**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


Washington,
      D.C. 20549




**FORM
      10-QSB/A**


**Amendment
      No. 1**




(Mark
      One)




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




For
      the
      quarter ended **December 31, 2006**




OR




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




For
      the
      transition period from __________ to __________




Commission
      File Number **000-51699**




**CROSSPOINT
      ENERGY COMPANY** ****


(Exact
      name of registrant as specified in its charter)




**Nevada**
            **98-0434381**State
                or other jurisdiction of
            (I.R.S.
                Employerincorporation
                or organization
            Identification
                No.)




**2801
      Network Blvd., Suite 810, Frisco, Texas 75034**


(Address
      of principal executive offices)




**(972)
      818-1100** ****


Registrant's
      telephone number, including area code




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 xNo o




Indicate
      by check mark whether the registrant is a shell company (as defined in Rule
      12b-2 of the Exchange Act).




Yes
o
      No x




Number
      of
      shares outstanding of the registrant's class of common stock as of February
      28,
      2007 was 18,022,077




Transitional
      Small Business Disclosure Format (Check one): Yes o No x












**ITEM
      1. FINANCIAL STATEMENTS**




**CrossPoint
      Energy Company**


**Consolidated
      Balance Sheets**


**(Unaudited)**





**December
                31,**
              **2006**
            
            **September
                30,**
              **2006****ASSETS****CURRENT
                ASSETS:**Cash
                and cash equivalents
            
            $
            3,268,576
            
            $
            6,073,298Restricted
                cash
            
            
            772,398
            
            
            385,521Accounts
                receivable
            
            
            640,321
            
            
            634,010Oil
                and gas revenue receivable
            
            
            268,247
            
            
            273,764Prepaid
                expenses
            
            
            491,616
            
            
            129,791Deferred
                financing costs
            
            
            193,654
            
            
            260,621Total
                current assets
            
            $
            5,634,812
            
            $
            7,757,005**PROPERTY
                & EQUIPMENT**Oil
                & gas property and equipment, successful efforts
                method
            
            
            14,589,736
            
            
            12,722,224Less
                accumulated impairment, depletion, depreciation &
                amortization
            
            
            (5,544,104
            )
            
            (4,952,894
            )Net
                oil & gas properties
            
            
            9,045,632
            
            
            7,769,330Other
                property and equipment, net
            
            
            117,529
            
            
            110,831**OTHER
                ASSETS**
            
            
            63,085
            
            
            30,860**Total
                assets**
            
            **$**
            **14,861,058**
            
            $
            **15,668,026****LIABILITIES
                AND STOCKHOLDERS' / MEMBERS' DEFICIT****CURRENT
                LIABILITIES:**Accounts
                payable
            
            $
            2,318,863
            
            $
            1,751,148Notes
                payable, net of discount
            
            
            4,667,252
            
            
            4,101,439Oil
                and gas revenues payable
            
            
            291,680
            
            
            326,859Oil
                and gas joint interest prepayments
            
            
            281,826
            
            
            556,598Interest
                payable
            
            
            422,844
            
            
            234,603Other
                current liabilities
            
            
            19,518
            
            
            31,444Total
                current liabilities
            
            $
            8,001,983
            
            $
            7,002,091**Convertible
                debt, net of discount**
            
            
            7,929,381
            
            
            7,838,277**Asset
                retirement obligation**
            
            
            172,492
            
            
            150,136**Other
                long-term liabilities**
            
            
            56,927
            
            
            84,058**Total
                liabilities**
            
            **$**
            **16,160,783**
            
            $
            **15,074,562****COMMITMENTS
                AND CONTINGENCIES (Note 6)****Shares
                subject to redemption, net of offering cost**
            
            $
            -
            
            $
            4,022,354**STOCKHOLDERS'
                DEFICIT:**Capital
                stock
            
            $
            1,780
            
            $
            -Capital
                in excess of par value
            
            
            10,083,673
            
            
            6,290,872Accumulated
                deficit
            
            
            (11,385,178
            )
            
            (9,719,762
            )Total
                Stockholders' deficit
            
            
            (1,299,725
            )
            
            (3,428,890
            )**Total
                liabilities and Stockholders' deficit**
            
            **$**
            **14,861,058**
            
            $
            **15,668,026**




***See
      accompanying notes to these financial statements.***




2




**CrossPoint
      Energy Company**


**Consolidated
      Statement of Operations**


**(Unaudited)**





**Three
                Months Ended December 31,****2006**
            
            **2005****OPERATING
                REVENUES:**Crude
                oil & natural gas sales
            
            $
            514,972
            
            $
            127,725Contract
                services revenue
            
            
            278,670
            
            
            105,195Total
                operating revenues
            
            
            793,642
            
            
            232,920**OPERATING
                EXPENSES:**Lease
                operating expenses
            
            
            112,502
            
            
            92,254Production
                and ad valorem taxes
            
            
            34,527
            
            
            7,674Dry
                hole & abandonment expenses
            
            
            515,450
            
            
            -Depreciation,
                depletion and amortization
            
            
            605,791
            
            
            31,163Accretion
                of asset retirement obligations
            
            
            6,429
            
            
            -Contract
                services expense
            
            
            163,053
            
            
            61,442General
                and administrative expenses, including stock compensation expense
                reversal
                of $227,779 and $0 in 2006 & 2005, respectively
            
            
            629,479
            
            
            601,359Total
                operating expenses
            
            
            2,067,231
            
            
            793,892**OPERATING
                LOSS**
            
            $
            (1,273,589
            )
            $
            (560,972
            )**OTHER
                INCOME & EXPENSE:**Interest
                income
            
            
            54,570
            
            
            -Interest
                expense
            
            
            (326,725
            )
            
            (16,460
            )Merger
                expense
            
            
            (119,672
            )
            
            -Total
                other expenses
            
            
            (391,827
            )
            
            (16,460
            )**NET
                LOSS**
            
            $
            (1,665,416
            )
            $
            (577,432
            )**Basic
                and Diluted Net Loss per share**
            
            **$**
            **(0.10**
            **)**
            **$**
            **(0.06**
            **)****Weighted
                Average Number of Shares Outstanding**
            
            
            **16,944,372**
            
            
            **9,971,613**




***See
      accompanying notes to these financial statements.***





3
 
  **CrossPoint
        Energy Company**


**Consolidated
      Statement of Stockholders' Deficit**


**(Unaudited** **)**




Common
            
            Capital
            
            Capital
                in
            
            Accumulatedshares
            
            Stock
            
            Excess
                of Par
            
            Deficit
            
            TotalBalance,
                September 30, 2006
            
            
            11,400,000
            
            $
            1,140
            
            $
            6,289,732
            
            $
            (9,719,762
            )
            $
            (3,428,890
            )Merger
                Adjustments:Common
                stock acquired in merger
            
            
            1,372,451
            
            
            137
            
            
            (137
            )
            
            -
            
            
            -Other:Reclass
                shares subject to redemption to common
            
            
            5,051,667
            
            
            505
            
            
            4,021,849
            
            
            -
            
            
            4,022,354Stock
                compensation expense
            
            
            (17,604
            )
            
            (2
            )
            
            9,994
            
            
            -
            
            
            9,992Forfeited
                options/warrants
            
            
            
            
            
            -
            
            
            (237,765
            )
            
            -
            
            
            (237,765
            )Net
                loss
            
            
            
            
            
            -
            
            
            
            
            
            (1,665,416
            )
            
            (1,665,416
            )Balance,
                December 31, 2006
            
            
            17,806,514
            
            $
            1,780
            
            $
            10,083,673
            
            $
            (11,385,178
            )
            $
            (1,299,725
            )





***See
      accompanying notes to these financial statements.***




4







**CrossPoint
      Energy Company**


**Consolidated
      Statement of Cash Flows**


**(Unaudited)**




Three
                Months ended
              December
                31,**2006**
            
            **2005****CASH
                FLOWS FROM OPERATING ACTIVITIES:**Net
                loss
            
            $
            (1,665,416
            )
            $
            (577,432
            )Adjustments
                to reconcile net loss to net cash used in operating
                activities:Depletion,
                depreciation and amortiztion
            
            
            605,791
            
            
            31,163Accretion
                of asset retirement obligations
            
            
            6,429
            
            
            -Equity
                issued in lieu of services
            
            
            
            
            
            30,000Debt
                received in lieu of services
            
            
            -
            
            
            -Amortization
                of deferred financing costs
            
            
            170,223
            
            
            14,551Stock
                compensation
            
            
            (227,779
            )
            
            -Deferred
                rent amortization
            
            
            (37,152
            )
            
            40,055Other
                non-cash items
            
            
            -
            
            
            (2,990
            )Changes
                in assets and liabilities:Restricted
                cash
            
            
            (386,877
            )
            
            (19,925
            )Accounts
                receivable
            
            
            (61,458
            )
            
            (350,717
            )Prepaid
                expenses
            
            
            (301,162
            )
            
            256,559Other
                assets
            
            
            (32,224
            )
            
            -Accounts
                payable
            
            
            532,540
            
            
            276,003Oil
                and gas joint interest prepayments
            
            
            (274,772
            )
            
