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

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

| Nevada                                                              | 83-0512922                                |
|---------------------------------------------------------------------|-------------------------------------------|
| (State      or other jurisdiction of incorporation or organization) | (I.R.S.      Employer Identification No.) |

| 123      West Nye Lane, Suite 129, Carson City, NV |
|----------------------------------------------------|
| (Address      of principal executive offices)      |

| (775)      884-9380                        |
|--------------------------------------------|
| (Registrant’s      telephone number) |

|                                                                                         |
|----------------------------------------------------------------------------------------------|
| (Former      name, former address and former fiscal year, if changed since last      report) |

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

----

IMPERIALRESOURCES, INC.

|          |                                                                                                                                                                                                        | Page Number |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------|
|          |                                                                                                                                                                                                        |             |
| PART      I.  | FINANCIAL      INFORMATION                                                                                                                                                                                  |             |
|          |                                                                                                                                                                                                        |             |
| ITEM      1.  | Financial      Statements                                                                                                                                                                                   | 1                |
|          |                                                                                                                                                                                                        |             |
|          | Balance      Sheet as at June 30, 2010 (unaudited) and March 31, 2010                                                                                                                                       | 1                |
|          |                                                                                                                                                                                                        |             |
|          | Statement      of OperationsFor      the three month periods ended June 30, 2010 and 2009 and for the period      from August 2, 2007 (Date of Inception) to June 30, 2010      (unaudited)                 | 2                |
|          |                                                                                                                                                                                                        |             |
|          | Statement      of Changes in Stockholders’ DeficiencyFor      the three month period ended June 30, 2010 and for the period from August      2, 2007 (date of inception) to June 30, 2010 (unaudited) | 3                |
|          |                                                                                                                                                                                                        |             |
|          | Statement      of Cash FlowsFor      the three month periods ended June 30, 2010 and 2009 and for the period      from August 2, 2007 (Date of Inception) to June 30, 2010      (unaudited)                 | 4                |
|          |                                                                                                                                                                                                        |             |
|          | Notes      to the Financial Statements.                                                                                                                                                                     | 5                |
|          |                                                                                                                                                                                                        |             |
| ITEM      2.  | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations                                                                                                       | 10               |
|          |                                                                                                                                                                                                        |             |
| ITEM      3.  | Quantitative      and Qualitative Disclosure about Market Risk                                                                                                                                              | 12               |
|          |                                                                                                                                                                                                        |             |
| ITEM      4.  | Controls      and Procedures                                                                                                                                                                                | 12               |
|          |                                                                                                                                                                                                        |             |
| PART      II. | OTHER      INFORMATION                                                                                                                                                                                      | 12               |
|          |                                                                                                                                                                                                        |             |
| ITEM      1.  | Legal      Proceedings                                                                                                                                                                                      | 12               |
|          |                                                                                                                                                                                                        |             |
| ITEM      1A  | Risk      Factors                                                                                                                                                                                           | 13               |
|          |                                                                                                                                                                                                        |             |
| ITEM      2.  | Unregistered      Sales of Equity Securities and Use of Proceeds                                                                                                                                            | 13               |
|          |                                                                                                                                                                                                        |             |
| ITEM      3.  | Defaults      Upon Senior Securities                                                                                                                                                                        | 13               |
|          |                                                                                                                                                                                                        |             |
| ITEM      4.  | Reserved                                                                                                                                                                                                    | 13               |
|          |                                                                                                                                                                                                        |             |
| ITEM      5.  | Other      Information                                                                                                                                                                                      | 13               |
|          |                                                                                                                                                                                                        |             |
| ITEM      6.  | Exhibits                                                                                                                                                                                                    | 13               |
|          |                                                                                                                                                                                                        |             |
|          | SIGNATURES                                                                                                                                                                                                  | 14               |

