U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



FORM 10-Q



(Mark One)



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



For the Quarterly Period ended July 31, 2008



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



For the transition period from ___________ to ________



Commission File Number 000-51427



BLACKSANDS PETROLEUM, INC.

(Exact name of registrant as specified in its charter)



|Nevada
(State of incorporation) | 20-1740044
(IRS Employer Identification No.)
|------------------------------- | --------------------------------------------

Suite 2700, 401 Bay Street

Toronto, Ontario Canada M5H
        2Y4

(Address of principal executive offices)



(416) 359-7805

(Registrants telephone number including area code)



Indicate by check mark  whether the  registrant:    (1)  has filed all
reports  required to be filed by Section 13 or 15(d) of the Securities  Exchange
Act of 1934 during the preceding 12 months (or for such shorter  period that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days.   Yes x      No  o



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

|Large Accelerated Filer o | Accelerated Filer o | Non-Accelerated Filer x | Smaller reporting company o
|------------------------- | ------------------- | ----------------------- | ---------------------------

Indicate by check mark whether the  registrant is a shell company (as defined in
Rule 12b-2 of the  Exchange  Act).    Yeso      No   x



There were 44,854,700 shares of Common Stock outstanding as of September 14, 2008.







---



INDEX

|        | Page                 
|------- | ---------------------
|PART I. | FINANCIAL INFORMATION



| | Item 1. | Financial Statements | 1
| | ------- | -------------------- | -



| | Consolidated Balance Sheets

                    as of July 31, 2008 (unaudited)

                    and October 31, 2007 | 1
| | -------------------------------------------------------------------------------------------------------------------------- | -



| | Consolidated Statements of Operations

                    (unaudited) for the nine months ended July 31, 2008 | 2
| | -------------------------------------------------------------------------------------------------------------- | -



| | Consolidated Statement of Changes in Stockholders’
                    Equity

                    (unaudited) for the nine months ended July 31, 2008 | 3
| | ------------------------------------------------------------------------------------------------------------------------------------------------------ | -



| | Consolidated Statements of Cash Flows

                    (unaudited) for the nine months ended July 31, 2008 | 4
| | -------------------------------------------------------------------------------------------------------------- | -



| | Notes to Consolidated Financial Statements
                    (unaudited) | 5
| | -------------------------------------------------------------------------- | -



| | Item 2.               | Management’s
                Discussion and Analysis of Financial Condition and | 
| | --------------------- | ------------------------------------------------------------------------------- | 
| | Results of Operations | 16                                                                             



| | Item 3. | Quantitative and Qualitative Disclosures About Market
                    Risk | 21
| | ------- | ------------------------------------------------------------------------------ | --



| | Item 4. | Controls and Procedures | 21
| | ------- | ----------------------- | --



|PART II | OTHER INFORMATION
|------- | -----------------



| | Item 1. | Legal Proceedings. | 22
| | ------- | ------------------ | --



| | Item 1A. | Risk Factors. | 22
| | -------- | ------------- | --



| | Item 2. | Unregistered Sales of Equity Securities and Use of
                    Proceeds | 22
| | ------- | ------------------------------------------------------------------------------- | --



| | Item 3. | Defaults Upon Senior Securities | 22
| | ------- | ------------------------------- | --



| | Item 4. | Submission of Matters to a Vote of Security Holders | 22
| | ------- | --------------------------------------------------- | --



| | Item 5. | Other Information | 23
| | ------- | ----------------- | --



| | Item 6. | Exhibits | 23
| | ------- | -------- | --



|SIGNATURES | 24
|---------- | --



i

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PART I:  FINANCIAL INFORMATION



Item 1.   Financial Statements.



The interim financial statements included herein are unaudited but reflect, in managements opinion, all adjustments, consisting only of normal recurring adjustments, that are necessary for a fair presentation of our financial position and the results of our operations for the interim periods presented. Because of the nature of our business, the results of operations for the quarterly period ended July 31, 2008 are not necessarily indicative of the results that may be expected for the full fiscal year.





Blacksands Petroleum, Inc.

(An Exploration Stage Enterprise)

Consolidated Balance Sheets



|                                                                      |  | (Unaudited)   |            | (Audited)        |  
|--------------------------------------------------------------------- |  | ------------- | ---------- | ---------------- | -
|                                                                      |  | As of         |            | As of            |  
|                                                                      |  | July 31, 2008 |            | October 31, 2007 |  
|                                                                      |  |               |            |                  |  
|A S S E T S                                                           |  |               |            |                  |  
|                                                                      |  |               |            |                  |  
|Current Assets                                                        |  |               |            |                  |  
|Cash and cash equivalents held at bank                                |  | $             | 4,338,989  |                  | $
|Cash held in attorneys trust account                                 |  |               | -          |                  |  
|Accounts receivable                                                   |  |               | 6,311      |                  |  
|Prepaid expenses and deposits                                         |  |               | 22,442     |                  |  
|Total Current Assets                                                  |  |               | 4,367,742  |                  |  
|                                                                      |  |               |            |                  |  
|Property and Equipment  net (note 2)                                 |  |               | -          |                  |  
|Oil and Gas property costs (note 3)                                   |  |               | 6,363,644  |                  |  
|Total Capital Assets                                                  |  |               | 6,363,644  |                  |  
|                                                                      |  |               |            |                  |  
|Total Assets                                                          |  | $             | 10,731,386 |                  | $
|                                                                      |  |               |            |                  |  
|L I A B I L I T I E S   A N D   S T O C K H O L D E R S  E Q U I T Y |  |               |            |                  |  
|                                                                      |  |               |            |                  |  
|Current Liabilities                                                   |  |               |            |                  |  
|Accounts payable and accrued liabilities                              |  | $             | 110,107    |                  | $
|Accounts payable to related parties (note 6)                          |  |               | 173,249    |                  |  
|Total Current Liabilities                                             |  |               | 283,356    |                  |  
|                                                                      |  |               |            |                  |  
|Minority Interest                                                     |  |               | 1,221,503  |                  |  
|Total Liabilities                                                     |  |               | 1,504,859  |                  |  
|                                                                      |  |               |            |                  |  
|Stockholders Equity                                                  |  |               |            |                  |  
|Preferred Stock (note 4)                                              |  |               | -          |                  |  
|Common Stock (note 4)                                                 |  |               | 74,855     |                  |  
|Additional Paid-in-Capital                                            |  |               | 11,886,465 |                  |  
|Treasury stock, at cost                                               |  |               | (50,000    | )                |  
|Accumulated Comprehensive Loss                                        |  |               | 823        |                  |  
|Deficit accumulated during the exploration stage                      |  |               | (2,685,616 | )                |  
|Total Stockholders Equity                                            |  |               | 9,226,527  |                  |  
|                                                                      |  |               |            |                  |  
|Total Liabilities and Stockholders Equity                            |  | $             | 10,731,386 |                  | $
|                                                                      |  |               |            |                  |  

See accompanying notes to Consolidated Financial Statements.





1

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Blacksands Petroleum, Inc.

(An Exploration Stage Enterprise)

Consolidated Statements of Operations



|                                                                        |  | UnauditedFor the Nine MonthsEndedJuly 31, 2008 |            | UnauditedFor the Nine MonthsEndedJuly 31, 2007 |   | UnauditedFor the ThreeMonths EndedJuly 31, 2008 |   | UnauditedFor the ThreeMonths EndedJuly 31, 2007 |            | UnauditedFrom Inception(October 12, 2004)throughJuly 31, 2008 |  
|----------------------------------------------------------------------- |  | ---------------------------------------------- | ---------- | ---------------------------------------------- | - | ----------------------------------------------- | - | ----------------------------------------------- | ---------- | ------------------------------------------------------------- | -
|                                                                       
|                                                                       
|                                                                       
|                                                                       
|                                                                        |  |                                                |            |                                                |   |                                                 |   |                                                 |            |                                                               |  
|Revenues:                                                               |  |                                                |            |                                                |   |                                                 |   |                                                 |            |                                                               |  
|Revenue                                                                 |  | $                                              | -          |                                                | $ | -                                               |   | $                                               | -          |                                                               | $
|Total Revenues                                                          |  |                                                | -          |                                                |   | -                                               |   |                                                 | -          |                                                               |  
|                                                                        |  |                                                |            |                                                |   |                                                 |   |                                                 |            |                                                               |  
|Expenses:                                                               |  |                                                |            |                                                |   |                                                 |   |                                                 |            |                                                               |  
|Professional Fees                                                       |  |                                                | 352,607    |                                                |   | 421,363                                         |   |                                                 | 91,056     |                                                               |  
|Loss on sale of fixed assets                                            |  |                                                | 12,588     |                                                |   | -                                               |   |                                                 | -          |                                                               |  
|Management and director fees                                            |  |                                                | 251,752    |                                                |   | 40,083                                          |   |                                                 | 78,855     |                                                               |  
|Depreciation                                                            |  |                                                | 3,076      |                                                |   | 6,065                                           |   |                                                 | -          |                                                               |  
|Office and Administration                                               |  |                                                | 135,281    |                                                |   | 95,526                                          |   |                                                 | 34,691     |                                                               |  
|Exploration expenses (note 12)                                          |  |                                                | 67,454     |                                                |   | 1,129,401                                       |   |                                                 | -          |                                                               |  
|Total Expenses                                                          |  |                                                | 822,758    |                                                |   | 1,692,438                                       |   |                                                 | 204,602    |                                                               |  
|Net loss from Operations                                                |  |                                                | (822,758   | )                                              |   | (1,692,438                                      | ) |                                                 | (204,602   | )                                                             |  
|                                                                        |  |                                                |            |                                                |   |                                                 |   |                                                 |            |                                                               |  
|Other Income and Expenses:                                              |  |                                                |            |                                                |   |                                                 |   |                                                 |            |                                                               |  
|Interest Income                                                         |  |                                                | 117,539    |                                                |   | 351,450                                         |   |                                                 | 32,521     |                                                               |  
|Gain (loss) from Currency Transaction                                   |  |                                                | 1,730      |                                                |   | (2,717                                          | ) |                                                 | (521       | )                                                             |  
|Net Loss before Taxes                                                   |  |                                                | (703,489   | )                                              |   | (1,343,705                                      | ) |                                                 | (172,602   | )                                                             |  
|                                                                        |  |                                                |            |                                                |   |                                                 |   |                                                 |            |                                                               |  
|Provision for Income Taxes:                                             |  |                                                |            |                                                |   |                                                 |   |                                                 |            |                                                               |  
|Income Tax Benefit                                                      |  |                                                | -          |                                                |   | -                                               |   |                                                 | -          |                                                               |  
|Net Loss before minority interest                                       |  |                                                | (703,489   | )                                              |   | (1,343,705                                      | ) |                                                 | (172,602   | )                                                             |  
|Minority Interest                                                       |  |                                                | 83,616     |                                                |   | -                                               |   |                                                 | 24,094     |                                                               |  
|                                                                        |  |                                                |            |                                                |   |                                                 |   |                                                 |            |                                                               |  
|Net Loss for the period                                                 |  | $                                              | (619,873   | )                                              | $ | (1,343,705                                      | ) | $                                               | (148,508   | )                                                             | $
|                                                                        |  |                                                |            |                                                |   |                                                 |   |                                                 |            |                                                               |  
|Other Comprehensive Income (Loss)                                       |  | $                                              | (319,139   | )                                              | $ | (7,719                                          | ) | $                                               | (113,425   | )                                                             | $
|                                                                        |  |                                                |            |                                                |   |                                                 |   |                                                 |            |                                                               |  
|Total Comprehensive Loss                                                |  | $                                              | (939,012   | )                                              | $ | (1,351,424                                      | ) | $                                               | (261,933   | )                                                             | $
|                                                                        |  |                                                |            |                                                |   |                                                 |   |                                                 |            |                                                               |  
|Basic and Diluted Loss Per Common Share                                 |  | $                                              | (0.01      | )                                              | $ | (0.03                                           | ) | $                                               | (0.00      | )                                                             | $
|Weighted Average number of Common Shares used in per share calculations |  |                                                | 44,854,700 |                                                |   | 45,514,041                                      |   |                                                 | 44,854,700 |                                                               |  
|                                                                        |  |                                                |            |                                                |   |                                                 |   |                                                 |            |                                                               |  





