**FORM      10-QSB**

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

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

**Forster      Drilling Corporation**

**Process        Technology Systems, Inc.**

| Nevada                                                                        | 91-2070995                                       |
|-------------------------------------------------------------------------------|--------------------------------------------------|
| (State                or other jurisdiction of incorporation or organization) | (IRS                Employer Identification No.) |
|                                                                          |                                             |
|                                                                          |                                             |
| 6371                Richmond, #275, Houston, Texas 77057                      | 77057                                            |
| (Address                of principal executive offices)                       | (Zip                Code)                        |

**APPLICABLE      ONLY TO ISSUERS INVOLVED IN BANKRUPTCY**

**PROCEEDINGS      DURING THE PRECEDING FIVE YEARS**

**APPLICABLE      ONLY TO CORPORATE ISSUERS**

----

----

**Forster      Drilling Corporation**

**INDEX**

|                           |                       |                                                                                                                                                                                                                                                                 | **Page                    No.** |
|--------------------------------|----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------|
| **Part                    I**  |                       | Financial                    Information                                                                                                                                                                                                                             | 1                               |
|                           |                       |                                                                                                                                                                                                                                                                 |                            |
|                           | Item                    1. | Condensed                    Financial Statements of Forster Drilling Corporation                                                                                                                                                                                    | 1                               |
|                           |                       |                                                                                                                                                                                                                                                                 |                            |
|                           |                       | Condensed                    Balance Sheet dated May 31, 2006 (Unaudited)                                                                                                                                                                                            | 2                               |
|                           |                       |                                                                                                                                                                                                                                                                 |                            |
|                           |                       | Condensed                    Statements of Operations Three Months and Six Months Ended May                    31, 2006                    and 2005, and from Inception (May 12, 1987) through May 31, 2006                    (Unaudited)                           | 3                               |
|                           |                       |                                                                                                                                                                                                                                                                 |                            |
|                           |                       | Condensed                    Statements of Cash Flows For the Three Months and Six Months                    Ended May 31,                    2006 and 2005 and from inception (May 12, 1987) through May 31,                    2006                    (Unaudited) | 4                               |
|                           |                       |                                                                                                                                                                                                                                                                 |                            |
|                           |                       | Notes                    to Financial Statements (unaudited)                                                                                                                                                                                                         | 5                               |
|                           |                       |                                                                                                                                                                                                                                                                 |                            |
|                           |                       | Financial                    Statements of Forster Tool & Supply, Inc.                                                                                                                                                                                           | 6                               |
|                           |                       |                                                                                                                                                                                                                                                                 |                            |
|                           |                       | Balance                    Sheets at May 31, 2006 and November 30, 2005                                                                                                                                                                                              | 6                               |
|                           |                       |                                                                                                                                                                                                                                                                 |                            |
|                           |                       | Statements                    of Operations for the three and six months ended May 31, 2006,                    and the                    period from Inception (March 22, 2005) through May 31, 2005 and                    May 31,                    2006        | 7                               |
|                           |                       |                                                                                                                                                                                                                                                                 |                            |
|                           |                       | Statements                    of Stockholders’ Equity for the period from Inception (March 22, 2005)                    through May 31, 2006                                                                                                                   | 8                               |
|                           |                       |                                                                                                                                                                                                                                                                 |                            |
|                           |                       | Statement                    of Cash Flows for the six months ended May 31, 2006, and the                    period from                    Inception (March 22, 2005) through May 31, 2005 and 2006                                                                 | 9                               |
|                           |                       |                                                                                                                                                                                                                                                                 |                            |
|                           |                       | Notes                    to Financial Statements                                                                                                                                                                                                                     | 10                              |
|                           |                       |                                                                                                                                                                                                                                                                 |                            |
|                           |                       | Pro                    Forma unaudited Combined Balance Sheet at May 31, 2006                                                                                                                                                                                        | 12                              |
|                           |                       |                                                                                                                                                                                                                                                                 |                            |
|                           | Item                    2. | Management’s                    Discussion and Analysis                                                                                                                                                                                                        | 13                              |
|                           |                       |                                                                                                                                                                                                                                                                 |                            |
|                           | Item                    3. | Controls                    and Procedures                                                                                                                                                                                                                           | 15                              |
|                           |                       |                                                                                                                                                                                                                                                                 |                            |
| **Part                    II** |                       | Other                    Information                                                                                                                                                                                                                                 | 15                              |
|                           |                       |                                                                                                                                                                                                                                                                 |                            |
|                           | Item                    1. | Legal                    Proceedings                                                                                                                                                                                                                                 | 15                              |
|                           |                       |                                                                                                                                                                                                                                                                 |                            |
|                           | Item                    2. | Unregistered                    Sales of Equity Securities and Use of Proceeds                                                                                                                                                                                       | 15                              |
|                           |                       |                                                                                                                                                                                                                                                                 |                            |
|                           | Item                    3. | Defaults                    Upon Senior Securities                                                                                                                                                                                                                   | 16                              |
|                           |                       |                                                                                                                                                                                                                                                                 |                            |
|                           | Item                    4. | Submission                    of Matters to a Vote of Security Holders                                                                                                                                                                                               | 16                              |
|                           |                       |                                                                                                                                                                                                                                                                 |                            |
|                           | Item                    5. | Other                    Information.                                                                                                                                                                                                                                | 16                              |
|                           |                       |                                                                                                                                                                                                                                                                 |                            |
|                           | Item                    6. | Exhibits                    and Reports on Form 8-K                                                                                                                                                                                                                  | 16                              |
|                           |                       |                                                                                                                                                                                                                                                                 |                            |
|                           |                       | Signatures                                                                                                                                                                                                                                                           | 17                              |