            -Interest
                payable
            
            
            188,241
            
            
            14,211**Net
                cash used in operating activities**
            
            **$**
            **(1,483,616**
            **)**
            **$**
            **(288,522**
            **)****CASH
                FLOWS FROM INVESTING ACTIVITIES -**Expenditures
                for oil & gas property and equipment
            
            $
            (1,809,754
            )
            $
            (7,318,468
            )Purchases
                of other fixed assets
            
            
            (21,277
            )
            
            (40,189
            )**Net
                cash used in investing activities**
            
            **$**
            **(1,831,031**
            **)**
            **$**
            **(7,358,657**
            **)****CASH
                FLOWS FROM FINANCING ACTIVITIES:**Proceeds
                from issuance of equity before the private placement
            
            $
            -
            
            $
            265,000Proceeds
                from notes payable
            
            
            583,333
            
            
            6,744,330Repayment
                of notes payable
            
            
            (73,408
            )
            
            27,405**Net
                cash provided by financing activities**
            
            **$**
            **509,925**
            
            **$**
            **7,036,735****NET
                DECREASE IN CASH AND CASH EQUIVALENTS**
            
            **$**
            **(2,804,722**
            **)**
            **$**
            **(610,444**
            **)****CASH
                AND CASH EQUIVALENTS**,
                beginning of period
            
            **$**
            **6,073,298**
            
            **$**
            **845,792****CASH
                AND CASH EQUIVALENTS**,
                end of period
            
            **$**
            **3,268,576**
            
            **$**
            **235,348****SUPPLEMENTAL
                DISCLOSURES of CASH FLOW INFORMATION**Cash
                paid for interest
            
            $
            158,625
            
            $
            19,994




***See
      accompanying notes to these financial statements.***




5




**CrossPoint
      Energy Company**


*Notes
      to Unaudited Financial Statements*




**1.
      Basis of Presentation and use of estimates**





The
      interim consolidated financial statements of CrossPoint Energy Company are
      unaudited and, in the opinion of management, contain adjustments (consisting
      primarily of normal recurring accruals) necessary for a fair statement of the
      results for the interim periods presented. Results for interim periods are
      not
      necessarily indicative of results to be expected for a full year or for
      previously reported years due, in part, to the volatility in prices for crude
      oil and natural gas, the success of drilling and completions of wells, product
      demand, market competition or interruption in production.. These consolidated
      interim financial statements should be read in conjunction with the audited
      consolidated financial statements and notes thereto included in the Company's
      Form SB-2 dated January 26, 2007.





In
      preparing the accompanying financial statements, management has made certain
      estimates and assumptions that affect reported amounts in the financial
      statements and disclosure of contingencies. Actual results may differ from
      those
      estimates. Significant assumptions are required in the valuation of proved
      oil
      and gas reserves, which may affect the amount at which oil and gas properties
      are recorded, most significant is the estimate of oil and gas reserves and
      their
      value. These estimates may be revised in the future, and such revisions could
      be
      material.





***Organization
      and business***





CrossPoint
      Energy Company was incorporated in the State of Nevada on August 4, 2004 as
      "Electrum Mining Limited."  On November 27, 2006 we completed a merger
      between one of our subsidiaries, CrossPoint Acquisition, LLC, and CrossPoint
      Energy, LLC ("CrossPoint LLC") (the "Merger").  As a result of the Merger
      we changed our business to that of CrossPoint LLC's prior to the
      merger.




From
      inception until the merger with CrossPoint LLC, Electrum's business was as
      a
      start-up, exploration stage corporation, engaged in the search for mineral
      deposits or reserves which are not in either the development or production
      stage.  CrossPoint LLC was formed as a limited liability company under the
      laws of the State of Texas in November, 2004 and commenced operations in the
      first calendar quarter of 2005.  Prior to the Merger, CrossPoint LLC had
      two subsidiaries, CrossPoint Energy Holdings, LLC which was formed in
      August 2005 to hold CrossPoint LLC's oil and gas properties and Dallas
      Operating Corp. which was incorporated in 1993 and is an established service
      company, engaged in oil and gas operations for the Company and third parties,
      strategically to add to the Company's cashflow and/or reserve base.  As a
      result of the Merger we acquired both of these subsidiaries.




Subsequent
      to the Merger, we changed our name to "CrossPoint Energy Company" to
      reflect the change in our business to a petroleum and natural gas exploration,
      development and production company.




On
      June
      30, 2006, CrossPoint Energy, LLC (“CrossPoint LLC”) completed a private
      placement with gross proceeds of $15 million, for issuance of equity,
      convertible debt and warrant units. The placement included performance
      obligations including CrossPoint LLC becoming a publicly-traded company. On
      July
      7, 2006, CrossPoint LLC entered into an Agreement and Plan of Merger with
      Electrum Mining Limited, a Nevada corporation involved in the mining
      business.





Effective
      November 27, 2006, CrossPoint LLC merged with a subsidiary of Electrum Mining
      Limited (“Electrum”), a publicly-traded company, and CrossPoint LLC was
      dissolved. Pursuant to the merger, Electrum changed its name to CrossPoint
      Energy Company and acquired 100% of the outstanding membership interests in
      CrossPoint LLC. CrossPoint Energy Company issued, as consideration to the
      security holders of the CrossPoint LLC, aggregate consideration of 16,451,667
      shares of common stock, debt convertible into 5,051,667 shares of common stock,
      and warrants to acquire 2,525,833 shares of common stock. In accordance with
      the
      merger agreement, an additional 1,372,553 shares (6 percent of the issued and
      convertible shares) were issued to Electrum's majority shareholder.





The
      merger was accounted for as a reverse merger, with CrossPoint Energy Company
      as
      the surviving public reporting entity. CrossPoint LLC, which previously had
      reported on a calendar year, adopted Electrum's fiscal year end of September
      30 th .





All
      references to the Company refer to CrossPoint Energy Company or its predecessor
      CrossPoint Energy, LLC.




***Operations***





While
      the
      Company is not a development stage enterprise, the Company has a limited
      operating history upon which an evaluation of its business prospects can be
      based. The risks, expense, and difficulties encountered by early stage companies
      must be considered when evaluating the Company's business
      prospects.




6




**CrossPoint
      Energy Company**


*Notes
      to Unaudited Financial Statements*




The
      Company recorded a net loss of $1,665,416 for the quarter ended December 31,
      2006 and had an accumulated deficit at December 31, 2006 of $11,385,178. From
      the beginning of the Company's operations in early 2005, the Company has
      expended considerable capital required in the initial stages of an oil and
      gas
      company with the acquisition of leases, prospects, seismic data and
      underdeveloped producing properties.





The
      Company's development plan of these areas is strategically detailed for building
      reserves and obtaining cash flow from production. The front-end costs for
      acquiring and drilling the early phases of each of these projects, risks for
      execution, price volatility, and cost of capital and market conditions are
      all
      considered collectively.





The
      Company expects to make significant capital expenditures in the foreseeable
      future drilling existing proved and undeveloped reserves and the acquisition
      of
      other producing oil & gas properties. Management believes they will be
      successful in obtaining adequate sources of cash to fund its anticipated capital
      expenditures through the end of 2007 and to follow through with plans for
      continued investments in oil and gas properties.





The
      Company's success, in part, depends on its ability to generate additional
      financing and on its ability to effectively manage growth and develop proven
      reserves. It is anticipated that these exploration activities together with
      others that may be entered into may impose financial requirements which may
      exceed the existing working capital of the Company. Management may raise
      additional equity and/or debt capital. However, if additional financing is
      not
      available, the Company may be compelled to reduce the scope of its business
      activities. If the Company is unable to fund planned expenditures from existing
      cash flow, it may be necessary to sell all or a portion of selected assets,
      effect a combination with an existing company in need of our resources and/or
      reduce general and administrative expenses.





**2.
      Summary of Significant Accounting Policies**




**Accounting
      for Merger Transaction**




In
      connection with the June 30, 2006 private placement, CrossPoint LLC was required
      to merge into a public company within 120 days of the receipt of approximately
      $15 million or incur penalties equal to a fixed percentage of the proceeds.
      The
      penalties escalated every 30 day period thereafter until 180 days. If the merger
      had not closed by 180 days following receipt of the private placement proceeds,
      the company could be required to repurchase the non debt portion of the private
      placement proceeds. As of September 30, 2006, the merger had not taken place.
      Thus the gross proceeds attributable to common stock shares, less the allocation
      of issuance costs to shares subject to redemption of $2,292,229, were recorded
      outside of permanent equity at September 30, 2006. On November 27, 2006,
      CrossPoint LLC merged into a subsidiary of Electrum Mining Limited and the
      common shares value of $6,314,583 was moved to permanent equity as $1,140 to
      capital stock and $6,289,732 to capital in excess of par value.





The
      costs
      totalling $119,672 in the quarter ended December 31, 2006 that were attributable
      to the merger were expensed as required in a reverse merger.





**Income
      taxes**




CrossPoint
      LLC had elected to be taxed as a partnership for federal income tax purposes
      and, accordingly, items of income and loss were reported to the members
      according to their ownership percentage. One of the Company's subsidiaries,
      DOC,
      is a registered C corporation. However, it is not expected to have a tax
      liability and there are no material differences in the book and tax basis of
      assets and liabilities. Therefore, no provision for income taxes was necessary
      before November 27, 2006. Subsequent to the merger, the Company had net
      operating losses. The deferred tax asset was fully reserved resulting in no
      provision at December 31, 2006.