See accompanying notes to Consolidated Financial Statements.





2

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Blacksands Petroleum, Inc.

(An Exploration Stage Enterprise)

Consolidated Statement of Changes in Stockholders Equity

(Unaudited)





|                                                                                                                                                                                                                               | Shares       | Par Value $0.001 | Additional Paid-In Capital | Treasury Stock | Other Compre-hensive Income | Deficit Accumulated During Exploration Stage | Stockholders Equity
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------ | ---------------- | -------------------------- | -------------- | --------------------------- | -------------------------------------------- | --------------------
|                                                                                                                                                                                                                               |              |                  |                            |                |                             |                                              |                     
|Balance  October 12, 2004 -(inception)                                                                                                                                                                                        | -            | $
       -       | $
       -                 | $
       -     | $
       -                  | $
       -                                   | $
       -          
|Stock issued for cash -                                                                                                                                                                                                        |              |                  |                            |                |                             |                                              |                     
|October 12, 2004 (1)                                                                                                                                                                                                           | 30,000,000   | 30,000           | -                          | -              | -                           | (25,000)                                     | 5,000               
|Foreign Currency TranslationAdjustment                                                                                                                                                                                         | -            | -                | -                          | -              | (5)                         | -                                            | (5)                 
|Net Loss                                                                                                                                                                                                                       | -            | -                | -                          | -              | -                           | -                                            | -                   
|Balance  October 31, 2004                                                                                                                                                                                                     | 30,000,000   | 30,000           | -                          | -              | (5)                         | (25,000)                                     | 4,995               
|Stock issued for cash -                                                                                                                                                                                                        |              |                  |                            |                |                             |                                              |                     
|March 4, 2005 (1)                                                                                                                                                                                                              | 33,000,000   | 33,000           | 22,000                     | -              | -                           | -                                            | 55,000              
|Foreign Currency TranslationAdjustment                                                                                                                                                                                         | -            | -                | -                          | -              | (2,787)                     | -                                            | (2,787)             
|Net Loss                                                                                                                                                                                                                       | -            | -                | -                          | -              | -                           | (13,780)                                     | (13,780)            
|Balance  October 31, 2005                                                                                                                                                                                                     | 63,000,000   | $ 63,000         | $        22,000            | $
       -     | $         2,792)            | $        (38,780)                            | $             43,428
|Equity Compensation -                                                                                                                                                                                                          |              |                  |                            |                |                             |                                              |                     
|Granted August 1, 2006                                                                                                                                                                                                         | -            | -                | 21,620                     | -              | -                           | -                                            | 21,620              
|Deferred equity compensation                                                                                                                                                                                                   | -            | -                | (18,918)                   | -              | -                           | -                                            | (18,918)            
|Stock issued for cash -                                                                                                                                                                                                        |              |                  |                            |                |                             |                                              |                     
|August 10, 2006                                                                                                                                                                                                                | 10,854,700   | 10,855           | 10,843,845                 | -              | -                           | -                                            | 10,854,700          
|Stock issued on conversion                                                                                                                                                                                                     |              |                  |                            |                |                             |                                              |                     
|of Debentures                                                                                                                                                                                                                 |              |                  |                            |                |                             |                                              |                     
|August 10, 2006                                                                                                                                                                                                                | 1,000,000    | 1,000            | 999,000                    | -              | -                           | -                                            | 1,000,000           
|Foreign Currency TranslationAdjustment                                                                                                                                                                                         | -            | -                | -                          | -              | 496                         | -                                            | 496                 
|Net Loss                                                                                                                                                                                                                       | -            | -                | -                          | -              | -                           | (308,798)                                    | (308,798)           
|Balance  October 31, 2006                                                                                                                                                                                                     | 74,854,700   | $ 74,855         | $  1,867,547               | $
       -     | $        (2,296)            | $       (347,578)                            | $        1,592,528  
|Stock repurchased for cash-                                                                                                                                                                                                    |              |                  |                            |                |                             |                                              |                     
|November 6, 2006                                                                                                                                                                                                               | (30,000,000) | -                | -                          | (50,000)       | -                           | -                                            | (  50,000)          
|Equity compensationexpensed                                                                                                                                                                                                    | -            | -                | 10,808                     | -              | -                           | -                                            | 10,808              
|Foreign Currency TranslationAdjustment                                                                                                                                                                                         | -            | -                | -                          | -              | 322,258                     | -                                            | 322,258             
|Net Loss                                                                                                                                                                                                                       | -            | -                | -                          | -              | -                           | ( 1,718,165)                                 | ( 1,718,165)        
|Balance  October 31, 2007                                                                                                                                                                                                     | 44,854,700   | $ 74,855         | $ 11,878,355               | $     (50,000) | $       319,962             | $    (2,065,743)                             | $      10,157,429   
|Equity compensation expensed                                                                                                                                                                                                   | -            | -                | 8,110                      | -              | -                           | -                                            | 8,110               
|Foreign Currency TranslationAdjustment                                                                                                                                                                                         | -            | -                | -                          | -              | (319,139)                   | -                                            | (319,139)           
|Net Loss                                                                                                                                                                                                                       | -            | -                | -                          | -              | -                           | (619,873)                                    | (619,873)           
|Balance  July 31, 2008                                                                                                                                                                                                        | 44,854,700   | $ 74,855         | $ 11,886,465               | $     (50,000) | $              823          | $    (2,685,616)                             | $        9,226,527  
|                                                                                                                                                                                                                               |              |                  |                            |                |                             |                                              |                     
|(1) On May 6, 2006, the Company declared a 30 for 1 forward stock split (the Stock Split) in the form of a dividend. The record date for the stock split was June 21, 2006. The stock split has been recorded retroactively.





See accompanying notes to Consolidated Financial Statements.



3

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Blacksands Petroleum, Inc.

(An Exploration Stage Enterprise)