----

**PART      I**

**ITEM      1. FINANCIAL STATEMENTS**

----

**FORSTER      DRILLING CORPORATION**

**[A      Development Stage Company]**

|                                                                   |   |   | May                  31,  |   |   | November                  30, |   |
|------------------------------------------------------------------------|--------|--------|--------------------------------|--------|--------|-------------------------------|--------|
|                                                                   |   |   | 2006                           |   |   | 2005                          |   |
| **ASSETS**                                                             |   |   | (Unaudited)                    |   |   | (Audited)                     |   |
| **Current                  Assets**                                    |   |   |                           |   |   |                          |   |
|  Cash                  and cash equivalents                       |   | $      | -                              |   | $      | -                             |   |
|                                                                   |   |   |                           |   |   |                          |   |
| **Total                  Current Assets**                              |   |   | -                              |   |   | -                             |   |
|                                                                   |   |   |                           |   |   |                          |   |
|                                                                   |   |   |                           |   |   |                          |   |
| **Total                  Assets**                                      |   | $      | -                              |   | $      | -                             |   |
|                                                                   |   |   |                           |   |   |                          |   |
| **LIABILITIES                  AND STOCKHOLDERS’ DEFICIT**       |   |   |                           |   |   |                          |   |
| **Liabilities**                                                        |   |   |                           |   |   |                          |   |
| **Current                  Liabilities**                               |   |   |                           |   |   |                          |   |
| Accounts                  Payable                                 |   | $      | 90,482                         |   | $      | 79,307                        |   |
| Due                  to stockholder                               |   |   | 11,347                         |   |   | 2,925                         |   |
| **Total                  Current Liabilities**                         |   |   | 101,829                        |   |   | 82,232                        |   |
| **Total                  Liabilities**                                 |   |   | 101,829                        |   |   | 82,232                        |   |
|                                                                   |   |   |                           |   |   |                          |   |
| **Stockholders’                  Deficit**                       |   |   |                           |   |   |                          |   |
| Preferred                  stock: $ .25 par value                 |   |   |                           |   |   |                          |   |
| Authorized                  12,500,000 shares                     |   |   |                           |   |   |                          |   |
| 5,835                  issued and outstanding                     |   |   | 1,459                          |   |   | 1,459                         |   |
| Common                  stock, $ .002 par value;                  |   |   |                           |   |   |                          |   |
| authorized                  200,000,000 shares; issued            |   |   |                           |   |   |                          |   |
| and                  outstanding 2,000,000                        |   |   | 4,000                          |   |   | 4,000                         |   |
| Additional                  paid-in capital                       |   |   | 327,260                        |   |   | 327,260                       |   |
| Deficit                  accumulated during development stage     |   |   | (434,548                       | )      |   | (414,951                      | )      |
| **Total                  Stockholders’ Deficit**                 |   |   | (101,829                       | )      |   | (82,232                       | )      |
| **Total                  Liabilities and Stockholders’ Deficit** |   | $      | -                              |   | $      | -                             |   |
|                                                                   |   |   |                           |   |   |                          |   |

----

**FORSTER      DRILLING CORPORATION**

**[A      Development Stage Company]**

|                                                   |   |   | For                    the Three Months Ended May 31,   |   |   | For                    the Six Months Ended May31, |   |   | From                    Inception through May 31, |   |
|--------------------------------------------------------|--------|--------|-------------------------------------------------------------------|--------|--------|----------------------------------------------------|--------|--------|---------------------------------------------------|--------|
|                                                   |   |   | 2006                                                              |   |   | 2005                                               |   |   | 2006                                              |   |   | 2005 |   |   | 2006 |   |
| Revenues                                               |   | $      | 0                                                                 |   | $      | 0                                                  |   | $      | 0                                                 |   | $ | 0 |   | $ | 0 |   |
|                                                   |   |   |                                                              |   |   |                                               |   |   |                                              |   |   |   |   |   |   |   |
| Expenses                                               |   |   |                                                              |   |   |                                               |   |   |                                              |   |   |   |   |   |   |   |
|                                                   |   |   |                                                              |   |   |                                               |   |   |                                              |   |   |   |   |   |   |   |
| General                    and administrative          |   |   | 6,104                                                             |   |   | 9,422                                              |   |   | 19,597                                            |   |   | 27,851 |   |   | 434,548 |   |
|                                                   |   |   |                                                              |   |   |                                               |   |   |                                              |   |   |   |   |   |   |   |
| Total                    Expenses                      |   |   | 6,104                                                             |   |   | 9,422                                              |   |   | 19,597                                            |   |   | 27,851 |   |   | 434,548 |   |
|                                                   |   |   |                                                              |   |   |                                               |   |   |                                              |   |   |   |   |   |   |   |
|                                                   |   |   |                                                              |   |   |                                               |   |   |                                              |   |   |   |   |   |   |   |
| Net                    Loss Before Income Taxes        |   |   | (6,104                                                            | )      |   | (9,422                                             | )      |   | (19,597                                           | )      |   | (27,851 | ) |   | (434,548 | ) |
|                                                   |   |   |                                                              |   |   |                                               |   |   |                                              |   |   |   |   |   |   |   |
| Provision                    for Income Taxes          |   |   | 0                                                                 |   |   | 0                                                  |   |   | 0                                                 |   |   | 0 |   |   | 0 |   |
| Net                    Loss                            |   |   | (6,104                                                            | )      |   | (9,422                                             | )      |   | (19,597                                           | )      |   | (27,851 | ) |   | (434,548 | ) |
|                                                   |   |   |                                                              |   |   |                                               |   |   |                                              |   |   |   |   |   |   |   |
| Loss                    Per Share                      |   | $      | (0.01                                                             | )      | $      | (0.01                                              | )      | $      | (0.01                                             | )      | $ | (0.01 | ) | $ |  |   |
|                                                   |   |   |                                                              |   |   |                                               |   |   |                                              |   |   |   |   |   |   |   |
| Weighted                    Average Shares Outstanding |   |   | 2,000,000                                                         |   |   | 1,348,315                                          |   |   | 2,000,000                                         |   |   | 1,174,157 |   |   |   |   |

