UNITED
        STATES SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON,
        D.C. 20549
 
 **FORM
        10-QSB**
 
 x
              QUARTERLY
                  REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
                  ACT OF
                  1934
  For
        the
        quarterly period ended February
        28, 2007
 
 o
              TRANSITION
                  REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
                  ACT OF
                  1934
 
 Commission
        file number 000-29603
   **Forster
        Drilling Corporation**
 (Exact
        name of small business issuer as specified in its charter)
  Nevada 91-2070995
 (State
        or other
        jurisdiction of incorporation or organization)  (IRS
        Employer Identification
        No.)
 
  6371
        Richmond, #275,
        Houston, Texas 77057
 (Address
        of
        principal executive offices)      (Zip
        Code)
 
 Registrant’s
        telephone number, including area code:   (713)
        266-8005
 
 Former
        Name: Not
        Applicable
 
 Securities
        registered pursuant to Section 12(b) of the Act: None
 
 Securities
        registered pursuant to Section 12(g) of the Act: Common
        Stock
 
 Check
        whether the Issuer (1) has filed all reports required to be filed by Section
        13
        or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months
        (or for such shorter period that the registrant was required to file such
        reports) and (2) has been subject to such filing requirements for the past
        90
        days. Yes x No o
 
 Indicate
        by check mark whether the registrant is a shell company (as defined in Rule
        12b-2 of the Exchange Act).  Yes o No x
 
 **APPLICABLE
        ONLY TO ISSUERS INVOLVED IN BANKRUPTCY**
 **PROCEEDINGS
        DURING THE PRECEDING FIVE YEARS**
 
 Check
        whether the issuer filed all documents and reports required to be filed by
        Section 12, 13 or 15(d) of the Exchange Act after the distribution of securities
        under a plan confirmed by a court. Yes o No x
 
 **APPLICABLE
        ONLY TO CORPORATE ISSUERS**
 
 The
        Registrant’s common stock outstanding as of March
        9,
        2007 ,
        was 45,475,945 shares.
 
 
 
 
 Transitional
        Small Business Disclosure Format (Check One): Yes o No x
  
  **Forster
        Drilling Corporation**
 
 
 **INDEX**
 
 **Page
                  No.****Part
                  I**
              
              Financial
                  InformationItem
                  1.
              Condensed
                  Consolidated Financial Statements of Forster Drilling
                  Corporation
              1Condensed
                  Consolidated Balance Sheet dated February 28, 2007
                  (Unaudited)
              2Condensed
                  Consolidated Statements of Operations for the Three Months Ended
                  February
                  28, 2007 and 2006 (Unaudited)
              3Condensed
                  Consolidated Statements of Stockholders’ Equity for the Three Months Ended
                  February 28, 2007 (Unaudited)
              4Condensed
                  Consolidated Statements of Cash Flows for the Three Months Ended
                  February
                  28, 2007 and 2006 (Unaudited)
              5Notes
                  to Consolidated Financial Statements (Unaudited)
              6Item
                  2.
              Management’s
                  Discussion and Analysis
              10Item
                  3.
              Controls
                  and Procedures
              13**Part
                  II**
              
              Other
                  Information
              14Item
                  1.
              Legal
                  Proceedings
              14Item
                  2.
              Unregistered
                  Sales of Equity Securities and Use of Proceeds
              14Item
                  3.
              Defaults
                  Upon Senior Securities
              15Item
                  4.
              Submission
                  of Matters to a Vote of Security Holders
              15Item
                  5.
              Other
                  Information.
              15Item
                  6.
              Exhibits
                  and Reports on Form 8-K
              15Signatures
              16
 
 
 
  **PART
        I**
 
 **ITEM
        1.**  **FINANCIAL
        STATEMENTS**
 
 The
        Condensed Financial Statements of Forster Drilling Corporation required to
        be
        filed with this 10-QSB Quarterly Report were prepared by management and commence
        on the following page, together with related Notes. In the opinion of
        management, the Condensed Financial Statements fairly present the financial
        condition of Forster Drilling Corporation.
  1
  **FORSTER
        DRILLING CORPORATION**
 **CONSOLIDATED
        BALANCE SHEET**
 **(Unaudited)**
 February
                  28,**ASSETS**
              
              2007Current
                  assets:Cash
                  and cash equivalents
              
              $
              -Trade
                  accounts receivable, net
              
              
              -Prepaid
                  insurance and other
              
              
              237,459Total
                  current assets
              
              
              237,459Land
              
              
              180,335Building
              
              
              323,665Drilling
                  rig and related equipment
              
              
              5,481,608Transportation,
                  office and other equipment
              
              
              500,852Construction
                  in progress: drilling rigs and related equipment
              
              
              3,388,473Total
                  fixed assets
              
              
              9,874,933Accumulated
                  depreciation
              
              
              (
                  205,858
              )Net
                  fixed assets
              
              
              9,669,075Other
                  assets
              
              
              119,460Total
                  assets
              
              $
              10,025,994**LIABILITIES
                  AND STOCKHOLDERS’ EQUITY**Current
                  liabilities:Notes
                  payable, net of unamortized discount
              
              $
              803,205Notes
                  payable to related parties
              
              
              570,078Current
                  portion of long-term debt
              
              
              624,902Accounts
                  payable, including cash overdraft of $28,868
              
              
              1,304,877Taxes
                  payable
              
              
              505,047Accrued
                  liabilities
              
              
              163,725Deferred
                  revenue
              
              
              823,338Advances
                  from stockholders
              
              
              17,940Total
                  current liabilities
              
              
              4,813,112Long
                  term debt, net of current maturities
              
              
              1,604,456Total
                  liabilities
              
              
              6,417,568Stockholders’
                  equity:Preferred
                  stock, $0.25 par value per share,
                12,500,000
                  shares authorized, 5,831 issued and outstanding
              
              
              1,458Common
                  stock, $0.002 par value per share,
                100,000,000
                  shares authorized, 44,864,121 outstanding
              
              
              89,718Additional
                  paid-in capital
              
              
              11,364,278Accumulated
                  deficit
              
              
              (
                  7,847,028
              )Total
                  stockholders’ equity
              