Consolidated Statements of Cash Flows



|                                                    | (Unaudited)November 1, 2007ThroughJuly 31, 2008 |   | (Unaudited)November 1, 2006ThroughJuly 31, 2007 |   | (Unaudited)From Inception(October 12, 2004)ThroughJuly 31, 2008 |           
|--------------------------------------------------- | ----------------------------------------------- | - | ----------------------------------------------- | - | --------------------------------------------------------------- | ----------
|                                                    |                                                 |   |                                                
|                                                    |                                                 |   |                                                
|                                                    |                                                 |   |                                                
|                                                    |                                                 |   |                                                
|Cash Flows from Operating Activities:               |                                                 |   |                                                 |   |                                                                 |           
|Net Loss                                            |                                                 | $ | (619,873                                        | ) | $                                                               | (1,343,705
|Adjustments to reconcile net loss to                |                                                 |   |                                                 |   |                                                                 |           
|net cash used in operating activities:              |                                                 |   |                                                 |   |                                                                 |           
|Minority interest                                   |                                                 |   | (83,616                                         | ) |                                                                 | -         
|Foreign Currency Income (loss)                      |                                                 |   | (319,139                                        | ) |                                                                 | (7,719    
|Equity compensation expense                         |                                                 |   | 8,110                                           |   |                                                                 | 8,106     
|Loss on sale of fixed assets                        |                                                 |   | 12,588                                          |   |                                                                 | -         
|Office Equipment and Furniture: Depreciation        |                                                 |   | 3,076                                           |   |                                                                 | 6,065     
|Changes in Operating assets and liabilities:        |                                                 |   |                                                 |   |                                                                 |           
|Accounts receivable                                 |                                                 |   | (6,311                                          | ) |                                                                 | -         
|Prepaid expenses and deposits                       |                                                 |   | (1,808                                          | ) |                                                                 | (20,846   
|Exclusivity agreement deposit                       |                                                 |   | -                                               |   |                                                                 | (93,740   
|Rent Deposit                                        |                                                 |   | -                                               |   |                                                                 | (522      
|Accounts payable and accrued liabilities            |                                                 |   | (479,748                                        | ) |                                                                 | 75,326    
|Accounts payable to related party                   |                                                 |   | (101,773                                        | ) |                                                                 | 11,504    
|Net Cash Used in Operating Activities               |                                                 |   | (1,588,494                                      | ) |                                                                 | (1,365,531
|                                                    |                                                 |   |                                                 |   |                                                                 |           
|Cash Flows from Investing Activities:               |                                                 |   |                                                 |   |                                                                 |           
|Oil and gas property costs                          |                                                 |   | (1,340,785                                      | ) |                                                                 | -         
|Minority interest in subsidiary                     |                                                 |   | 665,523                                         |   |                                                                 | -         
|Loan to Access Energy Inc.                          |                                                 |   | -                                               |   |                                                                 | (234,350  
|Proceeds of sale of fixed assets                    |                                                 |   | 9,642                                           |   |                                                                 | -         
|Purchase of property and equipment                  |                                                 |   | -                                               |   |                                                                 | (2,105    
|Net Cash Used in Investing Activities               |                                                 |   | (665,620                                        | ) |                                                                 | (236,455  
|                                                    |                                                 |   |                                                 |   |                                                                 |           
|Cash Flows from Financing Activities:               |                                                 |   |                                                 |   |                                                                 |           
|Repurchase of stock                                 |                                                 |   | -                                               |   |                                                                 | (50,000   
|Issue of convertible debentures                     |                                                 |   | -                                               |   |                                                                 | -         
|Sales of Common Stock                               |                                                 |   | -                                               |   |                                                                 | -         
|Net Cash (Used in) Provided by Financing Activities |                                                 |   | -                                               |   |                                                                 | (50,000   
|                                                    |                                                 |   |                                                 |   |                                                                 |           
|Net Increase (Decrease) in Cash                     |                                                 |   | (2,254,114                                      | ) |                                                                 | (1,651,986
|Cash Balance, Beginning of Period                   |                                                 |   | 6,593,103                                       |   |                                                                 | 11,647,845
|Cash Balance, End of Period                         |                                                 | $ | 4,338,989                                       |   | $                                                               | 9,995,859 
|                                                    |                                                 |   |                                                 |   |                                                                 |           
|Supplemental Disclosures:                           |                                                 |   |                                                 |   |                                                                 |           
|Cash Paid for interest                              |                                                 | $ | -                                               |   | $                                                               | -         
|Cash Paid for income taxes                          |                                                 | $ | -                                               |   | $                                                               | -         
|Non-cash financing activities:                      |                                                 |   |                                                 |   |                                                                 |           
|Conversion of debentures into stock and warrants    |                                                 | $ | -                                               |   | $                                                               | -         
|                                                    |                                                 |   |                                                 |   |                                                                 |           



See accompanying notes to Consolidated Financial Statements.





4

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Blacksands Petroleum, Inc.

(An Exploration Stage Enterprise)

Notes to Consolidated Financial Statements





|1. | DESCRIPTION OF BUSINESS, HISTORY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|-- | -------------------------------------------------------------------------------



Description of business and history- Blacksands Petroleum, Inc. (hereinafter referred to as the Company) was incorporated in the State of Nevada on October 12, 2004 as Lam Liang Corp. The Company was formed to design, produce and sell fashionable computer laptop cases for women through a subsidiary, which was subsequently dissolved on June 5, 2006. The Companys operations were limited to general administrative operations and development of its first product line and the Company was considered a development stage company in accordance with Statement of Financial Accounting Standards No. 7. The Company exited its plan of operation on May 6, 2006. To indicate its new direction into the unconventional oil industry, the Company filed a Certificate of Amendment to its Articles of Incorporation on June 9, 2006 to change its name from Lam Liang
Corp. to Blacksands Petroleum, Inc.  On August 3, 2007, the Company completed its purchase of 75% of the capital of Access Energy Inc. (Access). Prior to the purchase, the Company was a shell company as that term is defined in Rule 12b-2 of the Exchange Act. By consummating the purchase, the Company succeeded at its business plan, which was to enter the unconventional petroleum industry by acquiring a suitable target company.



Going Concern- The ability of the Company to continue as a going concern is dependent on additional sources of capital and the success of the Companys business plan. As reflected in the accompanying consolidated financial statements, the Company has incurred net losses and negative cash flows from operations, which raises substantial doubt about the Companys ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.



Year end- The Companys fiscal year end is October 31.



Principles of consolidation - The consolidated financial statements include the accounts of the Company, and its subsidiary, Access Energy Inc., from the date of acquisition of August 3, 2007. All significant inter-company transactions and balances have been eliminated. The acquisition of 75% of the issued common stock of Access Energy Inc. is accounted for using the purchase method of accounting.Under the purchase method of accounting, the assets and liabilities of Access are recorded as of the acquisition date, at their fair market values, and added to those of Blacksands. The 25% share of the minority stockholders interest in the net assets of Access is recorded as a liability. Pre-acquisition losses of Access are eliminated on consolidation. The 25% share of the minority stockholders net post acquisition losses of Access are shown as a separate
item on the consolidated statement of operations and are deducted from the minority stockholders interest in net assets.



Use of estimates- The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.



Cash and cash equivalents- The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents.





5

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|1. | DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
|-- | ---------------------------------------------------------------------------------



Concentration of credit risks - The Companys cash and cash equivalents accounts are held at financial institutions and are insured by the Federal Deposit Insurance Corporation (FDIC) up to $100,000 and by Canada Deposit Insurance Corporation (CDIC) up to Cdn$100,000. During the quarter ended July 31, 2008, the Company has maintained bank balances exceeding the FDIC and CDIC insurance limits. To reduce its risk associated with the failure of such financial institutions, the Company periodically evaluates the credit quality of the financial institutions in which it holds deposits.

Oil and Gas Properties- The Company follows the successful efforts method of accounting for its oil and natural gas properties. Unproved oil and gas properties are periodically assessed and any impairment in value is charged to exploration expense. The costs of unproved properties, which are determined to be productive, are transferred to proved oil and gas properties and amortized on an equivalent unit-of-production basis. Exploratory expenses, including geological and geophysical expenses and delay rentals for unevaluated oil and gas properties, are charged to expense as incurred. Exploratory drilling costs are initially capitalized as unproved property but charged to expense if and when the well is determined not to have found proved oil and gas reserves. In accordance with Statement of Financial Accounting Standards No. 19, exploratory drilling costs
are evaluated within a one-year period after the completion of drilling.



Property and equipment- Property and equipment are stated at cost less accumulated depreciation. Depreciation is provided principally on the straight-line method over the estimated useful lives of the assets, which are generally 3 to 27 years. The amounts of depreciation provided are sufficient to charge the cost of the related assets to operations over their estimated useful lives. Upon sale or other disposition of a depreciable property, cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in the statement of operations.



The Company periodically evaluates whether events and circumstances have occurred that may warrant revision of the estimated useful life of fixed assets or whether the remaining balance of fixed assets should be evaluated for possible impairment. The Company uses an estimate of the related undiscounted cash flows over the remaining life of the fixed assets in measuring their recoverability.



Income taxes- The Company accounts for its income taxes in accordance with Statement of Financial Accounting Standards No. 109, which requires recognition of deferred tax assets and liabilities for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date.



Management feels the Company will have a net operating loss carryover to be used for future years. Such losses may not be fully deductible due to the significant amounts of non-cash service costs. The Company has established a valuation allowance for the full tax benefit of the operating loss carryovers due to the uncertainty regarding realization.



Net loss per common share- The Company computes net loss per share in accordance with SFAS No. 128, Earnings per Share (SFAS 128) and SEC Staff Accounting Bulletin No. 98 (SAB 98). Under the provisions of SFAS 128 and SAB 98, basic net loss per share is computed by dividing the net loss available to common stockholders for the period by the weighted average number of shares of common stock outstanding during the period. The calculation of diluted net loss per share gives effect to common stock equivalents; however, potential common shares are excluded if their effect is anti-dilutive. For the quarter ended July 31, 2008, 13,554,700 options and warrants were excluded from the computation of diluted earnings per share because their effect would be anti-dilutive. For the quarter ended July 31, 2007 there were 13,054,700 options and warrants excluded from the
computation of diluted earnings per share because their effect would be anti-dilutive.





6

---







|1. | DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
|-- | ---------------------------------------------------------------------------------



Comprehensive income (loss) The Companys funds at July 31, 2008 and at October 31, 2007 were held in Canadian and U.S. Dollar bank accounts. Foreign currency translation losses for the nine months ended July 31, 2008 amounted to $113,425. Foreign currency translation losses for the nine months ended July 31, 2007 were $5,199. Total foreign currency translation gains from October 12, 2004 to July 31, 2008 were $823. See note 7 regarding comprehensive income.



Foreign Currency Translation The Company uses the United States Dollar as its reporting currency for consistency with registrants of the Securities and Exchange Commission (SEC) and in accordance with the SFAS No. 52 - Foreign Currency Translation. Assets and liabilities denominated in a foreign currency are translated at the exchange rate in effect at the period end, and capital accounts are translated at historical rates. Income statement accounts are translated at the average rates of exchange prevailing during the period. Translation adjustments from the use of different exchange rates from period to period are included in the comprehensive income account in stockholders equity, if applicable.