----

**FORSTER      DRILLING CORPORATION**

**[A      Development Stage Company]**

|                                                                 |   |   | For                    the Six Months Ended May 31,                    2006  |   |   | For                    the Six Months Ended May 31, 2005 |   |   | From                    Inception through May 31, 2006 |   |
|----------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------------|--------|--------|----------------------------------------------------------|--------|--------|--------------------------------------------------------|--------|
| **Cash                    Flows From Operating Activities**          |   |   |                                                                              |   |   |                                                     |   |   |                                                   |   |
| Net                    Loss                                     |   | $      | (19,597                                                                           | )      | $      | (27,851                                                  | )      | $      | (434,548                                               | )      |
| Adjustments                    to reconcile net (loss) to            |   |   |                                                                              |   |   |                                                     |   |   |                                                   |   |
| net                    cash provided by operating activities:        |   |   |                                                                              |   |   |                                                     |   |   |                                                   |   |
| Write                    off of assets                          |   |   |                                                                              |   |   |                                                     |   |   | 188,627                                                |   |
| Comon                    stock issued for for services          |   |   |                                                                              |   |   |                                                     |   |   | 83,645                                                 |   |
| Increased                    (decrease) in accounts payable     |   |   | 11,175                                                                            |   |   | 24,801                                                   |   |   | 102,887                                                |   |
| Increase                    (decrease) in due to shareholders   |   |   | 8,422                                                                             |   |   | 3,050                                                    |   |   | 11,347                                                 |   |
| **Net                    Cash From Operating Activities**            |   |   | -                                                                                 |   |   | -                                                        |   |   | (48,042                                                | )      |
|                                                                 |   |   |                                                                              |   |   |                                                     |   |   |                                                   |   |
| **Cash                    Flows From Financing Activities**          |   |   |                                                                              |   |   |                                                     |   |   |                                                   |   |
|                                                                 |   |   |                                                                              |   |   |                                                     |   |   |                                                   |   |
| Comon                    stock issued for cash                  |   |   | -                                                                                 |   |   | 10,000                                                   |   |   | 17,142                                                 |   |
| Contributed                    capital                          |   |   | -                                                                                 |   |   | -                                                        |   |   | 30,900                                                 |   |
| **Cash                    Flows From Financing Activities**          |   |   | -                                                                                 |   |   | 10,000                                                   |   |   | 48,042                                                 |   |
| **Net                    Increase(Decease) in Cash**                 |   |   | -                                                                                 |   |   | 10,000                                                   |   |   | -                                                      |   |
| **Beginning                    Cash Balance**                        |   |   | -                                                                                 |   |   | -                                                        |   |   | -                                                      |   |
| **Ending                    Cash Balance**                           |   | $      | -                                                                                 |   | $      | 10,000                                                   |   | $      | -                                                      |   |
|                                                                 |   |   |                                                                              |   |   |                                                     |   |   |                                                   |   |
| **Supplemental                    Disclosure Information**           |   |   |                                                                              |   |   |                                                     |   |   |                                                   |   |
| Cash                    paid during year for interest           |   | $      | 0                                                                                 |   | $      | 0                                                        |   | $      | 0                                                      |   |
| Cash                    paid during year for income taxes       |   | $      | 0                                                                                 |   | $      | 0                                                        |   | $      | 0                                                      |   |
| Issued                    Common Stock for Debt                 |   | $      | 0                                                                                 |   | $      | 0                                                        |   | $      | 12,400                                                 |   |
| Issued                    common Stock for Services             |   | $      | 0                                                                                 |   | $      | 0                                                        |   | $      | 83,645                                                 |   |

