----

----

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

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

| Nevada(State or other jurisdiction of incorporation or organization) P.O. Box 22165, Houston, Texas(Address of principal executive offices) | 20-5893642 (I.R.S. Employer Identification No.) 77227-2165  (Zip Code) |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|

| Large accelerated filer  ̈                |   |   |   | Accelerated filer  ̈    |
|-----------------------------------------------|--------|--------|--------|----------------------------------|
| Non-accelerated filer  ̈                  |   |   |   | Smaller reporting company þ |
| (Do not check if a smaller reporting company) |   |   |   |                             |

----

| Part I. Financial Information |                                                                                                                                                                                      |
|-------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                          |                                                                                                                                                                                      |   |
| Item 1                        | Financial Statements                                                                                                                                                                      |   |
|                          |                                                                                                                                                                                      |   |
|                          | Consolidated Balance Sheets - November 30, 2011 and August 31, 2011 (unaudited)                                                                                                           | 5 |
|                          |                                                                                                                                                                                      |   |
|                          | Consolidated Statements of Operations (unaudited) - For the Three Months Ended November 30, 2011 and 2010 and the Period From Inception (September 19, 2003) through November 30, 2011    | 6 |
|                          |                                                                                                                                                                                      |   |
|                          | Consolidated Statements of Cash Flows (unaudited) - For the Three Months Ended November 30, 2011 and 2010 and the Period from Inception (September 19, 2003) through November 30, 2011    | 7 |
|                          |                                                                                                                                                                                      |   |
|                          | Consolidated Statements of Changes in Shareholders' Equity (Deficiency) and Comprehensive Income (unaudited) for the Period from Inception (September 19, 2003) through November 30, 2011 | 8 |
|                          |                                                                                                                                                                                      |   |
|                          | Notes to the Consolidated Financial Statements (Unaudited)                                                                                                                                | 10 |
|                          |                                                                                                                                                                                      |   |
| Item 2                        | Management's Discussion and Analysis of Financial Condition and Results of Operations                                                                                                     | 23 |
|                          |                                                                                                                                                                                      |   |
| Item 3                        | Quantitative and Qualitative Disclosures About Market Risk                                                                                                                                | 28 |
|                          |                                                                                                                                                                                      |   |
| Item 4                        | Controls and Procedures                                                                                                                                                                   | 28 |
|                          |                                                                                                                                                                                      |   |
|                          | Part II. Other Information                                                                                                                                                                |   |
|                          |                                                                                                                                                                                      |   |
| Item 1                        | Legal Proceedings                                                                                                                                                                         | 29 |
|                          |                                                                                                                                                                                      |   |
| Item 1A                       | Risk Factors                                                                                                                                                                              | 29 |
|                          |                                                                                                                                                                                      |   |
| Item 2                        | Unregistered Sales of Equity Securities and Use of Proceeds                                                                                                                               | 30 |
|                          |                                                                                                                                                                                      |   |
| Item 3                        | Defaults Upon Senior Securities                                                                                                                                                           | 31 |
|                          |                                                                                                                                                                                      |   |
| Item 4                        | (Removed and Reserved)                                                                                                                                                                    | 31 |
|                          |                                                                                                                                                                                      |   |
| Item 5                        | Other Information                                                                                                                                                                         | 31 |
|                          |                                                                                                                                                                                      |   |
| Item 6                        | Exhibits                                                                                                                                                                                  | 31 |
|                          |                                                                                                                                                                                      |   |
|                          | Signatures                                                                                                                                                                                | 32 |
|                          |                                                                                                                                                                                      |   |
|                          | EX-31.1 (EXHIBIT 31.1)                                                                                                                                                                    |   |
|                          |                                                                                                                                                                                      |   |
|                          | EX-31.2 (EXHIBIT 31.2)                                                                                                                                                                    |   |
|                          |                                                                                                                                                                                      |   |
|                          | EX-32.1 (EXHIBIT 32.1)                                                                                                                                                                    |   |
|                          |                                                                                                                                                                                      |   |
|                          | EX-32.2 (EXHIBIT 32.2)                                                                                                                                                                    |   |

----

----

----

|                                                                                                                  |   | November 30, |        |   | August 31, |   |
|-----------------------------------------------------------------------------------------------------------------------|--------|--------------|-------------|--------|------------|--------|
|                                                                                                                  |   | 2011         |        |   | 2011       |   |
|                                                                                                                  |   | (Unaudited)  |        |   | (Audited)  |   |
| ASSETS                                                                                                                |   |         |        |   |       |   |
| Current Assets                                                                                                        |   |         |        |   |       |   |
|        Cash                                                                        |   | $            | 3,869,824   |   |       | $      | 7,251,657 |   |
|        Prepaid expenses                                                            |   |         | 55,846      |   |       |   | 4,443 |   |
| Total Current Assets                                                                                                  |   |         | 3,925,670   |   |       |   | 7,256,100 |   |
|                                                                                                                  |   |         |        |   |       |   |   |   |
|        Fixed Assets:                                                               |   |         |        |   |       |   |   |   |
|        Computer Equipment                                                          |   |         | 12,255      |   |       |   | 12,255 |   |
|        Software License                                                            |   |         | 62,563      |   |       |   | 62,563 |   |
|        Less:  Accumulated Depreciation                                   |   |         | (41,656     | )      |       |   | (35,696 | ) |
| Net Fixed Assets                                                                                                      |   |         | 33,162      |   |       |   | 39,122 |   |
|                                                                                                                  |   |         |        |   |       |   |   |   |
| Other Assets                                                                                                          |   |         |        |   |       |   |   |   |
|        Investment in oil and gas properties (Note 3 and 8)                         |   |         | 21,364,715  |   |       |   | 20,160,581 |   |
| Total Other Assets                                                                                                    |   |         | 21,364,715  |   |       |   | 20,160,581 |   |
|                                                                                                                  |   |         |        |   |       |   |   |   |
| Total Assets                                                                                                          |   | $            | 25,323,547  |   |       | $      | 27,455,803 |   |
|                                                                                                                  |   |         |        |   |       |   |   |   |
| LIABILITIES                                                                                                           |   |         |        |   |       |   |   |   |
| Current                                                                                                               |   |         |        |   |       |   |   |   |
|          Accounts payable and accrued liabilities                        |   | $            | 267,797     |   |       | $      | 282,286 |   |
|          Accounts payable to operators of working interests              |   |         | 1,011,084   |   |       |   | 974,769 |   |
|          Loans payable related parties (Note 6)                          |   |         | 26,574      |   |       |   | 26,574 |   |
|  Shareholder loans payable and accrued interest (Net of note discount of                                         |   |         |        |   |       |
|          $110,277 at August 31, 2011)  (Note 7)                |   |         | -           |   |       |   | 1,389,634 |   |
| Total Current Liabilities                                                                                             |   |         | 1,305,455   |   |       |   | 2,673,263 |   |
|                                                                                                                  |   |         |        |   |       |   |   |   |
| Total Liabilities                                                                                                     |   |         | 1,305,455   |   |       |   | 2,673,263 |   |
| STOCKHOLDERS' EQUITY (DEFICIENCY)                                                                                     |   |         |        |   |       |   |   |   |
| Preferred Stock, 50,000,000 shares authorized, none issued or outstanding                                             |   |         | -           |   |       |   | - |   |
| Common Stock                                                                                                          |   |         |        |   |       |   |   |   |
|          Authorized:                                                     |   |         |        |   |       |   |   |   |
|             700,000,000 shares with a par value of $0.001 |   |         |        |   |       |   |   |   |
|          Issued and Outstanding:                                         |   |         |        |   |       |   |   |   |
|            460,267,726  as of November 30, 2011 and  |   |         | 460,268     |   |       |   | 454,668 |   |
|            454,667,726  as of August 31, 2011        |   |         |        |   |       |   |   |   |
|  Additional paid-in capital                                                                                      |   |         | 43,426,227  |   |       |   | 42,445,865 |   |
| Common stock subscribed                                                                                               |   |         | -           |   |       |   | 824,600 |   |
|  Accumulated other comprehensive income                                                                          |   |         | (1,243      | )      |       |   | (29 | ) |
| Deficit Accumulated During The Development Stage                                                                      |   |         | (19,867,160 | )      |       |   | (18,942,564 | ) |
| Total Stockholders' Equity (Deficiency)                                                                               |   |         | 24,018,092  |   |       |   | 24,782,540 |   |
| Total Liabilities and Stockholders' Equity (Deficiency)                                                               |   | $            | 25,323,547  |   |       | $      | 27,455,803 |   |