The Companys operations have moved to Canada and although the Company maintains funds in United States Dollars, the functional currency of the Company is the Canadian Dollar. The Company continues to use the United States Dollar as its reporting currency for consistency with registrants of the SEC.



Transactions undertaken in currencies other than the functional currency of the entity are translated using the exchange rate in effect as of the transaction date. Any exchange gains and losses are included in other items on the statement of operations.



Fair Value of Financial Instruments- The carrying amounts of financial instruments, including cash and cash equivalents, prepaid expenses and deposits, accounts payable and accrued expenses approximate fair value at July 31, 2008 and at October 31, 2007 because of the relatively short maturity of the instruments.



Revenue recognition- The Company has no revenues to date from its operations.



Stock based compensation- In December 2004, the FASB issued SFAS No. 123 (revised 2004),Share-Based Payment, which is a revision of SFAS No. 123,Accounting for Stock-Based Compensation. SFAS No. 123(R) supersedes APB Opinion No. 25, Accounting for Stock Issued to Employees, and amends SFAS No. 95, Statement of Cash Flows. Generally, the approach in SFAS No. 123(R) is similar to the approach described in SFAS No. 123. However, SFAS No. 123(R) requires all share-based payments to employees, including grants of employee stock options, to be recognized in the income statement based on their fair values. Pro forma disclosure is no longer an alternative. The new standard became effective for the Company in the first interim or annual reporting period beginning after
December 15, 2005. The Company has adopted this standard effective for the year ended October 31, 2006.



New accounting pronouncements- In September 2006, the FASB issued FASB Statement No. 157. This Statement defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. This Statement applies under other accounting pronouncements that require or permit fair value measurements, the Board having previously concluded in those accounting pronouncements that fair value is a relevant measurement attribute. Accordingly, this Statement does not require any new fair value measurements. However, for some entities, the application of this Statement will change current practices. This Statement is effective for financial statements for fiscal years beginning after November 15, 2007. Earlier application is permitted provided that the reporting entity has not yet
issued financial statements for that fiscal year. Management is currently evaluating the impact this statement will have on the consolidated financial statements of the Company once adopted.





7

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|1. | DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
|-- | ---------------------------------------------------------------------------------



In February 2007, the FASB issued Statement of Financial Accounting Standards No. 159,The Fair Value Option for Financial Assets and Financial Liabilities  Including an Amendment of FASB Statement No. 115. This Statement permits entities to choose to measure many financial instruments and certain other items at fair value. The objective is to improve financial reporting by providing entities with the opportunity to mitigate volatility in reported earnings caused by measuring related assets and liabilities differently without having to apply complex hedge accounting provisions. This Statement applies to all entities, including not-for-profit organizations. Most of the provisions of this Statement apply only to entities that elect the fair value option. However, the amendment to FASB Statement No. 115,Accounting
for Certain Investments in Debt and Equity Securities, applies to all entities with available-for-sale and trading securities. The fair value option permits all entities to choose to measure eligible items at fair value at specified election dates.



A business entity shall report unrealized gains and losses on items for which the fair value option has been elected in earnings (or another performance indicator if the business entity does not report earnings) at each subsequent reporting date. The fair value option may be applied instrument by instrument (with a few exceptions); is irrevocable (unless a new election date occurs); and is applied only to entire instruments and not to portions of instruments. This Statement is effective as of the beginning of an entitys first fiscal year that begins after or before November 15, 2007, provided the entity also elects to apply the provisions of FASB Statement No. 157,Fair Value Measurement. The Company does not expect the adoption of SFAS 159 to materially effect the Companys financial position or results of operations.

In December 2007, the FASB issued FASB Statement No. 141 (revised 2007),Business Combinations.This Statement replaces FASB Statement No. 141, Business Combinations. This Statement retains the fundamental requirements in Statement 141 that the acquisition method of accounting (which Statement 141 called the purchase method) be used for all business combinations and for an acquirer to be identified for each business combination. This Statement defines the acquirer as the entity that obtains control of one or more businesses in the business combination and establishes the acquisition date as the date that the acquirer achieves control. This Statements scope is broader than that of Statement 141, which applied only to business combinations in which control was obtained by transferring consideration. By applying the same
method of accountingthe acquisition methodto all transactions and other events in which one entity obtains control over one or more other businesses, this Statement improves the comparability of the information about business combinations provided in financial reports.

This Statement requires an acquirer to recognize the assets acquired, the liabilities assumed, and any non-controlling interest in the acquiree at the acquisition date, measured at their fair values as of that date, with limited exceptions specified in the Statement. That replaces Statement 141s cost-allocation process, which required the cost of an acquisition to be allocated to the individual assets acquired and liabilities assumed based on their estimated fair values.

This Statement applies to all transactions or other events in which an entity (the acquirer) obtains control of one or more businesses (the acquirer), including those sometimes referred to as true mergers or mergers of equals and combinations achieved without the transfer of consideration, for example, by contract alone or through the lapse of minority veto rights. This Statement applies to all business entities, including mutual entities that previously used the pooling-of-interests method of accounting for some business combinations. It does not apply to: (a) The formation of a joint venture, (b)The acquisition of an asset or a group of assets that does not constitute a business, (c) A combination between entities or businesses under common control, (d) A combination between not-for-profit organizations or the acquisition of a for-profit business by a
not-for-profit organization.

This Statement applies prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008. An entity may not apply it before that date. Management believes this Statement will have no impact on the financial statements of the Company once adopted.





8

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|1. | DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
|-- | ---------------------------------------------------------------------------------



In December 2007, the FASB issued FASB Statement No. 160 Non-controlling Interests in Consolidated Financial Statements an amendment of ARB No. 51.This Statement applies to all entities that prepare consolidated financial statements, except not-for-profit organizations, but will affect only those entities that have an outstanding non-controlling interest in one or more subsidiaries or that deconsolidate a subsidiary.

This Statement amends ARB 51 to establish accounting and reporting standards for the non-controlling interest in a subsidiary and for the deconsolidation of a subsidiary. It clarifies that a non-controlling interest in a subsidiary is an ownership interest in the consolidated entity that should be reported as equity in the consolidated financial statements. Before this Statement was issued, limited guidance existed for reporting non-controlling interests. As a result, considerable diversity in practice existed. So-called minority interests were reported in the consolidated statement of financial position as liabilities or in the mezzanine section between liabilities and equity. This Statement improves comparability by eliminating that diversity.

A non-controlling interest, sometimes called a minority interest, is the portion of equity in a subsidiary not attributable, directly or indirectly, to a parent. The objective of this Statement is to improve the relevance, comparability, and transparency of the financial information that a reporting entity provides in its consolidated financial statements by establishing accounting and reporting standards that require: (a) The ownership interests in subsidiaries held by parties other than the parent be clearly identified, labeled, and presented in the consolidated statement of financial position within equity, but separate from the parents equity, (b)The amount of consolidated net income attributable to the parent and to the non-controlling interest be clearly identified and presented on the face of the consolidated statement of income, (c)  Changes in a parents
ownership interest while the parent retains its controlling financial interest in its subsidiary be accounted for consistently. A parents ownership interest in a subsidiary changes if the parent purchases additional ownership interests in its subsidiary or if the parent sells some of its ownership interests in its subsidiary. It also changes if the subsidiary reacquires some of its ownership interests or the subsidiary issues additional ownership interests. All of those transactions are economically similar, and this Statement requires that they be accounted for similarly, as equity transactions, (d) When a subsidiary is deconsolidated, any retained non-controlling equity investment in the former subsidiary be initially measured at fair value. The gain or loss on the deconsolidation of the subsidiary is measured using the fair value of any non-controlling equity investment rather than the carrying amount of that retained investment, (e) Entities provide sufficient disclosures
that clearly identify and distinguish between the interests of the parent and the interests of the non-controlling owners.

This Statement is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2008 (that is, January 1, 2009, for entities with calendar year-ends). Earlier adoption is prohibited. This Statement shall be applied prospectively as of the beginning of the fiscal year in which this Statement is initially applied, except for the presentation and disclosure requirements. The presentation and disclosure requirements shall be applied retrospectively for all periods presented. Management believes this Statement will have no impact on the financial statements of the Company once adopted.



Management does not believe that any other recently issued, but not yet effective accounting pronouncements if currently adopted would have a material effect on the accompanying consolidated financial statements.





9

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|2. | PROPERTY AND EQUIPMENT
|-- | ----------------------



The Company owns the following office equipment and furniture:



|                       | July 31, 2008                       | October 31, 2007                            
|---------------------- | ----------------------------------- | --------------------------------------------
|                       | Cost                                | Accumulated
                    depreciation
|Furniture and fixtures | $     
                           – | $     
                           –         
|Office equipment       | –                                   | –                                           
|                       | $     
                           – | $     
                           –         





Depreciation expense amounted to $Nil and $2,059 for the quarters ended July 31, 2008 and 2007, respectively. During the quarter ended April 30, 2008, the Company sold the furniture and equipment in its Calgary office following the relocation of its Head Office to Toronto.



|3. | OIL AND GAS PROPERTY COSTS
|-- | --------------------------



In the nine months ended July 31, 2008 and in the year ended October 31, 2007, the Company incurred property acquisition costs as follows:



|                                                                                    | Nine months Ended    | Year Ended          
|----------------------------------------------------------------------------------- | -------------------- | --------------------
|                                                                                    | July 31, 2008        | October 31, 2007    
|                                                                                    |                      |                     
|Balance, beginning of period                                                        | $          5,022,859 | $
             -    
|                                                                                    |                      |                     
|Fair Value of property acquired August 3, 2007 on acquisition of Access Energy Inc. | -                    | 4,568,558           
|Costs incurred during the period                                                    | 1,340,785            | -                   
|Costs incurred from August 3, 2007 to October 31, 2007                              | -                    | 454,301             
|Total incurred during the period                                                    | 1,340,785            | 5,022,859           
|                                                                                    |                      |                     
|Balance, end of year                                                                | $          6,363,644 | $          5,022,859



During the year ended October 31, 2007, the Company spent funds to evaluate and to acquire properties with oil and gas potential in northern Saskatchewan and northern Alberta. During the nine months ended July 31, 2008, the Company incurred additional costs evaluating these properties and made payments contemplated in the acquisition agreements.



