,831 |   (f)      |   |   | 884,233               |       |   |               | 3,362,535  |   (g) |   |   | 10,409,944 |   |
| Other assets                                     |   |            | 40,000     |   |                             |   | 600,000   |   (h)      |   |   | 206,881               |       |   |               | -          |   |   |   | 846,881 |   |
| Total assets                                     |   |            | 153,289    |   |                             |   | 6,724,831 |            |   |   | 2,999,094             |       |   |               | 2,182,107  |   |   |   | 12,059,321 |   |
|                                             |   |            |       |   |                             |   |      |            |   |   |                  |       |   |               |       |   |   |   |   |   |
| Accounts payable and accrued liabilities         |   |            | 517,364    |   |                             |   | -         |            |   |   | 175,407               |       |   |               | -          |   |   |   | 692,771 |   |
| Severance tax payable                            |   |            | -          |   |                             |   | -         |            |   |   | 336,802               |       |   |               | -          |   |   |   | 336,802 |   |
| Notes payable                                    |   |            | 130,549    |   |                             |   | -         |            |   |   | 225,844               |       |   |               | -          |   |   |   | 356,393 |   |
| Borrowings under credit facility                 |   |            | -          |   |                             |   | 5,671,525 |   (i) |   |   | -                     |       |   |               | 124,438    |   (i) |   |   | 5,795,963 |   |
| Asset retirement obligations                     |   |            | 83,801     |   |                             |   | 1,053,306 |   (j)      |   |   | 1,680,997             |       |   |               | (348,287   | ) (j) |   |   | 2,469,817 |   |
| Total liabilities                                |   |            | 731,714    |   |                             |   | 6,724,831 |            |   |   | 2,419,050             |       |   |               | (223,849   | ) |   |   | 9,651,746 |   |
|                                             |   |            |       |   |                             |   |      |            |   |   |                  |       |   |               |       |   |   |   |   |   |
| Members’ equity                            |   |            | -          |   |                             |   | -         |            |   |   | 580,044               |       |   |               | (580,044   | ) (k) |   |   | - |   |
| Common stock                                     |   |            | 5,411      |   |                             |   | -         |            |   |   | -                     |       |   |               | 2,120      |   (l) |   |   | 7,531 |   |
| Additional paid-in-capital                       |   |            | (3,485,880 | )      |                             |   | -         |            |   |   | -                     |       |   |               | 2,983,880  |   (l) |   |   | (502,000 | ) |
| Retained earnings                                |   |            | 2,902,044  |   |                             |   | -         |            |   |   | -                     |       |   |               | -          |   |   |   | 2,902,044 |   |
| Total stockholders’ equity                 |   |            | 578,425    |   |                             |   | -         |            |   |   | 580,044               |       |   |               | 2,405,956  |   |   |   | 2,407,575 |   |
| Total liabilities and stockholders’ equity |   |            | 153,289    |   |                             |   | 6,724,831 |            |   |   | 2,999,094             |       |   |               | 2,182,107  |   |   |   | 12,059,321 |   |
|                                             |   |            |       |   |                             |   |      |            |   |   |                  |       |   |               |       |   |   |   |   |   |
| Statement of operations:                         |   |            |       |   |                             |   |      |            |   |   |                  |       |   |               |       |   |   |   |   |   |
| Oil and gas revenues                             |   |            | 37,088     |   |                             |   | 2,785,422 |            |   |   | 1,367,930             |       |   |               | -          |   |   |   | 4,190,440 |   |
|                                             |   |            |       |   |                             |   |      |            |   |   |                  |       |   |               |       |   |   |   |   |   |
| Lease operating expenses                         |   |            | 25,928     |   |                             |   | 784,266   |            |   |   | 463,391               |       |   |               | -          |   |   |   | 1,273,585 |   |
| Depreciation, depletion, and amortization        |   |            | 3,584      |   |                             |   | 450,928   |            |   |   | 73,499                |       |   |               | -          |   |   |   | 77,083 |   |
| General and administrative                       |   |            | 349,844    |   |                             |   | -         |            |   |   | 140,053               |       |   |               | 102,877    |   (m) |   |   | 695,651 |   |
| Taxes other than income                          |   |            |       |   |                             |   | -         |            |   |   | 103,297               |       |   |               | -          |   |   |   | 103,297 |   |
| Total operating expenses                         |   |            | 379,356    |   |                             |   | 1,235,194 |            |   |   | 780,240               |       |   |               | 102,877    |   |   |   | 2,497,667 |   |
|                                             |   |            |       |   |                             |   |      |            |   |   |                  |       |   |               |       |   |   |   |   |   |
| Income (loss) from operations                    |   |            | (342,268   | )      |                             |   | 1,550,228 |            |   |   | 587,690               |       |   |               | (102,877   | ) |   |   | 1,692,773 |   |
|                                             |   |            |       |   |                             |   |      |            |   |   |                  |       |   |               |       |   |   |   |   |   |
| Other income (expense)                           |   |            | (75,573    | )      |                             |   | -         |            |   |   | 93                    |       |   |               | -          |   |   |   | (75,480 | ) |
|                                             |   |            |       |   |                             |   |      |            |   |   |                  |       |   |               |       |   |   |   |   |   |
| Net income (loss)                                |   |            | (417,841   | )      |                             |   | 1,550,228 |            |   |   | 587,783               |       |   |               | (102,877   | ) |   |   | 1,617,293 |   |
|                                             |   |            |       |   |                             |   |      |            |   |   |                  |       |   |               |       |   |   |   |   |   |
| Net earnings (loss) per common share:            |   |            |       |   |                             |   |      |            |   |   |                  |       |   |               |       |   |   |   |   |   |
|     Basic                    |   | $               | (0.01      | )      |                             |   |      |            |   | $      | 0.10                  |   (n) |   |               |       |   |   | $ | 0.02 |   |
|     Diluted                  |   | $               | (0.01      | )      |                             |   |      |            |   | $      | 0.10                  |   (n) |   |               |       |   |   | $ | 0.02 |   |
|                                             |   |            |       |   |                             |   |      |            |   |   |                  |       |   |               |       |   |   |   |   |   |
| Weighted average common shares outstanding       |   |            |       |   |                             |   |      |            |   |   |                  |       |   |               |       |   |   |   |   |   |
| Basic                                            |   |            | 47,229,124 |   |                             |   |      |            |   |   | 21,200,000            |       |   |               |       |   |   |   | 68,429,124 |   |
| Diluted                                          |   |            | 47,229,124 |   |                             |   |      |            |   |   | 21,200,000            |       |   |               |       |   |   |   | 68,429,124 |   |