----

|                                                  |   |                            |        |   |    |   |        | Period From          |   |
|-------------------------------------------------------|--------|---------------------------------|-------------|--------|---------|--------|-------------|----------------------|--------|
|                                                  |   |                            |        |   |    |   |        | Inception            |   |
|                                                  |   |                            |        |   |    |   |        | (September 19, 2003) |   |
|                                                  |   | Three Months Ended November 30, |        |   | Through |   |
|                                                  |   | 2011                            |        |   | 2010    |   |        | November 30, 2011    |   |
|                                                  |   |                            |        |   |    |   |        |                 |   |
| Revenues                                              |   | $                               | -           |   |    | $      | -           |                 |   | $ | - |   |
|                                                  |   |                            |        |   |    |   |        |                 |   |   |   |   |
| Cost of Sales                                         |   |                            | -           |   |    |   | -           |                 |   |   | - |   |
|                                                  |   |                            |        |   |    |   |        |                 |   |   |   |   |
| Gross Profit                                          |   |                            | -           |   |    |   | -           |                 |   |   | - |   |
|                                                  |   |                            |        |   |    |   |        |                 |   |   |   |   |
| General and administrative expenses                   |   |                            | 891,699     |   |    |   | 636,099     |                 |   |   | 6,428,021 |   |
| General and administrative expenses - related parties |   |                            | 37,023      |   |    |   | -           |                 |   |   | 9,124,066 |   |
|                                                  |   |                            |        |   |    |   |        |                 |   |   |   |   |
| Operating Loss                                        |   |                            | (928,722    | )      |    |   | (636,099    | )                    |   |   | (15,552,087 | ) |
|                                                  |   |                            |        |   |    |   |        |                 |   |   |   |   |
| Other (Income) and Expense                            |   |                            |        |   |    |   |        |                 |   |   |   |   |
| Gain on settlement of debt                            |   |                            | -           |   |    |   | -           |                 |   |   | (3,333 | ) |
| Interest expense                                      |   |                            | -           |   |    |   | 506,756     |                 |   |   | 1,089,358 |   |
| Interest expense - related parties                    |   |                            | -           |   |    |   | -           |                 |   |   | 1,631,374 |   |
| Interest Income                                       |   |                            | (4,126      | )      |    |   | -           |                 |   |   | (19,043 | ) |
|                                                  |   |                            |        |   |    |   |        |                 |   |   |   |   |
| Loss from continuing operations                       |   |                            | (924,596    | )      |    |   | (1,142,855  | )                    |   |   | (18,250,443 | ) |
|                                                  |   |                            |        |   |    |   |        |                 |   |   |   |   |
| Gain (Loss) from discontinued operations              |   |                            | -           |   |    |   | 200,000     |                 |   |   | (1,616,717 | ) |
| Net Loss                                              |   | $                               | (924,596    | )      |    | $      | (942,855    | )                    |   | $ | (19,867,160 | ) |
|                                                  |   |                            |        |   |    |   |        |                 |   |   |   |   |
| Basic And Diluted Loss per share                      |   |                            |        |   |    |   |        |                 |   |   |   |   |
| from continuing operations                            |   | $                               | -           |   |    | $      | -           |                 |   | $ | (0.19 | ) |
|                                                  |   |                            |        |   |    |   |        |                 |   |   |   |   |
| Basic And Diluted Loss per share                      |   |                            |        |   |    |   |        |                 |   |   |   |   |
| from discontinued operations                          |   | $                               | -           |   |    | $      | -           |                 |   | $ | (0.02 | ) |
|                                                  |   |                            |        |   |    |   |        |                 |   |   |   |   |
| Basic And Diluted Net Loss per share                  |   | $                               | -           |   |    | $      | -           |                 |   | $ | (0.21 | ) |
|                                                  |   |                            |        |   |    |   |        |                 |   |   |   |   |
| Weighted Average Shares Outstanding                   |   |                            | 459,472,170 |   |    |   | 303,843,333 |                 |   |   | 95,140,526 |   |