On November 3, 2006, the Company entered into a joint venture agreement (JV Agreement), which was amended on May 9, 2007, and March 17, 2008, and on May 24, 2007, the Company entered into an Impact Benefit Agreement with the Buffalo River Dene Nation (BRDN) which was amended on March 17, 2008, to explore and develop its traditional lands in northern Saskatchewan and Alberta.



Pursuant to the terms of the JV Agreement, the Company is responsible for 100% of the costs to explore and develop any project within the traditional lands. After all costs relating to a specific project have been recouped, the BRDN is entitled to a net profit interest. Furthermore, the BRDN is entitled to earn an additional interest in any project(s) by contributing its pro rata share of the costs to explore and develop any project(s).



Pursuant to the terms of the Impact Benefit Agreement with BRDN, the Company is committed to make certain contributions to the BRDN. As at July 31, 2008, the Company had paid a total of approximately Cdn$2,098,500 (approximately US$2,049,500) to the BRDN and is committed to further annual payments over the term of the agreement.





10

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|3. | OIL AND GAS PROPERTY COSTS (continued)
|-- | ---------------------------------------



The funding provided to the BRDN under the Impact Benefit Agreement is recoverable to the Company under the JV Agreement before the payment of the BRDN net profit interest. These costs are capitalized as acquisition-related costs associated with oil and gas property interests, and will be credited when recovered.



|4. | STOCKHOLDERS EQUITY
|-- | --------------------



Preferred Stock and Common Stock

Authorized:

On June 9, 2006, the Company filed a Certificate of Amendment to its Articles of Incorporation with the Secretary of State of Nevada to increase the authorized share capital (the Share Increase) from 75,000,000 shares of Common Stock, par value $0.001, to 310,000,000 shares, comprised of 300,000,000 shares of Common Stock and 10,000,000 shares of Preferred Stock, par value $0.001. In addition, on May 6, 2006, our Board of Directors declared a 30:1 forward stock split (the Stock Split) in the form of a dividend. The record and payment date for the stock dividend was June 21, 2006. Appropriate revisions have been made to the financial statements for the year ended October 31, 2006 to reflect the Share Increase and the Stock Split.



Common Stock Issued:

|                                                | Number of Shares | Par Value      | Additional Paid in Capital        | Treasury Stock                   
|----------------------------------------------- | ---------------- | -------------- | --------------------------------- | ---------------------------------
|                                                |                  |                |                                   |                                  
|October 12, 2004 - Issued for cash              | 30,000,000       | $       30,000 | $
                              - | $
                              -
|March 2005 - Issued for cash                    | 33,000,000       | 33,000         | 22,000                            | -                                
|Balance October 31, 2005                        | 63,000,000       | 63,000         | 22,000                            | -                                
|August 9, 2006  Issued for cash                | 10,854,700       | 10,855         | 10,843,845                        | -                                
|August 9, 2006  On conversion of               |                  |                |                                   |                                  
|Convertible Debentures                          | 1,000,000        | 1,000          | 999,000                           | -                                
|Balance, October 31, 2006                       | 74,854,700       | $       74,855 | $  11,864,845                     | $                              - 
|Repurchase of stock for cash  November 6, 2006 | (30,000,000)     | -              | -                                 | (50,000)                         
|Balance, October 31, 2007 and July 31, 2008     | 44,854,700       | $       74,855 | $  11,864,845                     | $  (50,000)                      



The issued and outstanding shares were issued as follows:



On June 9, 2006, the Company filed a Certificate of Amendment to its Articles of Incorporation to increase its authorized capital stock to 310,000,000 authorized shares, consisting of 300,000,000 shares of common stock, par value $0.001 each, and 10,000,000 shares of preferred stock, par value $0.001 each. The Companys Board of Directors may issue the preferred stock in one or more series, with such voting powers, designations, preferences and rights or qualifications, limitations or restrictions thereof as shall be stated in the resolution or resolutions adopted by them.



Effective August 9, 2006, the Company closed a private placement of Units of its securities. 10,854,700 Units were issued at a price of $1.00 per Unit, resulting in gross proceeds of $10,854,700. The offering was conducted pursuant to the exemption from the registration requirements of the federal securities laws provided by Regulation S and Section 4(2) of the Securities Act of 1993, as amended (the Securities Act) and Rule 506 of Regulation D under the Securities Act. Each Unit consisted of one share, on a post-split basis, of the Companys common stock and one warrant to purchase a share of common stock (the Warrants).





11

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|4. | STOCKHOLDERS EQUITY  (continued)
|-- | ----------------------------------



Each Warrant is exercisable for two years commencing October 1, 2006 and entitles its holder to purchase one share of Common Stock at $3.00 per share. Following the closing of the offering, the funds remained in escrow until the acquisition of Access Energy Inc. on August 3, 2007.



On May 6, 2006, the Company issued $1,000,000 of convertible debentures (see note 6 below) to two accredited investors. The Debentures converted into Units on August 9, 2006 at a conversion price of $1.00 per Unit for a total of 1,000,000 Units. Each Unit consisted of one share, on a post-split basis, of the Companys common stock and one warrant to purchase a share of common stock. Each of these Warrants is exercisable for two years commencing October 1, 2006 and entitles its holder to purchase one share of Common Stock at $3.00 per share.



On November 6, 2006, the Company purchased 30,000,000 shares of common stock from Darren Stevenson for $50,000 cash in accordance with the terms of the stock repurchase agreement.



As at July 31, 2008, there are 11,854,700 Warrants outstanding. Each Warrant is exercisable for two years commencing October 1, 2006 and entitles its holder to purchase one share of Common Stock at $3.00 per share.



In addition there are 1,500,000 Warrants outstanding, which were issued as part of the consideration for the purchase of the subsidiary. Each of these 1,500,000 Warrants is exercisable for five years commencing August 3, 2007 and entitles the holder to purchase one share of Common Stock at $2.00 per share. The terms of the Warrants, as amended, stipulate that they can only be exercised once vested. Vesting occurs when Access Energy enters into an agreement with another First Nations community relating to mineral development on their traditional lands.



On August 1, 2006 the Company entered into a consulting agreement and a stock warrant agreement with Gregg Layton. Under the Stock Warrant Agreement, Mr. Layton received warrants to purchase 200,000 shares of our common stock.  These warrants were cancelled with the termination of Mr. Laytons agreement.



|5. | RELATED PARTY TRANSACTIONS
|-- | --------------------------



As of July 31, 2008, there are no significant related party transactions between the Company and any of its officers or directors other than a consulting agreement between Access and a company controlled by the President and CEO and Director of the Company.



On November 1, 2005,Access entered into an agreement with Coniston Investment Corp. (Coniston), to provide management, consulting and advisory services to Access (the Services). These services include assisting Access in negotiating joint venture agreements, assisting in the formation of a team of technical experts, and other consulting and advisory services as required by Access from time to time. The agreement automatically renews for consecutive one-year terms unless terminated by either party in writing.



Conistons sole shareholder, President and CEO is the President and CEO of Access and, effective November 1, 2007, also of the Company. Pursuant to the agreement: (i) Accessshall pay Coniston a fee of: (i) Cdn$260,000 per annum, payable monthly (paid); (ii) Cdn$1,000,000 (the Dene Fee) in the event Access entered into an agreement with the BRDN and/or its associates or affiliates to develop hydrocarbon opportunities in a defined area within Treaty 10 lands which includes the traditional and historically occupied and used lands of the BRDN (paid in the year ended October 31, 2007); and (iii) Coniston will also be entitled to receive a 1.25% non-convertible overriding royalty based on 100% production (GORR) from any and all projects that Coniston brings to Access (the Royalty Fee).



During the quarter ended July 31, 2008, Coniston charged Access management fees of Cdn$65,000 which amount is included in the consolidated statement of operations. Amounts payable to Coniston of Cdn$177,400 (US$173,249) are shown as amounts payable to related parties as at July 31, 2008.





12

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|6. | STOCK OPTIONS AND WARRANTS
|-- | --------------------------



On April 18, 2006, the Company entered into an employment agreement and a stock option agreement with Darren Stevenson. Under the Stock Option Agreement, Mr. Stevenson was, on April 18, 2006, granted options to purchase 1,000,000 shares of common stock of the Company on a post-split basis. All of the options, once vested, are exercisable at $2.00 per share, and all had a two-year term. Options to purchase 100,000 shares vested on June 9, 2006 when the Company filed with the Secretary of State of Nevada an amendment to its Articles of Incorporation, which among other things, increased its authorized common stock to 300,000,000 shares and changed its name to Blacksands Petroleum, Inc.  Options to purchase 200,000 shares vested on August 9, 2006 when the Company completed a common stock placement of US$10,854,700. Options to purchase 200,000 shares vested on January 1,
2007, and options to purchase 500,000 shares would have vested if the Company conducted a placement of at least US$50,000,000. On October 31, 2007, the Company cancelled these 500,000 options granted to Mr. Darren Stevenson as part of the termination of his employment agreement as President and CEO. In April 2008, the remaining 500,000 options held by Mr. Stevenson expired.



The Company valued the options issued to Mr. Stevenson at a $0 value based on a closing price of $0.03, an exercise price of $2.00, and a term of 2 years. The Company used the average historical volatility of 3 companies deemed to be in the same industry as the Company as 50.86%.