|   | (a) | To record elimination of cash not acquired in acquisition. |
|--------|-----|------------------------------------------------------------|

|   | (b) | To record receipt of debt proceeds. |
|--------|-----|-------------------------------------|

|   | (c) | To record cash paid for Samson properties. |
|--------|-----|--------------------------------------------|

|   | (d) | To record cash received for TNR purchase price adjustment to effective date of acquisition. |
|--------|-----|---------------------------------------------------------------------------------------------|

|   | (e) | To record elimination of assets not acquired in acquisition. |
|--------|-----|--------------------------------------------------------------|

|   | (f) | To record acquisition of Samson properties. |
|--------|-----|---------------------------------------------|

|   | (g) | To record allocation of purchase price consideration to fair value of oil and gas properties acquired. |
|--------|-----|--------------------------------------------------------------------------------------------------------|

|   | (h) | To record deposit for asset retirement bond. |
|--------|-----|----------------------------------------------|

|   | (i) | To record debt obligations pursuant to acquisition. |
|--------|-----|-----------------------------------------------------|

|   | (j) | To record asset retirement obligations estimate for Samson properties and the Lake Hermitage Field. |
|--------|-----|-----------------------------------------------------------------------------------------------------|

|   | (k) | To record elimination of TNR members’ equity. |
|--------|-----|-----------------------------------------------------|

|   | (l) | To record par value of common stock and additional paid in capital for purchase price consideration paid. with stock. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------|

|   | (m) | To record bank charges upon receipt of debt proceeds. |
|--------|-----|-------------------------------------------------------|

|   | (n) | EPS is calculated based on Samson and TNR combined financials as the shares were issued to TNR after acquisition of the Samson properties. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------|

