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| (Name      of small business issuer in its charter)                                                                                                                                                                                                                                                                                                                                                                                                   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Delaware                                                                                                                                                                                                                                                                                                                                                                                                                                              | 33-0464753 |
| (State      or other jurisdiction of incorporation or organization)                                                                                                                                                                                                                                                                                                                                                                                   | (IRS      Employer Identification  No.) |
|                  Suite      200, 630- 4 Avenue SW,  Calgary, Alberta,      Canada                       T2P      0J9                                                                                                                |
| (Address      of principal executive      offices)                                                              (Zip      Code) |
| (403)      777-9250                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| (Issuer’s      telephone number)Securities      registered under Section 12(b) of the Exchange Act:                                                                                                                                                                                                                                                                                                                                             |
| Title      of each class                                                                                                                                                                                                                                                                                                                                                                                                                              | Name      of each exchange on which registered |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                  | None |
| Securities      registered under Section 12(g) of the Exchange Act:                                                                                                                                                                                                                                                                                                                                                                                   |
| Common      Stock, par value $.001 per share                                                                                                                                                                                                                                                                                                                                                                                                     |
| (Title      of Each Class)                                                                                                                                                                                                                                                                                                                                                                                                                            |

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|          |                                                                 | Page   |
|---------------|----------------------------------------------------------------------|--------|
|          |                                                                 |   |
| Item      6.  | Management’s      Discussion and Analysis or Plan of Operation | 3      |
|          |                                                                 |   |
| Item      7.  | Financial      Statements                                            | 18     |
|          |                                                                 |   |
| Item      8A. | Controls      and Procedures                                         | 19     |
|          |                                                                 |   |
| Item      13. | Exhibits                                                             | 20     |
|          |                                                                 |   |

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|   | a) | On      December 16, 2004, the Financial Accounting Standards Board (FASB) issued      FASB Statement No. 123 (revised 2004), Share-Based Payment, which is a      revision of FASB Statement No. 123, Accounting for Stock-Based      Compensation. Statement 123(R) supersedes APB Opinion No. 25, Accounting      for Stock Issued to Employees, and amends FASB Statement No. 95, Statement      of Cash Flows. Generally, the approach in Statement 123(R) is similar to      the approach described in Statement 123.  However, Statement      123(R) requires all share-based payments to employees, including grants of      employee stock options, to be recognized in the statement of operations      based on their fair values. Pro forma disclosure is no longer an      alternative.  Statement 123(R) must be adopted no later than      January 1, 2006.  Early adoption will be permitted in periods in      which financial statements have not yet been issued.  The      Company was planning to adopt Statement 123(R) on January 1, 2005,      however, on April 14, 2005, the Securities Exchange Commission provided      for a phased-in implementation process for Statement 123(R). As such, the      Company delayed the implementation until January 1,  2006. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | The      Company adopted Statement 123(R) using the modified prospective method on      January 1, 2006 which will require the Company to recognize in the income      statement a charge of $593,023 over the next 4  years. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | In      May 2005, the FASB issued FASB Statement No. 154, Accounting Changes and      Error Corrections (FAS 154), a replacement of APB Opinion No. 20,      Accounting Changes, and FASB Statement No. 3, Reporting Accounting Changes      in Interim Financial Statements (FAS 3).  FAS 154 replaces the      provisions of FAS 3 with respect to reporting accounting changes in      interim financial statements.  FAS 154 is effective for      accounting changes and corrections of errors made in fiscal years      beginning after December 15, 2005.  Early adoption is permitted      for accounting changes and corrections of errors made in fiscal years      beginning after June 1, 2005. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Company adopted FAS 154 on January 1, 2006, and there is no current      impact. |
|--------|-------------------------------------------------------------------------------------------|

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| §   | We      will experience failures to discover oil and gas in commercial      quantities; |
|--------------------|-----------------------------------------------------------------------------------------|

| §   | There      are uncertainties as to the costs to be incurred in our exploratory      drilling activities, cost overruns are possible and we may encounter      mechanical difficulties and failures in completing  wells; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | There      are uncertain costs inherent in drilling into unknown formations, such as      over-pressured zones, high temperatures and tools lost in the hole;      and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | We      may make changes in our drilling plans and locations as a result of prior      exploratory drilling. |
|--------------------|--------------------------------------------------------------------------------------------------------------|

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| §   | The      venture participants are required to complete certain minimum work      programs during the three phases of the terms of the PSC's.  In      the event the venture participants fail to fulfill any of these minimum      work programs, the parties to the venture must pay to the GOI their      proportionate share of the amount that would be required to complete the      minimum work program.  Accordingly, we could be called upon to      pay our proportionate share of the estimated costs of any incomplete work      programs; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Until      such time as the GOI attains self sufficiency in the production of crude      oil and condensate and is able to meet its national demand, the parties to      the venture are required to sell in the Indian domestic market their      entitlement under the PSC's to crude oil and condensate produced from the      exploration blocks.  In addition, the Indian domestic market has      the first call on natural gas produced from the exploration blocks and the      discovery and production of natural gas must be made in the context of the      government’s policy of utilization of natural gas and take into account      the objectives of the government to develop its resources in the most      efficient manner and promote conservation      measures.  Accordingly, this provision could interfere with our      ability to realize the maximum price for our share of production of      hydrocarbons; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | The      parties to each agreement that are not Indian companies, which includes      us, are required to negotiate technical assistance agreements with the GOI      or its nominee whereby such foreign company can render technical      assistance and make available commercially available technical information      of a proprietary nature for use in India by the government or its nominee,      subject, among other things, to confidentiality      restrictions.  Although not intended, this could increase each      venture’s and our cost of operations;and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | The      parties to each venture are required to give preference, including the use      of tender procedures, to the purchase and use of goods manufactured,      produced or supplied in India provided that such goods are available on      equal or better terms than imported goods, and to employ Indian      subcontractors having the required skills insofar as their services are      available on comparable standards and at competitive prices and      terms.  Although not intended, this could increase the venture’s      and our cost of operations. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| §   | political      conditions in oil producing regions, including the Middle East and      elsewhere; |
|--------------------|---------------------------------------------------------------------------------------------------|

| §   | the      domestic and foreign supply of oil andgas; |
|--------------------|-----------------------------------------------------|

| §   | quotas      imposed by the Organization of Petroleum Exporting Countries upon its      members; |
|--------------------|-------------------------------------------------------------------------------------------------|

| §   | the      level of consumer demand; |
|--------------------|------------------------------------|

| §   | weather      conditions; |
|--------------------|--------------------------|

| §   | domestic      and foreign government regulations; |
|--------------------|---------------------------------------------------|

| §   | the      price and availability of alternativefuels; |
|--------------------|------------------------------------------------------|

| §   | overall      economic conditions; and |
|--------------------|---------------------------------------|

| §   | international      political conditions. |
|--------------------|------------------------------------------|

| §   | the      capacity and availability of oil and gas gathering systems and      pipelines; |
|--------------------|-----------------------------------------------------------------------------------------|

| §   | the      ability to produce oil and gas in commercial quantities and to enhance and      maintain production from existing wells and wells proposed to be      drilled; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | the      proximity of future hydrocarbon discoveries to oil and gas transmission      facilities and processing equipment (as well as the capacity of such      facilities); |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | the      effect of governmental regulation of production and transportation      (including regulations relating to prices, taxes, royalties, land tenure,      allowable production, importing and exporting of oil and condensate and      matters associated with the protection of the  environment); |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | the      imposition of trade sanctions or embargoes by other    countries; |
|--------------------|----------------------------------------------------------------------------|

| §   | the      availability and frequency of deliveryvessels; |
|--------------------|---------------------------------------------------------|

| §   | changes      in supply due to drilling byothers; |
|--------------------|--------------------------------------------------|

| §   | the      availability of drilling rigs; and |
|--------------------|---------------------------------------------|

| §   | changes      in demand. |
|--------------------|-------------------------|

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| Exhibit | Description                                                                                                                                                                                                                                                        |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1     | Certificate      of Incorporation of the Registrant, as amended.      (1)                                                                                                                                                                                          |
| 3.2     | Bylaws      of the Registrant, as amended. (4)                                                                                                                                                                                                                     |
| 3.3     | Certificate      of Amendment filed with the State of Delaware on November 25, 1998. (2)                                                                                                                                                                           |
| 3.4     | Certificate      of Amendment filed with the State of Delaware on December 4, 1998. (2)                                                                                                                                                                            |
| 3.5     | Certificate      of Amendment filed with the State of Delaware on March 18, 2003. (5)                                                                                                                                                                              |
| 3.6     | Certificate      of Amendment filed with the State of Delaware on January 8, 2004. (5)                                                                                                                                                                             |
| 4.1     | Specimen      stock certificate of the Registrant. (5)                                                                                                                                                                                                             |
| 10.1    | Restated      1993 Stock Incentive Plan. (1)                                                                                                                                                                                                                       |
| 10.2    | 1994      Directors Stock Option Plan. (1)                                                                                                                                                                                                                         |
| 10.3    | 1994      Stock Option Plan. (1)                                                                                                                                                                                                                                   |
| 10.4    | 1993      Stock Incentive Plan. (1)                                                                                                                                                                                                                                |
| 10.5    | 1998      Stock Incentive Plan. (2)                                                                                                                                                                                                                                |
| 10.6    | Stock      Purchase Agreement dated April 4, 2003 by and among Suite101.com, Inc.,      Jean Paul Roy and GeoGlobal Resources (India) Inc. (3)                                                                                                                     |
| 10.7    | Amendment      dated August 29, 2003 to Stock Purchase Agreement dated April 4, 2003.      (4)                                                                                                                                                                     |
| 10.8    | Technical      Services Agreement dated August 29, 2003 between Suite101.com, Inc. and      Roy Group (Barbados) Inc. (4)                                                                                                                                          |
| 10.8.1  | Amendment      to Technical Services Agreement dated January 31, 2006 between GeoGlobal      Resources Inc. and Roy Group (Barbados) Inc. (8)                                                                                                                      |
| 10.9    | Participating      Interest Agreement dated March 27, 2003 between GeoGlobal Resources      (India) Inc. and Roy Group (Mauritius) Inc. (4)                                                                                                                        |
| 10.10   | Escrow      Agreement dated August 29, 2003 among Registrant, Jean Paul Roy and      Computershare Trust Company of Canada. (4)                                                                                                                                    |
| 10.11   | Promissory      Note dated August 29, 2003 payable to Jean Paul Roy. (4)                                                                                                                                                                                           |
| 10.12   | Production      Sharing Contract dated February 4, 2003, among The Government of India,      Gujarat State Petroleum Corporation Limited, Jubilant Enpro Limited and      GeoGlobal Resources (India) Inc. (6)                                                     |
| 10.13   | Production      Sharing Contract dated February 6, 2004 among The Government of India,      Gujarat State Petroleum Corporation Limited, Jubilant Enpro Private      Limited and GeoGlobal Resources (Barbados) Inc. (6)                                           |
| 10.14   | Production      Sharing Contract dated February 6, 2004 among The Government of India,      Gujarat State Petroleum Corporation Limited, Jubilant Enpro Private      Limited, Prize Petroleum Company Limited and GeoGlobal Resources      (Barbados) Limited. (6) |
| 10.15   | Carried      Interest Agreement dated August 27, 2002 between Gujarat State Petroleum      Corporation Limited and GeoGlobal Resources (India) Inc. (5)                                                                                                            |
| 10.16   | Agency      Agreement dated September 9, 2005 between the Company and Jones, Gable      & Company Limited.      (7)                                                                                                                                            |
| 10.17   | Form      of Subscription Agreement entered into by subscribers relating to offers      and sales of Units by Jones, Gable & Company Limited.      (7)                                                                                                         |
|    | Form      of Subscription Agreement with respect to sales of an aggregate of      1,000,000 of the Units.      (7)                                                                                                                                                 |
| 10.18   | Registration      Rights Agreement dated September 9, 2005 between the Company and      Jones, Gable & Company Limited.      (7)                                                                                                                          |
| 10.19   | Production      Sharing Contract dated September 23, 2005, between the Government of      India and the Company.      (7)                                                                                                                                     |
| 10.20   | Production      Sharing Contract dated September 23, 2005, between the Government of      India, Gujarat State Petroleum Corporation Limited, GAIL (India) Ltd.,      Jubilant Capital Pvt. Ltd. and the Company.      (7)                                    |
| 14      | Code      of Ethics. (5)                                                                                                                                                                                                                                           |
|    |                                                                                                                                                                                                                                                               |
|    |                                                                                                                                                                                                                                                               |