On August 1, 2006, the Company entered into a consulting agreement and a stock warrant agreement with Gregg Layton, which has been subsequently terminated effective February 29, 2008. Under the Stock Warrant Agreement, Mr. Layton received warrants to purchase 200,000 shares of common stock with 50,000 warrants vesting on August 1, 2006. Warrants to purchase 25,000 shares of common stock vested on January 1, 2007, warrants to purchase 25,000 shares of common stock vested August 9, 2006, and warrants to purchase the final 100,000 shares of common stock would have vested if the Company conducted a placement of at least US$50,000,000 during Mr. Laytons agreement with the Company. All of the warrants, once vested, were exercisable at $2.00 per share until July 31, 2008. The warrants expired unexercised.



The Company valued the warrants issued to Mr. Layton at a $21,620 value based on a closing price of $1.00, an exercise price of $2.00, and a term of 2 years. The Company used the average historical volatility of 3 companies deemed to be in the same industry as the Company as 50.86%.

As of June 26, 2006, the Companys Board of Directors approved, and a majority of the Companys stockholders ratified, the adoption of the Companys 2006 Stock Option Plan (the Plan), pursuant to which the Board of Directors has the ability to provide incentives through the issuance of options, stock, restricted stock, and other stock-based awards, representing up to 6,000,000 shares of the Companys common stock, to certain employees, outside directors, officers, consultants and advisors.

The Board of Directors approved a revised stock option plan for the Company on February 15, 2008. The revised stock option plan is subject to regulatory and shareholder approvals.

Also on February 15, 2008, the Board of Directors approved the grant of 2,200,000 stock options to officers, directors and consultants of the Company. These options are exerciseable at $1.90 per share for a term of five years, subject to all necessary approvals, and have the following vesting provisions:

| |  | 991,666 options vested immediately
| | - | ----------------------------------

| |  | 604,166 options vest when the stock price trades at or above $2.50 for ten consecutive trading days; and
| | - | --------------------------------------------------------------------------------------------------------

| |  | 604,168 options vest when the stock price trades at or above $3.00 for ten consecutive trading days
| | - | ---------------------------------------------------------------------------------------------------



As at July 31, 2008, other than those granted, subject to necessary approvals, on February 15, 2008, the Company has issued no other options or entered into stock option agreements with any other persons.





13

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|6. | STOCK OPTIONS AND WARRANTS (continued)
|-- | ---------------------------------------

As there is no certainty that the stockholders will approve the revised stock option plan, there has been no expense recorded as stock-based compensation relating to these options to date.

A summary of the Companys stock option activity and related information is as follows:



|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  | Number of Shares | Weighted Average
                    Exercise Price
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | ---------------- | ---------------------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  |                  |                                                    
|Outstanding at October 31,
                    2005                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  | -                | -                                                  
|Granted                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  | 1,000,000        | $2.00                                              
|Exercised                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  | -                | -                                                  
|Cancelled                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  | -                | -                                                  
|Outstanding at October 31,
                    2006                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  | 1,000,000        | $2.00                                              
|Granted                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  | -                | -                                                  
|Exercised                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  | -                | -                                                  
|Cancelled                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  | (500,000)1       | $2.00                                              
|Outstanding at October 31,
                    2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  | 500,000          | $2.00                                              
|Expired                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  | (500,000)1       | $2.00                                              
|Outstanding at April 30,
                    20082                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | -                | -                                                  
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  |                  |                                                    
|1 On October 31, 2007, the
                    Company cancelled 500,000 options granted to Mr. Darren Stevenson as part
                    of the termination of his employment agreement as President and CEO. In April
                    2008, 500,000 options granted to Mr. Stevenson and vested have
                    expired.

                    2 Excludes the options
                    granted, subject to necessary approvals, to directors, officers and consultants
                    on February 15, 2008.



A summary of options granted, vested and cancelled is as follows:



|                       | Options Granted/(Cancelled) | Options Vested                                                                 
|---------------------- | --------------------------- | -------------------------------------------------------------------------------
|                       | Number of Options           | Weighted Average
                    Remaining Life
                    (years)
|                      
|                      
|July 31, 2007          |                             |                                                                                
|Vested January 1, 2007 | -                           | -                                                                              
|                       |                             |                                                                                
|July 31, 2008          |                             |                                                                                
|Granted or vested      | -                           | -                                                                              



A summary of the Companys stock warrant activity and related information is as follows:



|                                                    |  | Warrants   | Weighted Average
                    Exercise Price
|--------------------------------------------------- |  | ---------- | ---------------------------------------------------
|                                                    | 
|Outstanding at October 31,
                    2006 |  | 12,054,700 | $2.98                                              
|Exercised                                           |  | -          | -                                                  
|Cancelled                                           |  | -          | -                                                  
|Granted – August 3, 2007                            |  | 1,500,000  | $2.00                                              
|Outstanding at October 31, 2007                     |  | 13,554,700 | $2.87                                              
|Expired – February, 2008                            |  | (200,000)  | $2.00                                              
|Outstanding at July 31,
                    2008    |  | 13,554,700 | $2.89                                              







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|7. | COMPREHENSIVE INCOME
|-- | --------------------



The functional currency of the Company is the Canadian Dollar. At July 31, 2008, the Company maintained account balances of Cdn$4,409,341 (approximately US$4,306,162) and US$32,827.



Foreign currency translation adjustments for the three months ended July 31, 2008 and for the three months ended July 31, 2007 are net of tax of $NIL. Foreign currency translation adjustments for the nine months ended July 31, 2008 and for the nine months ended July 31, 2007 are net of tax of $NIL. Foreign currency translation adjustments for the period from inception to July 31, 2008 are net of tax of $NIL.



|8. | LITIGATION
|-- | ----------



As of July 31, 2008, the Company is not aware of any current or pending litigation, which may affect the Companys operations.



|9 | LEASE COMMITMENTS
|- | -----------------



The Company renegotiated the lease for its Calgary office space commencing April 1, 2007 for a period of one year at a monthly rent of Cdn$6,684 (approximately US$6,658). The Company did not renew its Calgary office space when the current lease expired at the end of March 2008.



|10. | ACQUISITION OF ACCESS ENERGY INC. (ACCESS)
|--- | --------------------------------------------



On August 3, 2007, pursuant to a Common Stock Purchase Agreement (Purchase Agreement), the Company purchased 600 newly issued shares of common stock of Access, representing 75.0% of its common stock for an aggregate sum of Cdn$3,427,935.23 (US$3,234,545), and common stock purchase warrants to acquire 1,500,000 of the Companys shares of common stock (Access Warrants). Prior to the Purchase, the Company was a shell company as that term is defined in Rule 12b-2 of the Exchange Act. By consummating the Purchase, the Company succeeded at its business plan, which was to enter the unconventional petroleum industry by acquiring a suitable target company. The Company paid the purchase price in four segments: (i) Cdn$3,077,935.23 in cash; (ii) Cdn$250,000 by offset against the amount held in escrow created on May 17, 2007;
(iii) Cdn$100,000 that was paid to Access pursuant to the Exclusivity Agreement; and (iv) the Access Warrants. The Company obtained the cash portion of the purchase price from funds released from the restricted cash held in an escrow account. On August 28, 2007, the balance of restricted cash held in escrow was released and transferred to the Companys bank account. Blacksands intends to operate Access to continue in the business that Access engaged in prior to the acquisition. Prior to the acquisition, no material relationship existed between the Company and Access. The acquisition has been accounted for using the purchase method of accounting. Under the purchase method of accounting, the assets and liabilities of Access are recorded as of the acquisition date, at their fair market values, and added to those of the Company. The 25% share of the minority stockholders interest has been recorded as a liability. Pre-acquisition losses of Access are eliminated on
consolidation.



On August 31, 2007, the Company advanced Cdn$1,100,000 (US$1,046,622) to Access for its working capital requirements. On February 20, 2008, the Company advanced a further Cdn$2,258,055 (US$2,229,152) to Access. These advances are treated as contributed capital.



|11. | SUBSEQUENT EVENT
|--- | ----------------



On August 11, 2008, the Company, through its subsidiary, Access Energy Inc., submitted bids for all five of the oil sands exploratory permits covering approximately 810,000 acres of the A10 Project lands that were posted for sale by the Province of Saskatchewan (the Province) on May 29, 2008.On August 13, 2008, the Province of Saskatchewan announced that there were no successful bidders for these oil sands exploratory permits. Access Energy Inc. submitted a request to the Province to re-post these permits for bidding, and the Province has indicated that the permits will be re-posted for bidding on December 3, 2008.





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Item 2.   Managements Discussion and Analysis of Financial Condition and Results of Operations.



Certain statements in this report, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives, and expected operating results, and the assumptions upon which those statements are based, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements generally are identified by the words believe, project, expect, anticipate, estimate, intend, strategy, plan, may, should, will, would, will be, will continue, will likely result, and similar expressions. Forward-looking statements
are based on current expectations and assumptions that are subject to risks and uncertainties, which may cause actual results to differ materially from the forward-looking statements. A detailed discussion of risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in our most recent annual report on Form 10-KSB under the heading Risk Factors and Uncertainties (see Part 1, Item 1 in such report), as amended in this report under the heading Risk Factors (see Part II, Item 1A). We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.



The following discussion should be read in conjunction with our consolidated financial statements and notes thereto included in this report.



On August 3, 2007, we completed the purchase of 75% of Access Energy Inc. (Access) for cash of $3,234,544 and 1,500,000 warrants to purchase shares of our common stock issued to the former sole stockholder of Access. Prior to our acquisition of Access (the Purchase), we were an exploration stage company with no revenues. As a result of the Purchase, our plan of operation, results of operations and financial condition differ materially from those that existed prior to the Purchase.