              
              3,608,426Total
                  liabilities and stockholders’ equity
              
              $
              10,025,994
 
 *The
        accompanying notes are an integral part of these consolidated financial
        statements.*
  2
  **FORSTER
        DRILLING CORPORATION**
 **CONSOLIDATED
        STATEMENTS OF OPERATIONS**
 **Three
        Months Ended February 28, 2007 and 2006**
 **(Unaudited)**
 
 Three
                  Months
                Ended
                February
                  28, 2007
              
              Three
                  Months Ended
                February
                  28, 2006(Predecessor)REVENUES:Contract
                  drilling revenues
              
              $
              1,430,880
              
              $
              -Sales
                  of rigs and component parts
              
              
              -
              
              
              266,000Total
                  revenues
              
              
              1,430,880
              
              
              266,000COST
                  OF SALES:Contract
                  drilling revenues
              
              
              782,962
              
              
              -Sale
                  of rigs and component parts
              
              
              -
              
              
              112,000Total
                  cost of sales
              
              
              782,962
              
              
              112,000GROSS
                  PROFIT
              
              
              647,918
              
              
              154,000Operating
                  expenses:Rig
                  refurbishment and related expenses
              
              
              51,883
              
              
              129,685Depreciation
                  and amortization expense
              
              
              133,736
              
              
              2,790Taxes
              
              
              7,709
              
              
              -Consulting
                  and professional fees
              
              
              434,757
              
              
              -Other
                  general and administrative expenses
              
              
              414,667
              
              
              226,777Total
                  operating expenses
              
              
              1,042,752
              
              
              359,252OPERATING
                  LOSS
              
              
              (394,834
              )
              
              (205,252
              )Other
                  expenses:Cost
                  of reverse merger
              
              
              -
              
              
              -Loss
                  on settlement of debt
              
              
              -
              
              
              -Other
                  Expenses
              
              
              2,100
              
              
              -Interest
                  expense
              
              
              441,309
              
              
              20,557NET
                  LOSS
              
              $
              (838,243
              )
              $
              (225,809
              )Basic
                  and diluted net loss per share
              
              $
              (0.02
              )
              $
              N/AWeighted
                  average common shares  outstanding
              
              
              40,448,101
              
              
              N/A
 
 
 
 *The
        accompanying notes are an integral part of these consolidated financial
        statements.*
 
 3
 
  
 **FORSTER
        DRILLING CORPORATION**
 **CONSOLIDATED
        STATEMENTS OF STOCKHOLDERS’ EQUITY**
 **November
        30, 2006 through February 28, 2007**
 **(Unaudited)**
 
 **Preferred
                  Stock**
              **Common
                  Stock**
              **Additional**
                **Paid-In****Shares**
              **Par**
              **Shares**
              **Par**
              **Capital**
              **Accumulated
                  Deficit**
              **Total****Balance
                  November 30, 2006**
              **5,831**
              **$1,458**
              **44,228,525**
              **$88,458**
              **$10,246,581**
              **$(7,008,785)**
              **$3,327,712****Shares
                  issued for services**
              **-**
              **-**
              **52,500**
              **105**
              **108,520**
              **-**
              **108,625****Shares
                  issued with new loans**
              **-**
              **-**
              **408,400**
              **817**
              **835,331**
              **-**
              **836,148****Shares
                  issued for converted debt**
              **-**
              **-**
              **168,865**
              **338**
              **165,525**
              **-**
              **165,863****Warrants**
              **-**
              **-**
              **-**
              **-**
              **8,321**
              **-**
              **8,321****Net
                  loss**
              **-**
              **-**
              **-**
              **-**
              **-**
              **(838,243)**
              **(838,243)****Balance
                  November 30, 2006**
              **5,831**
              **$1,458**
              **44,858,290**
              **$89,718**
              **$11,364,278**
              **$(7,847,028)**
              **$3,608,426**
 
 *The
        accompanying notes are an integral part of these consolidated financial
        statements.*
 
 4
  **FORSTER
        DRILLING CORPORATION**
 **CONSOLIDATED
        STATEMENTS OF CASH FLOWS**
 **Three
        Months Ended February 28, 2007 and 2006**
 **(Unaudited)**
 
 
 Three
                  Months Ended February 28, 2007
              
              Three
                  Months Ended February 28, 2006(Predecessor)**Cash
                  flows from operating activities:**Net
                  loss
              
              $
              (838,243
              )
              $
              (225,809
              )Adjustments
                  to reconcile net loss to net cash used in operating activities:Stock-based
                  compensation expense
              
              
              108,625
              
              
              36,000Amortization
                  of beneficial conversion feature
              
              
              153,939
              
              
              -Amortization
                  of debt discount
              
              
              210,916
              
              
              16,092Depreciation
              
              
              133,734
              
              
              2,790Interest
                  paid with common stock
              
              
              3,770
              
              
              -(Increase)
                  Decrease in accounts receivable
              
              
              200,000
              
              
              13,411Increase
                  in prepaids
              
              
              91,256
              
              
              -Increase
                  in other assets
              
              
              (30,612
              )
              
              (3,371
              )Increase
                  in accounts payable
              
              
              315,205
              
              
              (3,208
              )Increase
                  in deferred revenue
              
              
              9,120
              
              
              -Increase
                  in accrued expenses & other liabilities
              
              
              151,608
              
              
              51,179Settlement
                  of payable with issuance of stock
              
              
              7,092
              
              
              -Non
                  cash warrants
              
              
              8,321
              
              
              -Net
                  cash used in operating activities
              
              
              524,731
              
              
              (112,916
              )**Cash
                  flows from investing activities:**Purchases
                  of fixed assets
              
              
              (3,070,224
              )
              
              (1,237,084
              )Net
                  cash used in investing activities
              
              
              (3,070,224
              )
              
              (1,237,084
              )**Cash
                  flows from financing activities:**Proceeds
                  from sale of common stock
              