----

----

| ITEM 1. | FINANCIAL      STATEMENTS. |
|---------|----------------------------|

|                                                    |   | June 30 |     |   | March 31 |   |
|---------------------------------------------------------|--------|--------------|----------|--------|---------------|--------|
|                                                    |   | 2010         |     |   | 2010          |   |
|                                                    |   |         |     |   |          |   |
| ASSETS                                                  |   |         |     |   |          |   |
|                                                    |   |         |     |   |          |   |
| Current      Assets                                     |   |         |     |   |          |   |
| Cash                                                    |   | $            | -        |   |          | $      | - |   |
| Accounts      receivable                                |   |         | 50,913   |   |          |   | 29,724 |   |
|                                                    |   |         |     |   |          |   |   |   |
| Total      Current Assets                               |   |         | 50,913   |   |          |   | 29,724 |   |
|                                                    |   |         |     |   |          |   |   |   |
| OIL      AND GAS LEASE (Note 3)                         |   |         | 897,424  |   |          |   | 898,712 |   |
|                                                    |   |         |     |   |          |   |   |   |
| Total      Assets                                       |   | $            | 948,337  |   |          | $      | 928,436 |   |
|                                                    |   |         |     |   |          |   |   |   |
| CURRENT      LIABILITIES                                |   |         |     |   |          |   |   |   |
| Accounts      payable                                   |   | $            | 56,922   |   |          | $      | 41,563 |   |
| Accounts      Payable- related parties                  |   |         | 35,779   |   |          |   | 31,340 |   |
|                                                    |   |         |     |   |          |   |   |   |
| Total      Current Liabilities                          |   |         | 92,701   |   |          |   | 72,903 |   |
|                                                    |   |         |     |   |          |   |   |   |
| NOTE      PAYABLE (Note 4)                              |   |         | 900,000  |   |          |   | 900,000 |   |
|                                                    |   |         |     |   |          |   |   |   |
| Total      Liabilities                                  |   | $            | 992,701  |   |          | $      | 972,903 |   |
|                                                    |   |         |     |   |          |   |   |   |
| STOCKHOLDERS'      DEFICIENCY                           |   |         |     |   |          |   |   |   |
| 500,000,000      shares authorized, $0.001 par value, ; |   |         |     |   |          |   |   |   |
| 40,000,000      shares issued and outstanding           |   |         | 40,000   |   |          |   | 40,000 |   |
| Capital      in excess of par value                     |   |         | 43,525   |   |          |   | 39,625 |   |
| Accumulated      deficit during the exploration stage   |   |         | (127,889 | )      |          |   | (124,092 | ) |
|                                                    |   |         |     |   |          |   |   |   |
| Total      Stockholders' Deficiency                     |   |         | (44,364  | )      |          |   | (44,467 | ) |
|                                                    |   |         |     |   |          |   |   |   |
|                                                    |   | $            | 948,337  |   |          | $      | 928,436 |   |