Certain
      transactions of the Company may be subject to accounting methods for income
      tax
      purposes which differ from the accounting methods used in preparing these
      financial statements in accordance with accounting principles generally accepted
      in the United States of America. Accordingly, the net income or loss and the
      resulting balances in shareholders equity reported for income tax purposes
      may
      differ from the balances reported for these same items in the accompanying
      financial statements.


Prior
        to
        the Merger, CrossPoint LLC was properly classified as a partnership for federal
        income tax purposes. CrossPoint LLC owned 100% of the membership interests
        of
        CrossPoint Energy Holdings, LLC and 100% of the stock of Dallas Operating
        Corp.


7




**CrossPoint
      Energy Company**


*Notes
      to Unaudited Financial Statements*





Pursuant
      to the Merger, CrossPoint LLC merged into CrossPoint Acquisition LLC. As a
      result of the Merger, CrossPoint Energy Holdings, LLC and Dallas Operating
      Corp.
      became wholly owned by CrossPoint Acquisition LLC as of the date of Merger.





As
      a
      result of the change in taxable entity status, (i.e., as a result of the
      Merger), CrossPoint LLC will file a final Form 1065 as of November 27, 2006.
      This filing will include the activity of CrossPoint LLC’s 100% ownership
      interest in CrossPoint Holdings, LLC (a disregarded entity for federal income
      tax purposes). In addition, Dallas Operating Corp will file a short-year Form
      1120 as of November 27, 2006.





Subsequent
      to the Merger, we changed our name to CrossPoint Energy Company. CrossPoint
      Energy Company will file a consolidated corporate income tax return for its
      fiscal year ended September 30, 2007 and future years.




**Recent
      Accounting Pronouncements**




**SAB
      108**


In
      September, 2006, the Securities and Exchange Commission ("SEC") issued Staff
      Accounting Bulletin No. 108 (SAB 108) which provides interpretive guidance
      on
      how the effects of the carryover or reversal of prior year misstatements should
      be considered in quantifying a current year misstatement.  SAB 108 is
      effective for fiscal years ending after November 15, 2006 and early application
      is encouraged for any interim period of the first fiscal year ending after
      that
      date.  The Company will adopt SAB 108 in the 2nd quarter of its fiscal
      2007 and is currently evaluating the impact of adopting SAB 108 on its financial
      statements.




**3.
      Asset Retirement Obligation**





The
      following table shows changes in the Company's asset retirement obligations
      for
      the three month period ended December 31, 2006:





Asset
                retirement obligation at September 30, 2006
            
            $
            150,136Asset
                retirement accretion expense
            
            
            6,429Additions
            
            
            15,927Asset
                retirement obligation at December 31, 2006
            
            $
            172,492




**4.
      Private Placement**





On
      June
      30, 2006, the Company entered into a Securities Purchase Agreement for gross
      proceeds of $15,155,000. For every $3.00, the Company issued one membership
      common share at $1.25 per share, one warrant to purchase 0.25 membership common
      units in the Company at an exercise price of $1.95, and one convertible note
      in
      a principal amount of $1.75 per share. The proceeds were allocated as
      follows:





#
                Shares
            
            Price
                per Share
            
            ProceedsShares
                subject to redemption
            
            
            5,051,667
            
            $
            1.25
            
            $
            6,314,583Convertible
                debt
            
            
            5,051,667
            
            $
            1.75
            
            
            8,840,417Warrants
            
            
            
            
            
            
            
            
            1,874,133Less
                costs of issuance
            
            
            
            
            
            
            
            
            (3,385,473
            )Total
                net proceeds
            
            
            
            
            
            
            
            $
            13,643,660





***Shares
      subject to redemption***




The
      merger was completed on November 27, 2006, and the shares subject to redemption
      were reclassified to capital stock and capital in excess of par value for the
      proceeds of $6,314,583 less the issuance costs of $2,292,229.





***Convertible
      debt***




Convertible
      debt of $7,929,381, net of the unamortized discount of $911,036, was outstanding
      as of December 31, 2006.




**5.
        Note payable**
 
 ***Credit
        Agreement***
  On
        September 2, 2005, the Company entered into a $40,000,000 credit agreement
        (the
“Credit Agreement”) with two participating lenders for the purpose of funding
        the Company's development projects. The term of the agreement is three years.
        The Credit Agreement is facilitated by an Administrative Agent who approves
        the
        amounts and purposes for the advances under the Credit Agreement, referred
        to as
        the commitment. The Company's oil and gas properties collateralize the Credit
        Agreement. According to the Credit Agreement, all of the Company's production
        receipts have been assigned to a lock box administered by the Administrative
        Agent.


8


**CrossPoint
        Energy Company**
 *Notes
        to Unaudited Financial Statements*




Beginning
      March 31, 2006, the Company was subject to certain restrictive financial
      covenants that include debt coverage, fixed charge and current ratios, reserve
      ratios to total debt and net sales requirements. The Company was not in
      compliance with certain ratios at March 31, June 30, September 30 and December
      31, 2006. Previously, the covenant violations have been waived and penalties
      of
      $125,000, $0 and $10,000 were paid by the Company for the corresponding
      quarters, respectively. The Company is not in compliance for the quarter ended
      December 31, 2006, the violation has been waived and the penalty is being
      determined. The outstanding debt under the Credit Agreement is reflected as
      a current liability in the consolidated financial statements.





At
      December 31, 2006, the balance of the note was $5,017,113, less the unamortized
      discount of $359,884. During the quarter ended December 31, 2006, the Company
      capitalized interest on development activities totalling $194,462.





**6.
      Commitments and Contingencies**





***Litigation***




The
      Company has had no litigation arising in the ordinary course of business since
      inception. Management does not believe that the ultimate resolution of any
      future litigation will have a material effect on our financial position or
      results of operations due to the existence of insurance coverage.





***Environmental***




To
      date,
      expenditures to comply with environmental or safety regulations have not been
      significant and are not expected to be significant in the future. However,
      new
      regulations, enforcement policies, claims for damages or other events could
      result in significant future costs.





***Operating
      leases***




The
      Company has an office lease agreement with unrelated third parties extending
      through 2010. The Company's rent expense was $35,156 for the quarter ended
      December 31, 2006, which includes cash expenditures of $35,156.





***Employment
      Contracts***




Effective
      with the merger, new employment contracts were signed. The salaries were changed
      to reflect the current salaries of $195,242 and $189,132 for the Chief Executive
      Officer/President and Executive Vice President, respectively, with the same
      salary and bonus reviews by the board as previously discussed. The term of
      both
      contracts is five years.





***Indemnification
      Agreement***




The
      CEO
      and Executive Vice President (together with their spouses) have personally
      guaranteed P5 operator guaranty for all of the CrossPoint LLC's wells with
      the
      Texas Railroad Commission. On February 15, 2006, the CrossPoint LLC and the
      aforementioned parties entered into an indemnification agreement with the
      CrossPoint LLC whereby the CrossPoint LLC will indemnify the aforementioned
      parties if the Texas Railroad Commission pursues collection of any amounts
      for
      any of them under such guaranties. No limit was specified with the
      indemnifications.





**7.
      Stockholders' Deficit**





***Common
      Stock***




At
      December 31, 2006 there were 17,806,514 common shares issued and
      outstanding.





***Compensation
      expense for options and warrants***




Warrants




In
      October 2006 a member of the Board of Directors of CrossPoint LLC resigned
      in
      anticipation of the merger and, as a result, forfeited a total of 858,710
      warrants of which 214,678 were vested. In accordance with SFAS 123(R), the
      company reversed previously recognized compensation expense of $216,583 during
      the three month period ended December 31, 2006 since the Board member had not
      served through the initial vesting period.




9




**CrossPoint
      Energy Company**


*Notes
      to Unaudited Financial Statements*




The
      Chairman of the Board resigned in October, in anticipation of the merger with
      a
      publicly traded company. In accordance with SFAS 123(R), the company expensed
      $9,992 for his service in October 2006. He had previously been issued
      shares for the entire year of 2006.  Effective with his resignation, the
      Board agreed to compensate him for his services for January - October 2006.
      Accordingly, 17,604 shares were returned to the Company.




Options




On
      March 29, 2006 an employee of the CrossPoint LLC received 88,019 options to
      purchase units at an exercise price of $1.14. CrossPoint  LLC had a stock
      option plan for management which terminated with the merger on November 27,
      2006. As of date of the merger, 836,178 options had been granted, 278,711
      options had vested and none had been exercised. The options outstanding under
      the plan had a weighted average remaining contractual life of 3.56 years.
      Pursuant to the merger, the plan for the aforementioned options
      terminated.  The Company reversed previously recognized compensation
      expense of $21,188 in conjunction with the forfeited options.





As
      of
      December 31, 2006 the Company has not granted any equity awards.





**8.
      Related Party Transactions**





The
      CEO
      and Executive Vice President (together with their spouses) have personally
      guaranteed a subsidiary of the Company's P5 operator guaranty for all of the
      Company's wells with the Texas Railroad Commission. On February 15, 2006, the
      parties entered into an indemnification agreement with the Company whereby
      the
      Company will indemnify the parties if the Texas Railroad Commission pursues
      collection of any amounts for any of them under such guaranties.