----

|                                                                               |   |                            |       |   |    |   |       | Period From          |   |
|------------------------------------------------------------------------------------|--------|---------------------------------|------------|--------|---------|--------|------------|----------------------|--------|
|                                                                               |   |                            |       |   |    |   |       | Inception            |   |
|                                                                               |   |                            |       |   |    |   |       | (September 19, 2003) |   |
|                                                                               |   | Three Months Ended November 30, |       |   | Through |   |
|                                                                               |   | 2011                            |       |   | 2010    |   |       | November 30, 2011    |   |
| Cash Flows From Operating Activities                                               |   |                            |       |   |    |   |       |                 |   |
|    Net loss for the period                                          |   | $                               | (924,596   | )      |    | $      | (942,855   | )                    |   | $ | (19,867,160 | ) |
|  Adjustments to reconcile net loss to net cash used by                        |   |                            |       |   |    |   |       |                 |   |   |   |   |
|    operating activities:                                            |   |                            |       |   |    |   |       |                 |   |   |   |   |
|    Depreciation expense                                             |   |                            | 5,960      |   |    |   | 5,214      |                 |   |   | 41,656 |   |
|    Expenses paid by issuance of common stock                        |   |                            | -          |   |    |   | 256,500    |                 |   |   | 10,041,000 |   |
|    Accrued interest added to (paid from) shareholder loans          |   |                            | (99,911    | )      |    |   | 80,744     |                 |   |   | 631,444 |   |
|    Compensation expense paid by stock option issuance               |   |                            | 102,862    |   |    |   | -          |                 |   |   | 177,634 |   |
|    Loan discount amortization                                       |   |                            | 110,277    |   |    |   | 397,339    |                 |   |   | 1,809,023 |   |
|    Non-cash portion of interest expense                             |   |                            | -          |   |    |   | -          |                 |   |   | 3,333 |   |
|    Gain on settlement of debt                                       |   |                            | -          |   |    |   | -          |                 |   |   | (3,333 | ) |
|    Foreign currency translation loss                                |   |                            | (1,214     | )      |    |   | -          |                 |   |   | (1,243 | ) |
|    Impairment of investment in joint venture projects               |   |                            | -          |   |    |   | -          |                 |   |   | 1,951,210 |   |
| Change in operating assets and liabilities                                         |   |                            |       |   |    |   |       |                 |   |   |   |   |
|    Prepaid expenses                                                 |   |                            | 7,097      |   |    |   | -          |                 |   |   | 2,654 |   |
|    Accounts payable and accrued liabilities                         |   |                            | 21,826     |   |    |   | (1,074,727 | )                    |   |   | 128,881 |   |
| Net Cash Used By Operating Activities                                              |   |                            | (777,699   | )      |    |   | (1,277,785 | )                    |   |   | (5,084,901 | ) |
| Cash Flows From Investing Activities                                               |   |                            |       |   |    |   |       |                 |   |   |   |   |
|      Capital Expenditures                                 |   |                            | -          |   |    |   | -          |                 |   |   | (74,818 | ) |
|      Investment in oil and gas projects                   |   |                            | (1,204,134 | )      |    |   | (3,752     | )                    |   |   | (16,568,715 | ) |
|      Advances to and investment in joint venture projects |   |                            | -          |   |    |   | -          |                 |   |   | (250,000 | ) |
| Net cash used by investing activities                                              |   |                            | (1,204,134 | )      |    |   | (3,752     | )                    |   |   | (16,893,533 | ) |
|                                                                               |   |                            |       |   |    |   |       |                 |   |   |   |   |
| Cash Flows From Financing Activities                                               |   |                            |       |   |    |   |       |                 |   |   |   |   |
|      Bank overdraft                                       |   |                            | -          |   |    |   | 4,858      |                 |   |   | - |   |
|      Proceeds from sale of common stock                   |   |                            | -          |   |    |   | -          |                 |   |   | 26,435,669 |   |
|      Proceeds of bridge financing                         |   |                            | -          |   |    |   | -          |                 |   |   | 3,800,000 |   |
|      Principal payment on shareholder loans               |   |                            | -          |   |    |   | -          |                 |   |   | (3,800,000 | ) |
|      Increase in loans payable to related parties         |   |                            | -          |   |    |   | -          |                 |   |   | 226,574 |   |
|      Principal payments on shareholder loans              |   |                            | (1,400,000 | )      |    |   | (143,000   | )                    |   |   | (5,539,685 | ) |
|      Proceeds from shareholder loans payable              |   |                            | -          |   |    |   | 1,400,000  |                 |   |   | 4,725,700 |   |
| Net cash (used)/provided by financing activities                                   |   |                            | (1,400,000 | )      |    |   | 1,261,858  |                 |   |   | 25,848,258 |   |
| Increase/(Decrease) in Cash During The Period                                      |   |                            | (3,381,833 | )      |    |   | (19,679    | )                    |   |   | 3,869,824 |   |
| Cash, Beginning Of Period                                                          |   |                            | 7,251,657  |   |    |   | 19,679     |                 |   |   | - |   |
|                                                                               |   |                            |       |   |    |   |       |                 |   |   |   |   |
| Cash, End Of Period                                                                |   | $                               | 3,869,824  |   |    | $      | -          |                 |   | $ | 3,869,824 |   |