----

|                                                                       |   |                    |       |   |                    |   |       | From Aug 2,   |   |
|----------------------------------------------------------------------------|--------|-------------------------|------------|--------|-------------------------|--------|------------|-------------------------|--------|
|                                                                       |   | Three Months       |       |   | Three Months       |   |       | 2007 (date of |   |
|                                                                       |   | ended                   |       |   | ended                   |   |       | Inception) to      |   |
|                                                                       |   | June 30 ,2010 |       |   | June 30, 2009 |   |       | June 30,2010       |   |
|                                                                       |   |                    |       |   |                    |   |       |                    |   |
| REVENUES                                                                   |   |                    |       |   |                    |   |       |                    |   |
| Oil      and gas revenue                                                   |   | $                       | 21,189     |   |                    | $      | -          |                    |   | $ | 50,913 |   |
| Less:      Depletion                                                       |   |                    | (1,288     | )      |                    |   | -          |                    |   |   | (2,576 | ) |
|          Operating      costs |   |                    | (4,670     | )      |                    |   | -          |                    |   |   | (18,290 | ) |
| Net      gain on oil and gas revenue                                       |   |                    | 15,231     |   |                    |   | -          |                    |   |   | 30,047 |   |
|                                                                       |   |                    |       |   |                    |   |       |                    |   |   |   |   |
| ADMINISTRATIVE      EXPENSES                                               |   |                    |       |   |                    |   |       |                    |   |   |   |   |
| Accounting      and audit                                                  |   |                    | 3,725      |   |                    |   | 2,050      |                    |   |   | 45,043 |   |
| Consulting                                                                 |   |                    | -          |   |                    |   | -          |                    |   |   | 20,000 |   |
| Edgarizing                                                                 |   |                    | -          |   |                    |   | 263        |                    |   |   | 3,150 |   |
| Exploration                                                                |   |                    | -          |   |                    |   | -          |                    |   |   | 11,217 |   |
| Filing      fees                                                           |   |                    | -          |   |                    |   | -          |                    |   |   | 50 |   |
| Incorporation      costs                                                   |   |                    | -          |   |                    |   | -          |                    |   |   | 1,479 |   |
| Legal                                                                      |   |                    | -          |   |                    |   | -          |                    |   |   | 8,913 |   |
| Management      fees                                                       |   |                    | 3,000      |   |                    |   | 3,000      |                    |   |   | 33,000 |   |
| Office                                                                     |   |                    | 122        |   |                    |   | 211        |                    |   |   | 1,752 |   |
| Rent                                                                       |   |                    | 600        |   |                    |   | 600        |                    |   |   | 6,600 |   |
| Telephone                                                                  |   |                    | 300        |   |                    |   | 300        |                    |   |   | 3,300 |   |
| Transfer      agent fees                                                   |   |                    | 31         |   |                    |   | -          |                    |   |   | 1,955 |   |
| Travel                                                                     |   |                    | -          |   |                    |   | -          |                    |   |   | 1,474 |   |
| Total      expenses                                                        |   |                    | 7,778      |   |                    |   | 6,424      |                    |   |   | 137,933 |   |
|                                                                       |   |                    |       |   |                    |   |       |                    |   |   |   |   |
| Loss      From Operations                                                  |   |                    | 7,453      |   |                    |   | (6,424     | )                       |   |   | (107,886 | ) |
|                                                                       |   |                    |       |   |                    |   |       |                    |   |   |   |   |
| OTHER      EXPENSES                                                        |   |                    |       |   |                    |   |       |                    |   |   |   |   |
| Interest      on promissory note                                           |   |                    | (11,250    | )      |                    |   | -          |                    |   |   | (20,003 | ) |
|                                                                       |   |                    |       |   |                    |   |       |                    |   |   |   |   |
| NET      LOSS                                                              |   | $                       | (3,797     | )      |                    | $      | (6,424     | )                       |   | $ | (127,889 | ) |
|                                                                       |   |                    |       |   |                    |   |       |                    |   |   |   |   |
| NET      LOSS PER COMMON SHARE                                             |   |                    |       |   |                    |   |       |                    |   |   |   |   |
| Basic                                                                      |   | $                       | (0.00      | )      |                    | $      | (0.00      | )                       |   |   |   |   |
|                                                                       |   |                    |       |   |                    |   |       |                    |   |   |   |   |
| AVERAGE      OUTSTANDING SHARES                                            |   |                    |       |   |                    |   |       |                    |   |   |   |   |
| Basic                                                                      |   |                    | 40,000,000 |   |                    |   | 40,000,000 |                    |   |   |   |   |