The
      CEO
      and Executive Vice President are individual joint interest venture partners
      in
      certain production properties. Joint interest receivables from related parties
      at December 31, 2006 were $515.





The
      Chairman of the Board had previously guaranteed the Company's office lease.
      In
      November, the lease guaranty was renegotiated and the Chairman of the Board
      was
      released from all associated liability. There were no fees paid related to
      that
      guaranty in the quarter ended December 31, 2006.





Effective
      January 1, 2007, J.W. Brown, the general partner of AJAE Limited Partnership,
      became a director of the Company. As a director, he receives the same
      compensation as each other outside director: (i) $1,000 per meeting attended,
      (ii) $40,000 annually in stock options; and (iii) $10,000 in stock options
      annually if he serves as Chairman of the Board of Directors, a member of any
      committee or as the audit committee financial expert. In addition, Mr. Brown
      has
      a 2.85% working interest in the Elkhart leases in which the Company has a
      40.375-43.275% working interest.




**9.
      Subsequent events**




***Convertible
      Note Interest Payment***




The
      Company accrued interest due from the convertible note, for the period from
      June
      30, 2006 to December 31, 2006. The convertible note provided for the election
      of
      the Company to issue registered common stock in lieu of cash through December
      31, 2007. The Company elected the stock issuance and calculated the number
      of
      shares using 90% of the volume weighted average price, or $3.06/share. While
      the
      majority of the investors agreed to the issuance of unregistered stock,
      $17,986 was paid in cash subsequent to December 31, 2006 and 112,902 shares
      were
      issued to the investors in the first week of January 2007.





***Liquidated
      Damages related to the Merger:***




***Securities
      Purchase Agreement - to be merged within 120 days of
      funding***




Included
      in the Securities Purchase Agreement was a put right that established liquidated
      damages if the Company was not merged within 120 days of the private placement
      on June 30, 2006. The merger was consummated on November 27, 2006 which was
      outside the 120-day period resulting in liquidated damages of $37,888.
      Discussions with the investors and a proposal to pay with either (1) cash or
      (2)
      a payment in kind, in the same manner defined as a payment-in-kind (“PIK”)
      payment in the convertible note, using unregistered shares, has been
      consummated, with a majority of the investors accepting a PIK payment for the
      put. While the majority of the investors agreed to the issuance of unregistered
      stock, $1,875 has been paid in cash subsequent to December 31, 2006 and 11,778
      shares were issued to the investors in the first quarter of 2007.




10




**CrossPoint
      Energy Company**


*Notes
      to Unaudited Financial Statements*




***Registration
      Rights Agreement - to file with the SEC within 30
      days***




By
        the
        terms of the Registration Rights Agreement (“RRA”) Article 2.b. between the
        investors and the Company, the Company's SB2 Filing was required to be filed
        on
        December 27, 2006.  In as much as the audit for the Company was not
        completed at such date, due to complexities in the merger, multiple company
        subsidiary considerations and the adoption of a September 30, 2006 fiscal
        year,
        the filing was delayed, and the Company is required to pay the investors
        2% of
        their aggregate investment or $303,100. Discussions and a proposal to pay
        the
        investors with either (1) cash or (2) a payment in kind, in the same manner
        defined as a PIK payment in the convertible note, using unregistered shares,
        between the parties, has been consummated, with a majority of the investors
        accepting a PIK payment. While the majority of the investors agreed to the
        issuance of unregistered stock, $25,020 has been paid in cash subsequent
        to
        December 31, 2006 and 90,883 shares were issued to the investors in the first
        quarter of 2007.





***Office
      Lease Guaranty***




The
      lease
      guaranty on the Company's office space was renegotiated in November of 2006.
      The
      previous guarantor was released from his liability and the Company agreed to
      pre-pay six months rent. This prepayment will then be applied against future
      rent payments, on a semi-annual interval.





**ITEM
      2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF
      OPERATIONS**




*The
      following discussion and analysis should be read in conjunction with the
      consolidated financial statements and related notes included elsewhere in this
      Report on Form 10-QSB/A. This discussion contains forward-looking statements
      reflecting our current expectations and estimates and assumptions concerning
      events and financial trends that may affect our future operating results or
      financial position. Actual results and the timing of events may differ
      materially from those contained in these forward-looking statements due to
      a
      number of factors, including those discussed in the “Cautionary Note Regarding
      Forward-Looking Statements” appearing elsewhere in this
      document.*




CrossPoint
      Energy Company is referred to herein as “we”, “us”, “our”, “its,” “the Company”
or “our Company”.




On
          November 27, 2006, CrossPoint LLC merged with CrossPoint Acquisition, LLC,
          a
          wholly owned subsidiary of Electrum formed for the sole purpose of acquiring
          CrossPoint LLC. CrossPoint Acquisition, LLC survived the Merger and became
          the
          sole owner of CrossPoint Energy Holdings, LLC and Dallas Operating Corp.
          At the
          time of the merger, Electrum was a public company with limited operations.
          After
          the Merger, Electrum changed its name to CrossPoint Energy
          Company.




11




The
      Merger is accounted for as a reverse merger with CrossPoint LLC deemed to be
      the
      accounting acquirer and we will be the legal acquirer. Accordingly, the
      historical financial information presented in future financial statements will
      be that of CrossPoint LLC. The basis of the assets, liabilities and equity
      of
      CrossPoint LLC, the accounting acquirer, will be carried over in the
      Merger.




**Overview**




We
      are a
      natural gas and petroleum exploration, development and production company
      engaged in finding and developing oil and gas prospects, primarily in East
      and
      Southeast Texas. Our current business strategy is to acquire and drill
      properties which yield significant growth opportunity and contain attractive
      reserve capabilities within and around established fields with multiple targets.
      Our people and way of doing business are vital to the success of its business
      plan and growing it into a valuable exploration and production company. Our
      ability to create value for its members is based on its employee's valuable
      skills, extensive industry experience, their commitment to our core values,
      and
      passion for excellence in all that they do.




We
      are
      focused primarily on drilling new and development reserves within prolific
      east
      and southeast Texas fields. We are also continuously evaluating additional
      growth opportunities through acquisitions of producing and underdeveloped
      properties.




**Liquidity
      and Capital Resources**





***Cash
      Flows***




At
      December 31, 2006 we had $3,268,576 in cash and cash equivalents, which is
      an
      decrease of $2,804,722 from the balance at September 30, 2006 of
      $6,073,298.





Historically,
      our cash receipts from sales of oil and gas have been insufficient to cover
      our
      cash expenses. During the three month period ended December 31, 2006 net cash
      used in operations was $1,483,616. Our cash expenses primarily include lease
      operating expenses, including production and ad valorem taxes, contract services
      and general and administrative expenses.





During
      the three month period ended December 31, 2006, we spent $1,831,031 principally
      on the development of our oil and gas properties. Our 2006 operating cash flow
      shortfall and our capital expenditure program was funded in part from net
      proceeds of $13,643,660 from our June 2006 private placement and an additional
      $583,333 from borrowings under our credit agreement. We used $8,690,505 of
      the
      proceeds received in the private placement to repay part of our outstanding
      credit agreement indebtedness. During the three months ended December 31, 2005
      we spent $7,358,657 principally on acquisitions of oil and gas properties.
      During the three months ended December 31, 2005 our operating cash shortfall
      and
      investing activities was funded by sale of membership units and long-term
      borrowings under our credit agreement.





***Financing
      and Investing Activities During the Three-Month Period Ended December 31,
      2006***




*Credit
      Agreement*





On
      September 2, 2005, we entered into a three year $40.0 million credit agreement,
      or the Credit Agreement. Loans under the Credit Agreement may only be used
      to
      fund development projects approved by the lenders, to pay commitment fees and
      administrative expenses under the Credit Agreement, to pay legal fees incurred
      by the lenders and administrative agent and to fund the acquisition of
      additional oil and gas properties that have been approved by the lenders. Under
      the terms of the Credit Agreement, we request additional advances from our
      lenders based on presentment of a project plan.




Beginning
        March 31, 2006, we were subject to restrictive financial covenants that include
        debt coverage, fixed charge and current ratios and reserve ratios to total
        debt
        and net sales requirements. The covenants must be met on March 31, June 30,
        September 30 and December 31 of each year. We were not in compliance with
        certain of these ratios at March 31, June 30, September 30 and December 31,
        2006. Previously, covenant violations were waived by the lenders, and we
        paid
        fees of $125,000, $0, and $10,000 to the lenders for the quarters ended March
        31, June 30, September 30, 2006, respectively. The Company is not in compliance
        for the quarter ended December 21, 2006. The violation has been waived and
        the
        penalty is being determined.





The
      outstanding debt under the Credit Agreement is reflected as a current liability
      in the consolidated financial statements. At December 31, 2006, we had $5.0
      million of outstanding borrowings under the Credit Agreement. During the three
      months ended December 31, 2006 and the three months ended December 31, 2005,
      we
      paid the lenders under the Credit Agreement $158,625 and $19,994 in interest
      expenses and fees of $0 and $0, respectively. The fee for December 31, 2006
      violation has not been determined.