----

|                                                 |   |          |        |   |       |   |    |    |   |   |       |   |   |          |     |   | DEFICIT     |   |   |   |   |
|------------------------------------------------------|--------|---------------|-------------|--------|------------|--------|---------|---------|--------|--------|------------|--------|--------|---------------|----------|--------|-------------|--------|--------|--------|--------|
|                                                 |   |          |        |   |       |   |    |    |   |   |       |   |   | ACCUMULATED   |     |   | ACCUMULATED |   |   |   |   |
|                                                 |   | COMMON SHARES |        |   | ADDITIONAL |   |    | COMMON  |   |   | OTHER      |   |   | DURING THE    |     |   |        |   |
|                                                 |   |          |        |   | PAR        |   |    | PAID-IN |   |   | SHARES     |   |   | COMPREHENSIVE |     |   | DEVELOPMENT |   |   |   |   |
|                                                 |   | NUMBER        |        |   | VALUE      |   |    | CAPITAL |   |   | SUBSCRIBED |   |   | INCOME        |     |   | STAGE       |   |   | TOTAL  |   |
| Balance, September 19,                               |   |          |        |   |       |   |    |    |   |   |       |   |   |          |     |   |        |   |   |   |   |
| 2003 (date of inception)                             |   |          | -           |   |       | $      | -       |    |   | $      | -          |   |   | $             | -        |   |        | $      | -      |   |   | $ | - |   |   | $ | - |   |
| Capital stock issued for cash:                       |   |          |        |   |       |   |    |    |   |   |       |   |   |          |     |   |        |   |   |   |   |   |   |   |   |   |   |   |
| October 2003 at $0.001                               |   |          | 2,500,000   |   |       |   | 2,500   |    |   |   | -          |   |   |          | -        |   |        |   | -      |   |   |   | - |   |   |   | 2,500 |   |
| November 2003 at $0.005                              |   |          | 160,000     |   |       |   | 160     |    |   |   | 640        |   |   |          | -        |   |        |   | -      |   |   |   | - |   |   |   | 800 |   |
| December 2003 at $0.005                              |   |          | 1,400,000   |   |       |   | 1,400   |    |   |   | 5,600      |   |   |          | -        |   |        |   | -      |   |   |   | - |   |   |   | 7,000 |   |
| June 2004 at $0.01                                   |   |          | 1,000,000   |   |       |   | 1,000   |    |   |   | 9,000      |   |   |          | -        |   |        |   | -      |   |   |   | - |   |   |   | 10,000 |   |
| July 2004 at $0.25                                   |   |          | 23,000      |   |       |   | 23      |    |   |   | 5,727      |   |   |          | -        |   |        |   | -      |   |   |   | - |   |   |   | 5,750 |   |
| Net loss for the period                              |   |          | -           |   |       |   | -       |    |   |   | -          |   |   |          | -        |   |        |   | -      |   |   |   | (15,880 | ) |   |   | (15,880 | ) |
| Balance, August 31, 2004                             |   |          | 5,083,000   |   |       |   | 5,083   |    |   |   | 20,967     |   |   |          | -        |   |        |   | -      |   |   |   | (15,880 | ) |   |   | 10,170 |   |
| Net loss for the year                                |   |          | -           |   |       |   | -       |    |   |   | -          |   |   |          | -        |   |        |   | -      |   |   |   | (16,578 | ) |   |   | (16,578 | ) |
| Balance, August 31, 2005                             |   |          | 5,083,000   |   |       |   | 5,083   |    |   |   | 20,967     |   |   |          | -        |   |        |   | -      |   |   |   | (32,458 | ) |   |   | (6,408 | ) |
| November 10, 2005 Stock                              |   |          |        |   |       |   |    |    |   |   |       |   |   |          |     |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Split Adjustment                                     |   |          | 20,332,000  |   |       |   | 20,332  |    |   |   | (20,332    | )      |   |          | -        |   |        |   | -      |   |   |   | - |   |   |   | - |   |
| Net loss for the year                                |   |          | -           |   |       |   | -       |    |   |   | -          |   |   |          | -        |   |        |   | -      |   |   |   | (31,577 | ) |   |   | (31,577 | ) |
| Balance, August 31, 2006                             |   |          | 25,415,000  |   |       |   | 25,415  |    |   |   | 635        |   |   |          |     |   |        |   |   |   |   |   | (64,035 | ) |   |   | (37,985 | ) |
| Capital stock issued for investment:                 |   |          |        |   |       |   |    |    |   |   |       |   |   |          |     |   |        |   |   |   |   |   |   |   |   |   |   |   |
|   January 2007 at $0.735 per share         |   |          | 185,000     |   |       |   | 185     |    |   |   | 135,790    |   |   |          | -        |   |        |   | -      |   |   |   | - |   |   |   | 135,975 |   |
|   July 2007 at $0.735 per share            |   |          | 750,000     |   |       |   | 750     |    |   |   | 550,500    |   |   |          | -        |   |        |   | -      |   |   |   | - |   |   |   | 551,250 |   |
| Net loss for the year                                |   |          | -           |   |       |   | -       |    |   |   | -          |   |   |          | -        |   |        |   | -      |   |   |   | (257,804 | ) |   |   | (257,804 | ) |
| Balance, August 31, 2007                             |   |          | 26,350,000  |   |       |   | 26,350  |    |   |   | 686,925    |   |   |          |     |   |        |   |   |   |   |   | (321,839 | ) |   |   | 391,436 |   |
| Net loss for the year                                |   |          | -           |   |       |   | -       |    |   |   | -          |   |   |          | -        |   |        |   | -      |   |   |   | (378,039 | ) |   |   | (378,039 | ) |
| Balance, August 31, 2008                             |   |          | 26,350,000  |   |       |   | 26,350  |    |   |   | 686,925    |   |   |          |     |   |        |   |   |   |   |   | (699,878 | ) |   |   | 13,397 |   |
| Net loss for the year                                |   |          | -           |   |       |   | -       |    |   |   | -          |   |   |          | -        |   |        |   | -      |   |   |   | (1,353,766 | ) |   |   | (1,353,766 | ) |
| Balance, August 31, 2009                             |   |          | 26,350,000  |   |       |   | 26,350  |    |   |   | 686,925    |   |   |          | -        |   |        |   | -      |   |   |   | (2,053,644 | ) |   |   | (1,340,369 | ) |
| Capital stock issued for settlement                  |   |          |        |   |       |   |    |    |   |   |       |   |   |          |     |   |        |   |   |   |   |   |   |   |   |   |   |   |
|  of name issue:                                 |   |          |        |   |       |   |    |    |   |   |       |   |   |          |     |   |        |   |   |   |   |   |   |   |   |   |   |   |
|   January 2010 at $0.01 per share          |   |          | 50,000      |   |       |   | 50      |    |   |   | 450        |   |   |          | -        |   |        |   | -      |   |   |   | - |   |   |   | 500 |   |
| Capital stock issued to buy                          |   |          |        |   |       |   |    |    |   |   |       |   |   |          |     |   |        |   |   |   |   |   |   |   |   |   |   |   |
|  subsidiary:                                    |   |          |        |   |       |   |    |    |   |   |       |   |   |          |     |   |        |   |   |   |   |   |   |   |   |   |   |   |
|   March 2010 at $0.032 per share           |   |          | 300,000     |   |       |   | 300     |    |   |   | 9,300      |   |   |          | -        |   |        |   | -      |   |   |   | - |   |   |   | 9,600 |   |
| Capital stock issued for cash:                       |   |          |        |   |       |   |    |    |   |   |       |   |   |          |     |   |        |   |   |   |   |   |   |   |   |   |   |   |
|   March 2010 at $0.01 per share            |   |          | 59,750,000  |   |       |   | 59,750  |    |   |   | 527,750    |   |   |          | -        |   |        |   | -      |   |   |   | - |   |   |   | 587,500 |   |
| Capital stock issued for services:                   |   |          |        |   |       |   |    |    |   |   |       |   |   |          |     |   |        |   |   |   |   |   |   |   |   |   |   |   |
|   March 2010 at $0.01 per share            |   |          | 20,750,000  |   |       |   | 20,750  |    |   |   | 186,750    |   |   |          | -        |   |        |   | -      |   |   |   | - |   |   |   | 207,500 |   |
|   April 2010 at $0.01 per share            |   |          | 1,500,000   |   |       |   | 1,500   |    |   |   | 13,500     |   |   |          | -        |   |        |   | -      |   |   |   | - |   |   |   | 15,000 |   |
| Capital stock issued for oil and                     |   |          |        |   |       |   |    |    |   |   |       |   |   |          |     |   |        |   |   |   |   |   |   |   |   |   |   |   |
|  gas properties:                                |   |          |        |   |       |   |    |    |   |   |       |   |   |          |     |   |        |   |   |   |   |   |   |   |   |   |   |   |
|   March 2010 at $0.01 per share            |   |          | 40,000,000  |   |       |   | 40,000  |    |   |   | 384,000    |   |   |          | 200,000  |   |        |   | -      |   |   |   | - |   |   |   | 624,000 |   |
| Capital stock issued for loan                        |   |          |        |   |       |   |    |    |   |   |       |   |   |          |     |   |        |   |   |   |   |   |   |   |   |   |   |   |
|  conversion:                                    |   |          |        |   |       |   |    |    |   |   |       |   |   |          |     |   |        |   |   |   |   |   |   |   |   |   |   |   |
|   March 2010 at $0.01 per share            |   |          | 20,000,000  |   |       |   | 20,000  |    |   |   | 180,000    |   |   |          | 200,000  |   |        |   | -      |   |   |   | - |   |   |   | 400,000 |   |
| Shareholder loan interest forgiven                   |   |          | -           |   |       |   | -       |    |   |   | 631,444    |   |   |          | -        |   |        |   | -      |   |   |   | - |   |   |   | 631,444 |   |
| Capital stock issued with short-                     |   |          |        |   |       |   |    |    |   |   |       |   |   |          |     |   |        |   |   |   |   |   |   |   |   |   |   |   |
|  term debt:                                     |   |          |        |   |       |   |    |    |   |   |       |   |   |          |     |   |        |   |   |   |   |   |   |   |   |   |   |   |
|   April 2010 at $0.065 per share           |   |          | 17,500,000  |   |       |   | 17,500  |    |   |   | 671,894    |   |   |          | -        |   |        |   | -      |   |   |   | - |   |   |   | 689,394 |   |
|   May 2010 at $0.065 per share             |   |          | 5,000,000   |   |       |   | 5,000   |    |   |   | 191,970    |   |   |          | -        |   |        |   | -      |   |   |   | - |   |   |   | 196,970 |   |
|   June 2010 at $0.087  per share |   |          | 2,500,000   |   |       |   | 2,500   |    |   |   | 113,810    |   |   |          | -        |   |        |   | -      |   |   |   | - |   |   |   | 116,310 |   |
|   July 2010 at $0.075  per share |   |          | 3,000,000   |   |       |   | 3,000   |    |   |   | 125,571    |   |   |          | -        |   |        |   | -      |   |   |   | - |   |   |   | 128,571 |   |
|   July 2010 at $0.120  per share |   |          | 500,000     |   |       |   | 500     |    |   |   | 26,773     |   |   |          | -        |   |        |   | -      |   |   |   | - |   |   |   | 27,273 |   |
|   August 2010 at $0.120 per share          |   |          | 500,000     |   |       |   | 500     |    |   |   | 26,773     |   |   |          | -        |   |        |   | -      |   |   |   | - |   |   |   | 27,273 |   |
| Capital stock issued for oil and                     |   |          |        |   |       |   |    |    |   |   |       |   |   |          |     |   |        |   |   |   |   |   |   |   |   |   |   |   |
|  gas properties:                                |   |          |        |   |       |   |    |    |   |   |       |   |   |          |     |   |        |   |   |   |   |   |   |   |   |   |   |   |
|   June 2010 at $0.01  per share  |   |          | 20,000,000  |   |       |   | 20,000  |    |   |   | 180,000    |   |   |          | (200,000 | )      |        |   | -      |   |   |   | - |   |   |   | - |   |
|   July 2010 at $0.052  per share |   |          | 56,000,000  |   |       |   | 56,000  |    |   |   | 2,856,000  |   |   |          | -        |   |        |   | -      |   |   |   | - |   |   |   | 2,912,000 |   |
| Capital stock issued for loan                        |   |          |        |   |       |   |    |    |   |   |       |   |   |          |     |   |        |   |   |   |   |   |   |   |   |   |   |   |
|  conversion:                                    |   |          |        |   |       |   |    |    |   |   |       |   |   |          |     |   |        |   |   |   |   |   |   |   |   |   |   |   |
|   June 2010 at $0.01  per share  |   |          | 20,000,000  |   |       |   | 20,000  |    |   |   | 180,000    |   |   |          | (200,000 | )      |        |   | -      |   |   |   | - |   |   |   | - |   |
| Net loss for the period                              |   |          | -           |   |       |   | -       |    |   |   | -          |   |   |          | -        |   |        |   | -      |   |   |   | (2,315,199 | ) |   |   | (2,315,199 | ) |
| Balance, August 31, 2010                             |   |          | 293,700,000 |   |       |   | 293,700 |    |   |   | 6,992,910  |   |   |          | -        |   |        |   | -      |   |   |   | (4,368,843 | ) |   |   | 2,917,767 |   |