----

| 21     | Subsidiaries      of the Registrant:                                                                             |
|--------|------------------------------------------------------------------------------------------------------------------|
|   | Name                                                                                                             | State      or Jurisdiction of Incorporation |
|   | GeoGlobal      Resources (India) Inc.                                                                            | Barbados |
|   | GeoGlobal      Resources (Canada) Inc.                                                                           | Alberta |
|   | GeoGlobal      Resources (Barbados) Inc.                                                                         | Barbados |
|   |                                                                                                             |
| 23     | Consent      of experts and counsel:                                                                             |
| 23.1   | Consent of Ernst & Young LLP. (9)                                                                            |
| 31.1   | Certification of President and Chief Executive Officer      Pursuant to Rule 13a-14(a). (9)                      |
| 31.2   | Certification of Chief Financial Officer Pursuant to      Rule 13a-14(a). (9)                                    |
| 32.1   | Certification of President and Chief Executive Officer      Pursuant to Section 1350 (furnished, not filed). (9) |
| 32.2   | Certification of Chief Financial Officer Pursuant to      Section 1350 (furnished, not filed). (9)               |

| (1) | Filed      as an Exhibit to Neuro Navigational Corporation Form 10-KSB No. 0-25136      dated September 30, 1994. |
|-----|-------------------------------------------------------------------------------------------------------------------|

| (2) | Filed      as an Exhibit to our Current Report on Form 8-K dated December 10,      1998. |
|-----|------------------------------------------------------------------------------------------|

| (3) | Filed      as exhibit 10.1 to our Quarterly Report on Form 10-QSB for the quarter      ended March 31, 2003. |
|-----|--------------------------------------------------------------------------------------------------------------|

| (4) | Filed      as an exhibit to our Current Report on Form 8-K for August 29,      2003. |
|-----|--------------------------------------------------------------------------------------|

| (5) | Filed      as an Exhibit to our Form 10-KSB dated April 1,  2004. |
|-----|-------------------------------------------------------------------|

| (6) | Filed      as an Exhibit to our Form 10-KSB/A dated April 28,  2004. |
|-----|----------------------------------------------------------------------|

| (7) | Filed      as an Exhibit to our Quarterly Report on Form 10-QSB for the quarter ended      September 30, 2005. |
|-----|----------------------------------------------------------------------------------------------------------------|

| (8) | Filed      as an Exhibit to our Current Report on Form 8-K dated January 31,      2006. |
|-----|-----------------------------------------------------------------------------------------|

| (9) | Filed      herewith. |
|-----|----------------------|

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| GEOGLOBAL      RESOURCES INC.(a      development stage enterprise)CONSOLIDATED      BALANCE SHEETS                                                                     |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| December      31                                                                                                                                                  |   | 2005US      $ |   |   | 2004US      $ |   |
|                                                                                                                                                                   |   | Restatednote      5c |   |   | Restatednote      5c |   |
| Assets                                                                                                                                                                 |   |   |   |   |   |   |
|    Current                                                                                                                                              |   |   |   |   |   |   |
| Cash      and cash equivalents (note 2g)                                                                                                                               |   |   | 36,037,388 |   |   |   | 4,419,598 |   |
| Restricted      cash (note 10a)                                                                                                                                        |   |   | 392,485 |   |   |   | 206,796 |   |
|                                                                                                                                                                   |   |   | 36,429,873 |   |   |   | 4,626,394 |   |
| Accounts      receivable and prepaids                                                                                                                                  |   |   | 144,753 |   |   |   | 181,237 |   |
| Cash      call receivable                                                                                                                                              |   |   | 49,947 |   |   |   | 27,511 |   |
|                                                                                                                                                                   |   |   | 36,624,573 |   |   |   | 4,835,142 |   |
|                                                                                                                                                                   |   |   |   |   |   |   |   |   |
| Property      and equipment (note 3)                                                                                                                                   |   |   |   |   |   |   |   |   |
| Exploration      costs, not subject to depletion                                                                                                                       |   |   | 3,957,723 |   |   |   | 707,023 |   |
| Computer      and office equipment, net                                                                                                                                |   |   | 89,826 |   |   |   | 143,053 |   |
|                                                                                                                                                                   |   |   | 4,047,549 |   |   |   | 850,076 |   |
|                                                                                                                                                                   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                   |   |   | 40,672,122 |   |   |   | 5,685,218 |   |
|                                                                                                                                                                   |   |   |   |   |   |   |   |   |
| Liabilities                                                                                                                                                            |   |   |   |   |   |   |   |   |
| Current                                                                                                                                                                |   |   |   |   |   |   |   |   |
| Accounts      payable                                                                                                                                                  |   |   | 159,145 |   |   |   | 29,623 |   |
| Accrued      liabilities                                                                                                                                               |   |   | 43,500 |   |   |   | 54,442 |   |
| Due      to related companies (notes 7c, 7d and  7e)                                                                                                         |   |   | 244,452 |   |   |   | 19,624 |   |
|                                                                                                                                                                   |   |   | 447,097 |   |   |   | 103,689 |   |
| Stockholders'      Equity                                                                                                                                              |   |   |   |   |   |   |   |   |
| Capital      stock (note 4)                                                                                                                                            |   |   |   |   |   |   |   |   |
| Authorized                                                                                                                                                             |   |   |   |   |   |   |   |   |
| 100,000,000      common shares with a par value of US$0.001 each                                                                                                       |   |   |   |   |   |   |   |   |
| 1,000,000      preferred shares with a par value of US$0.01 each                                                                                                       |   |   |   |   |   |   |   |   |
| Issued                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| 62,954,255      common shares (December 31, 2004 – 55,207,455)                                                                                                   |   |   | 48,361 |   |   |   | 40,615 |   |
| Additional      paid-in capital (note 4)                                                                                                                               |   |   | 45,043,012 |   |   |   | 7,244,602 |   |
| Deficit      accumulated during the development stage                                                                                                                  |   |   | (4,866,348 | ) |   |   | (1,703,688 | ) |
|                                                                                                                                                                   |   |   | 40,225,025 |   |   |   | 5,581,529 |   |
|                                                                                                                                                                   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                   |   |   | 40,672,122 |   |   |   | 5,685,218 |   |
| See      Commitments, Contingencies and Guarantees (note 3e, 3f and10)The      accompanying notes are an integral part of these Consolidated Financial      Statements |   |

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| GEOGLOBAL      RESOURCES INC.(a      development stage enterprise)CONSOLIDATED      STATEMENTS OF OPERATIONS |   |
|--------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                         |   | Year      endedDec      31, 2005US      $ |   |   | Year      endedDec      31, 2004US      $ |   |   | Year      endedDec      31, 2003US      $ |   |   | Period      fromInception,Aug      21, 2002to      Dec 31, 2005US      $ |   |
|                                                                                                         |   | Restatednote      5c |   |   | Restatednote      5c |   |   | Restatednote      5c |   |   | Restatednote      5c |   |
|                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses      (notes 7c, 7d and 7e)                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| General      and administrative                                                                              |   |   | 495,326 |   |   |   | 451,788 |   |   |   | 151,404 |   |   |   | 1,104,716 |   |
| Consulting      fees                                                                                         |   |   | 2,947,126 |   |   |   | 541,617 |   |   |   | 210,953 |   |   |   | 3,699,696 |   |
| Professional      fees                                                                                       |   |   | 201,298 |   |   |   | 161,381 |   |   |   | 131,819 |   |   |   | 501,415 |   |
| Depreciation                                                                                                 |   |   | 49,531 |   |   |   | 61,308 |   |   |   | 50,450 |   |   |   | 161,987 |   |
|                                                                                                         |   |   | 3,693,281 |   |   |   | 1,216,094 |   |   |   | 544,626 |   |   |   | 5,467,814 |   |
| Other      expenses (income)                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consulting      fees recovered                                                                               |   |   | (12,950 | ) |   |   | (14,300 | ) |   |   | (38,775 | ) |   |   | (66,025 | ) |
| Equipment      costs recovered                                                                               |   |   | (12,950 | ) |   |   | (2,200 | ) |   |   | (4,245 | ) |   |   | (19,395 | ) |
| Gain      on sale of equipment                                                                               |   |   | (42,228 | ) |   |   | -- |   |   |   | -- |   |   |   | (42,228 | ) |
| Foreign      exchange (gain) loss                                                                            |   |   | (319 | ) |   |   | 3,495 |   |   |   | 18,634 |   |   |   | 21,810 |   |
| Interest      (note 2g)                                                                                      |   |   | (462,174 | ) |   |   | (31,591 | ) |   |   | (1,863 | ) |   |   | (495,628 | ) |
|                                                                                                         |   |   | (530,621 | ) |   |   | (44,596 | ) |   |   | (26,249 | ) |   |   | (601,466 | ) |
|                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss and comprehensive loss forthe      period (note 8)                                             |   |   | (3,162,660 | ) |   |   | (1,171,498 | ) |   |   | (518,377 | ) |   |   | (4,866,348 | ) |
|                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss per share–      basic and diluted (note 4f)                                              |   |   | (0.06 | ) |   |   | (0.03 | ) |   |   | (0.03 | ) |   |   |   |   |

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| GEOGLOBAL      RESOURCES INC.(a      development stage enterprise)CONSOLIDATED      STATEMENTS OF STOCKHOLDERS' EQUITY                  |   |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                    |   | Capital StockUS      $ |   |   | Additionalpaid-in      capitalUS      $ |   |   | AccumulatedDeficitUS      $ |   |   | Stockholders'EquityUS      $ |   |
|                                                                                                                                    |   |   |   |   | Restatednote      5c |   |   | Restatednote      5c |   |   | Restatednote      5c |   |
| Common      shares issued on incorporation onAugust      21, 2002                                                                       |   |   | 64 |   |   |   | -- |   |   |   | -- |   |   |   | 64 |   |
| Net      loss and comprehensive loss for the period                                                                                     |   |   | -- |   |   |   | -- |   |   |   | (13,813 | ) |   |   | (13,813 | ) |
| Balance      at December 31, 2002                                                                                                       |   |   | 64 |   |   |   | -- |   |   |   | (13,813 | ) |   |   | (13,749 | ) |
|                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common      shares issued during the year                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| On      acquisition (note 6)                                                                                                            |   |   | 34,000 |   |   |   | 1,072,960 |   |   |   | -- |   |   |   | 1,106,960 |   |
| Exercise      of options                                                                                                                |   |   | 397 |   |   |   | 101,253 |   |   |   | -- |   |   |   | 101,650 |   |
| Private      placement financing                                                                                                        |   |   | 6,000 |   |   |   | 5,994,000 |   |   |   | -- |   |   |   | 6,000,000 |   |
| Share      issuance costs                                                                                                               |   |   | -- |   |   |   | (550,175 | ) |   |   | -- |   |   |   | (550,175 | ) |
| Stock      based compensation                                                                                                           |   |   | -- |   |   |   | 62,913 |   |   |   | -- |   |   |   | 62,913 |   |
| Net      loss and comprehensive loss for the year                                                                                       |   |   | -- |   |   |   | -- |   |   |   | (518,377 | ) |   |   | (518,377 | ) |
| Balance      at December 31, 2003                                                                                                       |   |   | 40,461 |   |   |   | 6,680,951 |   |   |   | (532,190 | ) |   |   | 6,189,222 |   |
|                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common      shares issued during the year                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exercise      of options                                                                                                                |   |   | 115 |   |   |   | 154,785 |   |   |   | -- |   |   |   | 154,900 |   |
| Exercise      of warrants                                                                                                               |   |   | 39 |   |   |   | 58,611 |   |   |   | -- |   |   |   | 58,650 |   |
| Stock      based compensation                                                                                                           |   |   | -- |   |   |   | 350,255 |   |   |   | -- |   |   |   | 350,255 |   |
| Net      loss and comprehensive loss for the year                                                                                       |   |   | -- |   |   |   | -- |   |   |   | (1,171,498 | ) |   |   | (1,171,498 | ) |
| Balance      at December 31, 2004                                                                                                       |   |   | 40,615 |   |   |   | 7,244,602 |   |   |   | (1,703,688 | ) |   |   | 5,581,529 |   |
|                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common      shares issued during the year                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Options      exercised for cash (note 4e)                                                                                               |   |   | 739 |   |   |   | 1,004,647 |   |   |   | -- |   |   |   | 1,005,386 |   |
| 2003      Purchase warrants exercised for cash(note      4d(i))                                                                         |   |   | 2,214 |   |   |   | 5,534,036 |   |   |   | -- |   |   |   | 5,536,250 |   |
| Broker      warrants exercised for cash(note      4d(ii))                                                                               |   |   | 541 |   |   |   | 810,809 |   |   |   | -- |   |   |   | 811,350 |   |
| Private      placement financing (note 4b)                                                                                              |   |   | 4,252 |   |   |   | 27,636,348 |   |   |   | -- |   |   |   | 27,640,600 |   |
| Share      issuance costs on private placement(note      4b)                                                                            |   |   | -- |   |   |   | (1,541,686 | ) |   |   | -- |   |   |   | (1,541,686 | ) |
| Stock      based compensation                                                                                                           |   |   | -- |   |   |   | 4,354,256 |   |   |   | -- |   |   |   | 4,354,256 |   |
| Net      loss and comprehensive loss for the year                                                                                       |   |   | -- |   |   |   | -- |   |   |   | (3,162,660 | ) |   |   | (3,162,660 | ) |
|  Balance      at December 31, 2005                                                                                                 |   |   | 48,361 |   |   |   | 45,043,012 |   |   |   | (4,866,348 | ) |   |   | 40,225,025 |   |
| See      note 4 for further informationThe      accompanying notes are an integral part of these Consolidated Financial      Statements |   |