              
              -
              
              
              411,718Proceeds
                  from related party borrowings
              
              
              -
              
              
              52,782Proceeds
                  from third party borrowings
              
              
              3,114,750
              
              
              908,000Advances
                  from customers
              
              
              480,000
              
              
              -Payments
                  on related party borrowings
              
              
              (60,000
              )
              
              (12,500
              )Payments
                  on third party borrowings
              
              
              (1,013,536
              )
              
              (10,000
              )Net
                  cash provided by financing activities
              
              
              2,521,214
              
              
              1,350,000Increase
                  (decrease) in cash and cash equivalents
              
              
              (24,279
              )
              
              -Cash
                  and cash equivalents, beginning of period
              
              
              24,279
              
              
              -Cash
                  and cash equivalents, end of period
              
              $
              -
              
              $
              -**Supplemental
                  Cash Flow Disclosures:**Cash
                  paid for income taxes
              
              $
              -
              
              $
              -Cash
                  paid for interest
              
              
              28,561
              
              
              -**Non-cash
                  investing and financing activities:**Paid
                  debt with common stock
              
              
              805,500
              
              
              400,000Purchased
                  drilling rig parts with note payable to seller
              
              
              58,750
              
              
              400,000Discount
                  on notes payable
              
              
              527,800
              
              
              -Discount
                  of notes for beneficial conversion feature
              
              
              552,813
              
              
              10,218
 
 *The
        accompanying notes are an integral part of these consolidated financial
        statements.*
 
  5
  **FORSTER
        DRILLING CORPORATION**
 Notes
        to
        Consolidated Financial Statements
 February
        28, 2007
 
 
 **NOTE
        1 - BASIS OF PRESENTATION**
 
 The
        accompanying unaudited interim consolidated financial statements of Forster
        Drilling Corporation (“Forster”) 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 consolidated financial statements and notes
        thereto
        contained in the Form 10-KSB
        filed on March 15, 2007 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 2006 as reported in the Form 10-KSB have
        been
        omitted.
 
 
 **NOTE
        2 - GOING CONCERN**
  As
        shown
        in the accompanying consolidated financial statements, Forster incurred a
        net
        loss of $838,243 during the three months ended February 28, 2007 and had
        a
        working capital deficit of $(4,575,653) as of February 28, 2007. These
        conditions raise substantial doubt as to Forster's ability to continue as
        a
        going concern. Management is attempting to raise additional capital through
        anticipated debt and equity offerings. The financial statements do not include
        any adjustments that might be necessary if Forster is unable to continue
        as a
        going concern.
 
 
 **NOTE
        3 - NOTES PAYABLE AND NOTES PAYABLE TO RELATED PARTIES**
 
 During
        the three months ended February 28, 2007, Forster borrowed $896,000 from
        third
        parties issuing a total 358,400 shares of common stock as part of securing
        the
        notes. The notes are unsecured and bear an interest rate of 12% with $571,000
        maturing on November 1, 2007 and the remaining $325,000 maturing February
        1,
        2008. The total proceeds were allocated between the notes payable and the
        common
        stock resulting in $396,615 allocated to the common stock and $499,385 allocated
        to the notes payable resulting in a $396,615 discount to the notes payable
        to be
        amortized over the term of the notes as additional interest expense using
        the
        effective interest method.
 
 These
        notes are also convertible into Forster’s common stock at $2.00 per share at the
        holder’s option. Forster evaluated the application of SFAS 133 and EITF
        00-19 for the convertible notes. Based on the guidance in SFAS 133 and EITF
        00-19, Forster concluded the conversion option in the convertible notes were
        not
        required to be bifurcated or accounted for as derivatives. Forster then
        evaluated the application of EITF’s 98-5 and 00-27 for the convertible
        notes. Based on the guidance in EITF’s 98-5 and 00-27, Forster concluded the
        conversion option was a beneficial conversion feature with intrinsic value.
        After allocation of the proceeds between the notes payable and the common
        stock,
        the conversion option had intrinsic value of $382,390. This resulted in an
        additional discount to the notes payable to be amortized over the term of
        the
        notes as additional interest expense using the effective interest
        method.
 Proceeds
              
              $
              896,000Less:
                  discount for common stock
              
              
              (396,615
              )discount
                  for beneficial conversion feature
              
              
              (382,390
              )repayment
                  of principal
              
              
              (0
              )Add:
                  amortization of discount
              
              
              132,354Balance
                  at February 28, 2007
              
              
              249,349Less:
                  related party portion
              
              
              (
                  -
              )Third
                  party portion at February 28, 2007
              
              $
              249,349
  During
        September, October and November 2006, Forster borrowed $650,000 from third
        parties and $65,000 from related parties and issued a total of 266,500 shares
        of
        common stock to the parties. The third party notes bear interest of 12% and
        are
        unsecured. The related party notes are unsecured demand notes bearing an
        interest rate of 10%. The notes mature on November 1, 2007. The total proceeds
        were allocated between the notes payable and the common stock resulting in
        $327,168 allocated to the common stock and $387,832 allocated to the notes payable,
        resulting in a
        $327,168 discount to the notes payable to be amortized over the term of the
        notes as additional interest expense using the effective interest method.
 
 6
 These
        notes were also convertible into Forster’s common stock at $2.00 per share at
        the holder’s option. Forster evaluated the application of SFAS 133 and EITF
        00-19 for the convertible notes and concluded the conversion option was a
        beneficial conversion feature with intrinsic value. After allocation of the
        proceeds between the notes payable and the common stock, the conversion option
        had intrinsic value of $387,832. This resulted in an additional discount
        to the
        notes payable to be amortized over the term of the notes as additional interest
        expense using the effective interest method. As of February 28, 2007, $15,000
        of
        the related party notes had been repaid. The total amortization of this discount
        at February 28, 2007 was $281,038. In February 2007, the related party notes
        were extended to a maturity date of November 30, 2007.
 