----

|                                                       |   |          |        |   |       |   |    |    |   |   |       |   |   |          |     |   | DEFICIT     |   |         |    |   |
|------------------------------------------------------------|--------|---------------|-------------|--------|------------|--------|---------|---------|--------|--------|------------|--------|--------|---------------|----------|--------|-------------|--------|--------------|---------|--------|
|                                                       |   |          |        |   |       |   |    |    |   |   |       |   |   | ACCUMULATED   |     |   | ACCUMULATED |   |         |    |   |
|                                                       |   | COMMON SHARES |        |   | ADDITIONAL |   |    | COMMON  |   |   | OTHER      |   |   | DURING THE    |     |   |        |   |
|                                                       |   |          |        |   | PAR        |   |    | PAID-IN |   |   | SHARES     |   |   | COMPREHENSIVE |     |   | DEVELOPMENT |   |         |    |   |
|                                                       |   | NUMBER        |        |   | VALUE      |   |    | CAPITAL |   |   | SUBSCRIBED |   |   | INCOME        |     |   | STAGE       |   |         | TOTAL   |   |
|                                                       |   |          |        |   |       |   |    |    |   |   |       |   |   |          |     |   |        |   |         |    |   |
| Capital stock issued for services:                         |   |          |        |   |       |   |    |    |   |   |       |   |   |          |     |   |        |   |         |    |   |
|   September 2010 at $0.06 per share              |   |          | 2,500,000   |   |       |   | 2,500   |    |   |   | 147,500    |   |   |          | -        |   |        |   | -            |    |   |   | - |   |   |   | 150,000 |   |
|   October 2010 at $0.057 per share               |   |          | 1,200,000   |   |       |   | 1,200   |    |   |   | 67,200     |   |   |          | -        |   |        |   | -            |    |   |   | - |   |   |   | 68,400 |   |
|   December 2010 at $0.081 per share              |   |          | 40,000,000  |   |       |   | 40,000  |    |   |   | 7,960,000  |   |   |          | -        |   |        |   | -            |    |   |   | - |   |   |   | 8,000,000 |   |
|   January 2011 at $0.063 per share               |   |          | 2,700,000   |   |       |   | 2,700   |    |   |   | 167,400    |   |   |          | (170,100 | )      |        |   | -            |    |   |   | - |   |   |   | - |   |
|   February 2011 at $0.15 per share               |   |          | 304,000     |   |       |   | 304     |    |   |   | 60,496     |   |   |          | -        |   |        |   | -            |    |   |   | - |   |   |   | 60,800 |   |
|   March 2011 at $0.30 per share                  |   |          | 125,000     |   |       |   | 125     |    |   |   | 37,375     |   |   |          | (37,500  | )      |        |   | -            |    |   |   | - |   |   |   | - |   |
|   March 2011 at $0.26 per share                  |   |          | 2,000,000   |   |       |   | 2,000   |    |   |   | 515,000    |   |   |          |     |   |        |   |         |    |   |   | - |   |   |   | 517,000 |   |
|   July 2011 at $0.162 per share                  |   |          |        |   |       |   |    |    |   |   |       |   |   |          | 824,600  |   |        |   |         |    |   |   |   |   |   |   | 824,600 |   |
| Capital stock issued for cash:                             |   |          |        |   |       |   |    |    |   |   |       |   |   |          |     |   |        |   |         |    |   |   |   |   |   |   |   |   |
|   December 2010 at $0.20 per share               |   |          | 3,875,000   |   |       |   | 3,875   |    |   |   | 746,915    |   |   |          | -        |   |        |   | -            |    |   |   | - |   |   |   | 750,790 |   |
|   January 2011 at $0.20 per share                |   |          | 9,750,000   |   |       |   | 9,750   |    |   |   | 1,878,553  |   |   |          | 25,000   |   |        |   | -            |    |   |   | - |   |   |   | 1,913,303 |   |
|   February 2011 at $0.30 per share               |   |          | 83,388,726  |   |       |   | 83,389  |    |   |   | 23,074,637 |   |   |          | -        |   |        |   | -            |    |   |   | - |   |   |   | 23,158,026 |   |
|   March 2011 at $0.020 per share                 |   |          | 125,000     |   |       |   | 125     |    |   |   | 24,875     |   |   |          | (25,000  | )      |        |   | -            |    |   |   |   |   |   |   | - |   |
| Capital stock subscribed for services:                     |   |          |        |   |       |   |    |    |   |   |       |   |   |          |     |   |        |   |         |    |   |   |   |   |   |   |   |   |
|   September 2010 at $0.063 per share             |   |          | -           |   |       |   | -       |    |   |   | -          |   |   |          | 170,100  |   |        |   | -            |    |   |   | - |   |   |   | 170,100 |   |
|   February 2011 at $0.30 per share               |   |          | -           |   |       |   | -       |    |   |   | -          |   |   |          | 37,500   |   |        |   | -            |    |   |   | - |   |   |   | 37,500 |   |
| Capital stock issued with short-                           |   |          |        |   |       |   |    |    |   |   |       |   |   |          |     |   |        |   |         |    |   |   |   |   |   |   |   |   |
|  term debt:                                           |   |          |        |   |       |   |    |    |   |   |       |   |   |          |     |   |        |   |         |    |   |   |   |   |   |   |   |   |
|   September 2010 at $0.043 per share             |   |          | 6,500,000   |   |       |   | 6,500   |    |   |   | 272,073    |   |   |          | -        |   |        |   | -            |    |   |   | - |   |   |   | 278,573 |   |
|   October 2010 at $0.047 per share               |   |          | 1,000,000   |   |       |   | 1,000   |    |   |   | 45,524     |   |   |          | -        |   |        |   | -            |    |   |   | - |   |   |   | 46,524 |   |
|   October 2010 at $0.043 per share               |   |          | 1,500,000   |   |       |   | 1,500   |    |   |   | 62,787     |   |   |          | -        |   |        |   | -            |    |   |   | - |   |   |   | 64,287 |   |
|   November 2010 at $0.047  per share   |   |          | 1,500,000   |   |       |   | 1,500   |    |   |   | 68,286     |   |   |          | -        |   |        |   | -            |    |   |   | - |   |   |   | 69,786 |   |
|   Januuary 2011 at $0.047 per share              |   |          | 1,500,000   |   |       |   | 1,500   |    |   |   | 68,286     |   |   |          | (69,786  | )      |        |   | -            |    |   |   | - |   |   |   | - |   |
|   February 2011 at $0.047 per share              |   |          | 1,000,000   |   |       |   | 1,000   |    |   |   | 45,524     |   |   |          | (46,524  | )      |        |   | -            |    |   |   | - |   |   |   | - |   |
|   March 2011 at $0.047 per share                 |   |          | 1,000,000   |   |       |   | 1,000   |    |   |   | 46,752     |   |   |          | (47,752  | )      |        |   | -            |    |   |   |   |   |   |   |   |   |
| Capital stock subscribed with                              |   |          |        |   |       |   |    |    |   |   |       |   |   |          |     |   |        |   |         |    |   |   |   |   |   |   |   |   |
|  short-term debt:                                     |   |          |        |   |       |   |    |    |   |   |       |   |   |          |     |   |        |   |         |    |   |   |   |   |   |   |   |   |
|   November 2010 at $0.047  per share   |   |          | -           |   |       |   | -       |    |   |   | -          |   |   |          | 139,572  |   |        |   | -            |    |   |   | - |   |   |   | 139,572 |   |
|   November 2010 at $0.049  per share   |   |          | -           |   |       |   | -       |    |   |   | -          |   |   |          | 24,490   |   |        |   | -            |    |   |   | - |   |   |   | 24,490 |   |
| Capital stock issued for oil and                           |   |          |        |   |       |   |    |    |   |   |       |   |   |          |     |   |        |   |         |    |   |   |   |   |   |   |   |   |
|  gas properties:                                      |   |          |        |   |       |   |    |    |   |   |       |   |   |          |     |   |        |   |         |    |   |   |   |   |   |   |   |   |
|   November 2010 at $0.09  per share    |   |          | 1,000,000   |   |       |   | 1,000   |    |   |   | 89,000     |   |   |          | -        |   |        |   | -            |    |   |   | - |   |   |   | 90,000 |   |
| Compensation expense paid by                               |   |          |        |   |       |   |    |    |   |   |       |   |   |          |     |   |        |   |         |    |   |   |   |   |   |   |   |   |
|   Stock option and grant issuance                |   |          | -           |   |       |   | -       |    |   |   | 74,772     |   |   |          | -        |   |        |   | -            |    |   |   | - |   |   |   | 74,772 |   |
| Net loss                                                   |   |          | -           |   |       |   | -       |    |   |   | -          |   |   |          | -        |   |        |   | -            |    |   |   | (14,573,721 | ) |   |   | (14,573,721 | ) |
|      Other comprehensive income - |   |          |        |   |       |   |    |    |   |   |       |   |   |          |     |   |        |   |         |    |   |   |   |   |   |   |   |   |
| Cumulative currency transalation adjustment                |   |          |        |   |       |   |    |    |   |   |       |   |   |          |     |   |        |   |  (29    | )  |   |   |   |   |   |   |  (29 | )  |
| Total comprehensive loss                                   |   |          | -           |   |       |   | -       |    |   |   | -          |   |   |          | -        |   |        |   | -            |    |   |   | - |   |   |   | (14,573,750 | ) |
| Balance, August 31, 2011                                   |   |          | 454,667,726 |   |       |   | 454,668 |    |   |   | 42,445,865 |   |   |          | 824,600  |   |        |   | (29          | )       |   |   | (18,942,564 | ) |   |   | 24,782,540 |   |
| Capital stock issued for services:                         |   |          |        |   |       |   |    |    |   |   |       |   |   |          |     |   |        |   |         |    |   |   |   |   |   |   |   |   |
|   September 2011 at $0.162 per share             |   |          | 5,100,000   |   |       |   | 5,100   |    |   |   | 819,500    |   |   |          | (824,600 | )      |        |   | -            |    |   |   | - |   |   |   | - |   |
|   November 2011 at $0.117 per share              |   |          | 500,000     |   |       |   | 500     |    |   |   | 58,000     |   |   |          | -        |   |        |   | -            |    |   |   | - |   |   |   | 58,500 |   |
| Compensation expense paid by                               |   |          |        |   |       |   |    |    |   |   |       |   |   |          |     |   |        |   |         |    |   |   |   |   |   |   |   |   |
|   Stock option and grant issuance                |   |          | -           |   |       |   | -       |    |   |   | 102,862    |   |   |          | -        |   |        |   | -            |    |   |   | - |   |   |   | 102,862 |   |
| Net loss                                                   |   |          | -           |   |       |   | -       |    |   |   | -          |   |   |          | -        |   |        |   | -            |    |   |   | (924,596 | ) |   |   | (924,596 | ) |
|      Other comprehensive income - |   |          |        |   |       |   |    |    |   |   |       |   |   |          |     |   |        |   |         |    |   |   |   |   |   |   |   |   |
|   Cumulative currency transalation adjustment         |   |          |        |   |       |   |    |    |   |   |       |   |   |          |     |   |        |   |  (1,214 | )  |   |   |   |   |   |   |  (1,214 | )  |
| Total comprehensive loss                                   |   |          | -           |   |       |   | -       |    |   |   | -          |   |   |          | -        |   |        |   | (1,243       | )       |   |   | - |   |   |   | (925,810 | ) |
| Balance, November 30, 2011                                 |   |          | 460,267,726 |   |       | $      | 460,268 |    |   | $      | 43,426,227 |   |   | $             | -        |   |        | $      | (1,243       | )       |   | $ | (19,867,160 | ) |   | $ | 24,018,092 |   |

