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UNITED STATESSECURITIES
AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM 10-QSB

[X] Quarterly Report Under Section 13 or 15(d) of the
Securities Exchange Act of 1934 for the quarterly period ended June 30,
2007

[ ] Transition Report Under Section 13 or 15(d) of the
Securities Exchange Act of 1934 for the transition period from _____ to
_____

Commission File Number: 000-51712

PARK PLACE ENERGY CORP.(Name of small business issuer in its charter)

|Nevada                                           | 71-0971567                     
|------------------------------------------------ | -------------------------------
|(State or other jurisdiction of incorporation or | (I.R.S. Employer Identification
|organization)                                    | No.)                           

666 Burrard Street, Suite 1220 Vancouver, British
Columbia, Canada, V6C 2X8(Address of principal executive offices)

(604) 685-0076(Issuers telephone number)

ST ONLINE CORP. 359  240thStreetLangley, British Columbia, Canada, V3A 6M5(former
name, former address and former fiscal year, if changed since last report)

Check whether the issuer (1) filed all reports required to be
filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or
for such shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days.
Yes [X] No [ ]

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

State the number of shares outstanding of each of the issuers
classes of common equity, as of the latest practicable date. 30,398,138
shares of common stock as of August 17, 2007.

Transitional Small Business Disclosure Format (check one): Yes [
] No [X]

__________

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PARK PLACE ENERGY CORP.

Quarterly Report On Form 10-QSB

For The Quarterly Period Ended June 30, 2007

FORWARD-LOOKING STATEMENTS

This Form 10-QSB for the quarterly period ended June 30, 2007
contains forward-looking statements that involve risks and uncertainties.
Forward-looking statements in this document include, among others, statements
regarding our capital needs, business plans and expectations. Such
forward-looking statements involve assumptions, risks and uncertainties
regarding, among others, the success of our business plan, availability of
funds, government regulations, operating costs, our ability to achieve
significant revenues, our business model and other factors. Any statements
contained herein that are not statements of historical fact may be deemed to be
forward-looking statements. In some cases, you can identify forward-looking
statements by terminology such as may, will, should, expect, plan,
intend, anticipate, believe, estimate, predict, potential or
continue, the negative of such terms or other comparable terminology. In
evaluating these statements, you should consider various factors, including the
assumptions, risks and uncertainties set forth in reports and other documents we
have filed with or furnished to the Securities and Exchange Commission. These
factors or any of them may cause our actual results to differ materially from
any forward-looking statement made in this document. While these forward-looking
statements, and any assumptions upon which they are based, are made in good
faith and reflect our current judgment regarding future events, our actual
results will likely vary, sometimes materially, from any estimates, predictions,
projections, assumptions or other future performance suggested herein. The
forward-looking statements in this document are made as of the date of this
document and we do not intend or undertake to update any of the forward-looking
statements to conform these statements to actual results, except as required by
applicable law, including the securities laws of the United States.

__________

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PART I  FINANCIAL INFORMATION

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

The following unaudited interim financial statements of Park
Place Energy Corp. are included in this Quarterly Report on Form 10-QSB:

|Description                                                                                                                                                                           | Page
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----
|Interim Balance Sheets as
      at June 30, 2007 and September 30, 2006:                                                                                                              | 4   
|Interim Statements of Operations for the Nine and Three
      Months ended June 30, 2007 and 2006 and for the period from August 27,
      2004 (Date of Inception) to June 30, 2007: | 5   
|Interim Statements of Cash Flows for the Nine Months
      ended June 30, 2007 and 2006:                                                                                              | 6   
|Notes to Interim Financial Statements:                                                                                                                                                | 7   

- 3 -

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|Park Place Energy Corp.       
|------------------------------
|(Formerly ST Online Corp.)    
|(An Exploration Stage Company)
|Balance Sheets                
|(Expressed in U.S. dollars)   
|(Unaudited)                   

|                                                                  |  | June 30, |   |  | September 30, |  
|----------------------------------------------------------------- |  | -------- | - |  | ------------- | -
|                                                                  |  | 2007     |   |  | 2006          |  
|                                                                  |  | $        |   |  | $             |  
|                                                                  |  |          |   |  |               |  
|ASSETS                                                            |  |          |   |  |               |  
|Current Assets                                                    |  |          |   |  |               |  
|Cash                                                              |  | 320      |   |  | 16,233        |  
|Total Current Assets                                              |  | 320      |   |  | 16,233        |  
|Property and Equipment (Note 3)                                   |  | 2,096    |   |  | 3,116         |  
|Total Assets                                                      |  | 2,416    |   |  | 19,349        |  
|                                                                  |  |          |   |  |               |  
|LIABILITIES AND STOCKHOLDERS EQUITY (DEFICIENCY)                 |  |          |   |  |               |  
|Current Liabilities                                               |  |          |   |  |               |  
|                                                                  |  |          |   |  |               |  
|Accounts payable                                                  |  | 17,788   |   |  | 2,850         |  
|Due
      to related party (Note 4(a) and (b))                    |  | 8,655    |   |  | 5,000         |  
|Total Liabilities                                                 |  | 26,443   |   |  | 7,850         |  
|Stockholders Equity (Deficiency)                                 |  |          |   |  |               |  
|Common Stock:                                                     |  |          |   |  |               |  
|Authorized: 1,200,000,000 common shares, par
      value $0.00001 |  |          |   |  |               |  
|Issued and outstanding:
      61,447,800 shares                   |  | 614      |   |  | 614           |  
|Additional Paid-in Capital                                        |  | 111,491  |   |  | 111,491       |  
|Donated Capital (Note 4(c))                                       |  | 25,500   |   |  | 18,750        |  
|Deficit
      Accumulated During the Exploration Stage            |  | (161,632 | ) |  | (119,356      | )
|Total Stockholders Equity (Deficiency)                           |  | (24,027  | ) |  | 11,499        |  
|Total Liabilities
      and Stockholders Equity (Deficiency)     |  | 2,416    |   |  | 19,349        |  