 Proceeds
              
              $
              715,000Less:
                  discount for common stock
              
              
              (327,168
              )discount
                  for beneficial conversion feature
              
              
              (387,832
              )repayment
                  of principal
              
              
              (15,000
              )Add:
                  amortization of discount
              
              
              281,038Balance
                  at February 28, 2007
              
              $
              266,038Less:
                  related party portion
              
              
              (50,000
              )Third
                  party portion at February 28, 2007
              
              $
              216,038
 
 In
        February 2007, unsecured notes held by unrelated parties totaling $155,000
        were
        converted into Forster stock at $1.00 per share. The accrued but unpaid interest
        due on the notes was converted into Forster stock at $1.00 as well. The notes
        converted were part of original notes borrowed in July 2006. As of November
        30,
        2006, $25,000 had been repaid on the notes. During the first quarter ended
        February 28, 2007, additional repayments of $65,000 were paid leaving a balance
        due, after conversion, on these notes as of February 28, 2007 of $5,000.
  As
        part
        of the reverse merger transaction on June 20, 2006, Forster is required to
        pay
        the aggregate sum of $400,000 to Process’s two directors and executive officers
        in consideration for entering into an indemnification agreement with Forster
        and
        FTC.  One of the Process directors also serves as treasurer and director of
        Forster. No note agreement was entered into and the amounts owed do not bear
        interest. The notes were adjusted for a market rate of interest, which resulted
        in an additional discount of $47,382 to the notes payable to be amortized
        over
        the term of the notes as additional interest expense. The total amortization
        of
        this discount at February 28, 2007 was $29,910. As of February 28, 2007,
        a total
        of $75,000 of the $400,000 amount owed had been paid.
  On
        July 13, 2006, Forster borrowed $25,000 from a related party. The note was
        unsecured with an interest rate of 10%. The entire balance of this note was
        paid
        off in the first quarter of 2007.
 
 In
        December 2006, Forster entered into a loan agreement to borrow $1,700,000
        from
        Independence Bank to purchase various rig parts and to pay off existing bank
        debt in the amount of $763,750 plus accrued interest. The loan incurs interest
        at an annual rate of prime plus 3% and will mature on December 15, 2009.
        The
        loan is to be repaid in 36 monthly payments of approximately $55,990 and
        is
        secured by all drilling rig parts and work in process in connection with
        two
        Forster drilling rigs, all general intangibles, and an assignment of a customer
        drilling contract.
 
 On
        February 6, 2007, Forster borrowed $200,000 from an unrelated party. The
        note
        bears an interest rate of 10% and is unsecured. The note is guaranteed by
        an
        officer of the company. The note was originally due March 9, 2007 but has
        been
        extended until May 6, 2007 at which time all principal and accrued interest
        is
        due. As part of the loan, the note holder is to be provided 50,000 shares
        of
        Forster common stock resulting in a charge to the income statement of $57,143
        as
        interest expense.
 
 On
        February 16, 2007, Forster entered into a loan agreement to borrow $260,000
        from
        Sterling Bank to purchase an Ingersoll-Rand 4000 rig, drill pipe and a trailer.
        The note bears an interest rate of Wall Street prime plus 1% and will mature
        on
        February 16, 2010. The loan is collateralized by the rig and equipment
        purchased. The loan is to be repaid in 36 monthly payments of approximately
        $8,316 including interest.
 
 7
 As
        part
        of the purchase of the Ingersoll-Rand 4000 rig, Forster agreed to a note
        with
        the seller in the amount of $58,750. The note bears an interest rate of 6%
        per
        annum. The principal amount of the loan is due February 14, 2009 with interest
        payable annually. The loan can be converted at any time during the loan term
        into common shares of Forster stock at $2.00 per share.
 
  **NOTE
        4 -** **LONG TERM DEBT**
  Long
          term
          debt at February 28, 2007 consists of:
 Note
                    Payable to Independence Bank, collateralized by company
                    vehicle,
                  incurs
                    interest at an
                    annual rate of 8.5% and will mature on July 28,2009,
                  due
                    in 36 monthly payments of approximately $935.
                $
                    25,135Note
                    Payable to Daimler Chrysler, collateralized by company
                    vehicle,
                  incurs
                    interest at an
                    annual rate of 8.7% and will mature on June
                  6, 2011,
                    due in 60
                    monthly payments of approximately $697
                30,095Note
                    Payable to Sterling Bank, collateralized by drilling rig #41,
                  incurs
                    interest at an annual rate of Wall Street Prime plus one
                  percentage
                    point (currently 9.25%) and will mature on February 16, 2010
                  due
                    in 36 monthly payments of approximately $8,316 including
                    interest
                260,000Note
                    Payable to Ridgeway Petroleum Corporation, unsecured, incurs
                  an
                    annual interest rate of 6% and is due and payable on February
                    14,
                    2009
                58,750Note
                    Payable to Sterling Bank, secured by a first lien deed of trust
                    on
                  Odessa
                    real property, incurs interest at an annual rate of prime plus
                    1%
                  and
                    will mature on October 11, 2011, due in 59 monthly payments of
                  approximately
                    $1,333 plus interest and one balloon payment of $161,353
                  plus
                    any unpaid accrued interest upon maturity
                234,667Note
                    Payable to Independence Bank, collateralized by rigs and rig
                    parts
                  and
                    an assignment of any customer contract on the drilling rigs,
                  incurs
                    interest at a rate of Wall Street prime plus 3 percentage
                    points
                  (currently
                    11.25%) and will mature on December 15, 2009, due in
                  36
                    monthly payments of approximately $10,208 plus interest when
                    the
                  entire
                    remaining unpaid balance is then due
                1,620,711Total
                    notes payable
                2,229,358Less
                    current installments
                (624,902)Long-term
                    debt
                $
                    1,604,456
  
 Long-term
          debt maturing each subsequent twelve month period is as
          follows:
  February
                    28,
                    2008
                $
                    624,9022009
                755,7232010
                651,0852011
                23,1052012
                174,5432013
                    and thereafter
                -$2,229,358
 
   8
 **NOTE
        5 - STOCKHOLDERS EQUITY**
 
 At
        November 30, 2006, Forster had 5,831 shares of preferred stock and 44,228,527
        shares of common stock outstanding. At February 28, 2007, Forster had 5,831
        shares of preferred stock and 44,808,292 shares of common stock.
 