Convertible
      Notes





As
      of
      December 31, 2006, we had $8.8 million of convertible notes outstanding. Each
      convertible note accrues interest at a rate of 8% per annum and has a maturity
      date of June 30, 2009. Each convertible note is convertible into shares of
      our
      common stock at a conversion price of $1.75 per share, subject to adjustment
      for
      stock splits, stock dividends, subsequent equity sales at a price per share
      lower than the conversion price and other similar transactions.




12




The
      interest is payable quarterly. Prior to December 31, 2007, we may pay the
      interest on the convertible note in the form of shares of common stock. In
      addition, at any time prior to the maturity date of each convertible note and
      so
      long as we have on file an effective registration statement covering the resale
      of the shares of common stock underlying the convertible note, we may prepay
      the
      convertible notes, in whole and not in part, by payment of 110% of the principal
      amount then outstanding.





No
      payments of principal are due until June 30, 2009. Interest of $363,440 was
      accrued as of December 31, 2006 and we elected to pay it in shares. However
      since we did not have registered shares to offer, some holders of the notes
      requested cash, which was paid in 2007.




*Capital
      Resources*





As
      we
      continue to drill and complete successful wells, we plan to increase net cash
      flow from operations by becoming more efficient in the drilling and completion
      of the wells, employing the increasing availability of quality drilling rigs
      and
      crews, and the sustained knowledge of the fields and reservoirs that we are
      developing. Our strategy is to drill lower to moderately risked prospects with
      multiple zones within our existing oil and gas fields.





Subject
      to an approval process, we have the ability to draw upon the Credit Agreement
      described above to provide capital to expand our portfolio through drilling
      and
      completions. We believe we have the ability to refinance with mezzanine lenders,
      or raise additional equity in conjunction with further development of our
      existing assets and/or a new acquisition. We are continuously evaluating
      acquisitions that have the attributes desired to build reserves and cashflow,
      and significantly grow the company.





We
      intend
      to finance future acquisitions of oil and gas properties, field development
      projects and operating activities with a combination of issuances of equity,
      debt financing, and access to capital markets and cash flow from operations.
      We
      cannot guarantee that any additional equity or debt financing will be available
      in sufficient amounts or on acceptable terms when needed. If such financing
      is
      not available in sufficient amounts or on acceptable terms, our results of
      operations and financial condition may be adversely affected. In addition,
      equity financing may result in dilution to existing stockholders and may involve
      securities that have rights, preferences or privileges that are senior to our
      common stock, and any debt financing obtained must be repaid regardless of
      whether of not we generate profits or cash flows from our business
      activities.




13




***Properties
      of the Company***




Our
      drilling activities, which are conducted in our subsidiary CrossPoint Energy
      Holdings, LLC, focus primarily on internally generated prospects utilizing
      its
      significant technological skills, and, opportunistically, on third party
      prospects and the acquisition of producing oil and gas assets. Our strategy
      for
      growth is to drill and develop relatively lower and moderate risk properties
      which contain as an upside, certain higher risk, very prolific reserves. We
      have
      many additional prospects identified for future drilling and development, which
      are in various stages of evaluation, land and leasing and assimilation. The
      Company's initial development and exploration activities are located in east
      and
      southeast Texas.




The
      table
      below summarizes the Company's areas of operations, including the number of
      gross and net wells as of December 31, 2006.




**Completed
                / Productive****Field**
            
            **Oil**
            
            **Gas**
            
            **Pending
                Completion or Recompletion**
            
            **Currently**
              **Drilling**
            
            **Dry**
              **H****ole**
            
            **Total****Operated
                wells**Elkhart
            
            
            1
            
            
            1
            
            
            3
            
            
            1
            
            
            0
            
            
            6Hoskins
            
            
            4
            
            
            0
            
            
            0
            
            
            0
            
            
            1
            
            
            5Waskom
            
            
            0
            
            
            2
            
            
            0
            
            
            0
            
            
            0
            
            
            2Humber
            
            
            1
            
            
            0
            
            
            0
            
            
            0
            
            
            0
            
            
            1**Total
                operated wells**
            
            
            **6**
            
            
            **3**
            
            
            **3**
            
            
            **1**
            
            
            **1**
            
            
            **14****Non-operated
                wells**Hoskins
            
            
            2
            
            
            0
            
            
            0
            
            
            0
            
            
            0
            
            
            2NW
                Vienna
            
            
            0
            
            
            0
            
            
            0
            
            
            0
            
            
            2
            
            
            2**Total
                non-operated wells**
            
            
            **2**
            
            
            **0**
            
            
            **0**
            
            
            **0**
            
            
            **2**
            
            
            **4****Total
                wells (gross)**
            
            
            **8**
            
            
            **3**
            
            
            **3**
            
            
            **1**
            
            
            **3**
            
            
            **18**




14




**Elkhart
      Dome Prospect, Anderson County, Texas**




The
      Elkhart Dome Project, located in East Texas in Anderson County, is primarily
      an
      exploration and development play with considerable reserve potential. The
      Company owns a 40.375%-43.275% working interest, and approximately 31% net
      revenue interest in, and is the operator of the Elkhart Dome Project. We have
      drilled and completed three wells on the Elkhart Prospect, are currently
      completing a fourth well, and drilling a fifth well. Numerous prospective pay
      zones targeted at Elkhart include Wilcox, Navarro, Woodbine, Rodessa, Pettet
      and
      Travis Peak. Our development plan for the Elkhart Dome Project includes the
      drilling of numerous wells to various depths, targeting multiple zones which
      have produced significant reserves on Elkhart Dome and/or regionally. The
      Company is presently preparing two additional drill sites and has evaluated
      and
      identified more than 20 additional potential well locations for future
      development at Elkhart. We are considering twin wells to accelerate shallow
      reserves and designing dual completion wells for the possibility of accelerating
      the production from multiple targeted reservoirs.




Since
      June 30, 2006, CrossPoint LLC and the Company have increased its total leasehold
      acreage position at Elkhart by approximately 60% - from approximately 1,000
      acres (gross) to a current total of approximately 1,600 acres (gross), or about
      650 acres (net). With 80 or 40 acre well spacing of the Pettet at a depth of
      9,500 feet and 80 acre well spacing in the Travis Peak at a depth of 10,000
      feet, and 40 acre shallow well spacing (i.e., the Wilcox, Pecan Gap, and
      Woodbine formations at depths of 1,700 feet, 4,000 feet and 5,000 feet,
      respectively - the Company may complete multiple horizons in the same well,
      or
      recomplete older wells). The Company has identified more than 20 well locations
      on its acreage at Elkhart. Each future deep well is projected to cost $1.25
      million net total to the Company for drilling and completion. In addition,
      these
      Travis Peak well locations may also contain significant additional reserves
      in
      the Woodbine, Pettet and other shallower zones. The economics of drilling and
      completing shallower objectives will be evaluated as we drill the deeper Travis
      Peak wells, which could provide upside from new reserves and future
      production.




As
      a
      result of the Covington #2 Travis Peak discovery completed by CrossPoint LLC
      in
      June 2006, a new field designation, named Indian Lake Travis Peak Field was
      approved on December 5, 2006. The Covington #2 also has multiple prospective
      zones in the Pettet (seen at approximately 9,800 feet on logs). Completion
      operations to add these Pettet zones are currently being implemented in the
      Covington #2 well. Historically, the Pettet “A” zone has alone produced nearly
      50 Bcf gas in Elkhart Field. The Covington A2-ST was drilled and completed
      in
      the Woodbine in June 2006 and currently produces at an approximate rate of
      1050
      Mcf/d gross.




In
      December 2006, the Company drilled the Covington #3 well to a depth of
      approximately 11,400 feet at Elkhart. The Covington #3 log data indicates
      favorable attributes for a completion attempt in multiple zones within each
      of
      the Woodbine (5,900 feet), Pettet (9,800 feet) and Travis Peak (11,000 feet)
      sections. Completion operations for the Covington #3 well are currently being
      implemented. We are currently drilling the Covington #6.




The
      Covington #4 location has been built and the Covington #5 location is being
      evaluated for surface considerations. The Company is evaluating horizontal
      applications for Elkhart, including the Pettet and Pecan Gap.




**Hoskins
      Mound, Brazoria County, Texas**




The
      Company owns interests in six wells and operates four wells on the Hoskins
      Dome
      Project. Additionally, we may earn between 40.625% and 100% working interest
      in
      all new wells drilled on the 12,295 gross acre farmout area. Available net
      revenue interests attributable to such working interests range between 28.4375%
      and 75% for these new wells. The Company owns approximately 65% of 101 square
      miles (64,640 gross acres) of proprietary 3D Seismic data over the Hoskins
      Dome
      Project area. The Hoskins Dome Project contains a historically significant
      oil
      field that has been underdeveloped and contains numerous development and
      exploration projects. The opportunities include multi-million barrel oil
      potential reservoirs (4,200-6,500' zones) and possibly deeper gas sands with
      significant reserve potential. The Company has drilled three wells and completed
      two wells, and is presently evaluating additional wells to be drilled. We have
      identified and prepared more than fifteen (15) separate prospects on the Hoskins
      Dome Project for future drilling and development. Each prospect may contain
      one
      to five wells, depending upon well results and other factors.