Nature of Operations and Continuance of Business (Note 1)

Subsequent Event (Note 6)

(The accompanying notes are an integral part of these financial
statements)

- 4 -

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|Park Place Energy Corp.       
|------------------------------
|(Formerly ST Online Corp.)    
|(An Exploration Stage Company)
|Statements of Operations      
|(Expressed in U.S. dollars)   
|(Unaudited)                   

|                                              |  | For the      |   |  | For the          |   |  | For the     |   |  | For the     |   |  | Accumulated from    |  
|--------------------------------------------- |  | ------------ | - |  | ---------------- | - |  | ----------- | - |  | ----------- | - |  | ------------------- | -
|                                              |  | Three Months |   |  | Three
    Months |   |  | Nine
Months |   |  | Nine Months |   |  | August 27, 2004     |  
|                                              |  | Ended        |   |  | Ended            |   |  | Ended       |   |  | Ended       |   |  | (Date of Inception) |  
|                                              |  | June 30,     |   |  | June 30,         |   |  | June 30,    |   |  | June 30,    |   |  | to June 30,         |  
|                                              |  | 2007         |   |  | 2006             |   |  | 2007        |   |  | 2006        |   |  | 2007                |  
|                                              |  | $            |   |  | $                |   |  | $           |   |  | $           |   |  | $                   |  
|                                              |  |              |   |  |                  |   |  |             |   |  |             |   |  |                     |  
|                                              |  |              |   |  |                  |   |  |             |   |  |             |   |  |                     |  
|Revenue                                       |  | 59           |   |  | 90               |   |  | 113         |   |  | 229         |   |  | 799                 |  
|                                              |  |              |   |  |                  |   |  |             |   |  |             |   |  |                     |  
|                                              |  |              |   |  |                  |   |  |             |   |  |             |   |  |                     |  
|Expenses                                      |  |              |   |  |                  |   |  |             |   |  |             |   |  |                     |  
|                                              |  |              |   |  |                  |   |  |             |   |  |             |   |  |                     |  
|Amortization                                  |  | 340          |   |  | 340              |   |  | 1,020       |   |  | 619         |   |  | 3,431               |  
|Impairment loss on intangible
      assets    |  |             |   |  |                 |   |  |            |   |  |            |   |  | 2,896               |  
|Selling, general and administrative (Note     |  | 10,897       |   |  |                  |   |  | 41,369      |   |  | 54,340      |   |  |                     |  
|4(c))                                         |  |              |   |  | 20,031           |   |  |             |   |  |             |   |  | 156,104             |  
|                                              |  |              |   |  |                  |   |  |             |   |  |             |   |  |                     |  
|Total expenses                                |  | 11,237       |   |  | 20,371           |   |  | 42,389      |   |  | 54,959      |   |  | 162,431             |  
|                                              |  |              |   |  |                  |   |  |             |   |  |             |   |  |                     |  
|Loss for the period                           |  | (11,178      | ) |  | (20,281          | ) |  | (42,276     | ) |  | (54,730     | ) |  | (161,632            | )
|                                              |  |              |   |  |                  |   |  |             |   |  |             |   |  |                     |  
|                                              |  |              |   |  |                  |   |  |             |   |  |             |   |  |                     |  
|Basic and diluted
      loss per common share |  | (0.00        | ) |  | (0.00            | ) |  | (0.00       | ) |  | (0.00       | ) |  |                     |  
|                                              |  |              |   |  |                  |   |  |             |   |  |             |   |  |                     |  
|                                              |  |              |   |  |                  |   |  |             |   |  |             |   |  |                     |  
|Basic and diluted weighted average number     |  |              |   |  |                  |   |  |             |   |  |             |   |  |                     |  
|of common shares
      outstanding            |  | 61,448,000   |   |  | 60,744,000       |   |  | 61,448,000  |   |  | 56,172,000  |   |  |                     |  

(The accompanying notes are an integral part of these financial
statements)

- 5 -

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|Park Place Energy Corp.       
|------------------------------
|(Formerly ST Online Corp.)    
|(An Exploration Stage Company)
|Statements of Cash Flows      
|(Expressed in U.S. dollars)   
|(Unaudited)                   

