UNITED STATES


SECURITIES AND EXCHANGE COMMISSION


Washington D. C. 20549





FORM 10-Q








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





For the quarterly period ended September 30, 2010





o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


For the transition period from ___ to _____





Commission File Number 333-152023





AMERICAN ENERGY FIELDS, INC.





(Exact name of registrant as specified in its charter)




Delaware

(State or other jurisdiction of incorporation or organization)

26-1657084

(I.R.S. Employer Identification No.)





3266 W. Galveston Drive #101


Apache Junction, AZ 95120


(Address of principal executive offices)





480-288-6530


(Issuer's telephone number)





Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YESx  NOo





Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).o Yeso  No





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





Large accelerated filero                                                                Accelerated filero





Non-accelerated filero                                                                Smaller reporting companyx


(Do not check if a smaller reporting company)





Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YESo NOx





Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: 53,678,255 shares as of November 15, 2010










Table of Contents





PagePart I –
Financial InformationItem 1. Financial Statements
1Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
11Item 3. Quantitative and Qualitative Disclosures about Market Risk
12Item 4. Controls and Procedures
12Part II –
Other InformationItem 1. Legal Proceedings
13Item 1A. Risk Factors
13Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
13Item 3. Defaults upon Senior Securities
14Item 4. [Removed and Reserved]
14Item 5. Other Information
14Item 6. Exhibits
14










ITEM 1. FINANCIAL STATEMENTS.





AMERICAN ENERGY FIELDS, INC.(AN EXPLORATION STAGE COMPANY)BALANCE SHEETSeptember 30, 2010


March 31, 2010UNAUDITED


AUDITEDASSETSCurrent assets:Cash

$
126,181


$
962,392Prepaid legal fees


-



18,000Total current assets


126,181



980,392Office equipment & vehicle, net of depreciation


16,679



-Other assets:Deposits


15,097



-Mining rights


444,200



209,200Total other assets


459,297



209,200Total Assets

$
602,157


$
1,189,592LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Accounts payable and accrued liabilities

$
-


$
3,058Total liabilities


-



3,058Stockholders' Equity:Preferred stock, $.0001 par value, 25,000,000 sharesauthorized: no shares issued and outstanding






-Common stock, $.0001 par value, 200,000,000 sharesauthorized: 50,878,255 issued and outstandingat September 30, 2010 and 50,528,255 at March 31, 2010


5,088



5,053Additional paid-in capital


1,477,791



1,428,826Common stock, $.0001 par value, 3,000,000 shares tobe issued at September 30, 2010 and 350,000 shares tobe issued at March 31, 2010


1,570,000



49,000Accumulated  deficit


(2,450,722
)


(296,345
)Total stockholders' equity


602,157



1,186,534Total liabilities and stockholders' equity

$
602,157


$
1,189,592





The accompanying notes to the financial statements should be read in conjunction with the abovefinancial statements.




1




AMERICAN ENERGY FIELDS, INC.(AN EXPLORATION STAGE COMPANY)STATEMENTS OF OPERATIONSFOR THE THREE


FOR THE SIX


PERIOD FROM INCEPTION


PERIOD FROM INCEPTIONMONTHS

ENDED


MONTHS

ENDED


NOVEMBER 23, 2009 TO


NOVEMBER 23, 2009 TOSEPTEMBER 30, 2010


SEPTEMBER 30, 2010


MARCH 31,

2010


SEPTEMBER 30, 2010UNAUDITED


UNAUDITED


AUDITED


UNAUDITEDRevenues

$
-


$
-


$
-


$
-ExpensesExploration costs


96,475



123,168



-



123,168General and administrative


1,735,988



2,029,506



248,382



2,277,888Depreciation


1,326



2,651



-



2,651Directors' compensation


-



-



49,000



49,000Total general and administrative


1,833,789



2,155,325



297,382



2,452,707Other expenses (income)Interest income


(229
)


(948
)


(1,037
)


(1,985
)Total other (income) expenses


(229
)


(948
)


(1,037
)


(1,985
)Net loss

$
(1,833,560
)

$
(2,154,377
)

$
(296,345
)

$
(2,450,722
)Basic weighted average number ofcommon shares outstanding


50,528,255



50,614,318



43,741,758



48,869,203Diluted weighted average number ofcommon shares outstanding


50,699,448



50,614,318



43,741,758



48,869,203Basic net loss per share

$
(0.036
)

$
(0.043
)

$
(0.007
)

$
(0.050
)Diluted net loss per share

$
(0.036
)

$
(0.043
)

$
(0.007
)

$
(0.050
)




The accompanying notes to the financial statements should be read in conjunction with the abovefinancial statements.




2




AMERICAN ENERGY FIELDS, INC.(AN EXPLORATION STAGE COMPANY)STATEMENTS OF CASHFLOWSFOR THE SIX


PERIOD FROM INCEPTION


PERIOD FROM INCEPTIONMONTHS

ENDED


NOVEMBER 23, 2009 TO


NOVEMBER 23, 2009 TOSEPTEMBER 30, 2010


MARCH 31,

2010


SEPTEMBER 30, 2010UNAUDITED


AUDITED


UNAUDITEDCash flows from operating activitiesNet loss

$
(2,154,377
)

$
(296,345
)

$
(2,450,722
)Consulting fees paid by issuance of common stock


-



36,000



36,000Adjustments to reconcile net loss to net cashprovided by (used in) operating activitiesDepreciation