15




In
      October 2006, the Chevron Texaco Fee #301 was drilled on an outer fault block
      to
      an approximate depth of 7,100 feet, in an attempt to access potentially
      significant Miocene oil reserves and Discorbis sands. The #301 reached the
      (BM
      1, BM 2 and BM 3) Miocene Sands, however, commercially viable hydrocarbons
      were
      not trapped by the fault and consequently the well was plugged. The #301 did
      not
      reach the deeper Discorbis target due to hole difficulties. The total well
      cost
      for the #301 was approximately $1.8 MM (gross). Chevron participated as a
      non-operator in drilling of the well. Although the #301 well likely eliminated
      the adjacent outer fault block at Hoskins, we believe the geology of this well
      is unrelated structurally to most of the remaining prospects in our Hoskins
      Mound property.




The
      Miocene and Discorbis prospects surrounding the dome remain drilling targets
      for
      2007, pending additional evaluation. The location for the Welch Foundation
      #270
      well has been built and is planned to test the Miocene Sands and Discorbis.
      The
      #270 location is offset to the #300 well, which flowed gas from the
      overpressured Discorbis before hole difficulties prevented a completion attempt
      in the Discorbis.




Additional
      3D seismic data and other technical work have identified a new and potentially
      prolific Miocene Prospect called Summer Star. Summer Star is an untested fault
      block, proximate to historically significant Miocene production. We intend
      to
      test and develop Summer Star prospect in the future.




**Waskom
      Prospect, Harrison County, Texas**




The
      Waskom Project is primarily a development drilling project within a producing
      gas field in the Cotton Valley Trend located in Harrison County, Texas. The
      Waskom Project also has multiple prospective additional gas and oil zones.
      The
      Company has recompleted one existing well, successfully drilled and completed
      one in-fill wells. Additional wells are scheduled to be drilled in 2007. A
      well
      location has been built for the next well to be drilled, and three additional
      wellsites have been surveyed. Future development plans include increased density
      drilling pending well results and other factors. The Company owns a 55% working
      interest (501 gross acres), approximately 41.25% net revenue interest to 10,000'
      and is the operator of the Waskom Project.




The
      Zack
      Abney #2 well, drilled in late 2005, continues to produce from the lower Cotton
      Valley at a rate of 158 Mcf/d (net). The Zack Abney #1 well continues to produce
      from the lower Cotton Valley at a rate of 35 Mcf/d (net).




The
      development of the Bossier shale, typically located at a depth of approximately
      11,000 feet, has been observed within 3 miles of the Zack Abney wells and is
      believed to be present beneath the Company's acreage. Over 15 nearby wells
      have
      been drilled to the Bossier by other operators in Harrison County, Texas. The
      Company is evaluating the possible development of the Bossier shale within
      the
      Waskom Prospect area as well as the potential horizontal drilling and completion
      application for testing and development. The Company owns approximately 45%
      of
      the Bossier rights, beneath the Cotton Valley within the prospect.




**N.W.
      Vienna Prospect, Lavaca County, Texas**




The
      Company acquired a 10% non-operated working interest in an approximately 2,900
      gross acre prospect (including 3D seismic data) in Lavaca County, Texas. The
      prospect contains multiple Yegua and Wilcox prospects identified by 3D seismic
      data. In September and October, 2006, the operator drilled two Yegua wells
      to a
      depth of approximately 6,000 feet, and both wells were deemed non-commercial
      and
      were plugged as dry holes. The remaining deep Wilcox prospects are exploratory
      prospects nearby to a multi-Tcf gas field with significant Wilcox production.
      The Company, together with the operator, is considering selling or trading
      the
      Wilcox prospects to a third party, which may include a deep Wilcox well
      commitment and a non-cost basis interest to the Company in the well and
      prospects.




16




**Humber
      Prospect, Shackelford County, Texas**




In
      2005,
      CrossPoint LLC acquired the Humber Prospect with the intention of confirming
      additional prospects.  A single test well was drilled to test the Caddo and
      Ellenberger formations at a depth of approximately 6,300'.  Although
      completed in the Caddo, the Humber #1 well will require additional capital
      to
      attempt to increase production, and is viewed as marginal. The Company has
      no
      additional interests in the area and is considering selling the producing well
      and associated acreage.




**Additional
      Prospects**




The
      Company has evaluated title and is acquiring leasehold acreage in an East Texas
      prospect area with multi-zone, development and exploratory qualities
      commensurate with its business strategy. The target acreage is approximately
      2,000 acres. Target zones include Woodbine, Rodessa, Pettet, Travis Peak, Cotton
      Valley and Bossier.




The
      Company has recently acquired 100% of the farm-in acreage rights covering
      approximately 5,458.23 net acres covering an exploratory project in southeast
      Texas. The Company is exploring various partnership terms for drilling of a
      deep
      test well.




The
      Company is continuously developing new ideas and evaluating additional areas
      for
      acquisition that meet its criteria. The Company has identified several other
      potential areas for leasehold acquisition, which the Company is evaluating
      for
      drilling.




CrossPoint
      Energy Company has completed filings for operator status in Texas with the
      Texas
      Railroad Commission, and effective December 1, 2006 we became the operator
      of
      record for our properties, replacing our subsidiary, Dallas Operating Corp.,
      in
      name only.




***Capital
        Development Plan***
 
 We
        plan
        to develop our existing prospects in order to increase cash flow and proved
        reserves from the multiple zones currently available within each
        prospect.   We also plan to continue acquiring leases / farm-in blocks
        and drill additional prospect areas which complement our existing asset
        base.
 
 Capital
        to be deployed on projects during 2007 shall be dependent upon the level
        of
        success from operations being conducted currently, product prices, additional
        data being evaluated and available debt and equity capital.  Currently, our
        development plan which includes a total of approximately $7.1 million in
        capital
        for drilling, completions, recompletion leasing costs over the first six
        months
        of 2007.   Our prospects contain numerous additional potential
        drillsites which are available for development in the second half of 2007
        through 2009.


17


The
        estimated distribution of capital between prospect areas for the first six
        (6)
        months of 2007 is as follows:
 
 **Amount
                    in thousands**
                
                
                **For
                    January -**
                  **June
                    2007**ProspectElkhart
                
                $
                3,291Hoskins
                
                
                2,801Waskom
                
                
                797Acquisition
                    of new leases
                
                
                200Total
                    capital development program
                
                $
                7,089
  We
        plan
        to expend approximately another $7 million in the second half of 2007 by
        drilling and completion of wells, to continue building a solid base of cash
        flow
        and reserves.
 
 We
          plan
          to fund the drilling and completion of wells and potential property acquisitions
          and additional prospect leasing through our existing credit facility, working
          capital and may seek additional equity and debt financing. Based on our
          current
          cash resources and other current assets, management is contemplating additional
          financings and or transactions that, if successful, would be sufficient
          to fund
          capital expenditures, potential property acquisitions and additional prospect
          leasing. There is no assurance that we will be successful in obtaining
          such
          funds. If we cannot obtain such financing, we will significantly curtail
          our
          capital development plan and/or acquisition plans.




**Results
      of Operations**




***Overall***





For
      the
      quarter ended December 31, 2006, the Company had a loss applicable to common
      shares of $1,665,416, compared to the $577,432 loss for the same period ended
      December 31, 2005.




**Period
                ended December 31,****2006**
            
            **2005**
            
            **Increase
                (Decrease)****Results
                of oil & gas producing operations**
            
            $
            (759,727
            )
            $
            (3,366
            )
            $
            (756,361
            )**Plus
                contract services income, net**
            
            
            115,617
            
            
            43,753
            
            
            71,864**Less
                the following items**
            
            
            -
            
            
            -
            
            
            -General
                and administrative expense
            
            
            629,479
            
            
            601,359
            
            
            28,120Interest
                expense, net
            
            
            272,155
            
            
            16,460
            
            
            255,695Other
            
            
            119,672
            
            
            -
            
            
            119,672Net
                loss
            
            $
            (1,665,416
            )
            $
            (577,432
            )
            $
            (1,087,984
            )




The
      Company is primarily involved in the development and production of oil and
      gas
      properties. The results of its oil and gas operations consist of the
      following:




**Period
                ended December 31,****2006**
            
            **2005**
            
            **Increase
                (Decrease)**Revenues
                from oil & gas producing activities
            
            $
            514,972
            
            $
            127,725
            
            $
            387,247Less
                the following items:Lease
                operating costs and production taxes
            
            
            147,029
            
            
            99,928
            
            
            47,101Dry
                hole & abandonment expenses
            
            
            515,450
            
            
            -
            
            
            515,450Depreciation,
                depletion, accretion & amortization
            
            
            612,220
            
            
            31,163
            
            
            581,057Results
                from oil & gas operating activities
            
            $
            (759,727
            )
            $
            (3,366
            )
            $
            (756,361
            )




18




***Operating
      Revenues***





Operating
      revenues increased in the three months ended December 31, 2006 from the same
      period ended December 31, 2005 by $387,247, due to the drilling and completion
      of new developmental wells.