|                                                      |  | For the     |   |  | For the     |  
|----------------------------------------------------- |  | ----------- | - |  | ----------- | -
|                                                      |  | Nine Months |   |  | Nine Months |  
|                                                      |  | Ended       |   |  | Ended       |  
|                                                      |  | June 30,    |   |  | June 30,    |  
|                                                      |  | 2007        |   |  | 2006        |  
|                                                      |  | $           |   |  | $           |  
|                                                      |  |             |   |  |             |  
|Cash Flows From Operating Activities                  |  |             |   |  |             |  
|                                                      |  |             |   |  |             |  
|Loss for the period                                   |  | (42,276     | ) |  | (54,730     | )
|Items not affecting cash:                             |  |             |   |  |             |  
|Amortization                                          |  | 1,020       |   |  | 619         |  
|Donated services and rent                             |  | 6,750       |   |  | 6,750       |  
|Changes in non-cash working
      capital items:      |  |             |   |  |             |  
|Accounts payable                                      |  | 14,938      |   |  | (14,780     | )
|Net cash flows used in operating activities           |  | (19,568     | ) |  | (62,141     | )
|Investing Activities                                  |  |             |   |  |             |  
|Purchase of property and equipment                    |  |            |   |  | (4,075      | )
|Net cash flows
      used in investing activities     |  |            |   |  | (4,075      | )
|Financing Activities                                  |  |             |   |  |             |  
|Due to related parties                                |  | 3,655       |   |  | (19,896     | )
|Proceeds from share subscriptions received            |  |            |   |  | 112,065     |  
|Net cash flows
      provided by financing activities |  | 3,655       |   |  | 92,169      |  
|Increase (decrease) in cash                           |  | (15,913     | ) |  | 25,953      |  
|Cash  Beginning
      of Period                      |  | 16,233      |   |  | 1,841       |  
|Cash  End of Period                                  |  | 320         |   |  | 27,794      |  
|                                                      |  |             |   |  |             |  
|Supplemental Disclosures                              |  |             |   |  |             |  
|Interest paid                                         |  |            |   |  |            |  
|Income taxes paid                                     |  |            |   |  |            |  

(The accompanying notes are an integral part of these financial
statements)

- 6 -

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|Park Place Energy Corp.          
|---------------------------------
|(Formerly ST Online Corp.)       
|(An Exploration Stage Company)   
|Notes to the Financial Statements
|(Expressed in U.S. dollars)      
|(Unaudited)                      
|June 30, 2007                    

|1. | Nature of Operations and Continuance of
      Business
|-- | ------------------------------------------------------

ST Online Corp. (the Company) was
incorporated in the State of Nevada on August 27, 2004. On June 22, 2007, the
Company entered into a Business Combination Agreement (the Agreement) with
Park Place Energy Inc. (Park Place), a private company incorporated under the
laws of the Province of Alberta, Canada, and 0794403 B.C. Ltd (Subco), a
Nevada corporation and wholly-owned subsidiary of the Company. On July 6, 2007,
pursuant to the terms of the Agreement, Park Place amalgamated with Subco to
form an amalgamated British Columbia company (Amalco). Following the closing
of the Agreement, the Company will carry on the current business of Park Place
(Note 6). Park Place is an exploration stage oil company with interests in oil
and gas properties in western Canada.

On July 6, 2007, the Company completed
a merger with its wholly-owned subsidiary, Park Place Energy Corp., which was
incorporated in 2007 solely to effect a name change. As a result, the Company
changed its name from ST Online Corp. to Park Place Energy Corp.

These financial statements have been
prepared on a going concern basis, which implies the Company will continue to
realize its assets and discharge its liabilities in the normal course of
business. The Company has not generated significant revenue and has never paid
any dividends. The Company is unlikely to pay dividends or generate significant
earnings in the immediate or foreseeable future. The continuation of the Company
as a going concern and the ability of the Company to emerge from the exploration
stage is dependent upon the continued financial support from its shareholders,
the ability of the Company to obtain necessary equity financing to continue
operations and to generate sustainable significant revenue. There is no
guarantee that the Company will be able to raise any equity financing or
generate profitable operations. As at June 30, 2007, the Company has a working
capital deficit of $26,123 and has accumulated losses of $161,632 since
inception. These financial statements do not include any adjustments to the
recoverability and classification of recorded asset amounts and classification
of liabilities that might be necessary should the Company be unable to continue
as a going concern. These factors raise substantial doubt regarding the
Companys ability to continue as a going concern.

|2. | Summary of Significant Accounting Principles
|-- | --------------------------------------------
|   |                                             
|   | a)                                          
|   |                                             
|   |                                             
|   |                                             
|   | b)                                          
|   |                                             
|   |                                             
|   |                                             
|   | c)                                          
|   |                                             
|   |                                             

- 7 -

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|Park Place Energy Corp.          
|---------------------------------
|(Formerly ST Online Corp.)       
|(An Exploration Stage Company)   
|Notes to the Financial Statements
|(Expressed in U.S. dollars)      
|(Unaudited)                      
|June 30, 2007                    

|2. | Summary of Significant Accounting Principles
      (continued)
|-- | --------------------------------------------------------------
|   |                                                               
|   | d)                                                            
|   |                                                               
|   |                                                               
|   |                                                               
|   | e)                                                            
|   |                                                               
|   |                                                               
|   |                                                               
|   | f)                                                            
|   |                                                               
|   |                                                               
|   |                                                               
|   | g)                                                            
|   |                                                               
|   |                                                               
|   |                                                               
|   | h)                                                            
|   |                                                               
|   |                                                               
|   |                                                               
|   |                                                               
|   |                                                               
|   | i)                                                            
|   |                                                               
|   |                                                               

- 8 -

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|Park Place Energy Corp.          
|---------------------------------
|(Formerly ST Online Corp.)       
|(An Exploration Stage Company)   
|Notes to the Financial Statements
|(Expressed in U.S. dollars)      
|(Unaudited)                      
|June 30, 2007                    

|2. | Summary of Significant Accounting Principles
      (continued)
|-- | --------------------------------------------------------------
|   |                                                               
|   | j)                                                            
|   |                                                               
|   |                                                               
|   |                                                               
|   | k)                                                            
|   |                                                               
|   |                                                               
|   |                                                               
|   | l)                                                            
|   |                                                               
|   |                                                               
|   |                                                               
|   | m)                                                            
|   |                                                               
|   |                                                               
|   |                                                               
|   |                                                               
|   |                                                               
|   |                                                               