----

|                                               |   | Common Stock |       |   | CapitalExcess |   |   | Accumulated            |   |
|----------------------------------------------------|--------|-------------------|------------|--------|---------------|--------|--------|------------------------|--------|
|                                               |   | Shares            |       |   | Amount        |   |   | of Par Value |   |   | Deficit |   |
|                                               |   | #                 |       |   | $             |   |   | $                      |   |   | $ |   |
|                                               |   |              |       |   |          |   |   |                   |   |   |   |   |
| Balance      - August 2, 2007 (Date of Inception)  |   |              | -          |   |          | $      | -      |                   |   | $ | - |   |   | $ | - |   |
|                                               |   |              |       |   |          |   |   |                   |   |   |   |   |   |   |   |   |
| Issuance      of common shares on October 31,2007  |   |              | 32,000,000 |   |          |   | 32,000 |                   |   |   | (29,000 | ) |   |   | - |   |
|                                               |   |              |       |   |          |   |   |                   |   |   |   |   |   |   |   |   |
| Issuance      of common shares on December 31,2007 |   |              | 8,000,000  |   |          |   | 8,000  |                   |   |   | 29,625 |   |   |   | - |   |
|                                               |   |              |       |   |          |   |   |                   |   |   |   |   |   |   |   |   |
| Capital      contributions - expenses              |   |              | -          |   |          |   | -      |                   |   |   | 7,800 |   |   |   | - |   |
|                                               |   |              |       |   |          |   |   |                   |   |   |   |   |   |   |   |   |
| Net      loss for the period ended Mar 31,2008     |   |              | -          |   |          |   | -      |                   |   |   | - |   |   |   | (45,549 | ) |
|                                               |   |              |       |   |          |   |   |                   |   |   |   |   |   |   |   |   |
| Balance      - March 31, 2008                      |   |              | 40,000,000 |   |          |   | 40,000 |                   |   |   | 8,425 |   |   |   | (45,549 | ) |
|                                               |   |              |       |   |          |   |   |                   |   |   |   |   |   |   |   |   |
| Capital      contributions - expenses              |   |              | -          |   |          |   | -      |                   |   |   | 15,600 |   |   |   | - |   |
|                                               |   |              |       |   |          |   |   |                   |   |   |   |   |   |   |   |   |
| Net      loss for the year ended Jan 31,2009       |   |              | -          |   |          |   | -      |                   |   |   | - |   |   |   | (55,930 | ) |
|                                               |   |              |       |   |          |   |   |                   |   |   |   |   |   |   |   |   |
| Balance      - March 31, 2009                      |   |              | 40,000,000 |   |          |   | 40,000 |                   |   |   | 24,025 |   |   |   | (101,479 | ) |
|                                               |   |              |       |   |          |   |   |                   |   |   |   |   |   |   |   |   |
| Capital      contributions - expenses              |   |              | -          |   |          |   | -      |                   |   |   | 15,600 |   |   |   | - |   |
|                                               |   |              |       |   |          |   |   |                   |   |   |   |   |   |   |   |   |
| Net      loss for the year end March 31, 2010      |   |              | -          |   |          |   | -      |                   |   |   | - |   |   |   | (22,613 | ) |
|                                               |   |              |       |   |          |   |   |                   |   |   |   |   |   |   |   |   |
| Balance      - March 31, 2010                      |   |              | 40,000,000 |   |          | $      | 40,000 |                   |   | $ | 39,625 |   |   | $ | (124,092 | ) |
|                                               |   |              |       |   |          |   |   |                   |   |   |   |   |   |   |   |   |
| Capital      contributions - expenses              |   |              | -          |   |          |   | -      |                   |   |   | 3,900 |   |   |   | - |   |
|                                               |   |              |       |   |          |   |   |                   |   |   |   |   |   |   |   |   |
| Net      loss for the year end June 30, 2010       |   |              | -          |   |          |   | -      |                   |   |   | - |   |   |   | (3,797 | ) |
|                                               |   |              |       |   |          |   |   |                   |   |   |   |   |   |   |   |   |
| Balance      - June 30, 2010                       |   |              | 40,000,000 |   |          | $      | 40,000 |                   |   | $ | 43,525 |   |   | $ | (127,889 | ) |