----

**FORSTER      DRILLING CORPORATION**

**[A      Development Stage Company]**

----

**FORSTER      TOOL & SUPPLY, INC.**

**FORMERLY      FORSTER DRILLING CORPORATION**

**(A      DEVELOPMENT STAGE COMPANY)**

**BALANCE      SHEETS**

|                                                                                                                                                                                 |   | May                31, |       | November                30, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|------------|-----------------------------|--------|
| **ASSETS**                                                                                                                                                                           |   | 2006                   |       | 2005                        |   |
|                                                                                                                                                                                 |   |                   |       |                        |   |
|                                                                                                                                                                                 |   |                   |       |                        |   |
| Current                assets:                                                                                                                                                       |   |                   |       |                        |   |
| Cash                and cash equivalents                                                                                                                                             |   | $                      | 184,066    |                        | $      | - |   |
| Trade                accounts receivable, net                                                                                                                                        |   |                   | -          |                        |   | 13,411 |   |
| Inventories                                                                                                                                                                          |   |                   | 52,155     |                        |   | 164,925 |   |
| Prepaid                expenses                                                                                                                                                      |   |                   | 13,500     |                        |   | - |   |
| Other                current assets                                                                                                                                                  |   |                   | -          |                        |   | - |   |
|                                                                                                                                                                                 |   |                   |       |                        |   |   |   |
| Total                current assets                                                                                                                                                  |   |                   | 249,721    |                        |   | 178,336 |   |
|                                                                                                                                                                                 |   |                   |       |                        |   |   |   |
| Property                & Equipment - at cost                                                                                                                                    |   |                   |       |                        |   |   |   |
| Construction                in progress: drilling rigs and related equipment                                                                                                         |   |                   | 4,035,598  |                        |   | 839,586 |   |
| Transportation,                office, & other equipment                                                                                                                         |   |                   |       |                        |   |   |   |
| (net                of accumulated depreciation of $11,069 and $5,469)                                                                                                               |   |                   | 21,973     |                        |   | 26,204 |   |
|                                                                                                                                                                                 |   |                   |       |                        |   |   |   |
| Total                assets                                                                                                                                                          |   | $                      | 4,307,292  |                        | $      | 1,044,126 |   |
|                                                                                                                                                                                 |   |                   |       |                        |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS’ EQUITY**                                                                                                                        |   |                   |       |                        |   |   |   |
|                                                                                                                                                                                 |   |                   |       |                        |   |   |   |
| Current                liabilities:                                                                                                                                                  |   |                   |       |                        |   |   |   |
| Accounts                payable                                                                                                                                                      |   | $                      | 303,686    |                        | $      | 197,122 |   |
| Stock                payable                                                                                                                                                         |   |                   | 406,114    |                        |   |   |   |
| Accrued                liabilities                                                                                                                                                   |   |                   | 110,625    |                        |   | 23,487 |   |
| Notes                payable                                                                                                                                                         |   |                   | 380,436    |                        |   | - |   |
| Notes                payable to related parties                                                                                                                                      |   |                   | 78,768     |                        |   | 5,000 |   |
|                                                                                                                                                                                 |   |                   |       |                        |   |   |   |
| Total                current liabilities                                                                                                                                             |   |                   | 1,279,629  |                        |   | 225,609 |   |
|                                                                                                                                                                                 |   |                   |       |                        |   |   |   |
| Long-term                debt, net of current maturities                                                                                                                             |   |                   | 466,622    |                        |   | - |   |
|                                                                                                                                                                                 |   |                   |       |                        |   |   |   |
| Total                liabilities                                                                                                                                                     |   |                   | 1,746,251  |                        |   | 225,609 |   |
|                                                                                                                                                                                 |   |                   |       |                        |   |   |   |
| Stockholders’                equity:                                                                                                                                           |   |                   |       |                        |   |   |   |
| Common                stock, $0.001 par value per share, 100,000,000                shares authorized, 40,055,463 and 36,529,929 issued                and outstanding, respectively |   |                   | 40,055     |                        |   | 36,530 |   |
| Additional                paid-in capital                                                                                                                                            |   |                   | 5,422,277  |                        |   | 2,735,515 |   |
| Deficit                accumulated during development stage                                                                                                                          |   |                   | (2,901,291 | )                           |   | (1,953,528 | ) |
| Total                stockholders’ equity                                                                                                                                      |   |                   | 2,561,041  |                        |   | 18,517 |   |
| Total                liabilities and stockholders’ equity                                                                                                                      |   | $                      | 4,307,292  |                        | $      | 1,044,126 |   |