2,651



-



2,651Common shares to be issued for directors' compensation


-



49,000



49,000Common shares to be issued for mining rights


170,000



-



170,000Common shares to be issued for services


1,400,000







1,400,000Changes in operating assets and liabilitiesDecrease (increase) in prepaid legal fees


18,000



(18,000
)


-Increase in deposits


(15,097
)






(15,097
)(Decrease) increase in accounts payable & liabilities


(3,058
)


3,058



-Net cash (used in) operating activities


(581,881
)


(226,287
)


(808,168
)Cash flows from investing activitiesAcquisition of mining rights


(235,000
)


(209,200
)


(444,200
)Purchase of office equipment and vehicle


(19,330
)


-



(19,330
)Net cash (used in) investing activities


(254,330
)


(209,200
)


(463,530
)Cash flows from financing activitiesProceeds from issuance of Common Stock


-



1,397,879



1,397,879Net cash provided by financing activities


-



1,397,879



1,397,879Net (decrease) increase in cash


(836,211
)


962,392



126,181Cash at beginning of period


962,392



-



-Cash at end of period

$
126,181


$
962,392


$
126,181Cash paid during year for interest

$
-


$
-


$
-Taxes paid

$
-


$
-


$
-




The accompanying notes to the financial statements should be read in conjunction with the abovefinancial statements.




3




NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS





American Energy Fields, Inc. (the "Company") was incorporated as Sienna Resources, Inc. in the State of Delaware on July 20, 2007 to engage in the acquisition, exploration and development of natural resource properties.  On December 21, 2009 we filed an Amended and Restated Certificate of Incorporation with the Secretary of State of Delaware in order to change our name to “American Energy Fields, Inc.”, change our authorized capital to 200,000,000 shares of common stock, par value $0.0001 per share, and 25,000,000 shares of preferred stock, par value $0.0001 per share and create “blank check” preferred stock.





On December 24, 2009, the Company entered into a Share Exchange Agreement (the “Exchange Agreement”) with Green Energy Fields, Inc., a privately-held Nevada corporation (“Green Energy”), and the shareholders of Green Energy.  Upon closing of the transaction contemplated under the Exchange Agreement, on December 24, 2009, the shareholders of Green Energy transferred all of the issued and outstanding capital stock of Green Energy to the Company in exchange for shares of the Company’s common stock (the “Exchange”).  Such Exchange caused Green Energy to become our wholly-owned subsidiary.  Immediately following the closing of the Exchange, under an Agreement of Conveyance, Transfer and Assignment of Assets and Assumption of Obligations (the “Conveyance Agreement”),the Company transferred all of its pre-Exchange assets and liabilities (“Split-off”) to its wholly-owned subsidiary, Sienna Resources Holdings, Inc. (“SplitCo”).  Thereafter, pursuant to a stock purchase agreement, the Company transferred all of the outstanding capital stock of SplitCo to Julie Carter, its former officer and director, in exchange for the cancellation of shares of the Company’s common stock that she owned.  Following the Exchange and the Split-off, the Company’s sole line of business is the business of Green Energy.





The Company is now primarily engaged in the acquisition and exploration of properties that may contain uranium mineralization in the United States.  Our target properties are those that have been the subject of historical exploration.  The Company has acquired State Leases and federal unpatented mining claims in the states of Arizona and California for the purpose of exploration and potential development of uranium minerals on a total of approximately 7,200 acres.





Since American Energy had no assets of substance prior to the Exchange, for accounting purposes the Exchange has been treated as a merger of both companies and recapitalization of the shares of Green Energy with American Energy.  The accounting rules for reverse acquisitions require that, beginning with the date of the acquisition (December 24, 2009), the balance sheet include the assets and liabilities of Green Energy and the equity accounts be recapitalized to reflect the net equity of Green Energy.  Accordingly, the historical operating results of Green Energy are now the operating results of the Company.





As Green Energy was formed on November 23, 2009, there is no comparative period.





Effective November 23, 2009, the Company adopted the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 105-10, Generally Accepted Accounting Principles – Overall (“ASC 105-10”). ASC 105-10 establishes the FASB Accounting Standards Codification (the “Codification”) as the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with U.S. GAAP. Rules and interpretive releases of the SEC under authority of federal securities laws are also sources of authoritative U.S. GAAP for SEC registrants. All guidance contained in the Codification carries an equal level of authority. The Codification superseded all existing non-SEC accounting and reporting standards. All other non-grandfathered, non-SEC accounting literature not included in the Codification is non-authoritative. The FASB will not issue new standards in the form of Statements, FASB Positions or Emerging Issue Task Force Abstracts. Instead, it will issue Accounting Standards Updates (“ASUs”).





The FASB will not consider ASUs as authoritative in their own right. ASUs will serve only to update the Codification, provide background information about the guidance and provide the bases for conclusions on the change(s) in the Codification. References made to FASB guidance throughout this document have been updated for the Codification.





NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES





BASIS OF PRESENTATION





The Company reports revenue and expenses using the accrual method of accounting for financial and tax reporting purposes.





DEVELOPMENT STAGE COMPANY





The accompanying financial statements have been prepared in accordance with the FASB Accounting Standards Codification No 915, Development Stage Entities. A development stage enterprise is one in which planned and principal operations have not commenced or, if its operations have commenced, there has been no significant revenue there from.  Development-stage companies report cumulative costs from the enterprise’s inception.





CASH AND CASH EQUIVALENTS




4





The Company considers all highly liquid debt instruments and other short-term investments with maturity of three months or less, when purchased, to be cash equivalents.  The Company maintains cash and cash equivalent balances at one financial institution that is insured by the Federal Deposit Insurance Corporation.