----

|                                                                                                |   | ThreeMonths   |     |   | ThreeMonths   |   |   | August      2,2007 |   |
|-----------------------------------------------------------------------------------------------------|--------|---------------|----------|--------|---------------|--------|--------|--------------------|--------|
|                                                                                                |   | ended         |     |   | ended         |   |   | to                 |   |
|                                                                                                |   | June      30, |     |   | June      30, |   |   | June      30,      |   |
|                                                                                                |   | 2010          |     |   | 2009          |   |   | 2010               |   |
|                                                                                                |   |          |     |   |          |   |   |               |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES                                                           |   |          |     |   |          |   |   |               |   |
| Net      Loss                                                                                       |   | $             | (3,797   | )      |          | $      | (6,424 | )                  |   | $ | (127,889 | ) |
|                                                                                                |   |          |     |   |          |   |   |               |   |   |   |   |
| Adjustments      to reconcile net loss to net cash provided by (used in) operating      activities: |   |          |     |   |          |   |   |               |   |   |   |   |
| Capital      contributions - expenses                                                               |   |          | 3,900    |   |          |   | 3,900  |               |   |   | 42,900 |   |
| Depletion      expense                                                                              |   |          | 1,288    |   |          |   |   |               |   |   | 2,576 |   |
| Changes      in accounts receivable                                                                 |   |          | (21,189  | )      |          |   |   |               |   |   | (50,913 | ) |
| Changes      in accounts payable                                                                    |   |          | 15,358   |   |          |   | (5,188 | )                  |   |   | 56,922 |   |
|                                                                                                |   |          |     |   |          |   |   |               |   |   |   |   |
| NET      CASH FLOWS USED IN OPERATING ACTIVITIES                                                    |   |          | (4,440   | )      |          |   | (7,712 | )                  |   |   | (76,404 | ) |
|                                                                                                |   |          |     |   |          |   |   |               |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES                                                           |   |          |     |   |          |   |   |               |   |   |   |   |
| Purchase      of Gas & Oil lease                                                                |   |          | (900,000 | )      |          |   | -      |               |   |   | (900,000 | ) |
|                                                                                                |   |          |     |   |          |   |   |               |   |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES                                                           |   |          |     |   |          |   |   |               |   |   |   |   |
| Proceeds      from loans from related parties                                                       |   |          | 4,440    |   |          |   | 7,712  |               |   |   | 35,779 |   |
| Note      payable - purchase of Gas & Oil lease                                                 |   |          | 900,000  |   |          |   | 0      |               |   |   | 900,000 |   |
| Proceeds      from issuance of common stock                                                         |   |          | -        |   |          |   | 0      |               |   |   | 40,625 |   |
|                                                                                                |   |          |     |   |          |   |   |               |   |   |   |   |
| NET      CASH PROVIDED BY FINANCING ACTIVITIES                                                      |   |          | 904,440  |   |          |   | 7,712  |               |   |   | 976,404 |   |
|                                                                                                |   |          |     |   |          |   |   |               |   |   |   |   |
| NET      INCREASE  IN CASH                                                                |   |          | -        |   |          |   | -      |               |   |   | - |   |
|                                                                                                |   |          |     |   |          |   |   |               |   |   |   |   |
| CASH      AT BEGINNING OF PERIOD                                                                    |   |          | -        |   |          |   | 57     |               |   |   | - |   |
|                                                                                                |   |          |     |   |          |   |   |               |   |   |   |   |
| CASH      AT END OF PERIOD                                                                          |   | $             | -        |   |          | $      | 57     |               |   | $ | - |   |

----

| 1. | ORGANIZATION |
|----|--------------|

| 2. | SUMMARY      OF SIGNIFICANT ACCOUNTING POLICIES |
|----|-------------------------------------------------|

|   | Basic and Diluted Net      Income (loss) Per Share |
|--------|----------------------------------------------------|

|   | Basic      net income (loss) per share amounts are computed based on the weighted      average number of shares actually outstanding.   Diluted net      income (loss) per share amounts are computed using the weighted average      number of common and common equivalent shares outstanding as if shares had      been issued on the exercise of the common share rights unless the exercise      becomes antidulutive and then only the basic per share amounts are shown      in the report. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 2. | SUMMARY      OF SIGNIFICANT ACCOUNTING POLICIES -Continued |
|----|------------------------------------------------------------|

|   | The      carrying amounts of financial instruments are considered by management to      be their fair value due to their short term  maturities. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Statement of Cash      Flows |
|--------|------------------------------|

|   | For      the purposes of the statement of cash flows, the Company considers all      highly liquid investments with a maturity of three months or less to be      cash equivalents. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Environmental      Requirements |
|--------|---------------------------------|

|   | At      the report date environmental requirements related to the oil and gas      leases acquired are unknown and therefore any estimate of any future cost      cannot be made. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Oil      and gas reserves must be reported using the average price over the prior      12 month period, rather than the year-end  prices; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Companies      will be allowed to report, on an optional basis, probable and possible      reserves; |
|--------|---------|------------------------------------------------------------------------------------------------------|

|   | ● | Non-traditional      reserves, such as oil and gas extracted from coal and shales, will be      included in the definition of “oil and gas producing      activities”; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Companies      will be permitted to use new technologies to determine proven reserves, as      long as those technologies have been demonstrated empirically to lead to      reliable conclusions with respect to reserve  volumes; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 2. | SUMMARY      OF SIGNIFICANT ACCOUNTING POLICIES -Continued |
|----|------------------------------------------------------------|