----

**FORSTER      TOOL & SUPPLY, INC.**

**FORMERLY      FORSTER DRILLING CORPORATION**

**(A      DEVELOPMENT STAGE COMPANY)**

**STATEMENTS      OF OPERATIONS**

|                                                            |   | Three                  MonthsEndedMay                  31, 2006 |       | InceptionthroughMay                    31, 2005 |   | Six                  MonthsEndedMay                  31, 2006 |   | Inception                    throughMay                    31, 2006 |       |
|-----------------------------------------------------------------|--------|-----------------------------------------------------------------|------------|-------------------------------------------------|--------|---------------------------------------------------------------|--------|---------------------------------------------------------------------|------------|
|                                                            |   |                                                            |       |                                            |   |                                                          |   |                                                                |       |
| REVENUES                                                        |   | $                                                               | -          |                                            | $      | -                                                             |   | $                                                                   | 266,000    |   | $ | 279,411 |   |
|                                                            |   |                                                            |       |                                            |   |                                                          |   |                                                                |       |   |   |   |   |
| COST                OF SALES                                    |   |                                                            | -          |                                            |   | -                                                             |   |                                                                | 112,000    |   |   | 136,638 |   |
|                                                            |   |                                                            |       |                                            |   |                                                          |   |                                                                |       |   |   |   |   |
| GROSS                PROFIT                                     |   |                                                            | -          |                                            |   | -                                                             |   |                                                                | 154,000    |   |   | 142,773 |   |
|                                                            |   |                                                            |       |                                            |   |                                                          |   |                                                                |       |   |   |   |   |
| Operating                expenses:                              |   |                                                            |       |                                            |   |                                                          |   |                                                                |       |   |   |   |   |
| Rig                refurbishment & related expenses         |   |                                                            | 98,322     |                                            |   | 153,743                                                       |   |                                                                | 228,007    |   |   | 659,759 |   |
| Depreciation                & amortization expense          |   |                                                            | 2,810      |                                            |   | -                                                             |   |                                                                | 5,600      |   |   | 11,069 |   |
| General                and administrative expenses              |   |                                                            | 582,107    |                                            |   | 44,673                                                        |   |                                                                | 808,884    |   |   | 2,313,964 |   |
| Total                operating expenses                         |   |                                                            | 683,239    |                                            |   | 198,416                                                       |   |                                                                | 1,042,491  |   |   | 2,984,792 |   |
|                                                            |   |                                                            |       |                                            |   |                                                          |   |                                                                |       |   |   |   |   |
| OPERATING                LOSS                                   |   |                                                            | (683,239   | )                                               |   | (198,416                                                      | )      |                                                                | (888,491   | ) |   | (2,842,019 | ) |
|                                                            |   |                                                            |       |                                            |   |                                                          |   |                                                                |       |   |   |   |   |
| Other                expenses:                                  |   |                                                            |       |                                            |   |                                                          |   |                                                                |       |   |   |   |   |
| Interest                expense                                 |   |                                                            | 38,715     |                                            |   | -                                                             |   |                                                                | 59,272     |   |   | 59,272 |   |
|                                                            |   |                                                            |       |                                            |   |                                                          |   |                                                                |       |   |   |   |   |
| NET                LOSS                                         |   | $                                                               | (721,954   | )                                               | $      | (198,416                                                      | )      | $                                                                   | (947,763   | ) | $ | (2,901,291 | ) |
|                                                            |   |                                                            |       |                                            |   |                                                          |   |                                                                |       |   |   |   |   |
| Basic                and diluted net loss per share             |   | $                                                               | (0.02      | )                                               | $      | (0.02                                                         | )      | $                                                                   | (0.02      | ) |   |   |   |
|                                                            |   |                                                            |       |                                            |   |                                                          |   |                                                                |       |   |   |   |   |
| Weighted                average common shares  outstanding |   |                                                            | 38,407,711 |                                            |   | 8,688,261                                                     |   |                                                                | 38,407,711 |   |   |   |   |
|                                                            |   |                                                            |       |                                            |   |                                                          |   |                                                                |       |   |   |   |   |

----

**FORSTER      TOOL & SUPPLY, INC.**

**FORMERLY      FORSTER DRILLING CORPORATION**

**(A      DEVELOPMENT STAGE COMPANY)**

**STATEMENTS      OF STOCKHOLDERS’ EQUITY**

|                                                                                                                 |   |   | **Common                Stock**** **  |   |   | **Additional****Paid-In** |   |   | **Deficit                  Accumulated****During****Development** |   |   |       |   |
|----------------------------------------------------------------------------------------------------------------------|--------|--------|-------------------------------------------------|--------|--------|---------------------------|--------|--------|-------------------------------------------------------------------|--------|--------|------------|--------|
|                                                                                                                 |   |   | **Shares**                                      |   |   | **Par**                   |   |   | **Capital                 **                                 |   |   | **Stage**  |   |   | **Total                 ** |   |
|                                                                                                                 |   |   |                                            |   |   |                      |   |   |                                                              |   |   |       |   |   |   |   |
| Shares                issued for services                                                                            |   |   | 23,830,000                                      |   | $      | 23,830                    |   | $      | 1,122,750                                                         |   |   | -          |   | $ | 1,146,580 |   |
| Shares                issued for drilling rig parts contributed by a founder at founders’                basis |   |   | 10,000,000                                      |   |   | 10,000                    |   |   | 231,000                                                           |   |   | -          |   |   | 241,000 |   |
| Stock                issued for cash                                                                                 |   |   | 2,667,999                                       |   |   | 2,668                     |   |   | 1,365,832                                                         |   |   | -          |   |   | 1,368,500 |   |
| Stock                issued for debt                                                                                 |   |   | 31,930                                          |   |   | 32                        |   |   | 15,933                                                            |   |   | -          |   |   | 15,965 |   |
| Net                loss                                                                                              |   |   | -                                               |   |   | -                         |   |   | -                                                                 |   |   | (1,953,528 | )      |   | (1,953,528 | ) |
|                                                                                                                 |   |   |                                            |   |   |                      |   |   |                                                              |   |   |       |   |   |   |   |
| Balance                November 30, 2005                                                                             |   |   | 36,529,929                                      |   | $      | 36,530                    |   | $      | 2,735,515                                                         |   | $      | (1,953,528 | )      | $ | 818,517 |   |
|                                                                                                                 |   |   |                                            |   |   |                      |   |   |                                                              |   |   |       |   |   |   |   |
| Shares                issued for services                                                                            |   |   | -                                               |   |   | 239                       |   |   | 36,000                                                            |   |   | -          |   |   | 36,000 |   |
| Shares                issued for payment of debt                                                                     |   |   | 533,334                                         |   |   | 533                       |   |   | 399,467                                                           |   |   | -          |   |   | 400,000 |   |
| Stock                issued for cash                                                                                 |   |   | 2,992,200                                       |   |   | 2,992                     |   |   | 2,240,377                                                         |   |   | -          |   |   | 2,243,369 |   |
| Discount                related to beneficial conversion feature on convertible notes                payable         |   |   | -                                               |   |   | -                         |   |   | 10,918                                                            |   |   | -          |   |   | 10,918 |   |
| Net                loss                                                                                              |   |   | -                                               |   |   | -                         |   |   | -                                                                 |   |   | (947,763   | )      |   | (947,763 | ) |
|                                                                                                                 |   |   |                                            |   |   |                      |   |   |                                                              |   |   |       |   |   |   |   |
| Balance                May 31, 2006                                                                                  |   |   | 40,055,463                                      |   | $      | 40,055                    |   | $      | 5,422,277                                                         |   | $      | (2,901,291 | )      | $ | (2,561,041 | ) |