 For
        the
        three months ending February 28, 2007 Forster issued the following
        shares:
  ·
              52,500
                  shares resulting in a charge to the income statement of
                  $106,625·
              168,865
                  shares in payment of outstanding debt and related
                  interest
 
 ·
              Issued
                  convertible notes requiring 358,400 shares and beneficial conversion
                  features totaling $779,005 resulting in a charge to additional
                  paid in
                  capital
 
 
 
 **NOTE
        6-COMMITMENTS AND CONTINGENCIES**
  At
        February 28, 2007, Forster has either employment agreements or consulting
        agreements in place with 5 of its executive officers and certain key employees.
        Terms of these agreements range from one year to three years, provide for
        annual
        cash salaries per person up to $200,000, and include approximately 16,000
        shares
        of common stock awarded monthly to two of these
        employees/consultants.
  On
        February 1, 2006, Forster entered into a consulting agreement with a consulting
        firm who will provide best effort services to identify and attract potential
        investors for a cash fee of $4,000 per month. This agreement continues on
        a
        month-to-month basis until terminated by either party.
 
 On
        May 1,
        2006 Forster entered into an exclusive agreement with a securities firm in
        connection with a best efforts placement of one year convertible notes.  As
        part of this arrangement, the securities firm is entitled to receive five
        year
        warrants to purchase Forster shares at $2.00/share.  The warrants available
        under this agreement equal 7% of the gross amount of the notes placed.  At
        November 30, 2006 the securities firm had placed $425,000 of the convertible
        notes and, therefore, were issued warrants for 29,750 share of Forster stock.
        This agreement continues on a month-to-month basis until terminated by either
        party **.**
 
 Forster and
        certain of its officers are currently defendants in a civil lawsuit
        alleging failure of defendants to pay compensation to plaintiffs for their
        work
        on behalf of the Company.  Plaintiffs seek unspecified actual and punitive
        damages.  The parties have exchanged written discovery information and
        depositions, and arbitration is being evaluated.  Management has decided to
        vigorously defend this matter.  Forster does not believe, based on current
        knowledge, that the foregoing legal proceedings are likely to have a material
        adverse effect on its consolidated financial position, results of operations
        or
        cash flows.
 
 On
        December 1, 2006, Forster entered into a consulting agreement with a consulting
        firm to provide marketing and other business related services. The initial
        term
        is for three months and the consultant’s fee for the initial term is $2,500 cash
        and 10,000 shares of common stock each month. The contract has not been
        terminated as of 2/28/07 and will be effective under the terms of the agreement
        for an additional nine months. The fee for the additional nine months is
        $2,500
        cash and 10,000 shares of common stock each month.
 
  **NOTE**  **7** **- CONCENTRATIONS**
   Forster
        provides two primary services in the oil and gas industry: 1)
        contract land drilling
        services and 2) refurbishment and sales of drilling rigs and rig parts.
        Forster’s refurbishment operations are located in Odessa, Texas. As of February
        28, 2007, Forster provided contract drilling services to only one customer,
        with
        all activity taking place in New Mexico.
        As of February, 100% of contract drilling revenues and total
        revenues were derived from one customer. In February 2007, Forster signed
        a
        contract with another customer for contract drilling services in Arizona.
        Forster’s sales of drilling rigs and rig parts are derived from only a handful
        of customers and few transactions and no sales occurred in the quarter ending
        February 28, 2007.
   Forster
        operates in an industry experiencing significant demand and growth. Forster’s
        refurbishment operations are dependent upon the ability to acquire drilling
        rig
        parts and the necessary personnel. As of February 28, 2007, certain drilling
        rig
        parts and industry labor resources were high in demand and somewhat scarce.
        In
        addition, there have been escalations in the prices of certain drilling rig
        parts and industry labor pay rates. As of February 28, 2007, Forster had
        limited
        working capital which may create difficulties in obtaining the necessary
        drilling rig parts and labor to sustain its refurbishment
        operations.
  
 9
 **NOTE
        8 - SUBSEQUENT EVENTS**
 
 On
        April
        9, 2007, Forster entered into a loan agreement with Independence Bank in
        the
        amount of $230,000. The loan is secured by two CAT engines purchased for
        Rig #12
        with the loan proceeds. The loan bears a variable interest rate at Wall Street
        prime plus three percentage points (an initial rate of 11.25%) and is an
        installment loan due and payable over a period ending December 9,
        2009.
  Subsequent
        to February 28, 2007, as of the date of this report, Forster borrowed $700,000
        from third parties and must issue a total 280,000 shares of common stock
        to the
        note holders. The notes bear interest of 12%, are unsecured, and mature on
        February 1, 2008 and have a conversion feature at $2.00 per share.
  
 **ITEM
        2.**  **MANAGEMENT’S
        DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
        OPERATIONS.**
 
 **Forward
        Looking Statements**
 
 This
        Quarterly Report contains forward-looking statements about the business,
        financial condition and prospects of Forster Drilling Corporation ("we" or
        the
        "Company"), that reflect management's assumptions and beliefs based on
        information currently available. Additionally, from time to time, the Company
        or
        its representatives have made or may make forward-looking statements, orally
        or
        in writing. Such forward-looking statements may be included in, but not limited
        to, press releases, oral statements made with the approval of an authorized
        executive officer, or in various filings made by the Company with the Securities
        and Exchange Commission. Words or phrases such as "will likely result," "are
        expected to," "will continue," "is anticipated," "estimate," "project or
        projected," or similar expressions are intended to identify "forward-looking
        statements." Such statements are qualified in their entirety by reference
        to and
        are accompanied by the below discussion of certain important factors that
        could
        cause actual results to differ materially from such forward-looking
        statements.
 