The
      table
      below summarizes the operating revenues for the two periods:




**Period
                ended December 31,****2006**
            
            **2005**
            
            **Increase
                (Decrease)**Operating
                revenues
            
            $
            514,972
            
            $
            127,725
            
            $
            387,247SalesOil
                (Bbls)
            
            
            6,231
            
            
            1,012
            
            
            5,219Gas
                (Mcf)
            
            
            50,040
            
            
            7,427
            
            
            42,613Total
                (BOE)
            
            
            14,571
            
            
            2,250
            
            
            12,321Average
                PriceOil
                ($/Bbl)
            
            $
            56.65
            
            $
            57.31
            
            $
            (0.66
            )Gas
                ($/Mcf)
            
            $
            5.63
            
            $
            8.08
            
            $
            (2.45
            )





***Operating
      Expenses***





The
      Company's cost to operate the producing wells has increased as a result of
      the
      increase in the number of wells, to $147,029 for the three months ended December
      31, 2006, from $99,928 for the three months ended December 31, 2005. There
      were
      additional exploratory dry hole expenses of $515,450 from a dry hole
      that began drilling in September 2006, compared to no dry hole costs for
      the three months ended December 31, 2005. The Company had no abandonment cost
      in
      either period of the three months ended September 30, 2006 or in the three
      months ended December 31, 2005. No impairment was taken on the Company's proved
      reserves for the three months ended September 30, 2006, similar to the three
      months ended December 31, 2005.





Depreciation,
      depletion, accretion of the asset retirement obligation and amortization of
      intangible drilling costs was $612,220 for the three months ended September
      30,
      2006, which is an increase of $581,057 from the expense of $31,163 for the
      three
      months ended December 31, 2005. The increase is due to the increase in wells
      between 2005 and 2006 thus increasing the depreciable base and increased
      production.




19




The
      general and administrative expenses have increased to $629,479, after a reversal
      of stock compensation expense of $237,771 from forfeited warrants and terminated
      options, for the three months ended September 30, 2006, from $601,359 for the
      three months ended December 31, 2005 primarily to support the additional
      drilling activity and operations. The components of general and administrative
      costs and the comparison between periods are as follows:




**Period
                ended December 31,****Costs
                as a percentage of the total**
            
            **2006**
            
            **2005**
            
            **Increase
                (Decrease)**General
                and administrative costsPersonnel
                expense
            
            
            58
            %
            
            52
            %
            
            6
            %Stock
                compensation expense reversal
            
            
            -36
            %
            
            0
            %
            
            -36
            %Professional
                services
            
            
            62
            %
            
            27
            %
            
            35
            %Facilities
            
            
            9
            %
            
            19
            %
            
            -10
            %Start-up
                costs
            
            
            0
            %
            
            0
            %
            
            0
            %Other
            
            
            7
            %
            
            2
            %
            
            5
            %Total
            
            
            100
            %
            
            100
            %
            
            0
            %





***Interest
      income and expense***





In
      September 2005, the Company entered into a credit agreement to support
      CrossPoint LLC's capital development program. We incurred interest expense
      of
      $166,128 on this debt for the three months ended December 31, 2006, compared
      to
      $34,222 for the three months ended December 31, 2005. The Company capitalized
      $194,462 for the three months ended December 31, 2006 and $89,637 for the three
      months ended December 31, 2005. The increase in the interest expense is due
      to
      the increase in the advances of $583,333 as we drilled more wells net of with
      the repayments of $70,800. The effective interest rate at December 31, 2006
      was 13.75%. The balance of the note was $5,017,113 at December 31,
      2006.





In
      connection with the private placement in June, 2006 of approximately $15
      million, CrossPoint LLC issued convertible debt at 8% interest per annum.
      Pursuant to the merger, the Company assumed the debt. The interest expense
      on
      the convertible debt was $180,737 for the three months ended December 31, 2006
      and $0 for the three months ended December 31, 2005.





The
      remaining interest expense is the amortization of the capitalized interest
      and
      the debt discount on the two previously discussed debt instruments of $82,970
      for the three months ended December 31, 2006 and $74,594 for the three months
      ended December 31, 2005.




***Liquidated*** ***damages***
  In
          conjunction with the private placement, certain time constraints were put
          in the
          Securities and Purchase Agreement and the Registration Rights Agreement,
          requiring that a merger be completed within 120 days of June 30, 2006 and
          the
          initial filing for registration of the shares to be within 30 days of the
          date
          of the merger. These requirements were not met and thus CrossPoint LLC
          accrued
          liquidated damages of $340,988. The liquidated damages were both calculated
          from
          the aggregate purchase price of $15,555,000 as follows:





Damages
                    per Securities and Purchase Agreement
                
                $
                37,888(calculated
                    at
                    0.25% of the purchase price)Damages
                    per Registration Rights Agreement
                
                
                303,100(calculated
                    at
                    2.0% of the purchase price)Total
                    liquidated damages
                
                $
                340,988
  We
              have
              satisfied the requirements of the Securities and Purchase Agreement
              and will not
              incur any additional damages. The potential liquidated damages payments
              per the
              Registration Rights Agreement continue through the shares becoming
              and remaining
              effective and partial liquidated damages are in effect until all of
              the
              requirements are met. We face damages payments on each 30 day anniversary
              of the
              merger for which the registration is not filed and within 120 days
              of the
              merger, on each anniversary that the registered shares are not effective
              at 2%
              of the aggregate purchase price in each instance up to a aggregate
              maximum 24%.
              Additional events are (i) if we fail to file an acceleration request
              letter
              within five trading days after the SEC alerts us that the registration
              statement
              is not subject to further review, (ii) if we do not file a pre-effective
              amendment and otherwise respond in writing to SEC comments within 21
              calendar
              days after receipt of comments or notice from the SEC that an amendment
              is
              required in order for the registration statement to be declared effective
              or
              (iii) after the registration statement is declared effective, it ceases
              to be
              effective for more than 15 consecutive calendar days or more than an
              aggregate
              of 20 calendar days during any 12 month period. The damages are capped
              at 24% of
              the aggregate purchase price, or $3,637,200. The Registration Rights
              Agreement has been amended to extend the registration filing from 90 days
              to 120 days and to allow the damages payments to be paid with shares,
              through
              April 28, 2007.
 
 The
              total
              possible payments for liquidated damages for the first year are as
              follows:
 Damages
                    per Securities and Purchase Agreement
                
                $
                37,888Damages
                    per Registration Rights Agreement
                
                
                1,515,500Total
                    possible liquidated damages
                
                $
                1,553,388
  Total
        net
        proceeds from the sale of convertible notes
 Damages
                    per Securities and Purchase Agreement
                
                $
                37,888Damages
                    per Registration Rights Agreement
                
                
                1,515,500Total
                    possible liquidated damages
                
                $
                1,553,388Total
                    net proceeds from the sale of convertible notesTotal
                    possible interest at 8% for 3 years
                
                
                (2,121,700
                )Total
                    possible damages from the SPA
                
                
                (
                    37,888
                )Total
                    possible damages from the RRA
                
                
                (3,637,200
                )Total
                    net proceeds from the sale of convertible notes
                
                $
                3,043,629




***Equity***





The
      Company paid no dividends in three months ended December 31, 2006 or in the
      three months ended December 31, 2005.





CrossPoint
      LLC had a stock option plan for management which terminated with the merger
      on
      November 27, 2006. As of date of the merger, 836,178 options had been granted,
      278,711 options had vested and none had been exercised. The options outstanding
      under the plan had a weighted average remaining contractual life of 3.56 years.
      Pursuant to the merger, the plan for the aforementioned options terminated
      and
      $21,188 of stock compensation expense that had been expensed in 2006 was
      reversed. In addition, a board member who had received 858,710 warrants resigned
      from the board and forfeited 100% of his warrants before the first vesting
      period, resulting in a reversal of the previously expensed stock compensation
      expense of $216,583. Compensation expense of $9,992 was taken on the shares
      issued to the Chairman of the Board for his services in October 2006. He
      resigned in October and thus no additional expense was taken.




20





**ITEM
      3. CONTROLS AND PROCEDURES**




The
      management of CrossPoint, under the supervision and with the participation
      of
      the Company's Chief Executive Officer and Secretary (our principle financial
      officer) conducted an evaluation of the Company's "disclosure controls and
      procedures" (as defined in Exchange Act Rules 13a-15(e) or 15d-15(e)) as of
      the
      end of the period covered by this report. Based on that evaluation, the Chief
      Executive Officer and Secretary concluded that the Company's disclosure controls
      and procedures were not effective with regard to the preparation of the
      financial reporting for a publicly-traded company, due to staff limitations
      and the recent entry into public reporting requirements as of the end of the
      period covered by this report.  Our accountants advised us of the material
      weaknesses in the internal controls over financial reporting for the reporting
      period of September 30, 2006 with regard to the lack of sufficient staff
      and procedures for preparing and filing financial statements for a
      publicly-traded and SEC-regulated company, which was repeated of the
      quarter ended December 31, 2006.  This weakness relates primarily to the
      accounting for complex issues an calculations that resulted in adjusting entries
      prior to the issuance of our financial statements.  It is related to
      the detail oil and gas operational accounting records of the Company.  To
      remedy the aforementioned weakness, the Company has increased its staff from
      2
      to 4 employees, of which 2 of the accountants are certified public accountants,
      has hired consultants to provide SEC financial reporting expertise and continues
      to gain financial reporting experience through outside educational
      opportunities.  The Company plans to augment the accounting group in the
      near future with emphasis on financial reporting.  The Chief Executive
      Officer and Secretary do conclude that this report is correct with regard to
      disclosures.