----

| GEOGLOBAL      RESOURCES INC.(a      development stage enterprise)CONSOLIDATED      STATEMENTS OF CASH FLOWS |   |
|--------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                         |   | Year      endedDec      31, 2005US      $ |   |   | Year      endedDec      31, 2004US      $ |   |   | Year      endedDec      31, 2003US      $ |   |   | Period      fromInception,Aug      21, 2002to      Dec 31, 2005US      $ |   |
|                                                                                                         |   | Restatednote      5c |   |   | Restatednote      5c |   |   | Restatednote      5c |   |   | Restatednote      5c |   |
| Cash      flows provided by (used in) operating activities                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss                                                                                                |   |   | (3,162,660 | ) |   |   | (1,171,498 | ) |   |   | (518,377 | ) |   |   | (4,866,348 | ) |
| Adjustments      to reconcile net loss tonet      cash used in operating activities:                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation                                                                                                 |   |   | 49,531 |   |   |   | 61,308 |   |   |   | 50,450 |   |   |   | 161,987 |   |
| Stock-based      compensation                                                                                |   |   | 2,681,680 |   |   |   | 304,002 |   |   |   | 40,682 |   |   |   | 3,026,364 |   |
| Gain      on sale of equipment                                                                               |   |   | (42,228 | ) |   |   | -- |   |   |   | -- |   |   |   | (42,228 | ) |
| Changes      in operating assets and liabilities:                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts      receivable and prepaids                                                                        |   |   | 36,484 |   |   |   | (99,750 | ) |   |   | (6,487 | ) |   |   | (69,753 | ) |
| Accounts      payable                                                                                        |   |   | 24,307 |   |   |   | (147,060 | ) |   |   | 121,304 |   |   |   | 4,922 |   |
| Accrued      liabilities                                                                                     |   |   | 22,500 |   |   |   | 4,600 |   |   |   | 16,400 |   |   |   | 43,500 |   |
| Due      to shareholder                                                                                      |   |   | -- |   |   |   | -- |   |   |   | (6,952 | ) |   |   | -- |   |
| Due      to related companies                                                                                |   |   | 224,828 |   |   |   | (27,239 | ) |   |   | 5,107 |   |   |   | 202,696 |   |
|                                                                                                         |   |   | (165,558 | ) |   |   | (1,075,637 | ) |   |   | (297,873 | ) |   |   | (1,538,860 | ) |
| Cash      flows provided by (used in) investing activities                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Property      and equipment                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exploration      costs                                                                                       |   |   | (1,578,124 | ) |   |   | (460,016 | ) |   |   | (156,598 | ) |   |   | (2,216,663 | ) |
| Computer      and office equipment                                                                           |   |   | (36,876 | ) |   |   | (87,341 | ) |   |   | (140,247 | ) |   |   | (292,385 | ) |
| Proceeds      on sale of equipment                                                                           |   |   | 82,800 |   |   |   |   |   |   |   |   |   |   |   | 82,800 |   |
| Cash      acquired on acquisition (note 6)                                                                   |   |   | -- |   |   |   | -- |   |   |   | 3,034,666 |   |   |   | 3,034,666 |   |
| Restricted      cash (note 10a)                                                                              |   |   | (185,689 | ) |   |   | (206,796 | ) |   |   | -- |   |   |   | (392,485 | ) |
| Changes      in investing assets and liabilities:                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      call receivable                                                                                    |   |   | (22,436 | ) |   |   | (27,511 | ) |   |   | -- |   |   |   | (49,947 | ) |
| Accounts      payable                                                                                        |   |   | 94,415 |   |   |   | -- |   |   |   | -- |   |   |   | 94,415 |   |
| Accrued      liabilities                                                                                     |   |   | (33,442 | ) |   |   | 33,442 |   |   |   | -- |   |   |   | -- |   |
|                                                                                                         |   |   | (1,679,352 | ) |   |   | (748,222 | ) |   |   | 2,737,821 |   |   |   | 260,401 |   |
| Cash      flows provided by (used in) financing activities                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds      from issuance of common shares                                                                 |   |   | 34,993,586 |   |   |   | 213,550 |   |   |   | 6,101,650 |   |   |   | 41,308,850 |   |
| Share      issuance costs                                                                                    |   |   | (1,541,686 | ) |   |   | -- |   |   |   | (550,175 | ) |   |   | (2,091,861 | ) |
| Changes      in financing liabilities:                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Note      payable (note 7a)                                                                                  |   |   | -- |   |   |   | (1,000,000 | ) |   |   | (1,000,000 | ) |   |   | (2,000,000 | ) |
| Accounts      payable                                                                                        |   |   | 10,800 |   |   |   | -- |   |   |   | 61,078 |   |   |   | 71,878 |   |
| Due      to shareholder                                                                                      |   |   | -- |   |   |   | -- |   |   |   | (37,998 | ) |   |   | -- |   |
| Due      to related companies                                                                                |   |   | -- |   |   |   | -- |   |   |   | 15,132 |   |   |   | 26,980 |   |
|                                                                                                         |   |   | 33,462,700 |   |   |   | (786,450 | ) |   |   | 4,589,687 |   |   |   | 37,315,847 |   |
| Net      increase (decrease) in cash andcash      equivalents                                                |   |   | 31,617,790 |   |   |   | (2,610,309 | ) |   |   | 7,029,635 |   |   |   | 36,037,388 |   |
|                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      and cash equivalents, beginning of period                                                          |   |   | 4,419,598 |   |   |   | 7,029,907 |   |   |   | 272 |   |   |   | -- |   |
|                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      and cash equivalents, end of period                                                                |   |   | 36,037,388 |   |   |   | 4,419,598 |   |   |   | 7,029,907 |   |   |   | 36,037,388 |   |
|                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      and cash equivalents                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current      bank accounts                                                                                   |   |   | 127,803 |   |   |   | 90,670 |   |   |   | 36,631 |   |   |   | 127,803 |   |
| Term      deposits                                                                                           |   |   | 35,909,585 |   |   |   | 4,328,928 |   |   |   | 6,993,276 |   |   |   | 35,909,585 |   |
|                                                                                                         |   |   | 36,037,388 |   |   |   | 4,419,598 |   |   |   | 7,029,907 |   |   |   | 36,037,388 |   |
| The      accompanying notes are an integral part of these Consolidated Financial      Statements             |   |

----

| i)   | Capitalized      costs |
|----------------|------------------------|

----

| ii)   | Depreciation      and depletion |
|-----------------|---------------------------------|

| iii)   | Ceiling      test |
|------------------|-------------------|

| iv)   | Asset      retirement obligations |
|-----------------|-----------------------------------|

|   | c) | Joint      operations |
|--------|----|-----------------------|

|   | Net      loss per share is calculated based upon the weighted-average number of      shares outstanding during the period.  The treasury stock method      is used to determine the dilutive effect of the stock      options.  The treasury stock method assumes any proceeds      obtained upon exercise of options would be used to purchase common shares      at the average market price during the period.  There are no      differences between net loss and the weighted-average number of shares      used in the calculation of the basic net loss per share and that used in      the calculation of diluted net loss per share as the affect of the options      and warrants on the net loss per share calculations are      anti-dilutive. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e) | Use      of estimates |
|--------|----|-----------------------|

|   | The      preparation of the consolidated financial statements in accordance with      accounting principles generally accepted in the United States requires      management to make estimates and assumptions that affect the reported      amounts of assets and liabilities at the date of the consolidated      financial statements and the reported amounts of revenues and expenses      during the reporting period.  Actual results may differ from      these estimated amounts. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | f) | Financial      instruments |
|--------|----|----------------------------|

|   | The      Company has estimated the fair value of its financial instruments which      include cash and cash equivalents, restricted cash, accounts receivable      and prepaids, cash call receivable, accounts payable,  note      payable, due to shareholder and due to related companies.  The      Company used valuation methodologies and market information available as      at period end to determine that the carrying amounts of such financial      instruments approximate fair value in all cases, unless otherwise      noted.  Of the Company’s accounts receivable, US$74,907      (December 31, 2004 – US$154,884) is due from one entity in the oil and gas      industry.  If these amounts were uncollectible, they would be      capitalized as part of the property and equipment exploration      costs. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | It      is management’s opinion that the Company is not exposed to significant      interest, currency or credit risks arising from its financial      instruments. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| g)   | Cash      and cash equivalents |
|----------------|--------------------------------|

|   | Cash      and cash equivalents include cash on hand, balances with banks and      short-term deposits with original maturities of three months or less,      earning interest based upon the US prime rate.  Interest earned      during the year ended December 31, 2005 was $462,174 which included      interest earned on our cash and cash equivalents held in term deposits of      $454,887 which is an average rate of2.57%. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| h)   | Foreign      currency translation |
|----------------|-----------------------------------|

|   | The      Company translates integrated foreign operations into the functional      currency of the parent.  Monetary assets and liabilities      denominated in foreign currencies are translated into U.S. dollars at      rates of exchange in effect at the date of the balance      sheet.  Non-monetary items are translated at the rate of      exchange in effect when the assets are acquired or obligations      incurred.  Revenues and expenses are translated at average rates      in effect during the period, with the exception of depreciation which is      translated at historic rates.  Exchange gains and losses are      charged to operations. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| i)   | Income      taxes |
|----------------|-------------------|

|   | The      Company follows the liability method of tax allocation.  Under      this method, assets and liabilities are determined based on differences      between the tax basis of an asset or liability and its carrying value      using enacted tax rates anticipated to apply in the periods when the      temporary differences are expected toreverse. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| j)   | Revenue      recognition |
|----------------|--------------------------|

| k)   | Stock-based      compensation plan |
|----------------|------------------------------------|

|   | The      Company has a stock-based compensation plan which includes stock      options.  Consideration received from employees or directors on      the exercise of stock options under the stock option plan is recorded as      capital stock. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Company uses the intrinsic value method of accounting for employee and      director stock-based compensation.  As all options have been      granted at exercise prices based on the market value of the Company's      common shares at the date of the grant, no compensation cost is      recognized.  Non-employee stock-based compensation costs are      measured using the fair value based method and is charged to earnings on      the measurement date. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Company adopted Statement 123(R) using the modified prospective method on      January 1, 2006 (note 13a) |
|--------|--------------------------------------------------------------------------------------------------------------------|

----

| l)   | Comprehensive      loss |
|----------------|-------------------------|

|   | Comprehensive      loss includes all changes in equity except those resulting from      investments made by owners and distributions to owners.  Other      accumulated comprehensive loss consists only of net loss for all periods      presented. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                 |   | Balance      Sheet as atDecember      31,US      $ |      |   | Exploration      costs incurred inUS      $ |   |
|--------------------------------------|--------|----------------------------------------------------|-----------|--------|---------------------------------------------|--------|
|                                 |   | 2005                                               |      |   | 2004                                        |   |   | 2005 |   |   | 2004 |   |   | 2003 |   |   | 2002 |   |
|                                 |   | Restatednote      5c                               |      |   | Restatednote      5c                        |   |   | Restatednote      5c |   |   | Restatednote      5c |   |   | Restatednote      5c |   |   |   |   |
| Exploration      and development     |   |                                               |      |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exploration      costs – India |   |                                               | 3,957,723 |   |                                        |   | 707,023 |   |   |   | 3,250,700 |   |   |   | 506,269 |   |   |   | 178,829 |   |   |   | 21,925 |   |
|                                 |   |                                               |      |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Computer      and office equipment   |   |                                               |      |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Computer      and office equipment   |   |                                               | 209,585   |   |                                        |   | 255,509 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accumulated      depreciation        |   |                                               | (119,759  | )      |                                        |   | (112,456 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 |   |                                               | 89,826    |   |                                        |   | 143,053 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 |   |                                               |      |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 |   |                                               | 4,047,549 |   |                                        |   | 850,076 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|   | c) | Carried      Interest Agreement |
|--------|----|---------------------------------|

|   | On      August 27, 2002, GeoGlobal entered into a CIA with GSPC, which grants the      Company a 10% Carried Interest (“CI”) (net 5% - see note 3d) in the KG      Block. The CIA provides that GSPC is responsible for GeoGlobal's entire      share of any and all costs incurred during the Exploration Phase prior to      the date of initial commercialproduction. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 3. | Property      and Equipment (continued) |
|--------|----|-----------------------------------------|

|   | d) | Participating      Interest Agreement |
|--------|----|---------------------------------------|