USE OF ESTIMATES





The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  On an on-going basis, the Company evaluates its estimates, including, but not limited to, those related to investment tax credits, bad debts, income taxes and contingencies. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates.





COMPREHENSIVE INCOME





The Company adopted ASC 220-10, “Reporting Comprehensive Income,” (formerly SFAS No. 130). ASC 220-10 requires the reporting of comprehensive income in addition to net income from operations.





Comprehensive income is a more inclusive financial reporting methodology that includes disclosure of information that historically has not been recognized in the calculation of net income.





MINERAL PROPERTY ACQUISITION AND EXPLORATION COSTS





The Company expenses all costs related to the acquisition and exploration of mineral properties in which it has secured exploration rights prior to establishment of proven and probable reserves. To date, the Company has not established the commercial feasibility of any exploration prospects; therefore, all costs are being expensed.





DEPRECIATION, AMORTIZATION AND CAPITALIZATION





The Company records depreciation and amortization, when appropriate, using both straight-line and declining balance methods over the estimated useful life of the assets (five to seven years).  Expenditures for maintenance and repairs are charged to expense as incurred.  Additions, major renewals and replacements that increase the property's useful life are capitalized.  Property sold or retired, together with the related accumulated depreciation is removed from the appropriate accounts and the resultant gain or loss is included in net income.





INCOME TAXES





Income taxes are accounted for under the asset and liability method in accordance with ASC 740, Income Taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial carrying amounts of existing assets and liabilities and their respective tax bases as well as operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the periods in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance to the extent that the recoverability of the asset is unlikely to be recognized.





The Company follows ASC 740 rules governing uncertain tax positions, which provides guidance for recognition and measurement. This prescribes a threshold condition that a tax position must meet for any of the benefits of the uncertain tax position to be recognized in the financial statements. It also provides accounting guidance on derecognization, classification and disclosure of these uncertain tax positions.





FAIR VALUE OF FINANCIAL INSTRUMENTS (OTHER THAN DERIVATIVE FINANCIAL INSTRUMENTS)





"Disclosures about Fair Value of Financial Instruments"  requires the Company to disclose, when reasonably attainable, the fair market values of its assets and  liabilities which are deemed to be financial instruments.  The Company's financial instruments consist primarily of cash and certain investments.





INVESTMENTS





Investments that are purchased in other companies are valued at cost less any impairment in the value that is other than temporary in nature.





NET LOSS PER SHARE




5




Basic net loss per share is computed using the weighted average number of shares of common stock outstanding for the period end. The net loss for the period end is divided by the weighted average number of shares outstanding for that period to arrive a net loss per share.





Diluted net loss per share reflects the potential dilution that could occur if the securities or other contracts to issue common stock were exercised or converted into common stock.





GOODWILL AND OTHER INTANGIBLE ASSETS





In accordance with ASC 350- 30-65 (formerly SFAS 142, “Goodwill and Other Intangible Assets”), the Company assesses the impairment of identifiable intangibles whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Intangible assets were comprised of website assets. Factors the Company considers to be important which could trigger an impairment review include the following:





1.
Significant underperformance relative to expected historical or projected future operating results;





2.
Significant changes in the manner of use of the acquired assets or the strategy for the overall business; and





3.
Significant negative industry or economic trends.





When the Company determines that the carrying value of intangibles may not be recoverable based upon the existence of one or more of the above indicators of impairment and the carrying value of the asset cannot be recovered from projected undiscounted cash flows, the Company records an impairment charge. The Company measures any impairment based on a projected discounted cash flow method using a discount rate determined by management to be commensurate with the risk inherent in the current business model. Significant management judgment is required in determining whether an indicator of impairment exists and in projecting cash flows.





STOCK BASED COMPENSATION





The Company applies ASC 718-10 and ASC 505-50 (formerly SFAS 123R) in accounting for stock options issued to employees. For stock options and warrants issued to non-employees, the Company applies the same standard, which requires the recognition of compensation cost based upon the fair value of stock options at the grant date using the Black-Scholes option pricing model.





RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS





In September 2006, ASC issued 820, Fair Value Measurements. ASC 820 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosure about fair value measurements. This statement is effective for financial statements issued for fiscal years beginning after November 15, 2007.  Early adoption is encouraged. The adoption of ASC 820 is not expected to have a material impact on the financial statements.





In February 2007, ASC issued 825-10, The Fair Value Option for Financial Assets and Financial Liabilities – Including an amendment of ASC 320-10, (“ASC 825-10”) which permits entities to choose to measure many financial instruments and certain other items at fair value at specified election dates. A business entity is required to report unrealized gains and losses on items for which the fair value option has been elected in earnings at each subsequent reporting date. This statement is expected to expand the use of fair value measurement. ASC 825-10 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years.





In December 2007, ASC 808-10 (formerly EITF Issue No. 07-1, “Accounting for Collaborative Arrangements”) was issued.  ASC 808-10 provides guidance concerning: determining whether an arrangement constitutes a collaborative arrangement within the scope of the issue; how costs incurred and revenue generated on sales to third parties should be reported in the income statement; how an entity should characterize payments on the income statement; and what participants should disclose in the notes to the financial statements about a collaborative arrangement. The provisions of ASC 808-10 have been adopted in 2009. ASC 808-10 has had no impact on the Company’s financial statements.