As
      previously disclosed by the Company in its Annual Report on Form 10-KSB for
      the
      year ended September 30, 2006, our accountants at the time, Cacciamatta
      Accountancy Corporation had advised the Company that it did not maintain
      effective internal control over financial reporting. It was determined that
      the
      Company was not able to independently prepare its financial reports to the
      standards of Generally Accepted Accounting Principals (“GAAP”) and the rules and
      regulations of the Securities and Exchange Commission. As a result, the
      Company's disclosure controls and procedures related to internal control over
      financial reporting were determined to be a material weakness in internal
      control. At the time of the reportable event, the Company was known as "Electrum
      Mining Limited" and had only one employee, who was the sole officer (acting
      as
      both CEO and CFO) and director of the Company.  In addition, as of
      September 30, 2006, the Company did not have any business operations, and its
      sole activity was closing an acquisition of CrossPoint Energy, LLC ("CrossPoint
      LLC"), which was completed on November 27, 2006.  Because of the Company's
      then-limited operations, and limited financial capacity, it could not employ
      any
      additional employees.  The sole director and officer participated in the
      discussions of this material weakness in internal control.





**PART
      1I - OTHER INFORMATION**





**ITEM
      1. LEGAL PROCEEDINGS**




The
      Company is currently not involved in any pending legal proceedings.





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




On
      November 27, 2006, the Company completed its merger with CrossPoint Energy,
      LLC.
      Pursuant to that merger, the Company acquired 100% of the outstanding membership
      interests in CrossPoint Energy, LLC, and issued, as consideration to the
      security holders of CrossPoint Energy, LLC, aggregate consideration of
      16,451,667 shares of Company common stock, debt convertible into 5,051,667
      shares of Company common stock, and warrants to acquire 2,525,833 shares of
      Company common stock.




21




The
      warrants issued are each exercisable into 0.25 shares of common stock in the
      Company, with an exercise price per share of $1.95, subject to adjustment for
      stock splits, stock dividends, subsequent equity sales at a lower price per
      share than the exercise price of the warrant, and other similar transactions.
      Each warrant expires on June 30, 2011. The warrants provide that in the event
      that at any time after the one year anniversary of the date of issuance of
      that
      warrant there is no effective registration statement on file covering the resale
      of the common stock underlying that warrant, the holder of the warrant may
      exercise that warrant by means of a “cashless exercise.” In addition, each
      warrant allows the Company to call for the cancellation of all, or any part,
      of
      the warrants if, after one year and 180 days after a registration statement
      covering the resale of the common stock underlying the warrants is effective,
      the volume weighted average price for 20 out of 30 consecutive trading days
      exceeds $3.00 (subject to adjustment for stock splits, stock dividends and
      similar transactions) and the daily dollar trading for that period exceeds
      $100,000 per trading day.





Each
      convertible note accrues interest at a rate of 8% per annum, and has a maturity
      date of June 30, 2009. The conversion price is $1.75, subject to adjustment
      for
      stock splits, stock dividends, subsequent equity sales at a lower price per
      share than the conversion price, and other similar transactions. The interest
      payable on each convertible note is payable (i) on the third business day after
      December 31, 2006 and (ii) thereafter on the third business day after the last
      day of each calendar quarter. During the period beginning on the consummation
      of
      the merger and ending on the third business day after December 31, 2007, the
      Company may pay the interest on the convertible note in the form of shares
      of
      common stock. In addition, at any time prior to the maturity date of each
      convertible note and so long as the Company has on file an effective
      registration statement covering the resale of the shares of common stock
      underlying the convertible note, the Company may prepay the convertible notes,
      in whole and not in part, by payment of 110% of the principal amount then
      outstanding.





Each
      convertible note also requires its mandatory conversion into shares of common
      stock after the first trading day following (i) the date that the closing price
      for one share of common stock equals or exceeds $2.25 per share for 20
      consecutive trading days during which an aggregate of not less than 1,000,000
      shares were traded, and (ii) the resale of the shares of common stock underlying
      the convertible note is covered by an effective registration
      statement.





Each
      of
      the following items are considered events of default under the convertible
      notes, upon the occurrence of which a holder may either declare all of the
      outstanding principal and accrued and unpaid interest due and payable, or pursue
      any other remedies entitled to the holder at law or in equity:




·
            The
                Company defaults in the payment of the principal or interest which
                that
                principal or interest becomes due and
                payable;





·
            The
                Company fails to pay, to perform or to observe any obligation, agreement,
                covenant, term or condition contained in the convertible note, and
                such
                failure is not cured within 30 days after notice of the
                event;





·
            The
                Company declares bankruptcy or voluntarily agrees to the filing of
                any
                bankruptcy, arrangement or reorganization petition, the Company admits
                in
                writing of its inability to pay debts generally as they become due,
                a
                receiver is appointed for all or a material part of the Company's
                assets,
                or the filing of any involuntary petition to reorganize or liquidate
                the
                Company, which petition is not dismissed or stayed within 30
                days;





·
            The
                amount of senior debt outstanding by the Company exceeds the greater
                of
                (i) $12,000,000 or (ii) an amount equal to 3.5 times the annualized
                earnings before interest, taxes, depreciation, amortization and
                exploration expenses of the Company for the most recently completed
                calendar quarter; and





·
            The
                Company issues any new class of security or debt that is senior to
                the
                convertible notes with respect to repayment without the written consent,
                other than certain senior debt and purchase money indebtedness secured
                only by the asset purchased.




22




The
      Company relied on Rule 506 of Regulation D and Section 4(2) of the Securities
      Act of 1933, as amended, for these issuances, which were to accredited
      investors. The Company did not engage in any public advertising or general
      solicitation in connection with the issuance of these shares of Company common
      stock.





**ITEM
      3. DEFAULTS UPON SENIOR SECURITIES**




Not
      applicable.





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




On
      July
      7, 2006, Grove CrossPoint Investments, LLC, a Delaware limited liability
      company, and Peter G. Geddes, who collectively owned 1,885,000 shares of our
      common stock representing approximately 58% of the voting power of our common
      stock, approved resolutions to:




1.
            Change
                our name to “CrossPoint Energy Company.”2.
            Approve
                of the appointment of John A. Bailey, David C. Bradshaw, Daniel F.
                Collins, and Jeffrey A. Krakos as members of the board of directors
                of the
                Company.3.
            Adopt
                a 2006 Equity Incentive Plan4.
            Amend
                and restate our Articles of Incorporation.5.
            Effect
                a one for 2.368 reverse stock split of our common
                stock.




The
      Company mailed an Information Statement on Schedule 14C to each of its
      shareholders on October 11, 2006, and filed a copy of the Information Statement
      on Schedule 14C with the Securities and Exchange Commission on October 11,
      2006.
      These actions were taken by the Company on November 27, 2006.





**ITEM
      5. OTHER INFORMATION**




Not
      applicable.




23





**ITEM
      6. EXHIBITS**




**EXHIBIT
                NUMBER**
            
            **DESCRIPTION
                OF EXHIBITS**3.1
            
            Amended
                and Restated Articles of Incorporation (2)3.2
            
            Amended
                and Restated Bylaws (2)10.1
            
            2006
                Equity Incentive Plan (1)10.2
            
            Employment
                Agreement, dated November 27, 2006 by and between the Company and
                Daniel
                F. Collins. (1)10.3
            
            Employment
                Agreement, dated November 27, 2006, by and between the Company and
                Jeffery
                A. Krakos. (1)10.4
            
            Credit
                Agreement, dated September 2, 2005, by and among CrossPoint Energy
                Holdings, LLC, D.B. Zwirn Special Opportunities Fund, L.P., and the
                lenders party thereto. (1)10.5
            
            Indemnification
                Agreement dated February 14, 2006 by and among CrossPoint Energy,
                LLC,
                Daniel F. Collins, Jeffery A. Krakos, Rosa L. Collins and DeAnn C.
                Krakos.
                (1)10.6
            
            Form
                of Convertible Debt. (1)10.7
            
            Form
                of Warrant. (1)31.1
            
            Rule
                13a-14(a)/15d-14(a) Certification31.2
            
            Rule
                13a-14(a)/15d-14(c) Certification32.1
            
            Section
                1350 Certification




(1)
      Incorporated by reference to the Company's Current Report on Form 8-K filed
      on
      December 1, 2006.




(2)
      Incorporated by reference to the Company's Annual Report on Form 10-KSB for
      the
      fiscal year ended September 30, 2006.




24





**SIGNATURES**




Pursuant
      to the requirements of Section 13 or 15(d) of the Securities Exchange Act of
      1934, the registrant has duly caused this report to be signed on its behalf
      by
      the undersigned, thereunto duly authorized, on this 14th   day of February,
      2007.




**CROSSPOINT
                ENERGY COMPANY**Date: March
                16, 2007
            By:
            /s/Daniel
                F. CollinsDaniel
                F. Collins, President and Chief Executive
                Officer




By:
            /s/Margaret
                R. Coughlin
              
              Margaret
                R. Coughlin, Secretary




25