----

|   | i) | Exploration      Block KG-OSN-2001/3 (also referred to as “KG  Block”) |
|--------|----|------------------------------------------------------------------------------------|

|   | On      February 4, 2003, GeoGlobal, as to a 10% Participating Interest ("PI")      (net 5% - see note 3d) together with its joint venture participants,      Jubilant Enpro Limited ("Enpro") and GSPC, as to their 10% and 80% PI      respectively, entered into a PSC with the GOI with respect to PSC-KG      located offshore on the east coast of India in the Krishna Godavari      Basin.  See also Carried Interest Agreement note    3c. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      PSC-KG allows the joint venture participants to explore for petroleum and      natural gas over a 6.5 year period commencing March 12, 2003 on the KG      Block subject to the work commitment as outlined in note    10d. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ii) | Exploration Block CB-ONN-2002/2      (also referred to as “MehsanaBlock”) |
|--------|-----|---------------------------------------------------------------------------------------|

|   | On      February 6, 2004, GeoGlobal as to its 10% PI, along with its joint venture      participants, Enpro and GSPC as to their 30% and 60% PI respectively,      entered into a PSC with the GOI with respect to onshore Exploration Block      CB-ONN-2002/2 ("PSC-Mehsana") covering an area of approximately 125 square      kilometers ("sq. kms.") in the Cambay Basin, located in the province of      Gujarat in Northwest India. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      PSC-Mehsana allows the joint venture participants to explore for petroleum      and natural gas over a 6 year period commencing May 31, 2004 on the      Exploration Block subject to the work commitment as outlined in note      10b. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | iii) | Exploration      Block CB-ONN-2002/3 (also      referred to as “Sanand/MiroliBlock”) |
|--------|------|--------------------------------------------------------------------------------------------------|

|   | On      February 6, 2004, GeoGlobal as to its 10% PI, along with its joint venture      participants, Enpro, GSPC, and Prize Petroleum Company Limited as to their      20%, 55% and 15% PI respectively, entered into a PSC with the GOI with      respect to onshore Exploration Block CN-ONN-2002/3 ("PSC-Sanand/Miroli")      covering an area of approximately 285 sq. kms. in the Cambay      Basin. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      PSC-Sanand/Miroli allows the joint venture participants to explore for      petroleum and natural gas over a 6 year period commencing July 29, 2004 on      the Exploration Block subject to the work commitment as outlined in note      10b. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | iv) | Exploration      Block CB-ONN-2003/2 (also      referred to as “AnkleshwarBlock”) |
|--------|-----|-----------------------------------------------------------------------------------------------|

|   | On      August 15, 2005, the Company announced that it was awarded, under the      fifth round of the National Exploration Licensing Policy ("NELP-V"), a 10%      PI in a new onshore Exploration Block CB-ONN-2003/2 covering an area of      approximately 448 sq. kms. in the CambayBasin. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | On      September 28, 2005, GeoGlobal as to its 10% PI, along with its joint      venture participants, Gail (India) Ltd., Jubilant Capital Pvt. Ltd. and      GSPC as to their 20%, 20% and 50% PI respectively, entered into a PSC with      the GOI with respect to this Exploration Block      ("PSC-Ankleshwar"). |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      PSC-Ankleshwar allows the joint venture participants to explore for      petroleum and natural gas over a 7 year period commencing upon the receipt      of the Petroleum Exploration Licence, on the Exploration Block subject to      the work commitment as outlined in note10b. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 3. | Property      and Equipment (continued) |
|--------|----|-----------------------------------------|

|   | v) | Exploration      Block DS-ONN-2003/1 (also      referred to as “DS Block”) |
|--------|----|----------------------------------------------------------------------------------------|

|   | On      August 15, 2005, the Company also announced that it was awarded, under      NELP-V, a 100% PI in a new onshore Exploration Block DS-ONN-2003/1      covering an area of approximately 3,155 sq. kms. in the Deccan Syneclise      Basin. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | On      September 28, 2005, GeoGlobal as to its 100% PI entered into a PSC with      the GOI with respect to this Exploration Block  ("PSC-DS"). |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      PSC-DS allows GeoGlobal to explore for petroleum and natural gas over a 7      year period commencing upon the receipt of the Petroleum Exploration      Licence, on the Exploration Block subject to the work commitment as      outlined in note 10b. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                |   | Number      ofshares |       |   | Capital      stockUS      $ |   |    | Additionalpaid-in      capitalUS      $ |   |
|---------------------------------------------------------------------------------------------------------------------|--------|----------------------|------------|--------|-----------------------------|--------|---------|-----------------------------------------|--------|
|                                                                                                                |   |                 |       |   |                        |   |    | Restatednote      5c                    |   |
|                                                                                                                |   |                 |       |   |                        |   |    |                                    |   |
| Balance      at  December 31, 2002                                                                        |   |                 | 1,000      |   |                        |   | 64      |                                    |   |   | -- |   |
|                                                                                                                |   |                 |       |   |                        |   |    |                                    |   |   |   |   |
| 2003      Transactions                                                                                              |   |                 |       |   |                        |   |    |                                    |   |   |   |   |
| Capital      stock of GeoGlobal at August 29, 2003                                                                  |   |                 | 14,656,687 |   |                        |   | 14,657  |                                    |   |   | 10,914,545 |   |
| Common      shares issued by GeoGlobal to acquire    GeoGlobal      India                       |   |                 | 34,000,000 |   |                        |   | 34,000  |                                    |   |   | 1,072,960 |   |
| Share      issuance costs on acquisition                                                                            |   |                 | --         |   |                        |   | --      |                                    |   |   | (66,850 | ) |
| Elimination      of GeoGlobal capital stock in recognition of    reverse      takeover (note 6) |   |                 | (1,000     | )      |                        |   | (14,657 | )                                       |   |   | (10,914,545 | ) |
| Options      exercised for cash                                                                                     |   |                 | 396,668    |   |                        |   | 397     |                                    |   |   | 101,253 |   |
| December      2003 private placement financing (note 4c)                                                            |   |                 | 6,000,000  |   |                        |   | 6,000   |                                    |   |   | 5,994,000 |   |
| Share      issuance costs on private placement                                                                      |   |                 | --         |   |                        |   | --      |                                    |   |   | (483,325 | ) |
| Stock-based      compensation (note 5c)                                                                             |   |                 | --         |   |                        |   | --      |                                    |   |   | 62,913 |   |
|                                                                                                                |   |                 | 55,052,355 |   |                        |   | 40,397  |                                    |   |   | 6,680,951 |   |
|                                                                                                                |   |                 |       |   |                        |   |    |                                    |   |   |   |   |
| Balance      as at December 31, 2003                                                                                |   |                 | 55,053,355 |   |                        |   | 40,461  |                                    |   |   | 6,680,951 |   |
|                                                                                                                |   |                 |       |   |                        |   |    |                                    |   |   |   |   |
| 2004      Transactions                                                                                              |   |                 |       |   |                        |   |    |                                    |   |   |   |   |
| Options      exercised for cash                                                                                     |   |                 | 115,000    |   |                        |   | 115     |                                    |   |   | 154,785 |   |
| Broker      warrants exercised for cash                                                                             |   |                 | 39,100     |   |                        |   | 39      |                                    |   |   | 58,611 |   |
| Stock-based      compensation (note 5c)                                                                             |   |                 | --         |   |                        |   | --      |                                    |   |   | 350,255 |   |
|                                                                                                                |   |                 | 154,100    |   |                        |   | 154     |                                    |   |   | 563,651 |   |
|                                                                                                                |   |                 |       |   |                        |   |    |                                    |   |   |   |   |
| Balance      as at December 31, 2004                                                                                |   |                 | 55,207,455 |   |                        |   | 40,615  |                                    |   |   | 7,244,602 |   |
|                                                                                                                |   |                 |       |   |                        |   |    |                                    |   |   |   |   |
| 2005      Transactions                                                                                              |   |                 |       |   |                        |   |    |                                    |   |   |   |   |
| Options      exercised for cash (note 4e)                                                                           |   |                 | 739,000    |   |                        |   | 739     |                                    |   |   | 1,004,647 |   |
| 2003      Purchase warrants exercised for cash (note 4d(i))                                                         |   |                 | 2,214,500  |   |                        |   | 2,214   |                                    |   |   | 5,534,036 |   |
| Broker      warrants exercised for cash (note 4d(ii))                                                               |   |                 | 540,900    |   |                        |   | 541     |                                    |   |   | 810,809 |   |
| September      2005 private placement financing (note 4b)                                                           |   |                 | 4,252,400  |   |                        |   | 4,252   |                                    |   |   | 27,636,348 |   |
| Share      issuance costs on private placement (note 4b)                                                            |   |                 | --         |   |                        |   | --      |                                    |   |   | (1,541,686 | ) |
| Stock-based      compensation (note 5c)                                                                             |   |                 | --         |   |                        |   | --      |                                    |   |   | 4,354,256 |   |
|                                                                                                                |   |                 | 7,746,800  |   |                        |   | 7,746   |                                    |   |   | 37,798,410 |   |
|                                                                                                                |   |                 |       |   |                        |   |    |                                    |   |   |   |   |
| Balance      as at December 31, 2005                                                                                |   |                 | 62,954,255 |   |                        |   | 48,361  |                                    |   |   | 45,043,012 |   |

----

----

|   | As      at December 31, 2005, all of the 2005 Purchase Warrants remained      outstanding, which if exercised, would result in the issuance of 2,126,200      common shares for gross proceeds of  US$19,135,800. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | As      at December 31, 2005, none of the 97,572 Compensation Option Warrants      have been issued as a result of the Compensation Options not being      exercised.  If the Compensation Options are exercised and the      Compensation Option Warrants issued, if exercised, would result in gross      proceeds of US$878,148. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | As      at December 31, 2005, none of the 195,144 Compensation Options were      exercised.  When fully exercised, the Compensation Options would      result in gross proceeds ofUS$1,268,436. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | f) | Weighted-average      number of shares |
|--------|----|----------------------------------------|

|   | For      purposes of the determination of net loss per share, the basic and diluted      weighted-average number of shares outstanding for the year ended December      31, 2005 was 53,058,660 (December 31, 2004 – 41,671,136, December 31, 2003      – 19,737,035, December 31, 2002 - 14,500,000).  The amount for      the years ended December 31, 2005 and 2004 exclude the 5,000,000 shares      currently held in escrow.  The amount for the year ended      December 31, 2003 also excludes the 5,000,000 shares currently held in      escrow plus 14,500,000 shares which were not released from escrow until      August 27, 2004.  The amount for the period ended December 31,      2002 is deemed to be the number of shares issued to the legal subsidiary      pursuant to the reverse take-over transaction described in note 6, reduced      by the 19,500,000 shares which were held in  escrow. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                        |   |  Year      endedDec      31, 2005US      $ |       |   |  Year      endedDec      31, 2004US      $ |   |       |  Year      endedDec      31, 2003US      $ |   |   | Period      fromInception,Aug      21, 2002 to Dec      31, 2005US      $ |   |
|---------------------------------------------|--------|-------------------------------------------------|------------|--------|-------------------------------------------------|--------|------------|-------------------------------------------------|--------|--------|--------------------------------------------------------------------------------|--------|
|                                        |   |                                            |       |   | Restatednote      5c                            |   |       | Restatednote      5c                            |   |   | Restatednote      5c                                                           |   |
|                                        |   |                                            |       |   |                                            |   |       |                                            |   |   |                                                                           |   |
| Pro-forma      basis                        |   |                                            |       |   |                                            |   |       |                                            |   |   |                                                                           |   |
| Stock-based      compensation               |   |                                            |       |   |                                            |   |       |                                            |   |   |                                                                           |   |
| Exploration      costs – India        |   |                                            | 337,113    |   |                                            |   | 56,654     |                                            |   |   | 44,542                                                                         |   |   |   | 438,309 |   |
| General      and administrative             |   |                                            | 458,766    |   |                                            |   | 132,767    |                                            |   |   | 88,349                                                                         |   |   |   | 679,882 |   |
|                                        |   |                                            |       |   |                                            |   |       |                                            |   |   |                                                                           |   |   |   |   |   |
| Exploration      costs - India              |   |                                            |       |   |                                            |   |       |                                            |   |   |                                                                           |   |   |   |   |   |
| As      reported                            |   |                                            | 3,957,723  |   |                                            |   | 707,023    |                                            |   |   | 200,754                                                                        |   |   |   | 3,957,723 |   |
| Pro-forma                                   |   |                                            | 4,396,032  |   |                                            |   | 808,219    |                                            |   |   | 245,296                                                                        |   |   |   | 4,396,032 |   |
| Net      loss                               |   |                                            |       |   |                                            |   |       |                                            |   |   |                                                                           |   |   |   |   |   |
| As      reported                            |   |                                            | (3,162,660 | )      |                                            |   | (1,171,498 | )                                               |   |   | (518,377                                                                       | )      |   |   | (4,866,348 | ) |
| Pro-forma                                   |   |                                            | (3,621,426 | )      |                                            |   | (1,304,265 | )                                               |   |   | (606,726                                                                       | )      |   |   | (5,546,230 | ) |
| Net      loss per share - basic and diluted |   |                                            |       |   |                                            |   |       |                                            |   |   |                                                                           |   |   |   |   |   |
| As      reported                            |   |                                            | (0.06      | )      |                                            |   | (0.03      | )                                               |   |   | (0.03                                                                          | )      |   |   |   |   |
| Pro-forma                                   |   |                                            | (0.07      | )      |                                            |   | (0.03      | )                                               |   |   | (0.03                                                                          | )      |   |   |   |   |

| Black-Scholes      Assumptions           |   |           |   |   |   |   |   |   |           |
|------------------------------------------|--------|----------------|--------|--------|--------|--------|--------|--------|----------------|
| Fair      value of stock options granted |   | $              | 1.06   |   |   |   | --     |   |           | $ | 0.20 |   |
| Risk-free      interest rate             |   |           | 2.75   | %      |   |   | --     |   |           |   | 2.61 | % |
| Volatility                               |   |           | 102    | %      |   |   | --     |   |           |   | 55 | % |
| Weighted      average expected life      |   | 1.8      years |   |   |   | --     |   |   | 0.8      years |   |
| Dividend      yield                      |   |           | 0      | %      |   |   | --     |   |           |   | 0 | % |

| i)   | The      risk-free rate is based on the U.S. Treasury yield curve in effect at the      time of grant. |
|----------------|--------------------------------------------------------------------------------------------------------|

| ii)   | Expected      volatilities are based on historical volatility of the Company's stock and      other factors. |
|-----------------|--------------------------------------------------------------------------------------------------------------|

| iii)   | The      expected life of options granted represents the period of time that the      options are expected to be outstanding and is derived from historical      exercise behavior and currenttrends. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                       |   |  Year      endedDec      31, 2005US      $ |      |   |  Year      endedDec      31, 2004US      $ |   |    |  Year      endedDec      31, 2003US      $ |   |   | Period      fromInception,Aug      21, 2002 to Dec      31, 2005US      $ |   |
|--------------------------------------------|--------|-------------------------------------------------|-----------|--------|-------------------------------------------------|--------|---------|-------------------------------------------------|--------|--------|--------------------------------------------------------------------------------|--------|
|                                       |   | Restatednote      5c                            |      |   | Restatednote      5c                            |   |    | Restatednote      5c                            |   |   | Restatednote      5c                                                           |   |
| Stock-based      compensation              |   |                                            |      |   |                                            |   |    |                                            |   |   |                                                                           |   |
| Consolidated      Statements of Operations |   |                                            |      |   |                                            |   |    |                                            |   |   |                                                                           |   |
| Consulting      fees                       |   |                                            | 2,681,680 |   |                                            |   | 304,002 |                                            |   |   | 40,682                                                                         |   |   |   | 3,026,364 |   |
| Consolidated      Balance Sheets           |   |                                            |      |   |                                            |   |    |                                            |   |   |                                                                           |   |   |   |   |   |
| Property      and equipment                |   |                                            |      |   |                                            |   |    |                                            |   |   |                                                                           |   |   |   |   |   |
| Exploration      costs – India       |   |                                            | 1,672,576 |   |                                            |   | 46,253  |                                            |   |   | 22,231                                                                         |   |   |   | 1,741,060 |   |
|                                       |   |                                            | 4,354,256 |   |                                            |   | 350,255 |                                            |   |   | 62,913                                                                         |   |   |   | 4,767,424 |   |