 **Overview**
  We
        are in
        the business of refurbishing land drilling rigs and deploying them for use
        by
        oil and natural gas producers. Currently, we provide contract land drilling
        services to an oil and gas company in New Mexico. We are building our fleet
        of
        land rigs, and have (i) one rig completely refurbished and deployed to provide
        drillings services for Chesapeake Energy (“Chesapeake”) pursuant to a daywork
        contract, (ii) a second rig recently acquired and ready to be deployed in
        April
        2007 to provide drilling services for Ridgeway Arizona Oil Corp. (“Ridgeway”)
        pursuant to a daywork contract, (iii) a third rig in which we are in the
        process
        of purchasing component parts/refurbishing/assembling for anticipated deployment
        in a few months, and (iv) miscellaneous component parts for future rigs we
        plan
        to acquire additional components for, refurbish, assemble and deploy. In
        addition to providing drilling services, we intend to provide the crews and
        equipment used in the operation of these drilling rigs. We believe that there
        is
        a scarcity of land drilling rigs currently available for use, and that our
        ability to refurbish drilling rigs will allow us to meet market demand before
        new drilling rigs are built and enter the market.
 
 Our
        business strategy is focused on the re-manufacturing and deployment of drilling
        rigs. Re-manufacturing includes the refurbishment and renovating of used
        drilling parts and the assembly of the parts to complete a drilling rig.
        We are
        marketing our drilling services to oil and natural gas exploration and
        production companies operating in Arizona, New Mexico and Texas. We believe
        that
        there exists a current demand for land drilling rigs. Our goal is to provide
        our
        refurbished drilling rigs to the market before newly manufactured rigs reach
        the
        market. We believe that manufacturing capacity for drilling rigs is currently
        low which has led to a current backlog of newly manufactured rigs. We also
        believe the high demand for and the low supply of drilling rigs presents
        a
        business opportunity for those companies who can move drilling rigs quickly
        into
        the market.
 
 **Recent
        Transactions**
 
 In
        June
        2006, we entered the oil and gas industry through the acquisition of all
        of the
        capital stock of  Forster
        Tool & Supply, Inc., a Nevada corporation (“Forster Tool”), in exchange for
        40,055,463 shares of our stock, which represented approximately 95% of our
        issued and outstanding shares of common stock at the time of the closing
        (“the
        Reorganization”). In connection with the Reorganization, we changed our name to
        Forster Drilling Corporation. Forster Tool was organized in March 2005 and
        has
        operated in the oil and gas industry ,
        primarily remanufacturing and refurbishing drilling rigs and drilling rig
        parts,
        since its inception. As a
        result of the Reorganization, Forster Tool became our wholly owned subsidiary
        and our financial statements became those of Forster Tool. In June 2006,
        we
        organized two additional wholly-owned subsidiaries: (i) Forster Drilling
        Inc., a
        Texas corporation, to conduct our U.S. land based contract drilling activities
        and (ii) Forster Exploration & Production, Inc., a Nevada corporation, to
        conduct our U.S. based exploration and production activities. Any and all
        reference to “Forster”, the “Company,” “we,” “our” or “us” means Forster
        Drilling Corporation collectively with each of the three
        subsidiaries.
 
 10
 **Results
        of Operations**
 
 Revenues
        increased from $266,000 to $1,430,880 for the three months ended February
        28,
        2007, as a result of contract drilling operations.
 
 Total
        operating expenses increased from $359,252 to $1,824,489 for the three months
        ended February 28, 2007, reflecting increased business operations in the
        field
        and in our corporate office. Rig refurbishment and related expenses decreased
        from $129,685 to $51,883. Consulting and professional fees increased from
        $0 to
        $434,757. Other general and administrative expenses increased from $226,777
        to
        $603,996, as a result of contract drilling operations.
 
 Net
        loss
        increased from $225,809 to $838,243.
 
 **Liquidity**
 
 *Historical
        Financial Data*
 
 At
        February 28, 2007, we had total assets of $10,025,994, total liabilities
        of
        $6,417,568, and a working capital deficit of $4,040,266. We believe that
        we will
        need to raise a minimum of $4,850,000 million to fund our working capital
        needs
        through fiscal 2007 to retire approximately $4.3 million of indebtedness,
        fund
        the completion of Rig 12 anticipated to cost $550,000, and to fund additional
        working capital needs; assuming that we have two drilling rigs deployed in
        the
        field and generating revenue pursuant to the current dayrate drilling contracts
        from April through November 2007. We currently have sufficient cash on hand
        to
        fund operations through mid May 2007.
 
 *Credit
        Facilities and Outstanding Debt*
 
 As
        of
        February 28, 2007, we had approximately $2,170,608 in outstanding bank debt.
        The
        debt is represented by the following: (i) a note with a current balance of
        $30,095, which bears an interest rate of 8.7% compounded monthly, requires
        a
        monthly principal and interest payment of approximately $700 and matures
        in June
        2011; (ii) a note with a current balance of $25,135, which bears an interest
        rate of 8.5%, requires monthly principal and interest payments of approximately
        $935 and matures in July 2009; (iii) a note with a current balance of $234,667,
        which bears an interest rate of prime plus 1%, requires monthly principal
        payments of approximately $1,333 plus interest with a $161,353 final balloon
        payment due in October 2011; (iv) a bank loan with a current balance of
        $1,620,711, which bears an initial variable interest rate of prime plus 3%
        and
        requires us to make monthly principal and interest payments of approximately
        $55,990, matures in December 2009 and is secured by one of our drilling rigs;
        (v) a $260,000 note from a financial institution, which note bears an annual
        interest rate of Wall Street Prime plus one  percentage point (currently 9.25%), matures in February 2010, requires monthly
        principal and interest payments of approximately $8,316, and is secured by
        one
        of our drilling rigs.
 
 In
        February 2007, Forster entered into an agreement to purchase a drilling rig
        from
        Ridgeway Arizona Oil Corporation for a purchase price of $358,750, of which
        $260,000 has been paid. Forster entered into an agreement to pay Ridgeway
        the
        remaining $58,750 balance in cash on February 14, 2009.
 
 As
        of February
        28, 2007, Forster had a total of $1,546,000 in subordinated convertible debt,
        and issued 618,400 shares of common stock as additional consideration. These
        notes obligate us to make quarterly interest payments in cash or stock at
        the
        discretion of the investor, bear a 12% interest rate per annum and have a
        conversion price of $2.00 per share. Forster has granted certain piggy back
        registration rights in connection with these notes. These notes mature twelve
        months from the date of the borrowing.
 