- 9 -

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|Park Place Energy Corp.          
|---------------------------------
|(Formerly ST Online Corp.)       
|(An Exploration Stage Company)   
|Notes to the Financial Statements
|(Expressed in U.S. dollars)      
|(Unaudited)                      
|June 30, 2007                    

|2. | Summary of Significant Accounting Principles
      (continued)
|-- | --------------------------------------------------------------
|   |                                                               
|   | n)                                                            
|   |                                                               
|   |                                                               
|   |                                                               
|3. | Property and Equipment                                        

| |                  |  | June 30, 2007 |  |  | September 30, 2006 | 
| | ---------------- |  | ------------- |  |  | ------------------ | 
| |                  |  |               |  |  | Accumulated        | 
| |                  |  | Cost          |  |  | Amortization       | 
| |                  |  | $             |  |  | $                  | 
| |                  |  |               |  |  |                    | 
| | Office Equipment |  | 4,075         |  |  | 1,979              | 

|4. | Related Party Transactions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|5. | Common Stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | On July 6, 2007, the Company effected a 8:1 forward stock
      split of the authorized, issued and outstanding common stock and on July
      23, 2007, the Company completed a 1.5:1 forward stock split of the
      authorized, issued and outstanding common stock. As a result, the
      authorized share capital increased from 100,000,000 shares of common stock
      with a par value of $0.00001 to 1,200,000,000 shares of common stock with
      a par value of $0.00001. The issued and outstanding share capital
      increased from 5,120,650 shares of common stock to 61,447,800 shares of
      common stock. All share amounts have been retroactively adjusted for all
      periods presented.

- 10 -

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|Park Place Energy Corp.          
|---------------------------------
|(Formerly ST Online Corp.)       
|(An Exploration Stage Company)   
|Notes to the Financial Statements
|(Expressed in U.S. dollars)      
|(Unaudited)                      
|June 30, 2007                    

|6. | Subsequent Events
|-- | -----------------
|   |                  
|   | a)               
|   |                  
|   |                  
|   |                  
|   |                  
|   |                  
|   |                  
|   |                  
|   |                  
|   |                  
|   | b)               
|   |                  
|   | c)               

- 11 -

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|Item 2. | Managements Discussion and Analysis
|------- | ------------------------------------

As used in this Quarterly Report: (i) references to Company,
our company, we, us and our refer to Park Place Energy Corp., a Nevada
corporation, and its subsidiaries, unless the context requires otherwise; (ii)
references to Park Place Canada mean Park Place Energy Inc., our wholly-owned
subsidiary incorporated under the laws of the Province of British Columbia,
Canada; and (iii) all dollar amounts refer to United States dollars unless
otherwise indicated.

The following discussion of our plan of operations, results of
operations and financial condition as at and for the nine months ended June 30,
2007 should be read in conjunction with (i) our unaudited interim consolidated
financial statements and related notes for the nine months ended June 30, 2007
included in this Quarterly Report, (ii) our Current Report on Form 8-K/A filed
with the SEC on August 8, 2007, including the financial statements set forth
therein and (iii) our Annual Report on Form 10-KSB for the year ended September
30, 2006, including our annual audited financial statements set forth therein.

Our Prior Business

We were incorporated under the laws of the State of Nevada on
August 27, 2004 under the name ST Online Corp. Our principal business was an
online website that allows users to purchase and download tennis lesson video
clips and e-books relating to tennis. See our annual report on Form 10-KSB for
the year ended September 30, 2006 for more information relating to our business
prior to the acquisition of Park Place Canada.

Recent Events

On July 6, 2007, we effected a forward split of our shares of
common stock on the basis of eight new shares of our common stock for each one
share of common stock outstanding on that date and increased our authorized
share capital from 100,000,000 shares of common stock to 800,000,000 shares of
common stock. At the same time, we merged with a wholly-owned subsidiary
incorporated under the laws of the State of Nevada in contemplation of the
acquisition of all of the issued and outstanding shares of Park Place Canada and
the name of our company was changed to Park Place Energy Corp. On July 23, 2007,
we effected a forward split of our shares of common stock on the basis of one
and one-half new shares of common stock for each one share of common stock
outstanding on that date and increased our authorized share capital from
800,000,000 shares of common stock to 1,200,000,000 shares of common stock.

The Park Place Canada Acquisition

On July 30, 2007, we completed the acquisition (the
Acquisition) of all of the issued and outstanding shares of Park Place Canada,
pursuant to a Business Combination Agreement (the Agreement) dated June 22,
2007 among the Company, Park Place Canada, and 0794403 B.C. Ltd, our
wholly-owned subsidiary, as amended on July 4, 2007 and July 18, 2007. The
following summary of the Agreement (as amended) is not complete and is qualified
in its entirety by reference to the Agreement (and related amendments). A copy
of the Agreement is attached as an exhibit to our Current Report on Form 8-K
filed with the Securities and Exchange Commission (SEC) on July 3, 2007, and
copies of the amendments to the Agreement are attached as exhibits to our
Current Report on Form 8-K filed with the SEC on July 19, 2007.

- 12 -

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Under the terms of the Agreement, at closing, each holder of
Park Place Canada shares received one share of the Company in exchange for each
two shares they held of Park Place Canada, resulting in the issuance of
8,995,622 shares of our common stock to the shareholders of Park Place Canada.
Park Place Canada then amalgamated with our wholly owned subsidiary,
incorporated under the laws of the Province of British Columbia, Canada,
resulting in our 100% ownership of Park Place Canada.