----

|                                                                    |   | As      Reported                          |       | Adjustment                                                        |                     |                                      | As      Restated |
|-------------------------------------------------------------------------|--------|-------------------------------------------|------------|-------------------------------------------------------------------|--------------------------|-------------------------------------------|------------------|
|                                                                    |   |   Dec      31, 2005US$          |       |                                                              |                     |   Dec      31, 2005US$          |             |   | Period      of Inception,Aug      21, 2002to      Dec 31, 2004US$ |   |   |   Dec      31, 2005US$ |   |   |
| Balance      Sheets                                                     |   |                                      |       |                                                              |                     |                                      |             |   |   |   |   |   |   |   |
| Oil      and gas interests                                              |   |                                      | 2,216,663  |                                                              |                     |                                      |             | 1,672,576 |   |   |   | 68,484 |   |   |   | 3,957,723 |   |   |
| Additional      paid-in   capital                        |   |                                      | 40,275,588 |                                                              |                     |                                      |             | 4,354,256 |   |   |   | 413,168 |   |   |   | 45,043,012 |   |   |
| Deficit      accumulated                                                |   |                                      | (1,839,984 | )                                                                 |                     |                                      |             | (2,681,680 | ) |   |   | (344,684 | ) |   |   | (4,866,348 | ) |   |
| Stockholders'      equity                                               |   |                                      | 38,483,965 |                                                              |                     |                                      |             | 1,672,576 |   |   |   | 68,484 |   |   |   | 40,225,025 |   |   |
|                                                                    |   |                                      |       |                                                              |                     |                                      |             |   |   |   |   |   |   |   |   |   |   |   |
| Statement      ofStockholders'      Equity                              |   |                                      |       |                                                              |                     |                                      |             |   |   |   |   |   |   |   |   |   |   |   |
| Additional      paid-in    capital                  |   |                                      | 40,275,588 |                                                              |                     |                                      |             | 4,354,256 |   |   |   | 413,168 |   |   |   | 45,043,012 |   |   |
| Accumulated      deficit                                                |   |                                      | (1,839,984 | )                                                                 |                     |                                      |             | (2,681,680 | ) |   |   | (344,684 | ) |   |   | (4,866,348 | ) |   |
| Stockholders'      equity                                               |   |                                      | 38,483,965 |                                                              |                     |                                      |             | 1,672,576 |   |   |   | 68,484 |   |   |   | 40,225,025 |   |   |
|                                                                    |   |                                      |       |                                                              |                     |                                      |             |   |   |   |   |   |   |   |   |   |   |   |
|                                                                    |   |                                      |       |                                                              |                     |                                      |             |   |   |   |   |   |   |   |   |   |   |   |
|                                                                    |   | As      Reported                          |       | Adjustment                                                        |                     |                                      | As      Restated |
|                                                                    |   |  Year      endedDec      31, 2005US$ |       | Period      of Inception,Aug      21, 2002to      Dec 31, 2005US$ |                     |  Year      endedDec      31, 2005US$ |             |   | Period      of Inception,Aug      21, 2002to      Dec 31, 2005US$ |   |   |  Year      endedDec      31, 2005US$ |   | Period      of Inception,Aug      21, 2002 to      Dec 31, 2005US$ |
| Statements      of Operations                                           |   |                                      |       |                                                              |                     |                                      |             |   |   |   |   |   |   |   |   |   |   |   |
| Consulting      fees                                                    |   |                                      | 265,446    |                                                              | 673,332                  |                                      |             | 2,681,680 |   |   |   | 3,026,364 |   |   |   | 2,947,126 |   | 3,699,696 |
| Net      loss and    comprehensive      loss        |   |                                      | (480,980   | )                                                                 |  (1,839,984)      ) |                                      |             | (2,681,680 | ) |   |   | (3,026,364 | ) |   |   | (3,162,660 | ) |  (4,866,348)      ) |
| Net      loss per share    -      basic and diluted |   |                                      | (0.01      | )                                                                 |                     |                                      |             | (0.05 | ) |   |   |   |   |   |   | (0.06 | ) |   |

----

|                                                                    |   | As      Reported                          |       | Adjustment                                                        |                     |                                      | As      Restated |
|-------------------------------------------------------------------------|--------|-------------------------------------------|------------|-------------------------------------------------------------------|--------------------------|-------------------------------------------|------------------|
|                                                                    |   |   Dec      31, 2004US$          |       |                                                              |                     |   Dec      31, 2004US$          |             |   | Period      of Inception,Aug      21, 2002to      Dec 31, 2003US$ |   |   |   Dec      31, 2004US$ |   |   |
| Balance      Sheets                                                     |   |                                      |       |                                                              |                     |                                      |             |   |   |   |   |   |   |   |
| Oil      and gas interests                                              |   |                                      | 638,539    |                                                              |                     |                                      |             | 46,253 |   |   |   | 22,231 |   |   |   | 707,023 |   |   |
| Additional      paid-in   capital                        |   |                                      | 6,831,434  |                                                              |                     |                                      |             | 350,255 |   |   |   | 62,913 |   |   |   | 7,244,602 |   |   |
| Deficit      accumulated                                                |   |                                      | (1,359,004 | )                                                                 |                     |                                      |             | (304,002 | ) |   |   | (40,682 | ) |   |   | (1,703,688 | ) |   |
| Stockholders'      equity                                               |   |                                      | 5,513,045  |                                                              |                     |                                      |             | 46,253 |   |   |   | 22,231 |   |   |   | 5,581,529 |   |   |
|                                                                    |   |                                      |       |                                                              |                     |                                      |             |   |   |   |   |   |   |   |   |   |   |   |
| Statement      ofStockholders'      Equity                              |   |                                      |       |                                                              |                     |                                      |             |   |   |   |   |   |   |   |   |   |   |   |
| Additional      paid-in    capital                  |   |                                      | 6,831,434  |                                                              |                     |                                      |             | 350,255 |   |   |   | 62,913 |   |   |   | 7,244,602 |   |   |
| Accumulated      deficit                                                |   |                                      | (1,359,004 | )                                                                 |                     |                                      |             | (304,002 | ) |   |   | (40,682 | ) |   |   | (1,703,688 | ) |   |
| Stockholders'      equity                                               |   |                                      | 5,513,045  |                                                              |                     |                                      |             | 46,253 |   |   |   | 22,231 |   |   |   | 5,581,529 |   |   |
|                                                                    |   |                                      |       |                                                              |                     |                                      |             |   |   |   |   |   |   |   |   |   |   |   |
|                                                                    |   |                                      |       |                                                              |                     |                                      |             |   |   |   |   |   |   |   |   |   |   |   |
|                                                                    |   | As      Reported                          |       | Adjustment                                                        |                     |                                      | As      Restated |
|                                                                    |   |  Year      endedDec      31, 2004US$ |       | Period      of Inception,Aug      21, 2002to      Dec 31, 2004US$ |                     |  Year      endedDec      31, 2004US$ |             |   | Period      of Inception,Aug      21, 2002to      Dec 31, 2004US$ |   |   |  Year      endedDec      31, 2004US$ |   | Period      of Inception,Aug      21, 2002 to      Dec 31, 2004US$ |
| Statements      of Operations                                           |   |                                      |       |                                                              |                     |                                      |             |   |   |   |   |   |   |   |   |   |   |   |
| Consulting      fees                                                    |   |                                      | 237,615    |                                                              | 407,886                  |                                      |             | 304,002 |   |   |   | 344,684 |   |   |   | 541,617 |   | 752,570 |
| Net      loss and    comprehensive      loss        |   |                                      | (867,496   | )                                                                 |  (1,359,004)      ) |                                      |             | (304,002 | ) |   |   | (344,684 | ) |   |   | (1,171,498 | ) |  (1,703,688)      ) |
| Net      loss per share    -      basic and diluted |   |                                      | (0.02      | )                                                                 |                     |                                      |             | (0.01 | ) |   |   |   |   |   |   | (0.03 | ) |   |

----

|                                                                    |   | As      Reported                          |      | Adjustment                                                        |                   |                                      | As      Restated |
|-------------------------------------------------------------------------|--------|-------------------------------------------|-----------|-------------------------------------------------------------------|------------------------|-------------------------------------------|------------------|
|                                                                    |   |   Dec      31, 2003US$          |      |                                                              |                   |   Dec      31, 2003US$          |             |   | Period      of Inception,Aug      21, 2002to      Dec 31, 2002US$ |   |   |   Dec      31, 2003US$ |   |   |
| Balance      Sheets                                                     |   |                                      |      |                                                              |                   |                                      |             |   |   |   |   |   |   |   |
| Oil      and gas interests                                              |   |                                      | 295,543   |                                                              |                   |                                      |             | 22,231 |   |   |   | -- |   |   |   | 317,774 |   |   |
| Additional      paid-in   capital                        |   |                                      | 6,618,038 |                                                              |                   |                                      |             | 62,913 |   |   |   | -- |   |   |   | 6,680,951 |   |   |
| Deficit      accumulated                                                |   |                                      | (491,508  | )                                                                 |                   |                                      |             | (40,682 | ) |   |   | -- |   |   |   | (532,190 | ) |   |
| Stockholders'      equity                                               |   |                                      | 6,166,991 |                                                              |                   |                                      |             | 22,231 |   |   |   | -- |   |   |   | 6,189,222 |   |   |
|                                                                    |   |                                      |      |                                                              |                   |                                      |             |   |   |   |   |   |   |   |   |   |   |   |
| Statement      ofStockholders'      Equity                              |   |                                      |      |                                                              |                   |                                      |             |   |   |   |   |   |   |   |   |   |   |   |
| Additional      paid-in    capital                  |   |                                      | 6,618,038 |                                                              |                   |                                      |             | 62,913 |   |   |   | -- |   |   |   | 6,680,951 |   |   |
| Accumulated      deficit                                                |   |                                      | (491,508  | )                                                                 |                   |                                      |             | (40,682 | ) |   |   | -- |   |   |   | (532,190 | ) |   |
| Stockholders'      equity                                               |   |                                      | 6,166,991 |                                                              |                   |                                      |             | 22,231 |   |   |   | -- |   |   |   | 6,189,222 |   |   |
|                                                                    |   |                                      |      |                                                              |                   |                                      |             |   |   |   |   |   |   |   |   |   |   |   |
|                                                                    |   |                                      |      |                                                              |                   |                                      |             |   |   |   |   |   |   |   |   |   |   |   |
|                                                                    |   | As      Reported                          |      | Adjustment                                                        |                   |                                      | As      Restated |
|                                                                    |   |  Year      endedDec      31, 2003US$ |      | Period      of Inception,Aug      21, 2002to      Dec 31, 2003US$ |                   |  Year      endedDec      31, 2003US$ |             |   | Period      of Inception,Aug      21, 2002to      Dec 31, 2003US$ |   |   |  Year      endedDec      31, 2003US$ |   | Period      of Inception,Aug      21, 2002 to      Dec 31, 2003US$ |
| Statements      of Operations                                           |   |                                      |      |                                                              |                   |                                      |             |   |   |   |   |   |   |   |   |   |   |   |
| Consulting      fees                                                    |   |                                      | 170,271   |                                                              | 170,271                |                                      |             | 40,682 |   |   |   | 40,682 |   |   |   | 210,953 |   | 210,953 |
| Net      loss and    comprehensive      loss        |   |                                      | (477,695  | )                                                                 |  (491,508)      ) |                                      |             | (40,682 | ) |   |   | (40,682 | ) |   |   | (518,377 | ) |  (532,190)      ) |
| Net      loss per share    -      basic and diluted |   |                                      | (0.02     | )                                                                 |                   |                                      |             | (0.01 | ) |   |   |   |   |   |   | (0.03 | ) |   |