 *Need
        for Additional Capital*
 
 We
        will
        need to raise additional capital to meet our general and administrative needs
        for the next twelve months. We anticipate that we will need an additional
        $550,000 in order to complete the refurbishment of Rig No. 12 and a significant
        additional amount in order to complete the refurbishment of additional rigs.
        We
        will use our best efforts to obtain equity or debt financing to fund operations.
        The Company has no firm commitments or arrangements for external financing
        to
        fund operations. We provide no assurance that we will be successful in any
        future financing effort to obtain the necessary working capital to support
        our
        operations. Our viability is contingent upon our ability to receive external
        financing. Failure to obtain sufficient working capital may result in management
        resorting to the sale of assets or otherwise curtailing operations.
 
 11
 **Contractual
        Commitments**
 
 A
        tabular
        disclosure of our contractual obligations at February 28, 2007, is as
        follows:
  Payments
                  due by periodLess
                  than 1 year
              1
                  -
                  3 Years
              3
                  -
                  5 Years
              More
                  than 5 Years
 
 Credit
                  Facilities..........................
              $3,096,270
              $1,406,808
              $197,648
              -
 
 Operating
                  Leases........................
              (1)
              -
              -
              -
 
 Employment
                  and consulting contracts(2)......................
              $
                  627,000
              $
                  536,000
              -
              -
 
 Total................................
              $3,723,270
              $1,942,808
              $197,648
              -
 
 
 (1) Substantially all of our operating leases are on a month-to-month basis and,
        accordingly, the expenses are not included in this table.
 
 (2) Reflects
        cash obligations.
 
 **Off-Balance
        Sheet Arrangements**
 
 As
        of
        February 28, 2007, the Company had no off-balance sheet
        arrangements.
 
 **Critical
        Accounting Policies**
 
 *Use
        of Estimates in Financial Statement Preparation.*
 
 **** The
        preparation of financial statements in conformity with accounting principles
        generally accepted in the United States of America requires management to
        make
        estimates and assumptions that affect the reported amounts of assets and
        liabilities and disclosure of contingent assets and liabilities at the date
        of
        the consolidated financial statements and the reported amounts of revenues
        and
        expenses during the reporting period. Actual results could differ from those
        estimates.
 
 *Property
        and Equipment.*
  Property
        and equipment are stated on the basis of historical cost less accumulated
        depreciation. Depreciation is recognized using the straight-line method over
        the
        estimated useful lives of the assets. Major renewals and improvements are
        capitalized, while minor replacements, maintenance and repairs are expensed
        currently.
 
 12
 *Revenue
        Recognition*
 
 Forster’s
        revenue is derived from the provision of contract drilling services and sales
        of
        drilling rig and rig parts. Forster earns contract drilling revenue currently
        under the day-work contracts. Revenues on day-work contracts are recognized
        based on the days completed at the day-rate each contract specifies.
        Mobilization revenues and costs to arrive at the initial well site for day-work
        contracts are deferred and recognized over the term of the contract. Revenues
        on
        sales of drilling rigs and rig parts are recognized upon delivery of the
        drilling rigs and rig parts.
 
 *Basic
        and Diluted Net Loss Per Common Share.*
 
 The
        basic
        net loss per common share is computed by dividing the net loss by the weighted
        average number of common shares outstanding. Diluted net loss per common
        share
        is computed by dividing the net loss adjusted on an "as if converted" basis,
        by
        the weighted average number of common shares outstanding plus potential dilutive
        securities. Basic and diluted loss per share is the same due to potential
        dilutive securities having an anti-dilutive effect and were not included
        in the
        calculation of diluted net loss per common share.
 
 *Share-Based
        Payments.*
 
 Forster
        adopted the provisions of Statement of Financial Accounting Standards No.
        123R,
“Share-Based Payment” which establishes accounting for transactions in which an
        entity exchanges its equity instruments for goods and services. We utilize
        the
        Black-Scholes option pricing model to estimate the fair value of stock based
        compensation at the date of grant, which requires the input of highly subjective
        assumptions, including expected volatility and expected life. These assumptions
        are subjective and generally require significant analysis and judgment to
        develop. When estimating fair value, some of the assumptions will be based
        on,
        or determined from, external data and other assumptions may be derived from
        our
        historical experience with stock-based payment arrangements. The appropriate
        weight to place on historical experience is a matter of judgment, based on
        relevant facts and circumstances.
 
 **Newly
        Issued Accounting Pronouncements.**
 
 **** In
        February 2006, the FASB issued SFAS No. 155, “Accounting for Certain Hybrid
        Financial Instruments,” which is intended to simplify the accounting and improve
        the financial reporting of certain hybrid financial instruments (i.e.,
        derivatives embedded in other financial instruments). The statement amends
        SFAS
        No. 133, “Accounting for Derivative Instruments and Hedging Activities,” and
        SFAS No. 140, “Accounting for Transfers and Servicing of Financial Assets and
        Extinguishments of Liabilities—a replacement of FASB Statement No. 125.” SFAS
        No. 155 is effective for all financial instruments issued or acquired after
        the
        beginning of an entity's first fiscal year that begins after September 15,
        2006.
        Forster is currently evaluating the impact SFAS No. 155 will have on its
        financial statements, if any.
 
 Forster
        does not expect the adoption of any other recently issued accounting
        pronouncements to have a significant impact on its financial position, results
        of operations or cash flow .
 
 **ITEM
        3.**  **CONTROLS
        AND PROCEDURES.**
 
 **Evaluation
        of Disclosure Controls and Procedures**
  We
        maintain
        disclosure controls and procedures that are designed to ensure that information
        required to be disclosed by us in the reports that we file or submit to the
        Securities and Exchange Commission under the Securities Exchange Act of 1934,
        as
        amended (“Exchange Act”), is recorded, processed, summarized, and reported
        within the time periods specified by the Securities and Exchange Commission’s
        rules and forms, and that information is accumulated and communicated to
        our
        management, including our principal executive and principal financial officers,
        as appropriate to allow timely decisions regarding required disclosure.
 