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**FORSTER      TOOL & SUPPLY, INC.**

**FORMERLY      FORSTER DRILLING CORPORATION**

**(A      DEVELOPMENT STAGE COMPANY)**

**STATEMENTS      OF CASH FLOWS**

|                                                                                                      |   | Six                      MonthsEndedMay                      31, 2006 |       | Inception                    toMay                    31, 2005 |   | Inception                    toMay                    31, 2006 |   |
|-----------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------|------------|----------------------------------------------------------------|--------|----------------------------------------------------------------|--------|
|                                                                                                      |   |                                                                  |       |                                                           |   |                                                           |   |
| **Cash                flows from operating activities:**                                                  |   |                                                                  |       |                                                           |   |                                                           |   |
| Net                loss                                                                                   |   | $                                                                     | (947,763   | )                                                              | $      | (198,416                                                       | )      | $ | (2,901,291 | ) |
| Adjustments                to reconcile net loss to net cash used in operating                activities: |   |                                                                  |       |                                                           |   |                                                           |   |   |   |   |
| Stock-based                compensation expense                                                           |   |                                                                  | 36,000     |                                                           |   | 192,580                                                        |   |   | 1,182,580 |   |
| Amortization                of discount                                                                   |   |                                                                  | 21,836     |                                                           |   | -                                                              |   |   | 21,836 |   |
| Expenses                paid by shareholders                                                              |   |                                                                  | 0          |                                                           |   | -                                                              |   |   | 15,965 |   |
| Depreciation                                                                                              |   |                                                                  | 5,600      |                                                           |   | -                                                              |   |   | 11,069 |   |
| Decrease                in accounts receivable                                                            |   |                                                                  | 13,411     |                                                           |   | -                                                              |   |   | - |   |
| Decrease                in inventories                                                                    |   |                                                                  | 112,770    |                                                           |   | -                                                              |   |   | 94,595 |   |
| (Increase)                in prepaid expenses                                                             |   |                                                                  | (13,500    | )                                                              |   | -                                                              |   |   | (13,500 | ) |
| (Increase)                in other assets                                                                 |   |                                                                  | -          |                                                           |   | (1,000                                                         | )      |   | - |   |
| Increase                in accounts payable                                                               |   |                                                                  | 106,564    |                                                           |   | -                                                              |   |   | 303,686 |   |
| Increase                in accrued expenses                                                               |   |                                                                  | 266,252    |                                                           |   | -                                                              |   |   | 289,739 |   |
| Net                cash used in operating activities                                                      |   |                                                                  | (398,830   | )                                                              |   | (6,836                                                         | )      |   | (995,321 | ) |
|                                                                                                      |   |                                                                  |       |                                                           |   |                                                           |   |   |   |   |
| **Cash                flows from investing activities:**                                                  |   |                                                                  |       |                                                           |   |                                                           |   |   |   |   |
| Purchases                of fixed assets                                                                  |   |                                                                  | (2,570,381 | )                                                              |   | (77,332                                                        | )      |   | (3,259,390 | ) |
| Net                cash used in investing activities                                                      |   |                                                                  | (2,570,381 | )                                                              |   | (77,332                                                        | )      |   | (3,259,390 | ) |
|                                                                                                      |   |                                                                  |       |                                                           |   |                                                           |   |   |   |   |
| **Cash                flows from financing activities:**                                                  |   |                                                                  |       |                                                           |   |                                                           |   |   |   |   |
| Proceeds                from sale of commons stock                                                        |   |                                                                  | 2,243,369  |                                                           |   | 147,500                                                        |   |   | 3,611,869 |   |
| Proceeds                from related party borrowings                                                     |   |                                                                  | 123,082    |                                                           |   | -                                                              |   |   | 128,082 |   |
| Proceeds                from third party borrowings                                                       |   |                                                                  | 926,000    |                                                           |   | -                                                              |   |   | 961,821 |   |
| Payments                on related party borrowings                                                       |   |                                                                  | (53,232    | )                                                              |   | -                                                              |   |   | (53,232 | ) |
| Payments                on third party borrowings                                                         |   |                                                                  | (85,942    | )                                                              |   | (50,000                                                        | )      |   | (209,763 | ) |
| Net                cash provided by financing activities                                                  |   |                                                                  | 3,153,277  |                                                           |   | 97,500                                                         |   |   | 4,438,777 |   |
|                                                                                                      |   |                                                                  |       |                                                           |   |                                                           |   |   |   |   |
| Increase                (decrease) in cash and cash equivalents                                           |   | $                                                                     | 184,066    |                                                           | $      | 13,332                                                         |   | $ | 184,066 |   |
|                                                                                                      |   |                                                                  |       |                                                           |   |                                                           |   |   |   |   |
| Cash                and cash equivalents, beginning of period                                             |   |                                                                  | -          |                                                           |   | -                                                              |   |   | - |   |
|                                                                                                      |   |                                                                  |       |                                                           |   |                                                           |   |   |   |   |
| Cash                and cash equivalents, end of period                                                   |   | $                                                                     | 184,066    |                                                           | $      | 13,332                                                         |   | $ | 184,066 |   |