Pursuant to the terms of the Agreement, as amended, we entered
into a reorganization asset and share purchase and sale agreement dated
effective July 30, 2007 among Park Place, Scott Pedersen, our former President
and Secretary and a former director, Elena Avdasseva, a former shareholder of
our common stock, and David Stadnyk, our current President, Treasurer and a
director, which was subsequently amended and restated on August 15, 2007 (the
Amended and Restated Share Transfer Agreement). The following summary of the
Amended and Restated Share Transfer Agreement is not complete and is qualified
in its entirety by reference to the Amended and Restated Share Transfer
Agreement, a copy of which is attached as an exhibit to our Current Report on
Form 8-K filed with the SEC on August 17, 2007. Under the Amended and Restated
Share Transfer Agreement, we transferred all of our rights to the website
www.simpletennis.com to Mr. Pedersen, and also paid him US$10,000 and
CDN$4,127, while Mr. Pedersen transferred 17,000,000 of his 18,000,000 post
split shares of our common stock to us for cancellation, and Mr. Pedersen
resigned as an officer and director of our company. Additionally under the
Amended and Restated Share Transfer Agreement, David Stadnyk paid US$10,000 to
Elena Avdasseva, while Ms. Avdasseva transferred 30,000,000 shares of our common
stock to Mr. Stadnyk and Mr. Stadnyk returned 28,000,000 of these shares to us
for cancellation.

In addition, pursuant to the terms of the Agreement, and at the
closing of the Acquisition, all outstanding options to acquire shares of Park
Place Canada were exchanged for options to acquire an aggregate of 1,000,000
shares of our company, and all options to acquire shares in the capital of Park
Place Canada were cancelled. Of the options we issued, options to acquire
550,000 shares are for a period ranging from approximately seven months to
approximately 33 months exercisable at price of $0.33 per share; and options to
acquire 1,450,000 shares are exercisable for a period ranging from approximately
33 months to approximately 44 months at a price of $0.23 per share. The terms of
these options have been amended such that half as many shares of our common
stock will be issued at twice the exercise price and we now have outstanding
options to purchase 275,000 shares of our common stock exercisable for a period
ranging from approximately seven months to approximately 33 months at an
exercise price of $0.67 per share and 725,000 shares exercisable for a period
ranging from approximately 33 months to approximately 44 months at an exercise
price of $0.47 per share.

In connection with our change of business, we are proposing to
raise up to $5,000,000 by way of private placement of 10,000,000 units at $0.50
per unit, with each unit comprised of one share of our common stock and one
share purchase warrant entitling the holder to acquire a share of our common
stock for a period of two years at an exercise price of $0.50 per share during
the first year and at an exercise price of $0.75 per share during the second
year. On August 9, 2007, we closed the first tranche of this offering, whereby
we sold 4,200,000 units, providing us with gross proceeds of $2,100,000.
However, there can be no assurance that the remainder of the proposed offering
will be completed or that we will be able to obtain additional financing as
required.

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The closing of the Acquisition represented a change in control
of our Company. For accounting purposes, this change in control constitutes a
re-capitalization of the Company, and the acquisition has been accounted for as
a reverse merger whereby we, as the legal acquirer, are treated as the acquired
entity, and Park Place Canada, as the legal subsidiary, is treated as the
acquiring company with the continuing operations.

As a consequence of our Companys acquisition of Park Place
Canada, our business is now focused on the acquisition and exploration of oil
and gas properties. For a description of our current business, please see our
Current Report on Form 8-K/A filed with the SEC on August 8, 2007.

Debt Settlement and Loan

On August 8, 2007, we entered into a debt settlement agreement
(the Debt Settlement Agreement) among Park Place, Park Place Canada and
1284810 Alberta Ltd. Under the Debt Settlement Agreement, we issued 754,716
units to 1284810 Alberta Ltd. in settlement of a debt of $377,358 owed to
1284810 Alberta Ltd. by Park Place Canada. The units were issued at a price of
$0.50 per unit, with each unit comprised of one share of our common stock and
one share purchase warrant entitling the holder to acquire a share of our common
stock for a period of two years at an exercise price of $0.50 per share during
the first year and at an exercise price of $0.75 per share during the second
year. Additionally, under the Debt Settlement Agreement, we have granted
piggy-back registration rights to 1284810 Alberta Ltd. pursuant to which we
agreed to register the shares, and the shares underlying the warrants, issued to
1284810 Alberta Ltd. in the event that we file a registration statement to
register any of our shares.

On August 8, 2007, Park Place Canada, our operating subsidiary,
entered into a loan agreement (the Loan Agreement) with Great Northern Oil
Sands Inc. (Great Northern). Under the Loan Agreement, Park Place Canada has
loaned $330,000 to Great Northern at an interest rate of prime plus 1% per
annum. As consideration for making the loan available to Great Northern, Great
Northern has transferred to Park Place Canada one-half of its undivided 5%
interest in its John Bowen #1 Well, which Great Northern acquired pursuant to
its participation agreement with Montello Resources Ltd., and has granted to
Park Place Canada a right of first refusal to acquire the remaining interest in
the John Bowen #1 Well. The Loan Agreement provides that the loan together with
interest will be repaid by Great Northern from the initial revenues payable to
Great Northern from its interest in the John Bowen #2 Well if the drilling of
the John Bowen #2 Well is successful, otherwise the loan together with interest
will be repaid by way of Great Northern transferring all of its interest in its
Eight Mile property to Park Place Canada, if the drilling of the John Bowen #2
is not successful.