 As
        required by Rule 13a-15(b) under the Exchange Act, we conducted an evaluation,
        under the supervision of our Chief Executive Officer and the Chief Financial
        Officer, of the effectiveness of our disclosure controls and procedures as
        of
        February 28, 2007. The Company’s Chief Executive Officer and Chief Financial
        Officer have identified deficiencies that existed in the design or operation
        of
        our internal control over financial reporting that they considered to be
        “material weaknesses.” The Public Company Accounting Oversight Board has defined
        a material weakness as a “significant deficiency or combination of significant
        deficiencies that results in more than a remote likelihood that a material
        misstatement of the annual or interim financial statements will not be prevented
        or detected.”
  13
 The
        deficiencies in our internal control relate to: (i) equity transactions,
        specifically, the failure to properly record issuances of stock, and the
        failure
        to properly itemize equity transactions in the statement of stockholders’
equity; (ii) debt transactions, specifically, the failure to properly
        record beneficial conversion features and inducements;  (iii) general
        controls relating to acquisition of rig component parts, specifically
        establishing a budget for the purchase of component parts and labor, cost
        comparison relating to the acquisition of component parts, identification
        and
        confirmation of the receipt of component parts, and final approval of payment
        by
        appropriate personnel; and (iv) general controls relating to the approval
        and
        reimbursement process associated with travel expenses of our employees. The
        unrecorded transactions and disclosure deficiencies were detected in the
        review
        process and have been appropriately recorded and disclosed in Form 10-KSB
        and in
        this Form 10-QSB. We are in the process of improving our internal controls
        over
        accounting for equity and debt transactions and related disclosures and our
        general budgeting and process controls in an effort to remediate these
        deficiencies through improved supervision and training of our accounting
        staff.
        These deficiencies were disclosed to our audit committee at year end. Additional
        effort is needed to fully remedy these deficiencies and we are continuing
        our
        efforts to improve and strengthen our control processes and procedures.
        Forster’s management, audit committee, and directors will implement policies and
        procedures to ensure that our controls and procedures are adequate and
        effective, and our Chief Financial Officer has been designated the responsible
        party to coordinate the implementation and supervision process to address
        and
        remedy these deficiencies.
 
 **Changes
        in Internal Control Over Financial Reporting**
 
 There
        has
        been no significant change in Forster Drilling’s internal control over financial
        reporting that was identified in connection with our evaluation that occurred
        during the quarter ended February 28, 2007, that has materially affected,
        or is
        reasonably likely to materially affect, Forster Drilling’s internal control over
        financial reporting.
 
 **PART
        II**
 
 **ITEM
        1.**  **LEGAL
        PROCEEDINGS.**
 
 In
        June
        2006, the Company and certain of our current officers and directors became
        defendants in a civil lawsuit filed in the Superior Court of the State of
        California for the County of Los Angeles. This is a contract suit based on
        the
        alleged failure of Defendants to pay salary and bonus shares to plaintiffs
        for
        their work in identifying and arranging introductions to prospective investors
        and/or strategic partners. Plaintiffs allege that, from June 2005 forward,
        they
        actively worked to identify and arrange introductions between potential
        investors and the Company and therefore earned their salary and bonus shares.
        However, none of the plaintiffs were licensed broker/dealers. Plaintiffs’ causes
        of action include claims for breach of contract, breach of implied covenant,
        fraud, negligent misrepresentation, wrongful termination, unfair business
        practices and unjust enrichment. The plaintiffs also seek injunctive relief
        from
        the Company allegedly profiting from its fraud on plaintiffs, disgorgement
        of
        the Company’s proceeds and profits, non-economic damages, punitive damages, and
        attorney fees. The Company believes these allegations are without merit and
        intends to defend this action vigorously.
 
 **ITEM
        2.**  **UNREGISTERED
        SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.**
 
 Set
        forth
        below is certain information concerning issuances of common stock that were
        not
        registered under the Securities Act of 1933 (“Securities Act”) that occurred,
        subsequent to the first quarter ended February 28, 2007.
  Subsequent
        to February 28, 2007, Forster borrowed $700,000 from third parties and must
        issue a total 280,000 shares of common stock to the note holders. The notes
        bear
        interest of 12%, are unsecured, and mature on February 1, 2008 and have a
        conversion feature at $2.00 per share.
   The
        issuances referenced above were consummated pursuant to Section 4(2) of the
        Securities Act and the rules and regulations promulgated thereunder on the
        basis
        that such transactions did not involve a public offering and the offerees
        were
        sophisticated, accredited investors with access to the kind of information
        that
        registration would provide. The recipients of these securities represented
        their
        intention to acquire the securities for investment only and not with a view
        to
        or for sale in connection with any distribution thereof and appropriate legends
        were affixed to the share certificates and other instruments issued in such
        transactions. No sales commissions were paid.
  
 14
 **ITEM
        3.**  **DEFAULTS
        UPON SENIOR SECURITIES.**
 
 None.
 
 **ITEM
        4.**  **SUBMISSION
        OF MATTERS TO A VOTE OF SECURITY HOLDERS.**
 
 None.
 
 **ITEM
        5.**  **OTHER
        INFORMATION.**
 
 None.
 
 **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
 
 
 
 
 
  15
  **SIGNATURES**
 
 In
        accordance with the requirements of the Exchange Act, the Registrant has
        duly
        caused this report to be signed on its behalf by the undersigned, thereunto
        duly
        authorized
   **FORSTER
        DRILLING
        CORPORATION**
 
 By: /s/ F.
        E.
        FORSTER, III
 F.
        E. Forster, III, Chief Executive
        Officer
 
 Date:
        April 23, 2007
 
 
 Signature     Title      Date
 
 
 /s/ F.
        E.
        FORSTER, III    Chairman
        of the Board and    April
        23,
        2007
 F.
        E.
        Forster, III    Chief
        Executive Officer
 
 
 /s/ BUD
        NAJVAR    Chief
        Financial Officer    April
        23,
        2007
 
 
 
 
 
  16
  **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