In December 2007, the ASC issued ASC 810-10-65, Noncontrolling Interests in Consolidated Financial Statements. ASC 810-10-65 establishes accounting and reporting standards for ownership interests in subsidiaries held by parties other than the parent, changes in a parent’s ownership of a noncontrolling interest, calculation and disclosure of the consolidated net income attributable to the parent and the noncontrolling interest, changes in a parent’s ownership interest while the parent retains its controlling financial interest and fair value measurement of any retained noncontrolling equity investment.





ASC 810-10-65 is effective for financial statements issued for fiscal years beginning after December 15, 2008, and interim periods within those fiscal years. Early adoption is prohibited. Management is determining the impact that the adoption of ASC 810-10-65 will have on the Company’s financial position, results of operations or cash flows.




6




In November 2009, the Company adopted ASC 805,Business Combinations (“ASC 805”). ASC 805 retains the fundamental requirements that the acquisition method of accounting be used for all business combinations and for an acquirer to be identified for each business combination. ASC 805 defines the acquirer as the entity that obtains control of one or more businesses in the business combination and establishes the acquisition date as the date that the acquirer achieves control.  ASC 805 will require an entity to record separately from the business combination the direct costs, where previously these costs were included in the total allocated cost of the acquisition.  ASC 805 will require an entity to recognize the assets acquired, liabilities assumed, and any non-controlling interest in the acquired at the acquisition date, at their fair values as of that date.





ASC 805 will require an entity to recognize as an asset or liability at fair value for certain contingencies, either contractual or non-contractual, if certain criteria are met.  Finally, ASC 805 will require an entity to recognize contingent consideration at the date of acquisition, based on the fair value at that date.  This will be effective for business combinations completed on or after the first annual reporting period beginning on or after December 15, 2008.  Early adoption is not permitted and the ASC is to be applied prospectively only.  Upon adoption of this ASC, there would be no impact to the Company’s results of operations and financial condition for acquisitions previously completed.  The adoption of ASC 805 is not expected to have a material effect on the Company’s financial position, results of operations or cash flows.





In March 2008, ASC issued ASC 815, Disclosures about Derivative Instruments and Hedging Activities”, (“ASC 815”). ASC 815 requires enhanced disclosures about an entity’s derivative and hedging activities. These enhanced disclosures will discuss: how and why an entity uses derivative instruments; how derivative instruments and related hedged items are accounted for and its related interpretations; and how derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows. ASC 815 is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008. The Company does not believe that ASC 815 will have an impact on its results of operations or financial position.





In April 2008, ASC issued ASC 350, “Determination of the Useful Life of Intangible Assets”. This amends the factors that should be considered in developing renewal or extension assumptions used to determine the useful life of a recognized intangible asset under ASC 350. The guidance is used for determining the useful life of a recognized intangible asset shall be applied prospectively to intangible assets acquired after adoption, and the disclosure requirements shall be applied prospectively to all intangible assets recognized as of, and subsequent to, adoption. The Company does not believe ASC 350 will materially impact their financial position, results of operations or cash flows.





In June 2008, the FASB ratified ASC 815-40-25 (formerly EITF Issue No. 07-05, “Determining Whether an Instrument (or Embedded Feature) is Indexed to an Entity's Own Stock”). ASC 815-40-25 mandates a two-step process for evaluating whether an equity-linked financial instrument or embedded feature is indexed to the entity's own stock. Warrants that a company issues that contain a strike price adjustment feature, upon the adoption of ASC 815-40-25, results in the instruments no longer being considered indexed to the company's own stock.  On November 23, 2009, the Company adopted ASC 815-40-25 and re-evaluated its issued and outstanding warrants that contain a strike price adjustment feature.   Based upon the Company’s re-evaluation, ASC 815-40-25 has had no material impact on the Company’s condensed consolidated financial statements.





Effective November 23, 2009, the Company adopted ASC 855, Subsequent Events (“ASC 855”). ASC 855 establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued or are available to be issued. It requires disclosure of the date through which an entity has evaluated subsequent events and the basis for that date – that is, whether that date represents the date the financial statements were issued or were available to be issued. This disclosure should alert all users of financial statements that an entity has not evaluated subsequent events after that date in the set of financial statements being presented. Adoption of ASC 855 did not have a material impact on the Company’s results of operations or financial condition. The Company has evaluated subsequent events through August 19, 2010, the date the financial statements were issued.





Effective November 23, 2009, the Company adopted FASB ASU No. 2009-05, Fair Value Measurement and Disclosures (Topic 820) (“ASU 2009-05”). ASU 2009-05 provided amendments to ASC 820-10, Fair Value Measurements and Disclosures – Overall, for the fair value measurement of liabilities. ASU 2009-05 provides clarification that in circumstances in which a quoted market price in an active market for the identical liability is not available, a reporting entity is required to measure fair value using certain techniques. ASU 2009-05 also clarifies that when estimating the fair value of a liability, a reporting entity is not required to include a separate input or adjustment to other inputs relating to the existence of a restriction that prevents the transfer of a liability. ASU 2009-05 also clarifies that both a quoted price in an active market for the identical liability at the measurement date and the quoted price for the identical liability when traded as an asset in an active market when no adjustments to the quoted price of the asset are required for Level 1 fair value measurements. Adoption of ASU 2009-05 did not have a material impact on the Company’s results of operations or financial condition.