|                                                                    |   |   |    |   |   |    |   |
|-------------------------------------------------------------------------|--------|--------|---------|--------|--------|---------|--------|
| **Supplemental                Cash Flow Disclosures:**                  |   |   |    |   |   |    |   |
| Cash                paid for income taxes                               |   | $      | -       |   | $      | -       |   | $ | - |   |
| Cash                paid for interest                                   |   | $      | -       |   | $      | -       |   | $ | - |   |
| **Non-cash                investing and financing activities:**         |   |   |    |   |   |    |   |   |   |   |
| Paid                debt with common stock                              |   |   | 627,000 |   |   | -       |   |   | 642,965 |   |
| Purchased                drilling rig parts with common stock           |   |   | -       |   |   | 241,000 |   |   | 241,000 |   |
| Purchased                drilling rig parts with note payable to seller |   |   | 627,000 |   |   | 88,000  |   |   | 715,000 |   |
| Discount                of notes for beneficial conversion feature      |   |   | 10,918  |   |   | -       |   |   | 10,918 |   |

----

**FORSTER      TOOL & SUPPLY, INC.**

**FORMERLY      FORSTER DRILLING CORPORATION**

**(A      DEVELOPMENT STAGE COMPANY)**

**Notes      to Financial Statements**

      ForsterTool      & Supply, Inc. (“Forster Tool”) have been prepared in accordance with      accounting principles generally accepted in the United States of America and      the      rules of the Securities and Exchange Commission, and should be read in      conjunction with the audited financial statements and notes thereto contained      in      the Form 8-K      filed on      June 22, 2006, and incorporated herein by reference. In the opinion of      management, all adjustments, consisting of normal recurring adjustments,      necessary for a fair presentation of financial position and the results of      operations for the interim periods presented have been reflected herein. The      results of operations for interim periods are not necessarily indicative of      the      results to be expected for the full year. Notes to the financial statements      which would substantially duplicate the disclosures contained in the audited      financial statements for fiscal 2005 as reported in the Form 8-K have been      omitted.

|                                                                                                                                |   |   |    |   |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|
| Proceeds                                                                                                                            |   | $      | 156,000 |   |
|   Less:                  discount for common stock                                                                        |   |   | (10,918 | )      |
|             discount                  for beneficial conversion feature |   |   | (10,918 | )      |
|              repayment                  of principal               |   |   | (42,232 | )      |
|   Add:                  amortization of discount                                                                          |   |   | 21,836  |   |
|   Balance                  at February 28, 2006                                                                           |   |   | 113,768 |   |
|   Less:                  related party portion                                                                            |   |   | (23,768 | )      |
|   Third                  party portion                                                                                    |   | $      | 90,000  |   |

----

----

**Pro      Forma unaudited Combined Balance Sheet at May 31, 2006**

|                                                                                                                                            |   |   | 5/31/06  |   |         | 5/31/06            |   |   |        |   |   |                       |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------|--------|--------------|--------------------|--------|--------|-------------|--------|--------|----------------------------|--------|
|                                                                                                                                            |   |   | Forster  |   |         | Process            |   |   | Adjustments |   |   | Pro                  Forma |   |
|  Assets                                                                                                                                    |   |   |          |   |         |               |   |   |        |   |   |                       |   |
|  Cash                                                                                                                                      |   | $      | 184,066       |   | $            | -                  |   |   |        |   | $      | 184,066                    |   |
|  Other                  current assets                                                                                                     |   |   | 13,500        |   |         |               |   |   |        |   |   | 13,500                     |   |
|  Inventories                                                                                                                               |   |   | 52,155        |   |         |               |   |   |        |   |   | 52,155                     |   |
|  Property,                  plant & equipment (net)                                                                                    |   |   | 4,057,571     |   |    |     |   |   |        |   |   | 4,057,571                  |   |
|  Total                  Assets                                                                                                             |   | $      | 4,307,292     |   | $            | -                  |   |   |        |   | $      | 4,307,292                  |   |
|                                                                                                                                            |   |   |          |   |         |               |   |   |        |   |   |                       |   |
| Liabilities                                                                                                                                     |   |   |          |   |         |               |   |   |        |   |   |                       |   |
|  Accounts                  payable                                                                                                         |   | $      | 303,686       |   | $            | 90,482             |   |   |        |   | $      | 394,168                    |   |
|  Accrued                  expenses                                                                                                         |   |   | 110,625       |   |         |               |   |   |        |   |   | 110,625                    |   |
|  Stock                  Payable                                                                                                            |   |   | 406,114       |   |         |               |   |   |        |   |   | 406,114                    |   |
|  Due                  to stockholder                                                                                                       |   |   |          |   |         | 11,347             |   |   |        |   |   | 11,347                     |   |
|  Note                  payable - short-term                                                                                                |   |   | 380,436       |   |         |               |   |   |        |   |   | 380,436                    |   |
|  Note                  payable - related party (short-term)                                                                                |   |   | 78,768        |   |         |               |   |   |        |   |   | 78,768                     |   |
|  Note                  payable - long-term                                                                                                 |   |   | 466,622       |   |         |     |   |   |        |   |   | 466,622                    |   |
|  Total                  Liabilities                                                                                                        |   |   | 1,746,251     |   |         | 101,829            |   |   |        |   |   | 1,848,080                  |   |
|                                                                                                                                            |   |   |          |   |         |               |   |   |        |   |   |                       |   |
| Preferred                  stock, $0.25 par value, 12,500,000 shares authorized; 5,835 shares                  issued and outstanding           |   |   |          |   |         | 1,459              |   |   |        |   |   | 1,459                      |   |
|                                                                                                                                            |   |   |          |   |         |               |   |   |        |
| Common                  stock, $.002 par value, 200,000,000 shares authorized; 2,000,000                  shares issued and outstanding         |   | 4,000  |          |   | 80,111       |               |   | 84,111 |        |
|                                                                                                                                            |   |   |          |   |         |               |   |   |        |
| Common                  stock, $.001 par value, 100,000,000 shares authorized; 40,055,463                  shares issued and outstanding 40,055 |   |   |          |   | (40,055      | )                  |   | -      |        |
|  Paid                  in capital                                                                                                          |   |   | 5,422,277     |   |         | 327,260            |   |   | (372,299    | )      |   | 5,377,238                  |   |
| Accumulated                  Deficit                                                                                                            |   |   | (2,901,291    | )      |         | (434,548           | )      |   | 332,719     |   |   | (3,003,596                 | )      |
| Total                  stockholders’ deficit                                                                                              |   |   | 2,561,041     |   |         | (101,829           | )      |   |        |   |   | 2,459,212                  |   |
| Total                  liabilities & stockholders’ deficit                                                                            |   | $      | 4,307,292     |   | $            | -                  |   |   |        |   | $      | 4,307,292                  |   |