----

| Note 1 – Organization and Basis of Presentation |
|-------------------------------------------------------|

----

| Note 2 – Summary of Significant Accounting Policies |
|----------------------------------------------------------------|

----

----

----

|                          |
|-------------------------------|
|                          | 2011 | Method of Determining Assumptions |
|                          |   |   |
| Risk-free rate                | 1.67%;0.89% | U.S. treasury yield for 5-year treasury notes in effect at June 14, 2011 and November 1, 2011, respectively. |
| Expected years until exercise | 5.00 | Full option term |
| Expected stock volatility     | 100%;94% | Historical Gulf United Energy, Inc. volatility at August 31, 2011 and November 30, 2011, respectively. |
| Dividend yield                |    - | Historical record and plan |

|                                                  |   |       |      |   | Weighted  |   |   | Weighted    |   |   |      |   |
|-------------------------------------------------------|--------|------------|-----------|--------|-----------|--------|--------|-------------|--------|--------|-----------|--------|
|                                                  |   | Number of  |      |   | Average   |   |   | Average     |   |   |      |   |
|                                                  |   | Shares     |      |   | Exercise  |   |   | Contractual |   |   | Aggregate |   |
|                                                  |   | Underlying |      |   | Price per |   |   | Life in     |   |   | Intrinsic |   |
|                                                  |   | Options    |      |   | Share     |   |   | Years       |   |   | Value     |   |
|                                                  |   |
| Balance outstanding  - August 31, 2011 |   |       | 3,000,000 |   |      | $      | 0.32   |        |   |   | 4.6       |   |   | $ | 725,764 |   |
| Granted                                               |   |       | 500,000   |   |      |   | 0.27   |        |   |   | 5.0       |   |   |   | 89,694 |   |
| Exercised                                             |   |       | -         |   |      |   |   |        |   |   |      |   |   |   |   |   |
| Forfeited                                             |   |       | -         |   |      |   |   |        |   |   |      |   |   |   |   |   |
| Expired                                               |   |       | -         |   |      |   |   |        |   |   |      |   |   |   |   |   |
|                                                  |   |
| Balance outstanding - November 30, 2011          |   |       | 3,500,000 |   |      | $      | 0.31   |        |   |   | 4.7       |   |   | $ | 815,458 |   |
|                                                  |   |
| Currently exercisable — November 30, 2011  |   |       | -         |   |      | $      | 0.00   |        |   |   |      |   |   | $ | - |   |
|                                                  |   |