In January 2010, the Company adopted FASB ASU No. 2010-06, Fair Value Measurement and Disclosures (Topic 820) - Improving Disclosures about Fair Value Measurements(“ASU 2010-06”). These standards require new disclosures on the amount and reason for transfers in and out of Level 1 and 2 fair value measurements. The standards also require new disclosures of activities, including purchases, sales, issuances, and settlements within the Level 3 fair value measurements. The standard also clarifies existing disclosure requirements on levels of disaggregation and disclosures about inputs and valuation techniques. These new disclosures are effective beginning with the first interim filing in 2010.  The disclosures about the roll-forward of information in Level 3 are required for the Company with its first interim filing in 2011. The Company does not believe this standard will impact their financial statements.




7




Other ASU’s that have been issued or proposed by the FASB ASC that do not require adoption until a future date and are not expected to have a material impact on the financial statements upon adoption.





NOTE 3 – PROPERTY AND EQUIPMENT





Property and equipment are made up of the following as of September 30, 2010:




Office equipment

$
2,330Vehicle


17,00019,330Less accumulated depreciation


2,651$
16,679




Depreciation expense for the quarter ended September 30, 2010 was $1,326








NOTE 4 - PROVISION FOR INCOME TAXES





Realization of deferred tax assets is dependent upon sufficient future taxable income during the period that deductible temporary differences and carry-forwards are expected to be available to reduce taxable income.  As the achievement of required future taxable income is uncertain, the Company recorded a valuation allowance.





As of

September 30, 2010Deferred tax assets:Net Operating Loss

$
(2,450,722)Tax Rate


34
%Total deferred tax assets

$
833,245Less Valuation allowance

$
(833,245)Net deferred tax assets

$
0





Reconciliation of the differences between the statutory tax rate and the effective tax rate is:





September 30,

2010Federal statutory tax rate


34.0
%Effective Tax Rate


34.0
%Valuation Allowance


(34.0
%)Net Effective Tax Rate


0%





As of September 30, 2010, the Company has a net operating loss carry forward of $2,450,772 expiring through 2030. The Company has provided a valuation allowance against the full amount of the deferred tax asset due to management’s uncertainty about its realization. Furthermore, the net operating loss carry forward may be subject to further limitation pursuant to Section 382 of the Internal Revenue Code.





NOTE 5 - COMMITMENTS AND CONTINGENCIES





None





LITIGATION





The Company is not presently involved in any litigation.





NOTE 6 - RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS





The Company does not believe that the adoption of any recently issued, but not yet effective, accounting standards will have a material effect on its financial position and results of operations.





8





NOTE 7 - GOING CONCERN





Future issuances of the Company's equity or debt securities will be required in order for the Company to continue to finance its operations and continue as a going concern. The Company's present revenues are insufficient to meet operating expenses.





The financial statement of the Company have been prepared assuming that the Company will continue as a going concern, which contemplates, among other things, the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred cumulative net losses of $2,450,722 since its inception and requires capital for its contemplated operational and marketing activities to take place. The Company's ability to raise additional capital through the future issuances of common stock is unknown. The obtainment of additional financing, the successful development of the Company's contemplated plan of operations, and its transition, ultimately, to the attainment of profitable operations are necessary for the Company to continue operations. The ability to successfully resolve these factors raise substantial doubt about the Company's ability to continue as a going concern. The financial statement of the Company do not include any adjustments that may result from the outcome of these aforementioned uncertainties.





NOTE 8 - RELATED PARTY TRANSACTIONS





The officers and directors of the Company, may, in the future, become involved in other business opportunities as they become available, thus they may face a conflict in selecting between the Company and their other business opportunities.  The Company has not formulated a policy for the resolution of such conflicts.





NOTE 9 - STOCK TRANSACTIONS





Transactions, other than employees' stock issuance, are in accordance with paragraph 8 of Statement of Financial Accounting Standards 123. Transactions with employees' stock issuance are in accordance with paragraphs (16 44) of Statement of Financial Accounting Standards 123. These issuances shall be accounted for based on the fair value of the consideration received or the fair value of the equity instruments issued, or whichever is more readily determinable.





Sales by American Energy Fields,  Inc. (f/k/a Sienna Resources, Inc.)





On December 21, 2009, the board of directors declared a dividend of an additional 11.2 shares of its common stock on each share of its common stock outstanding on December 21, 2009.





On December 24, 2009, the Company entered into the Exchange with Green Energy and the shareholders of Green Energy.  The shareholders of Green Energy transferred all of the issued and outstanding capital stock of Green Energy in exchange for the right to receive one share of American Energy common stock for each share of Green Energy common stock.  Accordingly, an aggregate of 28,788,252 shares of American Energy common stock were issued to the shareholders of Green Energy.





On December 24, 2009, the Company sold in a private placement a total of 9,300,000 shares of common stock to 16 individuals for cash in the amount of $0.15 per share for a total $1,395,000.





On December 24, 2009, Julie Carter resigned as sole officer and director of the company and the Company transferred all of the outstanding capital stock  of  SplitCo to Julie Carter in exchange for the cancellation of 15,250,000 shares of American Energy common stock that she owned.





On March 19, 2010, we granted 350,000 shares of our common stock to Randall Reneau in consideration for his services as Chairman of our Board of Directors.  During the quarter ended  September 30, 2010 these shares were issued.










On September 1, 2010, the Company entered into consulting agreements with four consultants whereby the Company agreed to issue an aggregate of 800,000 shares of its common stock (200,000 shares per consultant) in consideration for certain services related to business development, financial management and communications.