----

|                                               |   | Year      endedDec      31, 2005US      $ |   |   | Year      endedDec      31, 2004US      $ |   |   | Year      endedDec      31, 2003US      $ |   |
|----------------------------------------------------|--------|-------------------------------------------|--------|--------|-------------------------------------------|--------|--------|-------------------------------------------|--------|
|                                               |   | Restatednote      5c                      |   |   | Restatednote      5c                      |   |   | RestatedNote      5c                      |   |
| Black-Scholes      Assumptions                     |   |                                      |   |   |                                      |   |   |                                      |   |
| Fair      value of stock options at reporting date |   | $                                         | 4.52   |   |                                      | $      | 0.73   |                                      |   | $ | 0.67 |   |
| Risk-free      interest rate                       |   |                                      | 3.33   | %      |                                      |   | 1.67   | %                                         |   |   | 1.32 | % |
| Volatility                                         |   |                                      | 103    | %      |                                      |   | 98     | %                                         |   |   | 89 | % |
| Expected      life                                 |   | 0.5      years                            |   |   | 0.5      years                            |   |   | 1.1      years                            |   |
| Dividend      yield                                |   |                                      | 0      | %      |                                      |   | 0      | %                                         |   |   | 0 | % |

|       | Option    |       |       |              | Granted       | Cancelled      (c)   |              | Balance           |
|------------|-----------|------------|------------|-------------------|---------------|----------------------|-------------------|-------------------|
| Grant      | exercise  | Expiry     | Vesting    | Balance           | during        | Exercised      (e)   | Balance           | exercisable       |
| date       | price     | date       | date       | Dec      31, 2004 | the      year | during      the year | Dec      31, 2005 | Dec      31, 2005 |
| (mm/dd/yy) | US      $ | (mm/dd/yy) | (mm/dd/yy) | #                 | #             | #                    | #                 | #                 |
|       |      |       |       |              |          |                 |              |              |
| 12/09/03   | 1.18      | 08/31/06   | Vested     | 1,945,000         | --            | 193,500      (e)     | 1,751,500         | 1,751,500         |
| 12/30/03   | 1.50      | 08/31/06   | Vested     | 945,000           | --            | 150,000      (c)     |              |              |
|       |      |       |       |              |          | 450,000      (e)     | 345,000           | 345,000           |
| 01/17/05   | 1.01      | 08/31/06   | Vested     | --                | 790,000       | 60,500      (e)      | 729,500           | 729,500           |
| 01/18/05   | 1.10      | 08/31/08   | Vested     | --                | 450,000       | --                   | 450,000           | 450,000           |
| 01/18/05   | 1.10      | 08/31/08   | 08/15/06   |              | 150,000       | --                   | 150,000           | --                |
| 01/25/05   | 1.17      | 08/31/06   | Vested     | --                | 60,000        | 35,000      (e)      | 25,000            | 25,000            |
| 06/14/05   | 3.49      | 06/14/15   | Vested     | --                | 150,000       | --                   | 150,000           | 150,000           |
| 08/24/05   | 6.50      | 08/24/08   | Vested     | --                | 60,000        | --                   | 60,000            | 60,000            |
| 08/24/05   | 6.50      | 08/24/08   | 08/31/06   | --                | 50,000        | --                   | 50,000            | --                |
| 10/03/05   | 6.81      | 10/03/15   | 10/03/06   | --                | 16,666        | -                    | 16,666            | --                |
| 10/03/05   | 6.81      | 10/03/15   | 10/03/07   | --                | 16,667        | --                   | 16,667            | --                |
| 10/03/05   | 6.81      | 10/03/15   | 10/03/08   | --                | 16,667        | --                   | 16,667            | --                |
|       |      |       |       | 2,890,000         | 1,760,000     | 889,000              | 3,761,000         | 3,511,000         |

|   | i) | On      January 17, 2005, the Board of Directors of the Company passed a      resolution with respect to stock options issued in 2003 to extend the      expiry date of all then outstanding options from August 31, 2005 to August      31, 2006. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ii) | During      the year ended December 31, 2005, the Company granted options to purchase      1,760,000 shares exercisable at various prices and expiry      dates. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | iii) | As      at December 31, 2005, there were 3,761,000 options outstanding at various      prices which, if exercised, would result in total proceeds of      US$5,589,315. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | iv) | Of      the 889,000 options exercised or cancelled in the period, 150,000 were      cancelled during the three months ended March 31, 2005 and the remaining      739,000 options were all exercised in the period from April 1 to December      31, 2005. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | v) | At      the annual stockholder meeting held on June 14, 2005, the stockholders of      the Company approved amendments to the Plan to a) increase the shares of      Common Stock reserved for issuance under the Plan from 3,900,000 shares to      8,000,000 shares and b) amend the terms of the Automatic Option Grant      Program of the Plan to increase the number of shares subject to the annual      automatic option grant to non-employee Board members from 5,000 shares to      50,000 shares. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                  |   | US      $ |      |
|-------------------------------------------------------|--------|-----------|-----------|
|                                                  |   |      |      |
| Net      assets acquired                              |   |      |      |
| Cash                                                  |   |      | 3,034,666 |   |
| Other      current assets                             |   |      | 75,000    |   |
| Current      liabilities                              |   |      | (2,706    | ) |
|                                                  |   |      |      |   |
| Net      book value of identifiable assets acquired   |   |      | 3,106,960 |   |
|                                                  |   |      |      |   |
| Consideration      paid                               |   |      |      |   |
| Promissory      note issued                           |   |      | 2,000,000 |   |
| 34,000,000      common shares issued par value $0.001 |   |      | 34,000    |   |
| Additional      paid-in capital                       |   |      | 1,072,960 |   |
|                                                  |   |      | 3,106,960 |   |

----

|                                      |   |  Year      endedDec      31, 2005 |    |   |  Year      endedDec      31, 2004 |   |    |  Year      endedDec      31, 2003 |   |   | Period      fromInception,Aug      21, 2002to      Dec 31, 2005 |   |
|-------------------------------------------|--------|----------------------------------------|---------|--------|----------------------------------------|--------|---------|----------------------------------------|--------|--------|-----------------------------------------------------------------|--------|
|                                      |   | US      $                              |    |   | US      $                              |   |    | US      $                              |   |   | US$                                                             |   |
| Consolidated      Statement of Operations |   |                                   |    |   |                                   |   |    |                                   |   |   |                                                            |   |
| Consulting      fees                      |   |                                   | 62,000  |   |                                   |   | 50,000  |                                   |   |   | 16,667                                                          |   |   |   | 128,667 |   |
| Consolidated      Balance Sheets          |   |                                   |    |   |                                   |   |    |                                   |   |   |                                                            |   |   |   |   |   |
| Property      and equipment               |   |                                   |    |   |                                   |   |    |                                   |   |   |                                                            |   |   |   |   |   |
| Exploration      costs - India (note 3a)  |   |                                   | 248,000 |   |                                   |   | 200,000 |                                   |   |   | 66,666                                                          |   |   |   | 514,666 |   |
|                                      |   |                                   | 310,000 |   |                                   |   | 250,000 |                                   |   |   | 83,333                                                          |   |   |   | 643,333 |   |

| Consolidated      Statement of Operations |   |   |    |   |   |   |    |   |   |   |    |   |
|-------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|
| General      and administrative           |   |   | 45,430  |   |   |   | 19,640  |   |   |   | 40,649  |   |   |   | 105,719 |   |
| Consolidated      Balance Sheets          |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Accounts      receivable                  |   |   | 1,020   |   |   |   | 20,350  |   |   |   | --      |   |   |   | 21,370 |   |
| Property      and equipment               |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Exploration      costs - India (note 3a)  |   |   | 127,295 |   |   |   | 87,165  |   |   |   | 61,412  |   |   |   | 297,797 |   |
| Computer      and office equipment        |   |   | 1,610   |   |   |   | 8,064   |   |   |   | --      |   |   |   | 37,595 |   |
|                                      |   |   | 175,355 |   |   |   | 135,219 |   |   |   | 102,061 |   |   |   | 462,481 |   |

----

|                                      |   |  Year      endedDec      31, 2005 |    |   |  Year      endedDec      31, 2004 |   |    |  Year      endedDec      31, 2003 |   |   | Period      fromInception,Aug      21, 2002to      Dec 31, 2005 |   |
|-------------------------------------------|--------|----------------------------------------|---------|--------|----------------------------------------|--------|---------|----------------------------------------|--------|--------|-----------------------------------------------------------------|--------|
|                                      |   | US      $                              |    |   | US      $                              |   |    | US      $                              |   |   | US$                                                             |   |
| Consolidated      Statement of Operations |   |                                   |    |   |                                   |   |    |                                   |   |   |                                                            |   |
| Consulting      fees                      |   |                                   | 150,000 |   |                                   |   | 120,000 |                                   |   |   | 61,715                                                          |   |   |   | 331,715 |   |

| Consolidated      Statement of Operations   |   |   |   |   |   |   |   |   |   |   |   |   |
|---------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| General      and administrative             |   |   |   |   |   |   |   |   |   |   |   |   |
| Office      costs                           |   |   | 54,062 |   |   |   | 65,073 |   |   |   | 33,802 |   |   |   | 159,135 |   |
| Travel,      hotel, meals and entertainment |   |   | 5,121  |   |   |   | 3,344  |   |   |   | 39,045 |   |   |   | 47,510 |   |
| Consolidated      Balance Sheets            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts      receivable                    |   |   | 14,165 |   |   |   | --     |   |   |   | --     |   |   |   | 14,165 |   |
|                                        |   |   | 73,348 |   |   |   | 68,417 |   |   |   | 72,847 |   |   |   | 220,810 |   |

|                                      |   |  Year      endedDec      31, 2005 |   |   |  Year      endedDec      31, 2004 |   |   |  Year      endedDec      31, 2003 |   |   | Period      fromInception,Aug      21, 2002to      Dec 31, 2005 |   |
|-------------------------------------------|--------|----------------------------------------|--------|--------|----------------------------------------|--------|--------|----------------------------------------|--------|--------|-----------------------------------------------------------------|--------|
|                                      |   | US      $                              |   |   | US      $                              |   |   | US      $                              |   |   | US$                                                             |   |
| Consolidated      Statement of Operations |   |                                   |   |   |                                   |   |   |                                   |   |   |                                                            |   |
| Consulting      fees                      |   |                                   | 35,713 |   |                                   |   | 33,921 |                                   |   |   | 14,469                                                          |   |   |   | 84,103 |   |

| Consolidated      Statement of Operations |   |   |   |   |   |   |   |   |   |   |   |   |
|-------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| General      and administrative           |   |   | 685    |   |   |   | 1,961  |   |   |   | 168    |   |   |   | 2,814 |   |
| Consolidated      Balance Sheets          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts      receivable                  |   |   | 2,530  |   |   |   | 967    |   |   |   | 3,052  |   |   |   | 6,549 |   |
| Computer      and office equipment        |   |   | --     |   |   |   | 1,599  |   |   |   | --     |   |   |   | 1,599 |   |
|                                      |   |   | 3,215  |   |   |   | 4,527  |   |   |   | 3,220  |   |   |   | 10,962 |   |

----

|                                                                                      |   |  Year      endedDec      31, 2005 |       |   |  Year      endedDec      31, 2004 |   |       |  Year      endedDec      31, 2003 |   |   | Period      fromInception,Aug      21, 2002to      Dec 31, 2005 |   |
|-------------------------------------------------------------------------------------------|--------|----------------------------------------|------------|--------|----------------------------------------|--------|------------|----------------------------------------|--------|--------|-----------------------------------------------------------------|--------|
|                                                                                      |   | US      $                              |       |   | US      $                              |   |       | US      $                              |   |   | US$                                                             |   |
|                                                                                      |   | Restatednote      5c                   |       |   | Restatednote      5c                   |   |       | Restatednote      5c                   |   |   | Restatednote      5c                                            |   |
|                                                                                      |   |                                   |       |   |                                   |   |       |                                   |   |   |                                                            |   |
| Net      loss                                                                             |   |                                   | (3,162,660 | )      |                                   |   | (1,171,498 | )                                      |   |   | (518,377                                                        | )      |   |   | (4,866,348 | ) |
| Expected      tax rate                                                                    |   |                                   | 35.0       | %      |                                   |   | 35.0       | %                                      |   |   | 35.0                                                            | %      |   |   |   |   |
| Expected      income tax recovery                                                         |   |                                   | (1,106,931 | )      |                                   |   | (410,024   | )                                      |   |   | (181,432                                                        | )      |   |   | (1,704,205 | ) |
| Excess      of expected tax rate over tax rate of  foreign      affiliates |   |                                   | 55,912     |   |                                   |   | 54,623     |                                   |   |   | 24,804                                                          |   |   |   | 137,299 |   |
| Non-deductible      expenditures                                                          |   |                                   | 965,779    |   |                                   |   | 122,589    |                                   |   |   | 22,020                                                          |   |   |   | 1,110,388 |   |
| Acquisition      of losses                                                                |   |                                   | --         |   |                                   |   | --         |                                   |   |   | 4,355,268                                                       |   |   |   | 4,355,268 |   |
| Other                                                                                     |   |                                   | 165,772    |   |                                   |   | 298,110    |                                   |   |   | 316,029                                                         |   |   |   | 789,693 |   |
|                                                                                      |   |                                   | 80,532     |   |                                   |   | 65,298     |                                   |   |   | 4,536,689                                                       |   |   |   | 4,688,443 |   |
|                                                                                      |   |                                   |       |   |                                   |   |       |                                   |   |   |                                                            |   |   |   |   |   |
| Valuation      allowance                                                                  |   |                                   | (80,532    | )      |                                   |   | (65,298    | )                                      |   |   | (4,536,689                                                      | )      |   |   | (4,688,443 | ) |
| Provision      for income taxes                                                           |   |                                   | --         |   |                                   |   | --         |                                   |   |   | --                                                              |   |   |   | -- |   |

|                                                                       |   | Dec      31, 2005US      $ |        |   | Dec      31, 2004US      $ |   |
|----------------------------------------------------------------------------|--------|----------------------------|-------------|--------|----------------------------|--------|
|                                                                       |   |                       |        |   |                       |   |
| Difference      between tax base and reported amounts of depreciableassets |   |                       | 25,871      |   |                       |   | 2,679 |   |
| Non-capital      loss carry forwards                                       |   |                       | 18,907,135  |   |                       |   | 524,904 |   |
|                                                                       |   |                       | 18,933,006  |   |                       |   | 527,583 |   |
| Valuation      allowance                                                   |   |                       | (18,933,006 | )      |                       |   | (527,583 | ) |
| Deferred      income tax asset                                             |   |                       | --          |   |                       |   | -- |   |