----

| Prospect            |    | June 30, 2011 |    |    | December 31, 2010 |   |
|---------------------|--------------|-------------------------|--------------|--------------|-----------------------------|--------|
|                |         |                    |         |         |                        |   |
| Coal Creek Prospect |         | $                       | -            |         |                        | $      | - |   |
| Java Field          |         |                    | 38,345       |         |                        |   | 38,345 |   |
| Total               |         | $                       | 38,345       |         |                        | $      | 38,345 |   |

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

----

----

|                     |   | Balance atJanuary 1, 2011 |   |   | Activity duringthe period |   |   | Decrease in fairvalue ofderivativeliability |   |   | Balance atJune 30, 2011 |   |
|-------------------------------|--------|------------------------------------------|--------|--------|-------------------------------------|--------|--------|------------------------------------------------------------|--------|--------|----------------------------------------|--------|
|                          |   |                                     |   |   |                                |   |   |                                                       |   |   |                                   |   |
| Derivative conversion feature |   | $                                        | -      |   |                                | $      | -      |                                                       |   | $      | -                                      |   |   | $ | - |   |

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

----

|                                                                  |   | June 30, 2011 |      |
|----------------------------------------------------------------------------|--------|-------------------------|-----------|
|                                                                       |   |                    |      |
| Common stock issuable upon conversion                                      |   |                    | 6,800,000 |   |
| Market price of common stock on measurement date, per posted closing price |   | $                       | 0.14      |   |
| Conversion price                                                           |   | $                       | 0.125     |   |
| Conversion period in years                                                 |   |                    | 2         |   |
| Expected volatility (1)                                                    |   |                    | 149.8     | % |
| Expected dividend yield (2)                                                |   |                    | 0         | % |
| Risk free interest rate (3)                                                |   |                    | 3         | % |

|                          |   | Balance atJanuary 1, 2010 |      |   | Activity duringthe period |   |      | Decrease in fairvalue ofderivativeliability |   |   | Balance atJune 30,2010 |   |
|-------------------------------|--------|------------------------------------------|-----------|--------|-------------------------------------|--------|-----------|------------------------------------------------------------|--------|--------|-----------------------------|--------|
|                          |   |                                     |      |   |                                |   |      |                                                       |   |   |                        |   |
| Derivative conversion feature |   | $                                        | 7,461,680 |   |                                | $      | 3,311,820 |                                                       |   | $      | 9,020,100                   |   |   | $ | 1,753,401 |   |

| Date           |   | Probability ofissuance ofinstruments at aprice lower than theconversion price |   |   | Probable prices atwhich instrumentswill be issued |   |
|----------------|--------|-----------------------------------------------------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------|--------|
|           |   |                                                                                                                  |   |   |                                                                       |   |
| September 2009 |   |                                                                                                                  | 70     | %      |                                                                       | $      | 0.20 - $0.15 |   |
| November 2009  |   |                                                                                                                  | 60     | %      |                                                                       | $      | 0.20 - $0.15 |   |
| December 2009  |   |                                                                                                                  | 50     | %      |                                                                       | $      | 0.24 - $0.21 |   |
| Thereafter     |   |                                                                                                                  | 50     | %      |                                                                       | $      | 0.24 - $0.21 |   |

|                                                                       |   | December 31,2010 |      |
|----------------------------------------------------------------------------|--------|-----------------------|-----------|
|                                                                       |   |                  |      |
| Common stock issuable upon conversion                                      |   |                  | 8,780,000 |   |
| Market price of common stock on measurement date, per posted closing price |   | $                     | 0.08      |   |
| Conversion price                                                           |   | $                     | 0.43      |   |
| Conversion period in years                                                 |   |                  | 2         |   |
| Expected volatility (1)                                                    |   |                  | 149.8     | % |
| Expected dividend yield (2)                                                |   |                  | 0         | % |
| Risk free interest rate (3)                                                |   |                  | 3         | % |

| 2010       |   |   | -         |   |
|------------|--------|--------|-----------|--------|
| 2011       |   |   | 1,480,000 |   |
| 2012       |   |   | 1,116,400 |   |
| Thereafter |   |   | -         |   |
| Total      |   | $      | 2,596,400 |   |