Plan of Operations

Pursuant to the Acquisition of Park Place Canada, our plan of
operations for the next twelve months is to develop the Atlee Buffalo,
Lloydminster and Eight Mile properties for production. We also plan to drill
test wells at Worsley, Eight Mile, Cecil-Eureka, the Brighty Prospect and the
Ridgewood Prospect, and to conduct seismic studies at Cecil-Eureka, the Brighty
Prospect and the Ridgewood Prospect. We also plan to continue to explore our
other existing conventional oil and gas assets that are in the exploration
stage. We also plan to focus on

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financing the new gas discovery at Eight Mile, and developing
future gas wells on all 21 sections of land. Additionally, we will continue to
look for suitable projects.

We had cash of $320 and a working capital deficiency as at June
30, 2007. We anticipate that we will require approximately $6,000,000 to pursue
our plan of operations over the next 12 months and will require additional
financing. In connection with our change of business, we are proposing to raise
up to $5,000,000 by way of private placement of 10,000,000 units at $0.50 per
unit, with each unit comprised of one share of our common stock and one share
purchase warrant entitling the holder to acquire a share of our common stock for
a period of two years at an exercise price of $0.50 per share during the first
year and at an exercise price of $0.75 per share during the second year. On
August 9, 2007, we closed the first tranche of this offering, whereby we sold
4,200,000 units, providing us with gross proceeds of $2,100,000. However, there
is no assurance that the remainder of the proposed private placement will be
completed or that we will be able to obtain additional financing as required.

Results of Operations

Nine Months Ended June 30, 2007 Compared to Nine Months
Ended June 30, 2006

The following table sets out our net loss for the periods
indicated:

|                                           |   |                   |   |   |                   |   |   | From Inception           |  
|------------------------------------------ | - | ----------------- | - | - | ----------------- | - | - | ------------------------ | -
|                                           |   | Nine Months Ended |   |   | Nine Months Ended |   |   | **(August 27, 2004) to** |  
|                                           |   | June 30, 2007     |   |   | June 30, 2006     |   |   | June 30, 2007            |  
|                                           |   | (Unaudited)       |   |   | (Unaudited)       |   |   | (Unaudited)              |  
|Revenues                                   | $ | 113               |   | $ | 229               |   | $ | 799                      |  
|Operating Expenses                         |   |                   |   |   |                   |   |   |                          |  
|Amortization                               |   | 1,020             |   |   | 619               |   |   | 3,431                    |  
|Impairment loss on intangible
      assets |   | -                 |   |   | -                 |   |   | 2,896                    |  
|Selling, general
      and administrative  |   | 41,369            |   |   | 54,340            |   |   | 156,104                  |  
|Net Loss                                   |   | (42,276           | ) |   | (54,730           | ) |   | (161,632                 | )

Revenues

Our revenues for the nine months ended June 30, 2007 were $113,
compared to $229 in the prior period of 2006, due to increased competition for
the services sold on our website, www.simpletennis.com.

Amortization

In the nine months ended June 30, 2007, we recognized an
amortization expense of $1,020, compared to $619 in the prior period of 2006,
due to the fact that our equipment was not amortized for the full prior period
of 2006.

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Selling, General and Administrative Expenses

Our selling, general and administrative expenses in the nine
months ended June 30, 2007 decreased to $41,369 from $54,340 in the prior period
of 2006, primarily as a result of decreased operations due to our inability to
generate increased sales with the existing website.

Net Loss

As a result of the above, our net loss for the nine months
ended June 30, 2007 was $42,746, compared to $54,730 in the prior period of
2006.

Liquidity and Capital Resources

We had cash on hand of $320 at June 30, 2007 and a working
capital deficiency. We anticipate that we will require approximately $6,000,000
to pursue our plan of operations as described above for the next 12 months. Our
cash and working capital will not be sufficient to enable us to pursue our plan
of operations and pay our expenses for the next 12 months and therefore we will
require additional financing. We are in the process of seeking additional
financing, however, there can be no assurance that it will be able to obtain the
financing required in the amount required or upon terms favourable to us.

In connection with our change of business, we are proposing to
raise up to $5,000,000 by way of private placement of 10,000,000 units at $0.50
per unit, with each unit comprised of one share of our common stock and one
share purchase warrant entitling the holder to acquire a share of our common
stock for a period of two years at an exercise price of $0.50 per share during
the first year and at an exercise price of $0.75 per share during the second
year. On August 9, 2007, we closed the first tranche of this offering, whereby
we sold 4,200,000 units, providing us with gross proceeds of $2,100,000. There
is no assurance that the remainder of the proposed private placement will be
completed or that we will be able to obtain additional financing as required.

Subsequent to the 12 month period following the date of this
Quarterly Report on Form 10-QSB, we anticipate that we will be required to
obtain additional financing in order to continue our plan of operations. We
believe that debt financing will not be an alternative for funding additional
phases of exploration as we do not have tangible assets to secure any debt
financing. We anticipate that additional funding will be in the form of equity
financing from the sale of our common stock. However, we do not have any
financing arranged and we cannot provide investors with any assurance that we
will be able to raise sufficient funding from the sale of our common stock. If
we do not obtain additional financing, we will be forced to abandon our property
interests and our plan of operations will fail.

Cash Used in Operating Activities

Cash used in operating activities in the nine months ended June
30, 2007 was $19,568, which reflected in our net loss, compared to cash used in
operating activities of $62,141 in the prior period of 2006. An increase in
accounts payable provided cash of $14,938. We anticipate that cash used in
operating activities will increase in 2007 as we pursue our plan of
operations.

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Cash Used In Investing Activities

In the nine months ended June 30, 2007, no cash was used in
investing activities, compared to $4,075 in the prior period of 2006 due to the
acquisition of equipment.