----

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

**Forward      Looking Statements**

**Overview**

**Recent      Transactions**

----

**Results      of Operations**

**Forster      Drilling:**
** **

**Forster      Tool:**

**Forster      Drilling:**
** **

**Forster      Tool:**

**Plan      of Operation**

----

**Off-Balance      Sheet Arrangements**

**ITEM      3. CONTROLS AND PROCEDURES.**

**PART      II**

**ITEM      1. LEGAL PROCEEDINGS.**

**ITEM      2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF      PROCEEDS.**

** **

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**ITEM      3. DEFAULTS UPON SENIOR SECURITIES.**

**ITEM      4 SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.**

**ITEM      5. OTHER INFORMATION.**

**ITEM      6. EXHIBITS AND REPORTS ON FORM 8-K.**

| **Exhibit                No.** | **Identification                of Exhibit**                                                                                                                                                                                               |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                           |                                                                                                                                                                                                                                       |
| 31.1                           | Certification                Pursuant to Section 302 of the Sarbanes-Oxley Act provided by F.                E.                Forster, III, Chief Executive Officer                                                                       |
|                           |                                                                                                                                                                                                                                       |
| 31.2                           | Certification                Pursuant to Section 302 of the Sarbanes-Oxley Act provided by Bud                Najvar,                Chief Financial Officer                                                                               |
|                           |                                                                                                                                                                                                                                       |
| 32.1                           | Certification                Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section                906 of                the Sarbanes-Oxley Act of 2002 provided by F. E. Forster, III, Chief                Executive Officer |
|                           |                                                                                                                                                                                                                                       |
| 32.2                           | Certification                Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section                906 of                the Sarbanes-Oxley Act of 2002 provided by Bud Najvar, Chief Financial                Officer         |

----

**SIGNATURES**

|   | **FORSTER                DRILLING CORPORATION**                                                                                                                                                                                                                            |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                       |
|   | By:                /s/                F.                E. FORSTER,                III                               |
|   | F.                E. Forster, III, Chief Executive Officer                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                       |
|   | Date:                July 24, 2006                                                                                                                                                                                                                                         |

| Signature                                                |   | Title                                      |   | Date                           |
|----------------------------------------------------------|--------|--------------------------------------------|--------|--------------------------------|
|                                                     |   |                                       |   |                           |
| /s/                  F.                  E. FORSTER, III |   | Chairman                  of the Board and |   | July                  24, 2006 |
| F.                  E. Forster, III                      |   | Chief                  Executive Officer   |   |                           |
|                                                     |   |                                       |   |                           |
|                                                     |   |                                       |   |                           |
| /s/                  BUD                  NAJVAR         |   | Chief                  Financial Officer   |   | July                  24, 2006 |
| Bud                Najvar                           |   |                                       |   |                           |

----

**EXHIBIT      INDEX**

| **Exhibit                  No.** | **Identification                  of Exhibit**                                                                                                                                                                                                                      |
|----------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                             |                                                                                                                                                                                                                                                                |
| 31.1                             | Certification                  Pursuant to Section 302 of the Sarbanes-Oxley Act provided by F.                  E.                  Forster, III, Chief Executive Officer                                                                                          |
|                             |                                                                                                                                                                                                                                                                |
| 31.2                             | Certification                  Pursuant to Section 302 of the Sarbanes-Oxley Act provided by Bud                  Najvar,                  Chief Financial Officer                                                                                                  |
|                             |                                                                                                                                                                                                                                                                |
| 32.1                             | Certification                  Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section                  906 of                  the Sarbanes-Oxley Act of 2002 provided by F. E. Forster, III,                  Chief                  Executive Officer |
|                             |                                                                                                                                                                                                                                                                |
| 32.2                             | Certification                  Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section                  906 of                  the Sarbanes-Oxley Act of 2002 provided by Bud Najvar, Chief Financial                  Officer                          |

----