----

|                                               |   | June 30, 2011 |   |   | December 31, 2010 |   |
|---------------------------------------------------------|--------|-------------------------|--------|--------|-----------------------------|--------|
| Asset retirement obligations at beginning of the period |   | $                       | 80,217 |   |                        | $      | 55,280 |   |
| Accretion expense                                       |   |                    | 3,584  |   |                        |   | 24,937 |   |
| Asset retirement obligations at end of the period       |   | $                       | 83,801 |   |                        | $      | 80,217 |   |

----

----

----

|                             |   | Number ofShares |    |    | Weighted AverageExercise Price |   |
|----------------------------------|--------|----------------------|--------------|--------------|------------------------------------------|--------|
| Outstanding at December 31, 2010 |   |                 | 1,048,000    |         |                                     | $      | 0.25 |   |
| Issued                           |   |                 | 1,000,000    |         |                                     |   | 0.15 |   |
| Exercised                        |   |                 | -            |         |                                     |   | - |   |
| Cancelled/Expired                |   |                 | -            |         |                                     |   | - |   |
| Outstanding at June 30, 2011     |   |                 | 2,048,000    |         |                                     | $      | 0.25 |   |
| Exercisable at June 30, 2011     |   |                 | 848,500      |         |                                     | $      | 0.25 |   |

| Exercise price |   |   | Number ofoptions |      | Remaining life |       | AggregateIntrinsicValue (In-the-money) Options |   |
|---------------------|--------|--------|-----------------------|-----------|---------------------|------------|----------------------------------------------------------|--------|
| $0.25               |   |   |                  | 298,000   |                | 1.52 years |                                                     | $      | - |   |
| $0.25               |   |   |                  | 500,000   |                | 3.52 years |                                                     |   | - |   |
| $0.25               |   |   |                  | 250,000   |                | 3.58 years |                                                     |   | - |   |
| $0.15               |   |   |                  | 1,000,000 |                | 5.00 years |                                                     |   |   | - |

----

----

----

----

----

|                                              |   | For the Three Months Ended |    |   | For the Six Months Ended |   |
|---------------------------------------------------|--------|------------------------------------------------|---------|--------|----------------------------------------------|--------|
|                                              |   | 2011                                           |    |   | 2010                                         |   |   | 2011 |   |   | 2010 |   |
| Net Income (Loss)                                 |   | $                                              | (21,278 | )      |                                         | $      | 17,194,475 |   |   | $ | (417,841 | ) |   | $ | 6,825,385 |   |
|                                              |   |                                           |    |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Add Back:                                         |   |                                           |    |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
|                                              |   |                                           |    |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense, net                             |   |                                           | 50,301  |   |                                         |   | 59,706 |   |   |   | 299,309 |   |   |   | 783,631 |   |
| Depreciation, depletion, accretion and impairment |   |                                           | 1,779   |   |                                         |   | 7,178 |   |   |   | 3,584 |   |   |   | 14,356 |   |
| Gain on change in derivative value                |   |                                           | -       |   |                                         |   | (18,045,075 | ) |   |   | - |   |   |   | (9,020,100 | ) |
| Stock based compensation                          |   |                                           | 214,804 |   |                                         |   | 488,649 |   |   |   | 254,619 |   |   |   | 797,929 |   |
|                                              |   |                                           |    |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Adjusted EBITDA                                   |   | $                                              | 245,606 |   |                                         | $      | (257,913 | ) |   | $ | 139,671 |   |   | $ | (526,276 | ) |