----

|                                                            |   |      |      |   | Weighted      |   |
|-----------------------------------------------------------------|--------|-----------|-----------|--------|---------------|--------|
|                                                            |   |      |      |   | Average Grant |   |
|                                                            |   |      |      |   | Date Fair     |   |
|                                                            |   | Number of |      |   | Value per     |   |
|                                                            |   | Shares    |      |   | Share         |   |
|                                                            |   |
| Balance outstanding — August 31, 2011                |   |      | 1,200,000 |   |          | $      | 0.32 |   |
| Granted                                                         |   |      | 750,000   |   |          |   | 0.29 |   |
| Vested                                                          |   |      | 0         |   |          |   | - |   |
| Forfeited                                                       |   |      | 0         |   |          |   | - |   |
|                                                            |   |
|                                                            |   |      |      |   |          |   |   |   |
| Balance outstanding — November 30, 2011              |   |      | 1,950,000 |   |          | $      | 0.31 |   |
|                                                            |   |
| Total grant date fair value of shares vesting during the period |   |      | 0         |   |          | $      | - |   |

----

----

|                            |   | Total Costs |       |   | Fiscal 2012 |   |
|---------------------------------|--------|-------------|------------|--------|-------------|--------|
|                            |   | To Date     |       |   | Commitment  |   |
|                            |   |        |       |   |        |   |
| Block XXIV and TEA – Peru |   | $           | 4,306,367  |   |        | $      | 700,000 |   |
| Block Z-46 – Peru         |   |        | 8,566,240  |   |        |   | 4,100,000 |   |
| CPO-4 – Colombia          |   |        | 8,492,108  |   |        |   | 7,500,000 |   |
|                            |   | $           | 21,364,715 |   |        | $      | 12,300,000 |   |

----

| Total shares issued and outstanding as of August 31, 2011:   |            |   |   | 454,667,726 |   |
|--------------------------------------------------------------|-----------------|--------|--------|-------------|--------|
| Shares previously subscribed for services rendered           | September, 2011 |   |   | 5,100,000   |   |
| Shares issued for services to be rendered                    | November, 2011  |   |   | 500,000     |   |
|                                                         |            |   |   |        |   |
|                                                         |            |   |   |        |   |
| Total shares issued and outstanding as of November 30, 2011: |            |   |   | 460,267,726 |   |

|                                     |   | Period ended . |          |
|------------------------------------------|--------|---------------------|---------------|
|                                     |   | November 30, 2011   |          |   | August 31, 2011 |   |
| Net operating loss carry forward benefit |   | $                   | 5,838,371     |   |   | $ | 5,558,982 |   |
| Stock-based compensation expense         |   |                | 60,396        |   |   |   | 25,422 |   |
| Loss from discontinued operations        |   |                |  544,411 |   |   |   |  544,411 |   |
| Total deferred tax asset                 |   |                | 6,443,178     |   |   |   | 6,128,815 |   |
| Less: Valuation allowance                |   |                | (6,443,178    | ) |   |   | (6,128,815 | ) |
| Net deferred tax asset                   |   | $                   | -             |   |   | $ | - . |   |

|                                                 |   | Period ended . |          |
|------------------------------------------------------|--------|---------------------|---------------|
|                                                 |   | November 30, 2011   |          |   | August 31, 2011 |   |
| Provision for taxes (benefit) at U.S. statutory rate |   | $                   | (314,363      | ) |   | $ | (4,955,065 | ) |
| Increase in deferred tax asset valuation allowance   |   |                |  314,363 |   |   |   |  4,955,065 . |   |
| Effective taxes                                      |   | $                   | -             |   |   | $ | - |   |
| Effective tax rate                                   |   |                | 0             | % |   |   | 0 | % |

----

| Unsecured loans to related parties |   | $ | 26,574 |   |
|------------------------------------|--------|---|--------|--------|

|   | Note 7 – Shareholder Loans Payable and Accrued Interest |
|--------|---------------------------------------------------------------|

|   | Unsecured loans and accrued interest payable to shareholders at November 30, 2011 and August 31, 2011: |
|--------|--------------------------------------------------------------------------------------------------------|

|                                                  |   | November 30, 2011 |   |   | August 31, 2011 |   |
|-------------------------------------------------------|--------|-------------------|--------|--------|-----------------|--------|
| Short-term debt                                       |   | $                 | -      |   |            | $      | 1,400,000 |   |
| Less:  total note discount for stock issued |   |              | -      |   |            |   | (623,232 | ) |
| Add:  amortization of note discount         |   |              | -      |   |            |   | 512,955 |   |
| Add:  accrued interest                      |   |              | -      |   |            |   |   99,911 |   |
| Total shareholder loans payable and accrued interest  |   | $                 | -      |   |            | $      | 1,389,634 |   |

----

|   | Note 8 - Commitments and Contractual Obligations |
|--------|--------------------------------------------------|

----

----

| Note 11 – Supplemental Disclosures – Consolidated Statements of Cash Flows |
|----------------------------------------------------------------------------------------|

|                                                          |   |                           |    |   |              |   |    | Period From             |   |
|---------------------------------------------------------------|--------|--------------------------------|---------|--------|-------------------|--------|---------|-------------------------|--------|
|                                                          |   | Three months endedNovember 30, |    |   | Inception Through |   |
|                                                          |   | 2011                           |    |   |   2010  |   |    |  November 30, 2011 |   |
|                                                          |   |                           |    |   |              |   |    |                    |   |
| Investment advances paid from shareholder loans               |   | $                              | -       |   |              | $      | -       |                    |   | $ | 1,263,985 |   |
| Capital stock issued for investment in joint venture projects |   | $                              | -       |   |              | $      | -       |                    |   | $ | 687,225 |   |
| Capital stock issued or subscribed for expenses               |   | $                              | 4,875   |   |              | $      | 256,500 |                    |   | $ | 9,961,980 |   |
| Capital stock issued for prepaid expenses                     |   | $                              | 53,625  |   |              | $      | 132,000 |                    |   | $ | 53,625 |   |
| Capital stock issued for oil and gas properties               |   | $                              | -       |   |              | $      | 90,000  |                    |   | $ | 3,646,000 |   |
| Capital stock issued or subscribed in connection with         |   |                           |    |   |              |   |    |                    |   |   |   |   |
| short-term notes                                              |   | $                              | -       |   |              | $      | 623,232 |                    |   | $ | 1,809,023 |   |
| Interest forgiven on shareholder loan payable                 |   | $                              | -       |   |              | $      | -       |                    |   | $ | 631,444 |   |
| Capital stock issued in conversion of shareholder loan        |   | $                              | -       |   |              | $      | -       |                    |   | $ | 400,000 |   |
| Capital expenditures acquired with accounts payable           |   | $                              | -       |   |              | $      | -       |                    |   | $ | 31,282 |   |
|                                                          |   |                           |    |   |              |   |    |                    |   |   |   |   |
| Settlement of loan payable by assignment of investment:       |   |                           |    |   |              |   |    |                    |   |   |   |   |
| Loan payable                                                  |   | $                              | -       |   |              | $      | -       |                    |   | $ | (200,000 | ) |
| Investment                                                    |   | $                              | -       |   |              | $      | -       |                    |   | $ | 200,000 |   |
| Warrants issued for non-employee compensation                 |   | $                              | -       |   |              | $      | -       |                    |   | $ | 455,178 |   |
|                                                          |   |                           |    |   |              |   |    |                    |   |   |   |   |
| Supplemental Disclosure of Cash Flow Information:             |   |                           |    |   |              |   |    |                    |   |   |   |   |
| Cash paid for:                                                |   |                           |    |   |              |   |    |                    |   |   |   |   |
| Interest                                                      |   | $                              | 112,000 |   |              | $      | 28,673  |                    |   | $ | 507,714 |   |
| Income taxes                                                  |   | $                              | -       |   |              | $      | -       |                    |   | $ | - |   |