|   | ● | Companies      will be required to disclose, in narrative form, additional details on      their proved undeveloped reserves (PUDs), including to total quantity of      PUDs at year end, any material changes in PUDs that occurred during the      year, investment and progress made to convert PUDs to developed oil and      gas reserves and an explanation of the reasons why material concentrations      of PUDs in individual fields or countries have remained undeveloped for      five years or more after disclosure asPUDs; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Companies      will be required to report the qualifications and measures taken to assure      the independence and objectivity of any business entity or employee      primarily responsible for preparing or auditing the reserve      estimates. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Company is currently evaluating the potential impact of the Final      Rule.   The SEC is discussion the Final Rule with FASB staff to      align FASB accounting standards with the new SEC rules.   These      discussions may delay the required compliance  date. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Oil and gas      leases |
|--------|-------------------------|

|   | The      Company intends to drill for oil and natural gas on their leases.        Drilling costs will be treated as work in progress until such time      as the well has been finished and its commercial potential      evaluated. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Company follows the successful efforts method of accounting and will      capitalize successful wells and related leasehold costs.   These      costs will be amortized using the unit of production method.        Dry hole and related leasehold costs will be expensed.  On June      30, 2010, the Company had one producing gas  well. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | OIL      AND GAS LEASE |
|----|------------------------|

|   | On      January 20, 2010, Coach Capital, LLC (“Coach”), an unrelated company,      assigned to the Company’s wholly owned subsidiary a 14.9% working interest      in the oil, gas and mineral leases in the Greater Garwood hydrocarbon      exploration project located in Colorado County, Texas (the      “Project”).   The assignment was made subject to the terms and      conditions of the leases and that certain unrecorded Participation      Agreement dated November 5, 2008 between El Paso E & P Company, L.P.      and Baytor Energy LLC, and the Carry Agreement dated October 27, 2009      between Baylor Energy LLC andCoach. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | NOTE      PAYABLE |
|----|-------------------|

|   | On      January 19, 2010, Imperial Oil borrowed $900,000 from Coach pursuant to a      promissory note issued to Coach.   The outstanding balance under      the note will accrue interest at 5% per annum and is due in full on      January 19, 2013.  If the note and accrued interest are not repaid in      full between one year and three years after January 19, 2010, Coach will      be paid 75% of the production revenue received by Imperial Oil from the      lease, excluding the interest in the Cochran #1 well.  If the note      and accrued interest are not repaid in full after three years from January      19, 2010, Coach will be paid 100% of the net production revenue received      by Imperial Oil from the lease, excluding the interest in the Cochran #1      well. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      interest on the Note for the period from issuance to June 30, 2010 is      $11,250 and has been credited to accounts  payable. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

| 5. | SIGNIFICANT TRANSACTIONS WITH      RELATED PARTY |
|----|--------------------------------------------------|

| 6. | CAPITAL      STOCK |
|----|--------------------|

----

| 6. | CAPITAL      STOCK - Continued |
|----|--------------------------------|

|   | On      April 29, 2010, a stockholder of the Company returned 9,900,000 shares of      the Company’s common stock to treasury for cancellation.   As a      result, the number of shares of the Company’s common stock outstanding was      reduced from 49,900,000 to40,000,000. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7. | CONTRACTUAL      COMMITMENTS |
|----|------------------------------|

|   | On      January 19, 2010, Imperial Oil entered into a Net Profit Agreement whereby      Imperial agreed to share profits from certain mutually beneficial oil and      gas exploration and development opportunities in Canada and the      continental United States (“Prospects”).  Pursuant to the this      Agreement, Imperial Oil granted Mara Energy, LLC (“Mara”), a Delaware      corporation, an interest in the Prospects by way of a Net Profit      Interest.   The Net Profit Interest is an interest in the      Prospects that entitles Imperial Oil to receive a monthly amount equal to      50% of the Net Proceeds resulting from the sale of petroleum substances      obtained from the Prospects. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | On      April 1, 2010, Imperial Oil & entered into a Consulting Service      Agreement with Mara Energy, LLC. whereby Mara will provides services      associated with any future development of Imperial Oil’s working interest      in both the Greater Garwood oil and gas development exploration assets and      the producing Cochran #1. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8. | GOING      CONCERN |
|----|--------------------|

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| 9. | SUBSEQUENT      EVENTS |
|----|------------------------|

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| ITEM      2. | MANAGEMENT’S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS |
|--------------|-------------------------------------------------------------------------------------------------------|