----

----

|   | · | On June 13, 2011, we sold 320,000 shares of restricted common stock to two of our Directors, Jim Cerna and Ray Unruh, for a total of $40,000 in cash; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On June 14, 2011, we executed an agreement with Cherokee Financial Corp. (owned by Ray L. Unruh, our CFO) wherein Cherokee agreed to accept payment in restricted common stock for the outstanding balance of principal and accrued interest on its long term note receivable.  A total of 2,249,722 shares, with a fair market value of $314,961, were issued in full payment of outstanding principal of $213,400 and accrued interest of $67,815.  Also on June 14, 2011, we executed an agreement with Sycamore Resources, Inc. (owned by Randy M. Griffin, our CEO) to convert the note payable owed to Sycamore to common stock.  A total of 1,904,000 shares, with a fair market value of $266,560, were issued in full payment of the outstanding principal of $238,000; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | On June 16, 2011, we entered into a settlement agreement with Gottbetter & Partners, LLP (“GP”) wherein GP agreed to accept 1,200,000 shares of restricted common stock, with a fair market value of $171,000, as payment in full of the outstanding balance of $455,861 in accrued legal fees owed to GP for legal work performed in 2010 and 2011; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On June 16, 2011, we entered into an Exchange Agreement wherein Whalehaven Capital Fund, Ltd. agreed to exchange its promissory note with a principal balance of $40,000 plus $1,019 in accrued interest for two convertible debentures totaling $41,019.  These convertible debentures have a maturity date of July 31, 2013 and are convertible at any time at a conversion price of $0.125.  The note will bear interest at 6% per annum payable in cash or shares at maturity; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On July 22, 2011, we acquired TNR, which we anticipate will increase revenue by at least $500,000 per month; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------|

|   | · | On July 22, 2011, we entered into the Loan Agreement with F&M, which provides us additional working capital for field enhancements and other drilling opportunities. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| a) | As of June 30, 2011, we did not maintain effective controls over financial statement disclosure and the recording of equity and debt transactions. Specifically, controls were not designed and in place to ensure that all disclosures required were originally addressed in our financial statements. Accordingly, management concluded that this control deficiency constituted a material weakness; and |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b) | As of June 30, 2011, we did not adequately segregate, or mitigate the risks associated with, incompatible functions among personnel to reduce the risk that a potential material misstatement of the financial statements would occur without being prevented or detected. Accordingly, management concluded that this control deficiency constituted a material weakness. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| 31.01  | Certification of Chief Executive Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.               |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                 |
| 31.02  | Certification of Chief Financial Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.               |
|   |                                                                                                                                                                                 |
| 32.01  | Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |

| 101 INS | XBRL Instance Document* |
|---------|-------------------------|

| 101 SCH | XBRL Schema Document* |
|---------|-----------------------|

| 101 CAL | XBRL Calculation Linkbase Document* |
|---------|-------------------------------------|

| 101 LAB | XBRL Labels Linkbase Document* |
|---------|--------------------------------|

| 101 PRE | XBRL Presentation Linkbase Document* |
|---------|--------------------------------------|

| 101 DEF | XBRL Definition Linkbase Document* |
|---------|------------------------------------|

----

| * | To be filed by amendment. The XBRL related information in Exhibit 101 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability of that section and shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing or document. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                    | MESA ENERGY HOLDINGS, INC. |                                                                                   |
|-------------------------|----------------------------|----------------------------------------------------------------------------------------|
|                    |                       |                                                                                   |   |
| Date: September 2, 2011 | By:                        | /s/ RANDY M. GRIFFIN                                                              |   |
|                    |                       | Randy M. Griffin                                                                       |   |
|                    |                       | Chief Executive Officer (Principal Executive Officer)                                  |   |
|                    |                       |                                                                                   |   |
| Date: September 2, 2011 | By:                        | /s/ RAY L. UNRUH                                                                  |   |
|                    |                       | Ray L. Unruh                                                                           |   |
|                    |                       | Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) |   |

----