----

|   | i) | At      December 31, 2004, the Company has US$7,865,527 of available non-cash      capital loss carry forwards to reduce taxable income for income tax      purposes in the various jurisdictions as outlined below which have not      been reflected in these consolidated financial  statements. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  Tax      Jurisdiction | AmountUS      $ | Expiry      DatesCommence |
|-----------------------------|-----------------|---------------------------|
| United      States          | 7,489,826       | 2006                      |
| Canada                      | 35,513          | 2010                      |
| Barbados                    | 340,188         | 2012                      |
|                        | 7,865,527       |                      |

|   | ii) | At      December 31, 2003, the Company has US$5,890,659 of available capital loss      carry forwards to reduce capital gains for US income tax purposes expiring      in 2008, which have not been reflected in these consolidated financial      statements |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | December      31, 2005               |      |   | December      31, 2004               |   |
|--------|--------|--------------------------------------|-----------|--------|--------------------------------------|--------|
|   |   | Property      and equipmentUS      $ |      |   | Property      and equipmentUS      $ |   |
|   |   | Restatednote      5c                 |      |   | Restatednote      5c                 |   |
|   |   |                                 |      |   |                                 |   |
| Canada |   |                                 | 89,826    |   |                                 |   | 97,482 |   |
| India  |   |                                 | 3,957,723 |   |                                 |   | 752,594 |   |
|   |   |                                 | 4,047,549 |   |                                 |   | 850,076 |   |

----

|   | b) | Production      Sharing Contracts |
|--------|----|-----------------------------------|

|   | The      Company is required to expend funds on the exploration activities to      fulfill the terms of the minimum work commitment based on our      participating interest for Phase I pursuant to the PSC’s in respect of      each of our exploration blocks asfollows: |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | i) | Mehsana      - Acquire, process and interpret 75 square kilometers of 3D seismic and      drill 7 exploratory wells between 1,000 and 2,200  meters. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ii) | Sanand/Miroli      - Acquire, process and interpret 200 square kilometers of 3D seismic and      drill 12 exploratory wells between 1,500 and 3,000  meters. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | iii) | Ankleshwar      - Acquire, process and interpret 448 square kilometers of 3D seismic and      drill 14 exploratory wells between 1,500 and 2,500  meters. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | iv) | DS      Block - Gravity and geochemical surveys and a 12,000 line kilometer aero      magnetic survey. |
|--------|-----|--------------------------------------------------------------------------------------------------------|

|   | c) | Tarapur      Block |
|--------|----|--------------------|

|   | As      the holder of a participating interest in the Tarapur Block, the Company      will be required to fund its 20% share of all further exploration and      development costs incurred on the exploration block.  To      December 31, 2005, US$579,572 has been paid to GSPC under the terms of the      Company's agreement with GSPC.  Subsequent to the year end, a      further US$397,000 has been paid to GSPC.  The Company has      committed to expend an aggregate of approximately US$1.2 million for      exploration activities under the terms of the agreement entered into      covering the Tarapur block over the period ending November 22,      2007.  Under the terms of the agreement, the Company will be      required to keep in force a financial and performance guarantee securing      its performance under the TarapurPSC. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d) | KG      Block |
|--------|----|---------------|

|   | Under      the terms of our PSC relating to the KG Block, the first phase of the      exploration period was to expire on September 11, 2005.  The PSC      provides that by the end of the first phase, the contracting parties, in      addition to other parts of the work program which have been completed,      shall have drilled at least fourteen wells.  Through March 11,      2006, four wells had been drilled on the exploration block, leaving ten      wells to be drilled.  The PSC provides that, if at the end of an      exploration phase a work program for that phase is not completed, the time      for completion of the exploration program for that phase is to be extended      for a period necessary to enable completion but not exceeding six months      provided the parties (i) submit a request by written notice to the      Government of India at least thirty days prior to the expiration of the      relevant phase, (ii) can show technical or other good reasons for the      non-completion of the work program, and (iii) the management committee      gives its consent to the extension.  Any such extension that is      granted is to be deducted from the next succeeding exploration      phase. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | On      August 5, 2005, a written notice requesting the six month extension was      submitted and on August 29, 2005, the management committee consented to      the extension of six months to March 11, 2006 and deducted the six month      extension from the Phase II explorationperiod. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | On      February 24, 2006, the management committee for the KG Block recommended a      further extension of twelve months to March 11, 2007 which is also to be      deducted from the second phase of the exploration program.  As a      further condition to the extension, the management committee recommended      that GSPC be required to provide a bank guarantee as to 50% of the      unfinished work program, which GSPC has agreed to provide.  As      at April 12, 2006, approval of this extension from the Government of India      is still pending. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Under      the terms of the PSC, in the event the ten remaining wells are not drilled      by March 11, 2007, the Government of India would have the right to assert      that the contracting parties have failed to comply with or have      contravened a material provision of the PSC.  Under such      circumstances, the PSC will be subject to termination by the Government of      India on ninety days written notice, unless such failure of compliance or      contravention is remedied within the ninety-day period or such extended      period as may be granted by the Government of India.  In the      event the PSC is terminated by the Government of India, or in the event      the work program is not fulfilled by the end of the relevant exploration      phase, each party to the PSC is to pay to the Government of India its      participating interest share of an amount which is equal to the amount      that would be required to complete the minimum work program for that      phase.  We are of the view that GSPC, under the terms of our      CIA, would be liable for our participating interest share of the amount      required to complete the minimum work program for the      phase.  However, termination of the PSC by the Government of      India would result in the loss of our interest in the KG Block other than      areas determined to encompass commercial discoveries. To December 31,      2005, exploration costs related to the KG Block capitalized in the      Company’s accounts amount toUS$977,692. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a) | As      a result of the reverse takeover outlined in note 6, the comparatives are      those of the continuing entity for accounting purposes and are for the      years ended December 31, 2005, 2004 and2003. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b) | As      the Company is in its development stage, these are the accumulated amounts      of the continuing entity for the period from inception, being August 21,      2002 to December 31, 2005. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | a) | On      December 16, 2004, the Financial Accounting Standards Board (FASB) issued      FASB Statement No. 123 (revised 2004), Share-Based Payment, which is a      revision of FASB Statement No. 123, Accounting for Stock-Based      Compensation. Statement 123(R) supersedes APB Opinion No. 25, Accounting      for Stock Issued to Employees, and amends FASB Statement No. 95, Statement      of Cash Flows. Generally, the approach in Statement 123(R) is similar to      the approach described in Statement 123.  However, Statement      123(R) requires all share-based payments to employees, including grants of      employee stock options, to be recognized in the statement of operations      based on their fair values. Pro forma disclosure is no longer an      alternative.  Statement 123(R) must be adopted no later than      January 1, 2006.  Early adoption will be permitted in periods in      which financial statements have not yet been issued.  The      Company was planning to adopt Statement 123(R) on January 1, 2005,      however, on April 14, 2005, the Securities Exchange Commission provided      for a phased-in implementation process for Statement 123(R). As such, the      Company delayed the implementation until January 1,  2006. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Company adopted Statement 123(R) using the modified prospective method on      January 1, 2006 which will require the Company to recognize in the income      statement a charge of $367,596 over the next 3  years. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | In      May 2005, the FASB issued FASB Statement No. 154, Accounting Changes and      Error Corrections (FAS 154), a replacement of APB Opinion No. 20,      Accounting Changes, and FASB Statement No. 3, Reporting Accounting Changes      in Interim Financial Statements (FAS 3).  FAS 154 replaces the      provisions of FAS 3 with respect to reporting accounting changes in      interim financial statements.  FAS 154 is effective for      accounting changes and corrections of errors made in fiscal years      beginning after December 15, 2005.  Early adoption is permitted      for accounting changes and corrections of errors made in fiscal years      beginning after June 1, 2005. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                   |   | 3      months ended |       |   | 3      months ended |   |       | 6      months ended |   |   | 3      months ended |   |   | 9      months ended |     |   | Yearended   |   |
|----------------------------------------------------------------------------------------|--------|---------------------|------------|--------|---------------------|--------|------------|---------------------|--------|--------|---------------------|--------|--------|---------------------|----------|--------|-------------|--------|
|                                                                                   |   | Mar      31         |       |   | June      30        |   |       | June      30        |   |   | Sept      30        |   |   | Sept      30        |     |   | Dec      31 |   |
| 2005                                                                                   |   | US$                 |       |   | US$                 |   |       | US$                 |   |   | US$                 |   |   | US$                 |     |   | US$         |   |
|                                                                                   |   |                |       |   |                |   |       |                |   |   |                |   |   |                |     |   |        |   |
| Interest      income                                                                   |   |                | 14,677     |   |                |   | 19,609     |                |   |   | 34,286              |   |   |                | 77,693   |   |        |   | 111,979 |   |   |   | 462,174 |   |
|                                                                                   |   |                |       |   |                |   |       |                |   |   |                |   |   |                |     |   |        |   |   |   |   |   |   |   |
| Net      earnings (loss) and    comprehensive      earnings (loss) |   |                |       |   |                |   |       |                |   |   |                |   |   |                |     |   |        |   |   |   |   |   |   |   |
| As      previously reported                                                            |   |                | (176,847   | )      |                |   | (198,511   | )                   |   |   | (375,358            | )      |   |                | (217,348 | )      |        |   | (592,706 | ) |   |   | (480,980 | ) |
| Adjustment      - current period                                                       |   |                | (78,791    | )      |                |   | (1,187,023 | )                   |   |   | (1,265,814          | )      |   |                | (316,583 | )      |        |   | (1,582,397 | ) |   |   | (2,681,680 | ) |
| As      restated                                                                       |   |                | (255,638   | )      |                |   | (1,385,534 | )                   |   |   | (1,641,172          | )      |   |                | (533,931 | )      |        |   | (2,175,103 | ) |   |   | (3,162,660 | ) |
|                                                                                   |   |                |       |   |                |   |       |                |   |   |                |   |   |                |     |   |        |   |   |   |   |   |   |   |
| Net      earnings (loss) per share    -      basic and diluted     |   |                |       |   |                |   |       |                |   |   |                |   |   |                |     |   |        |   |   |   |   |   |   |   |
| As      previously reported                                                            |   |                | 0.00       |   |                |   | 0.00       |                |   |   | (0.01               | )      |   |                | 0.00     |   |        |   | (0.01 | ) |   |   | (0.01 | ) |
| Adjustment      - current period                                                       |   |                | (0.01      | )      |                |   | (0.03      | )                   |   |   | (0.02               | )      |   |                | (0.01    | )      |        |   | (0.03 | ) |   |   | (0.05 | ) |
| As      restated                                                                       |   |                | (0.01      | )      |                |   | (0.03      | )                   |   |   | (0.03               | )      |   |                | (0.01    | )      |        |   | (0.04 | ) |   |   | (0.06 | ) |
|                                                                                   |   |                |       |   |                |   |       |                |   |   |                |   |   |                |     |   |        |   |   |   |   |   |   |   |
| Deficit                                                                                |   |                |       |   |                |   |       |                |   |   |                |   |   |                |     |   |        |   |   |   |   |   |   |   |
| As      previously reported                                                            |   |                | (1,535,851 | )      |                |   |       |                |   |   | (1,734,362          | )      |   |                |     |   |        |   | (1,951,710 | ) |   |   | (1,839,984 | ) |
| Adjustment      - prior years                                                          |   |                | (344,684   | )      |                |   |       |                |   |   | (344,684            | )      |   |                |     |   |        |   | (344,684 | ) |   |   | (344,684 | ) |
| Adjustment      - current period                                                       |   |                | (78,791    | )      |                |   |       |                |   |   | (1,265,814          | )      |   |                |     |   |        |   | (1,582,397 | ) |   |   | (2,681,680 | ) |
| As      restated                                                                       |   |                | (1,959,326 | )      |                |   |       |                |   |   | (3,344,860          | )      |   |                |     |   |        |   | (3,878,791 | ) |   |   | (4,866,348 | ) |
|                                                                                   |   |                |       |   |                |   |       |                |   |   | )                   |   |   |                |     |   |        |   |   |   |   |   |   |   |
| Oil      and gas interests                                                             |   |                |       |   |                |   |       |                |   |   |                |   |   |                |     |   |        |   |   |   |   |   |   |   |
| As      previously reported                                                            |   |                | 916,506    |   |                |   | 38,742     |                |   |   | 955,248             |   |   |                | 146,809  |   |        |   | 1,102,057 |   |   |   | 1,578,124 |   |
| Adjustment      - current period                                                       |   |                | 31,153     |   |                |   | 744,651    |                |   |   | 775,804             |   |   |                | 200,732  |   |        |   | 976,536 |   |   |   | 1,672,576 |   |
| As      restated - current period                                                      |   |                | 947,659    |   |                |   | 783,393    |                |   |   | 1,731,052           |   |   |                | 347,541  |   |        |   | 2,078,593 |   |   |   | 3,250,700 |   |
| Opening      balance - beginning of year                                               |   |                | 707,023    |   |                |   |       |                |   |   | 707,023             |   |   |                |     |   |        |   | 707,023 |   |   |   | 707,023 |   |
| As      restated                                                                       |   |                | 1,654,682  |   |                |   |       |                |   |   | 2,438,075           |   |   |                |     |   |        |   | 2,785,616 |   |   |   | 3,957,723 |   |
|                                                                                   |   |                |       |   |                |   |       |                |   |   |                |   |   |                |     |   |        |   |   |   |   |   |   |   |
| Stock-based      compensation                                                          |   |                |       |   |                |   |       |                |   |   |                |   |   |                |     |   |        |   |   |   |   |   |   |   |
| As      previously reported                                                            |   |                |       |   |                |   |       |                |   |   |                |   |   |                |     |   |        |   |   |   |   |   |   |   |
| Consulting                                                                             |   |                | --         |   |                |   | --         |                |   |   | --                  |   |   |                | --       |   |        |   | -- |   |   |   | -- |   |
| Oil      and gas interests                                                             |   |                | --         |   |                |   | --         |                |   |   | --                  |   |   |                | --       |   |        |   | -- |   |   |   | -- |   |
|                                                                                   |   |                | --         |   |                |   | --         |                |   |   | --                  |   |   |                | --       |   |        |   | -- |   |   |   | -- |   |
|                                                                                   |   |                |       |   |                |   |       |                |   |   |                |   |   |                |     |   |        |   |   |   |   |   |   |   |
| Adjustment                                                                             |   |                |       |   |                |   |       |                |   |   |                |   |   |                |     |   |        |   |   |   |   |   |   |   |
| Consulting                                                                             |   |                | 78,791     |   |                |   | 1,187,023  |                |   |   | 1,265,814           |   |   |                | 316,583  |   |        |   | 1,582,397 |   |   |   | 2,681,680 |   |
| Oil      and gas interests                                                             |   |                | 31,153     |   |                |   | 744,651    |                |   |   | 775,804             |   |   |                | 200,732  |   |        |   | 976,536 |   |   |   | 1,672,576 |   |
|                                                                                   |   |                | 109,944    |   |                |   | 1,931,674  |                |   |   | 2,041,618           |   |   |                | 517,315  |   |        |   | 2,558,933 |   |   |   | 4,354,256 |   |
|                                                                                   |   |                |       |   |                |   |       |                |   |   |                |   |   |                |     |   |        |   |   |   |   |   |   |   |
| As      restated                                                                       |   |                |       |   |                |   |       |                |   |   |                |   |   |                |     |   |        |   |   |   |   |   |   |   |
| Consulting                                                                             |   |                | 78,791     |   |                |   | 1,187,023  |                |   |   | 1,265,814           |   |   |                | 316,583  |   |        |   | 1,582,397 |   |   |   | 2,681,680 |   |
| Oil      and gas interests                                                             |   |                | 31,153     |   |                |   | 744,651    |                |   |   | 775,804             |   |   |                | 200,732  |   |        |   | 976,536 |   |   |   | 1,672,576 |   |
|                                                                                   |   |                | 109,944    |   |                |   | 1,931,674  |                |   |   | 2,041,618           |   |   |                | 517,315  |   |        |   | 2,558,933 |   |   |   | 4,354,256 |   |