The initial exploration project for Access is named A10 Project and lies on a portion of the traditional land of the Buffalo River Dene Nation (the BRDN) subject to Treaty 10 (Treaty 10) in western Saskatchewan on the border with Alberta (the Project Land). The BRDN is a party to Treaty 10 with Her Majesty the Queen in the Right of Canada (the Crown) which recognizes lands and water belonging to the BRDN whose territory is situated partly in the Province of Saskatchewan and partly in the Province of Alberta. Upon entering into Treaty 10, the BRDN did not cede, release, surrender or yield to the Crown any or all rights, titles and privileges whatsoever to the BRDNs traditional territories. Lands and waters described in Treaty 10 form a part of the traditional territories of the BRDN. Access signed the Joint Venture Agreement with the BRDN in
May 2007, amended on March 17, 2008, granting Access exclusive access to the land. A copy of this agreement was filed as Exhibit 10.8 to our Form 8-K filed on August 8, 2007.



Pursuant to the terms of the JV Agreement, the Company is responsible for 100% of the costs to explore and develop any project within the traditional lands. After all costs relating to a specific project have been recouped, the Company will retain a significant majority of the earned working interest and BRDN will be entitled to the remaining minority interest of the Project. Furthermore, the BRDN is entitled to earn an additional minority interest in any project(s) by contributing its pro rata share of the costs to explore and develop any project(s). Even if BRDN chooses to participate to the full extent permitted by the JV Agreement, the Company would continue to hold a majority of the working interest in the project.



Pursuant to the terms of the Impact Benefit Agreement with BRDN, the Company is committed to make certain contributions to the BRDN. As at July 31, 2008, the Company had paid a total of approximately Cdn$2,098,500 (approximately US$2,049,500) to the BRDN and is committed to further payments totalling in the aggregate of approximately Cdn$25,000,000 over the term of the agreement.



Subsequent to the Purchase, we have continued work to obtain the permits, licenses and sub-surface rights necessary to commence our exploration activities.



On August 11, 2008,  the Company,  through its  subsidiary,  Access Energy Inc.,
submitted  bids  for  all  five of the  oilsands  exploratory  permits  covering
approximately  810,000  acres of the A10  Project  lands  that were  posted  for
sale by the Province of Saskatchewan (the Province) on May 29, 2008.   On  August 13, 2008,  the Province of  Saskatchewan  announced that there
were no successful  bidders for these oilsands  exploratory  permits.  At Access
Energys  request,  the Province has  indicated  that these permits will be
re-posted for bidding on December 3, 2008.



16

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At a Board of Directors meeting on February 15, 2008, the Board of Directors approved operating budgets for the Company and for Access for the year ended October 31, 2008. The Access budget included cost expectations to obtain the required permits, approvals, licences and sub-surface rights, which would enable the Company to carry out work on the A10 Project.



The Company is committed, under the Unanimous Shareholders Agreement among Access, the Company and the minority shareholder, to contribute sufficient capital to Access to meet Accesss planned financial commitments until such time as Access has sufficient internal capital resources to fund its commitments without such contributions. These contributions are treated as a contribution of capital, with no increase in our current 75% equity participation in Access. Therefore, all contributions that we make to Access are dilutive to our shareholders as to 25% of such contributions. The minority shareholder is not obligated to provide any funding to Access in order to maintain his 25% interest in Access.



Unless the context otherwise requires, all references in this report to Blacksands, the Company, we, us or our refer to both Blacksands and Access. In our consolidated financial statements, this managements discussion and analysis and elsewhere in this report, unless otherwise noted, we include 100% of the accounts of Access from the date of acquisition of August 3, 2007. For a discussion of our principles of consolidation, see Note 1 to the interim consolidated financial statements included in this report.



Consolidated Results of Operations



For the nine months ended July 31, 2008, and since the date of inception, we have not yet generated any revenues.



We incurred total operating expenses of $822,758 for the nine months ended July 31, 2008, as compared to total operating expenses of $1,692,438 for the nine months ended July 31, 2007. During the nine months ended July 31, 2007, we purchased for $1,124,029 certain two-dimensional seismic data, which relates to approximately 750 kilometers of land in northern Saskatchewan and Alberta where the Company intends to explore deposits of oil sands through its subsidiary Access. These costs were expensed as exploration expenses. Our exploration expenses during the nine months ended July 31, 2008 were $67,454. The increase in our other expenses was principally due to our ceasing to be a shell company and our commencement of operations. These expenses consisted of general operating expenses incurred in connection with the day-to-day operation of our business and the preparation and filing of our
periodic reports as well as the management fees paid to Coniston Investment Corp. (Coniston) of $200,085 and Directors fees of $51,667. The operating expenses include professional fees of $352,607 for the nine months ended July 31, 2008 incurred in connection with filing of periodic reports, SEC compliance filings, audit and accounting fees and general corporate mattersas compared with professional fees of $421,363 for the nine months ended July 31, 2007. The office and administration expenses of $135,281 for the nine months ended July 31, 2008 include rent, travel, telephone and other office expenses as compared to office and administration expenses of $95,526 for the nine months ended July 31, 2007.



We earned total interest income of $117,539 for the nine months ended July 31, 2008, as compared to total interest income of $351,450 for the nine months ended July 31, 2007. The interest was earned on the balance of proceeds of the private placement on August 9, 2006 of $10,854,700, and has declined as we have used the cash in our operations, and as well, the unused balance of such proceeds available for investment has declined in addition to reduced interest rates offered by our bank.



Our total comprehensive loss for the nine months ended July 31, 2008 was $939,012, as compared to total comprehensive loss of $1,351,424 for the nine months ended July 31, 2007, and a total comprehensive loss of $2,659,793 from inception on October 12, 2004 to July 31, 2008.



Net cash used in  investing  activities  for the nine months ended July 31, 2008
was  $665,260,  as compared to $236,455  for the nine months ended July 31, 2007
and  $5,027,735  for the period from  inception  on October 12, 2004 to July 31,
2008. There was no cash used by or provided from financing activities during the
nine months ended July 31, 2008. Cash used by financing activities for the nine months ended
July 31, 2007 was $50,000, resulting from our repurchase of 30,000,000 shares of
common stock from Mr. Stevenson on November 6, 2006.



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We are still in the exploration stage and have generated no revenues to date.



Selected Consolidated Financial Information



|                     |  | July 31, 2008 | October 31, 2007
|-------------------- |  | ------------- | ----------------
|Current Assets       |  | $  4,367,742  | $     6,613,737 
|Total Assets         |  | 10,731,386    | 11,661,902      
|Current Liabilities  |  | 283,356       | 864,877         
|Stockholders Equity |  | 9,226,527     | 10,157,429      



Liquidity and Capital Resources



At July 31, 2008, we had cash in the bank of $4,338,989.



Our management intends to consider possible strategic transactions in the unconventional oil industry. We expect to be able to satisfy our cash requirements for at least the next 12 months without having to raise additional funds or seek bank loans if we do not undertake any such strategic transactions. After that 12-month period, we may have to raise additional monies through sales of our equity securities or through loans from banks or third parties to continue our business plans; however, no such plans have yet been implemented.



Our stockholders equity at July 31, 2008 was $9,226,527.



Off-Balance Sheet Arrangements



We have no off-balance sheet arrangements.



Table of Contractual Obligations

|                             | Payment due by period
|---------------------------- | ---------------------
|Contractual Obligations      | Total                
|Operating lease obligations1 | $112,798             
|Purchase obligations2        | $53,479              
|Total                        | $166,277             



| | 1 | On September 2, 2008, Blacksands entered into an assignment of sublease and will begin to pay rent on its Head Office premised in Toronto, Ontario, Canada effective October 1, 2008, at a rate of $2,750 Cdn per month plus applicable taxes, until January 30, 2012.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2 | On November 1, 2005, Access entered into an agreement with Coniston to provide management, consulting and advisory services to Access (the Services). These services include assisting Access in negotiating joint venture agreements, assisting in the formation of a team of technical experts, and other consulting and advisory services as required by Access from time to time. The agreement automatically renews for consecutive one-year terms unless terminated by either party in writing.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Critical Accounting Policies



Our financial statements are based on the selection and application of generally accepted accounting principles, which require us to make estimates and assumptions about future events that affect the amounts reported in our financial statements and the accompanying notes. Future events and their effects cannot be determined with certainty. Therefore, the determination of estimates requires the exercise of judgment. Actual results could differ



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from those estimates, and any such differences may be material to our financial statements. We believe that our policies may involve a higher degree of judgment and complexity in their application than our other accounting policies and represent the critical accounting policies used in the preparation of our financial statements. If different assumptions or conditions were to prevail, the results could be materially different from our reported results. Our significant accounting policies are presented in the notes to our financial statements.



When we prepare our consolidated financial statements, we use estimates and assumptions that may affect reported amounts and disclosures. We base these estimates on historical results and various other assumptions believed to be reasonable, the results of which form the basis for making estimates concerning the carrying value of assets and liabilities that are not readily available from other sources. Actual results could differ from the amounts previously estimated, which were based on the information available at the time the estimates were made. Changes in estimates are recorded if and when better information becomes available.



We consider an accounting estimate to be critical if: (1) the accounting estimate requires us to make an assumption about a matter that was highly uncertain at the time the estimate was made, and (2) changes in the estimate that are reasonably likely to occur from period to period, or use of a different estimate that we reasonably could have used in the current period, could have a material impact on our consolidated results of operations or financial condition.



We have established an Audit Committee consisting of two non-executive Directors. The members of the Audit Committee are Bruno Mosimann and Mark Holcombe.



New Accounting Pronouncements



In September 2006, the FASB issued FASB Statement No. 157. This Statement defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. This Statement applies under other accounting pronouncements that require or permit fair value measurements, the Board having previously concluded in those accounting pronouncements that fair value is a relevant measurement attribute. Accordingly, this Statement does not require any new fair value measurements. However, for some entities, the application of this Statement will change current practices. This Statement is effective for financial statements for fiscal years beginning after November 15, 2007. Earlier application is permitted provided that the reporting entity has not yet issued financial statements for that fiscal year. Management is currently evaluating
the impact this statement will have on the consolidated financial statements of the Company once adopted.