Acquisition of Mining Rights





On April 26, 2010, the Company purchased a 100% interest in certain 86 unpatented lode mining claims located in Mohave County, Arizona.  The purchase price of these mining claims was $65,000 in cash and 200,000 shares of the Company’s common stock.  Based upon the closing stock price of the Company’s common stock on April 26, 2010, which was $0.85 per share, the issuance of the common stock was valued at $170,000.




As of September  30, 2010 the Company had 50,878,255 shares of common stock issued and outstanding .





NOTE 10 - STOCKHOLDERS' EQUITY





The stockholders' equity section of the Company contains the following classes of capital stock as of  September 30, 2010:





Common stock, $ 0.0001 par value: 200,000,000 shares authorized; 50,878,255 shares issued and outstanding.





Preferred stock, $0.0001 par value: 25,000,000 shares authorized; none issued and outstanding.





In the quarter ended September 30, 2010, the Company entered into five (5) Consulting agreements.  These Agreements required the issuance of a total of 2,800,000 shares for services to be rendered during the next twelve months.  These shares were issued in October of 2010.




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NOTE 11 – SUBEQUENT EVENTS





During the quarter ended September 30, 2010 the Company entered into the following consulting agreements:





On September 1, 2010, entered into four consulting agreements with certain consultants in order to assist it in order to develop the Company’s  planning, information sharing, education and training, representation abroad, investment support and industry and technology development.  The agreements are with these companies for one year.  The Company issued 200,000 shares of Common Stock to each of the four companies for the services to be rendered.  The shares were issued in October of 2010





On July 15, 2010, the Company executed an investor relations agreement, pursuant to which it is required to issue 2,000,000 shares of common stock to the consultant in consideration for certain investor relations services.  The shares were issued in October of 2010.





NOTE 12 - MINERAL CLAIMS





ARTILLERY PEAK





On April 26, 2010, the Company acquired a 100% interest (minus a 4% net smelter royalty interest) in 86 unpatented lode mining claims, located in Mohave county, Arizona for $65,000 in cash and 200,000 shares of common stock.





The Artillery Peak Property lies within the Date Creek Basin, which is a region well known for significant uranium occurrence.  A number of companies  performed exploration drilling at the Artillery Peak Property in the 1950s through 1970s, and most recently in 2007, indicating substantial uranium mineralization and identifying targets for future exploration.  The uranium anomalies are found primarily within the Artillery Peak Formation, a lacustrine sandstone rock unit.





The Company released a technical report on October 12, 2010 compliant with Canadian National Instrument 43-101 standards prepared by Dr. Karen Wenrich, an expert on uranium mineralization in the southwestern United States, and Allen Wells, who performed a mineral resource estimate (as defined by the Canadian Institute of Mining, Metallurgy and Petroleum) based on historical data and  the recent 2007 data.  As recommended in the technical report, the Company expects to develop plans to conduct exploration drilling to further delineate the extent and nature of the uranium mineralization at the Artillery Peak Property.





COSO





On December 24, 2009, the Company acquired a 100% working interest and 97% net revenue interest in the Coso Property consisting of 169 Federal mineral claims, 3,380 acres, and 800 State leased acres, in Inyo County, CA.





Previous uranium exploration and prospecting on the Coso Property includes geologic mapping, pitting, adits, radon cup surveys, airborne geophysics and drilling.  These programs have identified specific targets on the property.





Granitic rocks of Jurassic age were uplifted to form the Coso Range.  Later erosion of these rocks created a 300-foot thick blanket of gravel, conglomerates and arkoses called the lower Coso Formation.  A series of lakebeds and volcanic tuffs covered these rocks when the area was subjected to volcanic activity and inundated by fresh water. These rocks are the 200 foot thick upper Coso Formation.





The main uranium anomalies are found within the sedimentary rocks of the Coso Formation and the immediately adjacent granitic rocks.  The primary zone for uranium mineralization is the basal arkose of the lower Coso Formation.





The uranium anomalies targeted by previous exploration will be relocated and re-identified by the Company for further evaluation.  If feasible, old drill holes in prospective areas will be re-entered and logged by down-hole radiometric probes to identify zones and grades of subsurface uranium mineralization.





BLYTHE





On December 24, 2009, the Company acquired a 100% interest (minus a 3% Net Smelter Return Royalty) in 66 lode mining claims (the NPG Claims) covering 1,320 acres of Federal Land in Riverside County, CA.





A number of companies have worked on the Blythe uranium property during the 1950s through the 1980s.  Several shipments of ore were reportedly shipped from the property.





The Blythe Prospect occurs in the southern McCoy Mountains, which are composed of Precambrian metasediments, including meta-conglomerates, grits, quartzites and minor interbedded shales.





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Uranium mineralization occurs along fractures, in meta-conglomerates and in breccia zones.  Secondary uranium minerals occur on fracture surfaces and foliation planes adjacent to fine veinlets of pitchblende. Uranium minerals include uraninite (pitchblende), uranophane, gummite and boltwoodite.  It has been reported that the uranium mineralization tends to occur in areas where finely disseminated hematite is present.





Although there are no known intrusive bodies near the property, it is believed that the uranium mineralization could be hydrothermal in origin and genetically related to an intrusive source.  If such a deep-seated intrusive body underlies the property it is possible that larger concentrations of primary uranium ore may exist at depth.





The Company proposes to locate and re-enter as many old drill holes as possible.  These holes will be probed with geophysical instruments to determine radioactivity and uranium mineralization in the subsurface. If these results are positive, then additional drilling and down-hole probing will be proposed.