Cash Provided By Financing Activities

We have funded our business to date primarily from sales of our
common stock. In the nine months ended June 30, 2007, we received cash of
$3,655, as a result of proceeds lent by a related party. In the prior period of
2006, we received cash of $92,169 as a result of proceeds from the sale of our
common stock net of cash lent to a related party.

In connection with our change of business, we are proposing to
raise up to $5,000,000 by way of private placement of 10,000,000 units at $0.50
per unit. On August 9, 2007, we closed the first tranche of this offering,
whereby we sold 4,200,000 units, providing us with gross proceeds of $2,100,000.
However, there is no assurance that the remainder of the proposed private
placement will be completed or that we will be able to obtain additional
financing as required.

Going Concern

As shown in the accompanying financial statements, we have
incurred significant losses since inception and have not generated any
significant revenues to date. The future of our Company is dependent upon our
ability to obtain sufficient financing and upon achieving future profitable
operations. These factors, among others, raise substantial doubt about our
Companys ability to continue as a going concern. The accompanying consolidated
financial statements do not include any adjustments that might result from the
outcome of this uncertainty.

Future Financings

We anticipate continuing to rely on equity sales of our common
shares in order to continue to fund our business operations. Issuances of
additional shares will result in dilution to our existing shareholders. There is
no assurance that we will achieve any additional sales of our equity securities
or arrange for debt or other financing to fund our business plan.

Off-Balance Sheet Arrangements

We have no significant off-balance sheet arrangements that have
or are reasonably likely to have a current or future effect on our financial
condition, changes in financial condition, revenues or expenses, results of
operations, liquidity, capital expenditures or capital resources that is
material to stockholders.

Critical Accounting Policies

Our financial statements are impacted by the accounting
policies used and the estimates and assumptions made by management during their
preparation. A complete summary of these policies is included in Note 2 of the
notes to our historical financial statements. We have identified below the
accounting policies that are of particular importance in the presentation of

- 17 -

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our financial position, results of operations and cash flows
and which require the application of significant judgment by management.

Use of Estimates

The preparation of financial statements in conformity with US
GAAP requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. The Company regularly
evaluates estimates and assumptions related to the valuation of long-lived
assets, donated expenses and deferred income tax asset valuation allowances. The
Company bases its estimates and assumptions on current facts, historical
experience and various other factors that it believes to be reasonable under the
circumstances, the results of which form the basis for making judgments about
the carrying values of assets and liabilities and the accrual of costs and
expenses that are not readily apparent from other sources. The actual results
experienced by the Company may differ materially and adversely from the
Companys estimates. To the extent there are material differences between the
estimates and the actual results, future results of operations will be affected.

Financial Instruments

Financial instruments include cash, accounts payable, and
amounts due to related parties. The fair values of these financial instruments
approximate their carrying values unless otherwise noted. It is managements
opinion that the Company is not exposed to significant interest, currency or
credit risk arising from its financial instruments.

Revenue Recognition

The Company recognizes revenue in accordance with Securities
and Exchange Commission Staff Accounting Bulletin No. 104, Revenue Recognition
in Financial Statements. Revenue consists of direct sale of tennis lessons and
products to customers, linkage fees to others websites and advertising revenues.
Revenue from these sources is recognized only when the price is fixed or
determinable, persuasive evidence of an arrangement exists, and the product is
downloaded by customers with payment received by the Company. Revenue for the
period from inception to June 30, 2007 consists solely of the direct sale of
lessons through the Companys website.

Recent Accounting Pronouncements

In February 2007, the Financial Accounting Standards Board
(FASB) issued SFAS No. 159, The Fair Value Option for Financial Assets and
Financial Liabilities  Including an Amendment of FASB Statement No. 115. This
statement permits entities to choose to measure many financial instruments and
certain other items at fair value. Most of the provisions of SFAS No. 159 apply
only to entities that elect the fair value option. However, the amendment to
SFAS No. 115 Accounting for Certain Investments in Debt and Equity Securities
applies to all entities with available-for-sale and trading securities. SFAS No.
159 is effective as of the beginning of an entitys first fiscal year that
begins after November 15, 2007. Early adoption is permitted as of the beginning
of a fiscal year that begins on or before November 15, 2007, provided the entity
also elects to apply the provision of SFAS No. 157, Fair Value Measurements.
The adoption of

- 18 -

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this statement is not expected to have a material effect on the
Company's future reported financial position or results of operations.

In September 2006, the SEC issued Staff Accounting Bulletin
(SAB) No. 108, Considering the Effects of Prior Year Misstatements when
Quantifying Misstatements in Current Year Financial Statements. SAB No. 108
addresses how the effects of prior year uncorrected misstatements should be
considered when quantifying misstatements in current year financial statements.
SAB No. 108 requires companies to quantify misstatements using a balance sheet
and income statement approach and to evaluate whether either approach results in
quantifying an error that is material in light of relevant quantitative and
qualitative factors. SAB No. 108 is effective for fiscal years ending after
November 15, 2006. The adoption of SAB No. 108 did not have a material effect on
the Companys reported financial position or results of operations.