----

|                                                                                   |   | 3      months ended |       |   | 3      months ended |   |     | 6      months ended |   |   | 3      months ended |   |   | 9      months ended |     |   | Yearended      |   |       | Yearended      |   |
|----------------------------------------------------------------------------------------|--------|---------------------|------------|--------|---------------------|--------|----------|---------------------|--------|--------|---------------------|--------|--------|---------------------|----------|--------|----------------|--------|------------|----------------|--------|
|                                                                                   |   | Mar      31         |       |   | June      30        |   |     | June      30        |   |   | Sept      30        |   |   | Sept      30        |     |   | Dec      31/04 |   |       | Dec      31/03 |   |
| 2004                                                                                   |   | US$                 |       |   | US$                 |   |     | US$                 |   |   | US$                 |   |   | US$                 |     |   | US$            |   |       | US$            |   |
|                                                                                   |   |                |       |   |                |   |     |                |   |   |                |   |   |                |     |   |           |   |       |           |   |
| Interest      income                                                                   |   |                | 5,883      |   |                |   | 7,092    |                |   |   | 12,975              |   |   |                | 6,386    |   |           |   | 19,361     |           |   |   | 31,591 |   |   |   | 1,863 |   |
|                                                                                   |   |                |       |   |                |   |     |                |   |   |                |   |   |                |     |   |           |   |       |           |   |   |   |   |   |   |   |   |
| Net      earnings (loss) and    comprehensive      earnings (loss) |   |                |       |   |                |   |     |                |   |   |                |   |   |                |     |   |           |   |       |           |   |   |   |   |   |   |   |   |
| As      previously reported                                                            |   |                | (201,539   | )      |                |   | (306,205 | )                   |   |   | (507,744            | )      |   |                | (163,165 | )      |           |   | (670,909   | )              |   |   | (867,496 | ) |   |   | (477,695 | ) |
| Adjustment      - current period                                                       |   |                | (396,065   | )      |                |   | (240,838 | )                   |   |   | (636,903            | )      |   |                | 111,139  |   |           |   | (525,764   | )              |   |   | (304,002 | ) |   |   | (40,682 | ) |
| As      restated                                                                       |   |                | (597,604   | )      |                |   | (547,043 | )                   |   |   | (1,144,647          | )      |   |                | (52,026  | )      |           |   | (1,196,673 | )              |   |   | (1,171,498 | ) |   |   | (518,377 | ) |
|                                                                                   |   |                |       |   |                |   |     |                |   |   |                |   |   |                |     |   |           |   |       |           |   |   |   |   |   |   |   |   |
| Net      earnings (loss) per share    -      basic and diluted     |   |                |       |   |                |   |     |                |   |   |                |   |   |                |     |   |           |   |       |           |   |   |   |   |   |   |   |   |
| As      previously reported                                                            |   |                | (0.01      | )      |                |   | (0.01    | )                   |   |   | (0.01               | )      |   |                | (0.01    | )      |           |   | (0.02      | )              |   |   | (0.02 | ) |   |   | (0.02 | ) |
| Adjustment      - current period                                                       |   |                | (0.01      | )      |                |   | (0.01    | )                   |   |   | (0.02               | )      |   |                | 0.01     |   |           |   | (0.01      | )              |   |   | (0.01 | ) |   |   | (0.01 | ) |
| As      restated                                                                       |   |                | (0.02      | )      |                |   | (0.02    | )                   |   |   | (0.03               | )      |   |                | 0.00     |   |           |   | (0.03      | )              |   |   | (0.03 | ) |   |   | (0.03 | ) |
|                                                                                   |   |                |       |   |                |   |     |                |   |   |                |   |   |                |     |   |           |   |       |           |   |   |   |   |   |   |   |   |
| Deficit                                                                                |   |                |       |   |                |   |     |                |   |   |                |   |   |                |     |   |           |   |       |           |   |   |   |   |   |   |   |   |
| As      previously reported                                                            |   |                | (693,047   | )      |                |   |     |                |   |   | (999,252            | )      |   |                |     |   |           |   | (1,162,417 | )              |   |   | (1,359,004 | ) |   |   | (491,508 | ) |
| Adjustment      - prior years                                                          |   |                | (40,682    | )      |                |   |     |                |   |   | (40,682             | )      |   |                |     |   |           |   | (40,682    | )              |   |   | (40,682 | ) |   |   | -- |   |
| Adjustment      - current period                                                       |   |                | (396,065   | )      |                |   |     |                |   |   | (636,903            | )      |   |                |     |   |           |   | (525,764   | )              |   |   | (304,002 | ) |   |   | (40,682 | ) |
| As      restated                                                                       |   |                | (1,129,794 | )      |                |   |     |                |   |   | (1,676,837          | )      |   |                |     |   |           |   | (1,728,863 | )              |   |   | (1,703,688 | ) |   |   | (532,190 | ) |
|                                                                                   |   |                |       |   |                |   |     |                |   |   |                |   |   |                |     |   |           |   |       |           |   |   |   |   |   |   |   |   |
| Oil      and gas interests                                                             |   |                |       |   |                |   |     |                |   |   |                |   |   |                |     |   |           |   |       |           |   |   |   |   |   |   |   |   |
| As      previously reported                                                            |   |                | 83,568     |   |                |   | 186,650  |                |   |   | 270,218             |   |   |                | 67,741   |   |           |   | 337,959    |           |   |   | 460,016 |   |   |   | 156,598 |   |
| Adjustment      - current period                                                       |   |                | 59,424     |   |                |   | 35,918   |                |   |   | 95,342              |   |   |                | (14,789  | )      |           |   | 80,553     |           |   |   | 46,253 |   |   |   | 22,231 |   |
| As      restated - current period                                                      |   |                | 142,992    |   |                |   | 222,568  |                |   |   | 365,560             |   |   |                | 52,952   |   |           |   | 418,512    |           |   |   | 506,269 |   |   |   | 178,829 |   |
| Opening      balance - beginning of year                                               |   |                | 200,754    |   |                |   |     |                |   |   | 200,754             |   |   |                |     |   |           |   | 200,754    |           |   |   | 200,754 |   |   |   | 21,925 |   |
| As      restated                                                                       |   |                | 343,746    |   |                |   |     |                |   |   | 566,314             |   |   |                |     |   |           |   | 619,266    |           |   |   | 707,023 |   |   |   | 200,754 |   |
|                                                                                   |   |                |       |   |                |   |     |                |   |   |                |   |   |                |     |   |           |   |       |           |   |   |   |   |   |   |   |   |
| Stock-based      compensation                                                          |   |                |       |   |                |   |     |                |   |   |                |   |   |                |     |   |           |   |       |           |   |   |   |   |   |   |   |   |
| As      previously reported                                                            |   |                |       |   |                |   |     |                |   |   |                |   |   |                |     |   |           |   |       |           |   |   |   |   |   |   |   |   |
| Consulting                                                                             |   |                | --         |   |                |   | --       |                |   |   | --                  |   |   |                | --       |   |           |   | --         |           |   |   | -- |   |   |   | -- |   |
| Oil      and gas interests                                                             |   |                | --         |   |                |   | --       |                |   |   | --                  |   |   |                | --       |   |           |   | --         |           |   |   | -- |   |   |   | -- |   |
|                                                                                   |   |                | --         |   |                |   | --       |                |   |   | --                  |   |   |                | --       |   |           |   | --         |           |   |   | -- |   |   |   | -- |   |
|                                                                                   |   |                |       |   |                |   |     |                |   |   |                |   |   |                |     |   |           |   |       |           |   |   |   |   |   |   |   |   |
| Adjustment                                                                             |   |                |       |   |                |   |     |                |   |   |                |   |   |                |     |   |           |   |       |           |   |   |   |   |   |   |   |   |
| Consulting                                                                             |   |                | 396,065    |   |                |   | 240,838  |                |   |   | 636,903             |   |   |                | (111,139 | )      |           |   | 525,764    |           |   |   | 304,002 |   |   |   | 40,682 |   |
| Oil      and gas interests                                                             |   |                | 59,424     |   |                |   | 35,918   |                |   |   | 95,342              |   |   |                | (14,789  | )      |           |   | 80,553     |           |   |   | 46,253 |   |   |   | 22,231 |   |
|                                                                                   |   |                | 455,489    |   |                |   | 276,756  |                |   |   | 732,245             |   |   |                | (125,928 | )      |           |   | 606,317    |           |   |   | 350,255 |   |   |   | 62,913 |   |
|                                                                                   |   |                |       |   |                |   |     |                |   |   |                |   |   |                |     |   |           |   |       |           |   |   |   |   |   |   |   |   |
| As      restated                                                                       |   |                |       |   |                |   |     |                |   |   |                |   |   |                |     |   |           |   |       |           |   |   |   |   |   |   |   |   |
| Consulting                                                                             |   |                | 396,065    |   |                |   | 240,838  |                |   |   | 636,903             |   |   |                | (111,139 | )      |           |   | 525,764    |           |   |   | 304,002 |   |   |   | 40,682 |   |
| Oil      and gas interests                                                             |   |                | 59,424     |   |                |   | 35,918   |                |   |   | 95,342              |   |   |                | (14,789  | )      |           |   | 80,553     |           |   |   | 46,253 |   |   |   | 22,231 |   |
|                                                                                   |   |                | 455,489    |   |                |   | 276,756  |                |   |   | 732,245             |   |   |                | (125,928 | )      |           |   | 606,317    |           |   |   | 350,255 |   |   |   | 62,913 |   |

----

| Signature                                       |   | Title                                                               |   | Date              |
|-------------------------------------------------|--------|---------------------------------------------------------------------|--------|-------------------|
| /s/ Jean Paul RoyJean      Paul Roy             |   | President,      Chief Executive Officer and Director                |   | June      3, 2008 |
|                                            |   |                                                                |   |              |
| /s/ Allan J. KentAllan      J. Kent             |   | Executive      Vice President, Chief Financial Officer and Director |   | June      3, 2008 |
|                                            |   |                                                                |   |              |
| /s/ Brent J. PetersBrent      J. Peters         |   | Director                                                            |   | June      3, 2008 |
|                                            |   |                                                                |   |              |
| /s/ Peter R. SmithPeter      R. Smith           |   | Chairman      of the Board and Director                             |   | June      3, 2008 |
|                                            |   |                                                                |   |              |
| /s/ Michael J. HudsonMichael      J. Hudson     |   | Director                                                            |   | June      3, 2008 |
|                                            |   |                                                                |   |              |
| /s/ Dr. Avinash ChandraDr.      Avinash Chandra |   | Director                                                            |   | June      3, 2008 |

----