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





FORWARD LOOKING STATEMENTS





Some of the statements contained in this Form 10-Q that are not historical facts are "forward-looking statements" which can be identified by the use of terminology such as "estimates," "projects," "plans," "believes," "expects," "anticipates," "intends," or the negative or other variations, or by discussions of strategy that involve risks and uncertainties. We urge you to be cautious of the forward-looking statements, that such statements, which are contained in this Form 10-Q, reflect our current beliefs with respect to future events and involve known and unknown risks, uncertainties and other factors affecting our operations, market growth, services, products and licenses. No assurances can be given regarding the achievement of future results, as actual results may differ materially as a result of the risks we face, and actual events may differ from the assumptions underlying the statements that have been made regarding anticipated events.





All written forward-looking statements made in connection with this Form 10-Q that are attributable to us or persons acting on our behalf, are expressly qualified in their entirety by these cautionary statements. Given the uncertainties that surround such statements, you are cautioned not to place undue reliance on such forward-looking statements.





The safe harbors of forward-looking statements provided by the Securities Litigation Reform Act of 1995 are unavailable to issuers not subject to the reporting requirements set forth under Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended. As we have not registered our securities pursuant to Section 12 of the Exchange Act, such safe harbors set forth under the Reform Act are unavailable to us.





OVERVIEW





American Energy Fields, Inc. was incorporated as Sienna Resources, Inc. in the State of Delaware on July 20, 2007 to engage in the acquisition, exploration and development of natural resource properties.  On December 21, 2009, we filed an Amended and Restated Certificate of Incorporation with the Secretary of State of the State of Delaware in order to change our name to “American Energy Fields, Inc.”, change our authorized capital to 200,000,000 shares of common stock, par value $0.0001 per share, and 25,000,000 shares of preferred stock, par value $0.0001 per share and create “blank check” preferred stock.





On December 24, 2009, we entered into the Exchange with Green Energy and the shareholders of Green Energy, which caused Green Energy to become our wholly-owned subsidiary.





We are primarily engaged, through our operating subsidiary, Green Energy,  in the acquisition and exploration of properties that may contain uranium mineralization in the United States. Our target properties are those that have been the subject of historical exploration.  We have acquired State Leases and Federal unpatented mining claims in the states of Arizona and California for the purpose of exploration and potential development of uranium minerals on a total of approximately 7,200 acres.





Our properties do not have any reserves.  We plan to conduct exploration programs on these properties with the objectives of ascertaining whether any of our properties contain economic concentrations of uranium that are prospective for mining.  We plan to review opportunities to acquire additional mineral properties with current or historic uranium mineralization with meaningful exploration potential.





On April 26, 2010, we acquired a 100% interest (minus a 4% net smelter royalty interest) in 86 unpatented lode mining claims, located in Mohave county, Arizona, known as the Artillery Peak Property.  The Artillery Peak Property lies within the Date Creek Basin, which is a region well known for significant uranium occurrence.  A number of companies  performed exploration drilling at the Artillery Peak Property in the 1950s through 1970s, and most recently in 2007, indicating substantial uranium mineralization and identifying targets for future exploration.  The uranium anomalies are found primarily within the Artillery Peak Formation, a lacustrine sandstone rock unit.




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The Company released a technical report on October 12, 2010, which was compliant with Canadian National Instrument 43-101 standards and prepared by Dr. Karen Wenrich, an expert on uranium mineralization in the southwestern United States, and Allen Wells, who performed a mineral resource estimate (as defined by the Canadian Institute of Mining, Metallurgy and Petroleum) based on historical data and the recent 2007 data. As recommended in the technical report, the Company expects to develop plans to conduct exploration drilling to further delineate the extent and nature of the uranium mineralization at the Artillery Peak Property.  At the Coso Property, uranium anomalies targeted by previous exploration will be relocated and re-identified by the Company for further evaluation. If feasible, old drill holes in prospective areas will be re-entered and logged by down-hole radiometric probes to identify zones and grades or subsurface uranium mineralization.





At the Blythe uranium property, the Company proposes to locate and re-enter as many old drill holes as possible. These holes will be probed with Geophysical instruments to determine radioactivity and uranium mineralization in the surfaces. If these results are positive, then additional drilling and down hole probing will be proposed.





Our principal executive offices are located at 3266 W. Galveston Drive, Suite 101 Apache Junction, Arizona 95120. Our telephone number is 480-288-6530.





On July 15, 2010, the Company executed an investor relations agreement, pursuant to which it is required to issue 2,000,000 shares of common stock to the consultant in consideration for certain investor relations services.  The shares were issued in October of 2010.





On September 1, 2010, entered into four consulting agreements with certain consultants in order to assist it in order to develop the Company’s  planning, information sharing, education and training, representation abroad, investment support and industry and technology development.  The agreements are with these companies for one year.  The Company issued 200,000 shares of Common Stock to each of the four companies for the services to be rendered.  The shares were issued in October of 2010





RESULTS OF OPERATIONS


Green Energy was formed on November 23, 2009.  Therefore, there are no comparative periods in 2009 for our fiscal quarter


Three Months Ended September 30, 2010





For the three months ended September 30, 2010, the Company was still in our exploration stage and have generated no revenues to date.  For the three months ended September 30, 2010, the Company generated a loss of ($1,833,560).  During the preceding quarter ended June 30, 2010, the Company purchased a 100% interest in certain mining claims located in Mohave county, Arizona.  The Company paid $65,000 in cash and 200,000 shares of Common Stock.