In September 2006, the FASB issued SFAS No. 158, Employers
Accounting for Defined Benefit Pension and Other Postretirement Plans  an
amendment of FASB Statements No. 87, 88, 106, and 132(R). This statement
requires employers to recognize the overfunded or underfunded status of a
defined benefit postretirement plan (other than a multiemployer plan) as an
asset or liability in its statement of financial position and to recognize
changes in that funded status in the year in which the changes occur through
comprehensive income of a business entity or changes in unrestricted net assets
of a not-for-profit organization. This statement also requires an employer to
measure the funded status of a plan as of the date of its year-end statement of
financial position, with limited exceptions. The provisions of SFAS No. 158 are
effective for employers with publicly traded equity securities as of the end of
the fiscal year ending after December 15, 2006. The adoption of this statement
is not expected to have a material effect on the Company's future reported
financial position or results of operations.

|Item 3. | Controls And Procedures
|------- | -----------------------

As required by Rule 13a-15 under the Securities Exchange Act of
1934 (the Exchange Act), we carried out an evaluation of the effectiveness of
the design and operation of our disclosure controls and procedures as of June
30, 2007, being the date of our most recently completed quarter. This evaluation
was carried out under the supervision and with the participation of our Chief
Executive Officer and Principal Accounting Officer. Based upon that evaluation,
our Chief Executive Officer and Principal Accounting Officer concluded that our
disclosure controls and procedures are effective to ensure that information
required to be disclosed by us in the reports that we file or submit under the
Exchange Act is recorded, processed, summarized and reported within the time
periods specified by the rules and forms of the SEC.

Disclosure controls and procedures are controls and other
procedures that are designed to ensure that information required to be disclosed
in our reports filed or submitted under the Exchange Act is recorded, processed,
summarized and reported, within the time periods specified in the SECs rules
and forms. Disclosure controls and procedures include, without limitation,
controls and procedures designed to ensure that information required to be
disclosed in our reports filed under the Exchange Act is accumulated and
communicated to management, including our Principal Executive Officer and our
Principal Accounting Officer, to allow timely decisions regarding required
disclosure. However, a control system, no matter how well conceived and

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operated, can provide only reasonable, but not absolute,
assurance that the objectives of the control system are met.

During the fiscal quarter ended June 30, 2007, there were no
changes in our internal control over financial reporting that have materially
affected, or are reasonably likely to affect, our internal control over
financial reporting.

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PART II  OTHER INFORMATION

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

We currently are not a party to any material legal proceedings
and, to our knowledge, no such proceedings are threatened or contemplated.

|Item 2. | Unregistered Sales of Equity Securities
|------- | ---------------------------------------

Previously reported in our Current Report on Form 8-K filed
with the SEC on August 14, 2007.

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

None.

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

None.

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

None.

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

The following exhibits are included with this Quarterly Report
on Form 10-QSB:

|Exhibit |                                                                                                                                                                                                                                                         
|------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Number  | Description of Exhibit                                                                                                                                                                                                                                  
|3.1     | Articles of Incorporation, as amended. Incorporated by
      reference to our Current Report on Form 8-K/A filed on August 8, 2007.                                                                                                                     
|3.2     | Bylaws. Incorporated by reference to our Registration
      Statement on Form SB-2 filed December 9, 2004.                                                                                                                                              
|10.1    | Business Combination Agreement among ST Online Corp.,
      Park Place Energy Inc. and 0794403 B.C. Ltd, dated effective June 22,
      2007. Incorporated by reference to our Current Report on Form 8-K filed
      July 3, 2007.                     
|10.2    | Amending Agreement to Business Combination Agreement
      among ST Online Corp., Park Place Energy Inc. and 0794403 B.C. Ltd dated
      effective July 4, 2007. Incorporated by reference to our Current Report on
      Form 8-K filed July 19, 2007.

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|Exhibit |                                                                                                                                                                                                                                                                                                                     
|------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Number  | Description of Exhibit                                                                                                                                                                                                                                                                                              
|10.3    | Amending Agreement
        to Business Combination Agreement among ST Online Corp., Park Place Energy
        Inc. and 0794403 B.C. Ltd dated effective July 18, 2007. Incorporated
        by reference to our Current Report on Form 8-K filed July 19, 2007.                                                     
|10.4    | Reorganization Asset and Share
        Purchase and Sale Agreement, dated effective July 30, 2007, among Park
        Place Energy Corp., Scott Pedersen, David Stadnyk and Elena Avdasseva.
        Incorporated by reference to our Current Report on Form 8-K filed August
        14, 2007.                     
|10.5    | Amended and Restated
        Reorganization Asset and Share Purchase and Sale Agreement, dated effective
        July 30, 2007, among Park Place Energy Corp., Scott Pedersen, David Stadnyk
        and Elena Avdasseva. Incorporated by reference to our Current Report on
        Form 8-K filed August 14, 2007.
|10.6    | Debt Settlement Agreement, dated
        August 9, 2007 among Park Place Energy Corp., Park Place Energy Inc. and
        1284810 Alberta Ltd. Incorporated by reference to our Current Report on
        Form 8-K filed August 14, 2007.                                                                           
|10.7    | Loan Agreement
        dated August 8, 2007 between Park Place Energy Inc. and Great Northern
        Oil Sands Inc. Incorporated by reference to our Current Report on Form
        8-K filed August 14, 2007.                                                                                                     
|31.1    | Rule
        13a-14(a)/15(d)-14(a) Certification of Principal Executive Officer and
        Principal Financial Officer.                                                                                                                                                                                            
|32.1    | 18
        U.S.C. Section 1350 Certification of Principal Executive Officer and Principal
        Financial Officer.                                                                                                                                                                                                

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SIGNATURES

In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

PARK PLACE ENERGY CORP.

|By: /s/ David
      Stadnyk                       | 
|------------------------------------------------- | 
|David Stadnyk,                                    | 
|President, Chief Executive Officer and Director   | 
|(Principal Executive Officer, Principal Financial | 
|Officer and Principal Accounting Officer)         | 

Date: August 20, 2007

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