In February 2007, the FASB issued Statement of Financial Accounting Standards No. 159,The Fair Value Option for Financial Assets and Financial Liabilities  Including an amendment of FASB Statement No. 115. This Statement permits entities to choose to measure many financial instruments and certain other items at fair value. The objective is to improve financial reporting by providing entities with the opportunity to mitigate volatility in reported earnings caused by measuring related assets and liabilities differently without having to apply complex hedge accounting provisions. This Statement applies to all entities, including not-for-profit organizations. Most of the provisions of this Statement apply only to entities that elect the fair value option. However, the amendment to FASB Statement No. 115,Accounting for Certain
Investments in Debt and Equity Securities, applies to all entities with available-for-sale and trading securities. The fair value option permits all entities to choose to measure eligible items at fair value at specified election dates.



A business entity shall report unrealized gains and losses on items for which the fair value option has been elected in earnings (or another performance indicator if the business entity does not report earnings) at each subsequent reporting date. The fair value option may be applied instrument by instrument (with a few exceptions); is irrevocable (unless a new election date occurs); and is applied only to entire instruments and not to portions of instruments. This Statement is effective as of the beginning of an entitys first fiscal year that begins after or before November 15, 2007, provided the entity also elects to apply the provisions of FASB Statement No. 157,Fair Value Measurement. The Company does not expect the adoption of SFAS 159 to materially effect the Companys financial position or results of operations.

In December 2007, the FASB issued FASB Statement No. 141 (revised 2007),Business Combinations. This Statement replaces FASB Statement No. 141,Business Combinations. This Statement retains the fundamental



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requirements in Statement 141 that the acquisition method of accounting (which Statement 141 called the purchase method) be used for all business combinations and for an acquirer to be identified for each business combination. This Statement defines the acquirer as the entity that obtains control of one or more businesses in the business combination and establishes the acquisition date as the date that the acquirer achieves control. This Statements scope is broader than that of Statement 141, which applied only to business combinations in which control was obtained by transferring consideration. By applying the same method of accountingthe acquisition methodto all transactions and other events in which one entity obtains control over one or more other businesses, this Statement improves the comparability of the information about business combinations provided in financial reports.

This Statement requires an acquirer to recognize the assets acquired, the liabilities assumed, and any non-controlling interest in the acquiree at the acquisition date, measured at their fair values as of that date, with limited exceptions specified in the Statement. That replaces Statement 141s cost-allocation process, which required the cost of an acquisition to be allocated to the individual assets acquired and liabilities assumed based on their estimated fair values.

This Statement applies to all transactions or other events in which an entity (the acquirer) obtains control of one or more businesses (the acquirer), including those sometimes referred to as true mergers or mergers of equals and combinations achieved without the transfer of consideration, for example, by contract alone or through the lapse of minority veto rights. This Statement applies to all business entities, including mutual entities that previously used the pooling-of-interests method of accounting for some business combinations. It does not apply to: (a) The formation of a joint venture, (b) The acquisition of an asset or a group of assets that does not constitute a business, (c) A combination between entities or businesses under common control, (d) A combination between not-for-profit organizations or the acquisition of a for-profit business by a not-for-profit organization.

This Statement applies prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008. An entity may not apply it before that date. Management believes this Statement will have no impact on the financial statements of the Company once adopted.



In December 2007, the FASB issued FASB Statement No. 160 Non-controlling Interests in Consolidated Financial Statements an amendment of ARB No. 51. This Statement applies to all entities that prepare consolidated financial statements, except not-for-profit organizations, but will affect only those entities that have an outstanding non-controlling interest in one or more subsidiaries or that deconsolidate a subsidiary.

This Statement amends ARB 51 to establish accounting and reporting standards for the non-controlling interest in a subsidiary and for the deconsolidation of a subsidiary. It clarifies that a non-controlling interest in a subsidiary is an ownership interest in the consolidated entity that should be reported as equity in the consolidated financial statements. Before this Statement was issued, limited guidance existed for reporting non-controlling interests. As a result, considerable diversity in practice existed. So-called minority interests were reported in the consolidated statement of financial position as liabilities or in the mezzanine section between liabilities and equity. This Statement improves comparability by eliminating that diversity.

A non-controlling interest, sometimes called a minority interest, is the portion of equity in a subsidiary not attributable, directly or indirectly, to a parent. The objective of this Statement is to improve the relevance, comparability, and transparency of the financial information that a reporting entity provides in its consolidated financial statements by establishing accounting and reporting standards that require: (a) The ownership interests in subsidiaries held by parties other than the parent be clearly identified, labeled, and presented in the consolidated statement of financial position within equity, but separate from the parents equity, (b) The amount of consolidated net income attributable to the parent and to the non-controlling interest be clearly identified and presented on the face of the consolidated statement of income, (c)  Changes in a parents ownership interest while the
parent retains its controlling financial interest in its subsidiary be accounted for consistently. A parents ownership interest in a subsidiary changes if the parent purchases additional ownership interests in its subsidiary or if the parent sells some of its ownership interests in its subsidiary. It also changes if the subsidiary reacquires some of its ownership interests or the subsidiary issues additional ownership interests. All of those transactions are economically similar, and this Statement requires that they be accounted for similarly, as equity transactions, (d) When a subsidiary is



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deconsolidated, any retained non-controlling equity investment in the former subsidiary will initially be measured at fair value. The gain or loss on the deconsolidation of the subsidiary is measured using the fair value of any non-controlling equity investment rather than the carrying amount of that retained investment, (e) Entities provide sufficient disclosures that clearly identify and distinguish between the interests of the parent and the interests of the non-controlling owners.

This Statement is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2008 (that is, January 1, 2009, for entities with calendar year-ends). Earlier adoption is prohibited. This Statement shall be applied prospectively as of the beginning of the fiscal year in which this Statement is initially applied, except for the presentation and disclosure requirements. The presentation and disclosure requirements shall be applied retrospectively for all periods presented. Management believes this Statement will have no impact on the financial statements of the Company once adopted.



Item 3. Quantitative and Qualitative Disclosures About Market Risk.



While the Companys reporting currency is U.S. dollars, the Companys principal executive offices and its principal exploration property, the A10 Project, are located in Canada, and most of its contractual obligations are payable in Canadian dollars. For this reason, the Company is subject to Canada-U.S. exchange rate risk. The Company considers the amount of risk to be manageable and does not currently, nor is it likely in the foreseeable future to, conduct hedging to reduce its exchange rate risk. A hypothetical 10% increase in the value of one Canadian dollar expressed in U.S. dollars during the nine months ended July 31, 2008 would have caused an approximate $47,800 increase in the Companys expenses for the nine months, and an equivalent decrease in the value of one Canadian dollar would have caused a $47,800 decrease in the Companys expenses for the nine months. A hypothetical 10%
increase in the value of one Canadian dollar expressed in U.S. dollars during the nine months ended July 31, 2008 would have caused an approximate $636,000 increase in the Companys other comprehensive loss and a corresponding decrease in stockholders equity for the nine months, and an equivalent decrease in the value of one Canadian dollar would have caused a $636,000 decrease in the Companys other comprehensive loss and a corresponding increase in stockholders equity for the nine months.



Item 4. Controls and Procedures.



Under the supervision and with the participation of our management, including the Chief Executive Officer and Chief Financial Officer, we have evaluated the effectiveness of our disclosure controls and procedures as required by Exchange Act Rule 13a-15(b) as of the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that these disclosure controls and procedures are effective. There were no changes in our internal control over financial reporting during the nine months ended July 31, 2008 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.





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PART II: OTHER INFORMATION



Item 1. Legal Proceedings.



None.



Item 1A. Risk Factors.



The Companys risk factors have not changed materially from those set forth under the heading Risk Factors and Uncertainties in the Companys most recent annual report on Form 10-KSB, except as follows:



Our funding of Access is dilutive to our shareholders.



The Company is committed, under the Unanimous Shareholders Agreement among Access, the Company and the minority shareholder, to contribute sufficient capital to Access to meet Accesss planned financial commitments until such time as Access has sufficient internal capital resources to fund its commitments without such contributions. These contributions are treated as a contribution of capital, with no increase in our current 75% equity participation in Access. Therefore, all contributions that we make to Access are dilutive to our shareholders as to 25% of such contributions. The minority shareholder is not obligated to provide any funding to Access in order to maintain his 25% interest in Access.



In addition, we may have insufficient capital resources to satisfy this obligation. If we are unable to satisfy our contractual obligation to fund Access, we may be liable for breach of contract.



Item 2. Unregistered Sales of Equity Securities and Use of Proceeds



None.



Item 3. Defaults Upon Senior Securities



None.



Item 4. Submission of Matters to a Vote of Security Holders



None.





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Item 5. Other Information.



|(a) | Form 8-K Information
|--- | --------------------



None.

|(b) | Director Nomination Procedures
|--- | ------------------------------

The Company does not have any established procedures by which security holders may recommend nominees to the Companys Board of Directors.



Item 6. Exhibits.



|Exhibit No. |  | Description                                          
|----------- |  | -----------------------------------------------------
|31.1        |  | Sec. 302 Certification of Principal Executive Officer
|31.2        |  | Sec. 302 Certification of Principal Financial Officer
|32.1        |  | Sec. 906 Certification of Principal Executive Officer
|32.2        |  | Sec. 906 Certification of Principal Financial Officer





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SIGNATURES



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



Date:   September 15, 2008

| | BLACKSANDS
                PETROLEUM, INC.
                By:  /s/ Paul A. Parisotto
                       _________________________________
                       Name:    Paul A.
                Parisotto
                       Title:      Chief
                Executive Officer
                                      (Principal
                Executive Officer)
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | By:  /s/ Rick
                Wilson
                       _________________________________
                       Name:    Rick Wilson
                       Title:      Chief
                Financial Officer
                                      (Principal
                Financial Officer)
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------









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