----

| ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
|---------|---------------------------------------------------------------------------------------------|

| Property                |   | Gross Acres |       |   | Net Acres |   |      | Working Interest(1) |   | Operator |
|-------------------------|--------|-------------|------------|--------|-----------|--------|-----------|---------------------|--------|----------|
| Colombia Property       |   |        |       |   |      |   |      |                |   |     |
| Block CPO-4             |   |        | 345,592    |   |      |   | 43,200    |                |   |     | 12.5 | % | SK Innovation |
|                    |   |        |       |   |      |   |      |                |   |     |   |   |   |
| Peru Properties         |   |        |       |   |      |   |      |                |   |     |   |   |   |
| Block Z-46              |   |        | 2,803,411  |   |      |   | 1,121,411 |                |   |     | 40.0 | % | SK Innovation |
| Block XXIV              |   |        | 276,137    |   |      |   | 13,807    |                |   |     | 5.0 | % | Upland |
| TEA Area I, II, III, IV |   |        | 40,321,163 |   |      |   | 806,423   |                |   |     | 2.0 | % | Upland |

----

|  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, Cont. |
|----------------------------------------------------------------------------------------------------------|

----

|   MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, Cont. |
|----------------------------------------------------------------------------------------------------------------|

| Contractual Obligations                                 |   | Payments due by period(in thousands) |   |
|---------------------------------------------------------|--------|--------------------------------------|--------|
|                                                    |   | Fiscal Year 2012                     |   |   | Fiscal Year 2013 |   |   | Fiscal Year 2014 |   |   | Total |   |
| Commitments under employment agreements                 |   | $                                    | 977    |   |   | $ | 342 |   |   | $ | - |   |   | $ | 1,319 |   |
| Commitments under consulting contracts                  |   |                                 | 150    |   |   |   | 144 |   |   |   | 144 |   |   |   | 438 |   |
| Commitments under participation and farmout agreements: |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Block CPO-4               |   |                                 | 7,500  | (1) |   |   | - |   |   |   | - |   |   |   | 7,500 |   |
|      Block Z-46                |   |                                 | 4,100  | (2) |   |   | 13,100 | (3) |   |   | - |   |   |   | 17,200 |   |
|      Block XXIV                |   |                                 | 500    |   |   |   | - |   |   |   | - |   |   |   | 500 |   |
|      Peru TEA                  |   |                                 | 200    |   |   |   | - |   |   |   | - |   |   |   | 200 |   |
| Total                                                   |   | $                                    | 13,427 |   |   | $ | 13,586 |   |   | $ | 144 |   |   | $ | 27,157 |   |

| (1)   | The current obligation on Block CPO-4 is $7.5 million which includes approximately $700,000 remaining cost on the Tamandua-1, drilling the second phase 1 well at an estimated cost of $2.5 million, $2.2 million for 3-D seismic expense and $1.7 million for seismic acquisition costs incurred subsequent to July 31, 2010 owed to Houston American Energy 30 days after ANH approval, and estimated joint operating costs of approximately $400,000.  In the event the first two wells are successful, an expanded drilling program may be implemented in which an additional two wells will be drilled.  Assuming the first two wells are successful and an additional two wells are drilled, our estimated fiscal year 2012 obligation onCPO-4 will be approximately $11.0 million.  Any drilling success should have associated revenues to offset additional costs. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | The obligation on Block Z-46 is $4.1 million, which includes a payment of $2.9 million for past costs due to SK Innovation 30 days after final approval of interest transfer and estimated joint operating expenses of approximately $1.2 million. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | As described above, the work program and budget for Z-46 was approved subsequent to our August 31, 2011 fiscal year end.  Based on the work program, the estimated obligation on Z-46 for fiscal year 2013 is $13.1 million, which consists of an estimated $9.8 million for the 3-D seismic acquisition, approximately $1.4 million for joint operating expenses, and an estimated $1.9 million for VAT. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, Cont. |
|----------------------------------------------------------------------------------------------------------|

| ($ in Thousands)                         |   | November 30, 2011 |   |   | November 30, 2010 |   |
|------------------------------------------|--------|-------------------|--------|--------|-------------------|--------|
| Revenue                                  |   | $                 | -      |   |              | $      | - |   |
|                                     |   |              |   |   |              |   |   |   |
| Office and other                         |   |              | 16     |   |              |   | 3 |   |
| Depreciation expense                     |   |              | 6      |   |              |   | 5 |   |
| Salary and related expenses              |   |              | 492    |   |              |   | 256 |   |
| Professional fees                        |   |              | 289    |   |              |   | 304 |   |
| Consulting                               |   |              | 80     |   |              |   | 54 |   |
| Travel                                   |   |              | 46     |   |              |   | 14 |   |
| Shareholder loan and other interest      |   |              | -      |   |              |   | 507 |   |
| Total expense                            |   |              | 929    |   |              |   | 1,143 |   |
| Interest income                          |   |              | (4     | )      |              |   | - |   |
| Gain on sale of joint venture investment |   |              | -      |   |              |   | 200 |   |
|                                     |   |              |   |   |              |   |   |   |
| Net loss for the period                  |   | $                 | (925   | )      |              | $      | (943 | ) |

----

----

----

| ·   | complying with funding obligations under new or additional contractual commitments; |
|--------------------|-------------------------------------------------------------------------------------|

| ·   | acquiring additional properties or mineral interests; |
|--------------------|-------------------------------------------------------|

| ·   | pursuing growth opportunities, including more rapid expansion; |
|--------------------|----------------------------------------------------------------|

| ·   | making investments to improve our infrastructure; |
|--------------------|---------------------------------------------------|

| ·   | hiring and retaining qualified management and key employees; |
|--------------------|--------------------------------------------------------------|

| ·   | responding to competitive pressures; |
|--------------------|--------------------------------------|

| ·   | complying with licensing, registration and other requirements; |
|--------------------|----------------------------------------------------------------|

| ·   | maintaining compliance with applicable laws; and |
|--------------------|--------------------------------------------------|

| ·   | maintaining sufficient funds for working capital purposes. |
|--------------------|------------------------------------------------------------|

----

----

----

| Dated: January 17, 2012 | GULF UNITED ENERGY, INC.                                                      (Registrant) |
|-------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                    |                                                                                                                                                                                                                                                                                                                                                                     |
|                    | /s/ John B. Connally IIIJohn B. Connally IIIChief Executive Officer(Principal Executive Officer)                                                                                                                                                                                                                                                                         |
|                    |                                                                                                                                                                                                                                                                                                                                                                     |
|                    | /s/ David PomerantzDavid PomerantzChief Financial Officer(Principal Financial and Accounting Officer)                                                                                                                                                                                                                                                                    |

----