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| ITEM 3. | QUANTITATIVE      AND QUALITATIVE DISCLOSURE OF MARKETRISK |
|---------|------------------------------------------------------------|

| ITEM 4. | CONTROLS      AND PROCEDURES |
|---------|------------------------------|

| ● | Our      Audit Committee does not function as an Audit Committee should since there      is a lack of independent directors on the Committee and our Board of      Directors has not identified an “expert”, one who is knowledgeable about      reporting and financial statements requirements, to serve on the Audit      Committee. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | We      have limited segregation of duties which is not consistent with good      internal control procedures. |
|---------|----------------------------------------------------------------------------------------------------------------|

| ● | We      do not have a written internal control procedurals manual which outlines      the duties and reporting requirements of our Directors and any staff to be      hired in the future.  This lack of a written internal control      procedurals manual does not meet the requirements of the SEC or good      internal control. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

PART II – OTHER INFORMATION

| ITEM      1. | LEGAL      PROCEEDINGS |
|--------------|------------------------|

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| ITEM      1A | RISK      FACTORS |
|--------------|-------------------|

| ITEM      2. | UNREGISTERED      SALES OF EQUITY SECURITIES AND USE OFPROCEEDS |
|--------------|-----------------------------------------------------------------|

| ITEM      3. | DEFAULTS      UPON SENIOR SECURITIES |
|--------------|--------------------------------------|

| ITEM      4. | RESERVED |
|--------------|----------|

| ITEM      5. | OTHER      INFORMATION |
|--------------|------------------------|

| ITEM      6. | EXHIBITS |
|--------------|----------|

| Exhibit      Number |   | Name                                                                                                                                                                   |
|---------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1                 |   | Certificate      of Incorporation (incorporated by reference from our Registration      Statement on Form S-1 filed on July 7, 2008, Registration No.      333-152160) |
|                |   |                                                                                                                                                                   |
| 3.2                 |   | Articles      of Incorporation (incorporated by reference from our Registration      Statement on Form S-1 filed on July 7, 2008, Registration No.      333-152160)    |
|                |   |                                                                                                                                                                   |
| 3.3                 |   | By-laws      (incorporated by reference from our Registration Statement on Form S-1      filed on July 7, 2008, Registration No. 333-152160)                           |
|                |   |                                                                                                                                                                   |
| 4                   |   | Specimen      Stock Certificate (incorporated by reference from our Registration      Statement on Form S-1 filed on July 7, 2008, Registration No.      333-152160)   |
|                |   |                                                                                                                                                                   |
| 10.1                |   | Letter      Agreement with HydroFX Holding, Ltd., dated June 28, 2010 (incorporated by      reference from our Form 8-K filed on July 16, 2010)                        |
|                |   |                                                                                                                                                                   |
| 10.2                |   | Participation      Agreement with OKT Resources, LLC, dated July 1, 2010 (incorporated by      reference from our Form 8-K filed on July 16, 2010)                     |
|                |   |                                                                                                                                                                   |
| 10.3                |   | Letter      Agreement with Husky Ventures, Inc., dated July 12, 2010 (incorporated by      reference from our Form 8-K filed on July 16, 2010)                         |
|                |   |                                                                                                                                                                   |
| 31.1                |   | Rule      13a-14(a)/15d-14(a) Certification (Principal Executive      Officer)                                                                                         |
|                |   |                                                                                                                                                                   |
| 31.2                |   | Rule      13a-14(d)/15d-14(d) Certification (Principal Financial      Officer)                                                                                         |
|                |   |                                                                                                                                                                   |
| 32                  |   | Section      1350 Certifications                                                                                                                                       |

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|                           | IMPERIAL      RESOURCES, INC. |
|--------------------------------|-------------------------------|
|                           |                          |   |
| Date: August      6, 2010 | By:                           | /s/      James Payyappilly |
|                           |                          | James      Payyappilly, President, Chief Executive Officer      andDirector(Principal      Executive Officer) |
|                           |                          |   |
| Date: August      6, 2010 | By:                           | /s/      Josey Sajan |
|                           |                          | Josey      Sajan, Chief Financial Officer, Chief AccountingOfficer, Secretary and      Director(Principal      Financial Officer and Principal  AccountingOfficer) |

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