We incurred operating expenses of $1,833,789 for the three months ended September 30, 2010.  These expenses consisted of general operating expenses and professional fees incurred in connection with the day to day operation of our business, obtaining additional sale of stock and the preparation and filing of our financial disclosure reports with the U.S. Securities and Exchange Commission.





Six Months Ended September 30, 2010





For the six months ended September 30, 2010, the Company was still in an exploration stage and has generated no revenues to date.  For the six months ended September 30, 2010, the Company generated a loss of ($2,154,377).





We incurred operating expenses of $1,833,789 for the six months ended September 30, 2010.  These expenses consisted of general expenses and professional fees incurred in connection with the dat to day operation of our business, sales of our stock and the preparation and filing of our financial disclosure reports with the U.S. Securities and Exchange Commission.





LIQUIDITY AND CAPITAL RESOURCES





For the three months ended September 30, 2010, the Company decreased its working capital position by $584,377 from $1,186,534 at March 31, 2010 to $602,157 at September 30, 2010.





The Company’s capital resources are comprised primarily of private investors.  The Company’s on going need for capital will require it to enter into additional agreements to raise capital from private individuals or corporations





Our cash balance at September 30, 2010 was $126,181. We had $ 0 in outstanding liabilities





Our financial statements from inception (November 23, 2009) through the quarter ended September 30, 2010 report no revenues and a net loss of ($2,450,722).





ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK





Not Applicable





ITEM 4. CONTROLS AND PROCEDURES.





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EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES





Our management is responsible for establishing and maintaining a system of disclosure controls and procedures (as defined in Rule 13a-15(e)) under the Exchange Act) that is designed to ensure that information required to be disclosed by the Company in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time specified in the Commission's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer's management, including its principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.





Pursuant to Rule 13a-15(b) under the Exchange Act, the Company carried out an evaluation with the participation of the Company's management, including the Company's Chief Executive Officer ("CEO") and the Company's Chief Financial Officer ("CFO"), of the effectiveness of the Company's disclosure controls and procedures (as defined under Rule 13a-15(e) under the Exchange Act) as of the quarter ended September 30, 2010. Based upon that evaluation, the Company's CEO and CFO concluded that the Company's disclosure controls and procedures are effective to ensure that information requiring disclosure by the Company in the reports that the Company files or submits under the Exchange Act, is recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to the Company's management, including the Company's CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure.





CHANGES IN INTERNAL CONTROLS





Our management, with the participation our CEO and CFO, performed an evaluation to determine whether any change in our internal controls over financial reporting occurred during the three month period ended September 30, 2010. Based on that evaluation, our CEO and our CFO concluded that no change occurred in the Company's internal controls over financial reporting during the quarter ended September 30, 2010, that has materially affected, or is reasonably likely to materially affect, the Company's internal controls over financial reporting.








PART II--OTHER INFORMATION





ITEM 1. LEGAL PROCEEDINGS





None





ITEM 1A. RISK FACTORS





Not Applicable





ITEM 2 - UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS





During the three month period covered by this Quarterly Report, the Company has not sold or issued any unregistered securities except as set forth below:





On July 15, 2010, the Company executed an investor relations agreement, pursuant to which it is required to issue 2,000,000 shares of common stock to the consultant in consideration for certain investor relations services.  The shares were issued in October of 2010.  This transaction did not involve any underwriters, underwriting discounts or commissions, or any public offering and we believe was exempt from the registration requirements of the Securities Act of 1933 by virtue of Section 4(2) thereof and/or Regulation D promulgated thereunder.





On September 1, 2010, the Company entered into consulting agreements with four consultants whereby the Company agreed to issue an aggregate of 800,000 shares of its common stock (200,000 shares per consultant) in consideration for certain services related to business development, financial management and communications.    This transaction did not involve any underwriters, underwriting discounts or commissions, or any public offering and we believe was exempt from the registration requirements of the Securities Act of 1933 by virtue of Section 4(2) thereof and/or Regulation D promulgated thereunder.





On October 6, 2010, the Company entered into an agreement with its newly appointed director, Bill Allred, whereby, in consideration for Mr. Allred’s services as an independent director of the Company, the Company agreed to issue an aggregate of 150,000 stock options with an exercise price of $0.25 per share, which shall vest 30,000 shares every six months for a total vesting period of thirty (30) months.





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ITEM 3 - DEFAULTS UPON SENIOR SECURITIES





NONE





ITEM 4 -[REMOVED AND RESERVED.]





ITEM 5 - OTHER INFORMATION





None.





ITEM 6 - EXHIBITS.





10.1  Letter Agreement dated as of October 6, 2010 (Incorporated by reference to the Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on October 13, 2010)





31.2 Certification by Chief Financial Officer pursuant to Section 302 of Sarbanes Oxley Act of 2002.





32.1 Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350.





32.2 Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350.





32.2 Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350.





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SIGNATURES





Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.





November 15, 2010    American Energy Fields, Inc.





By: /s/ Joshua BleakJoshua Bleak, President andChief Executive Officer

(Principal Executive Officer)By: /s/  David P. LiebermanActing Chief Financial Officer and(Principal Financial and Accounting Officer)








15




EXHIBIT INDEX











Exhibit No.          Description





10.1 Letter Agreement dated as of October 6, 2010 (Incorporated by reference to the Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on October 13, 2010)





31.1                      Certification by Chief Executive Officer pursuant to Section 302 of Sarbanes Oxley Act of 2002.





31.2                      Certification by Chief Financial Officer pursuant to Section 302 of Sarbanes Oxley Act of 2002.





32.1                      Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350.





32.2                      Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350.