SECURITIES
AND EXCHANGE COMMISSION


WASHINGTON,
D.C. 20549


_________________


FORM
10-Q





Quarterly
Report Under Section 13 or 15 (d) of


Securities
Exchange Act of 1934





For the
quarterly period ended March 31, 2008


Commission
File Number:  333-143767





BLUEBIRD EXPLORATION
COMPANY


(Exact
Name of Issuer as Specified in Its Charter)





Delaware
            1000
            N/AState
      of Incorporation
            Primary
      Standard Industrial
            I.R.S.Employer
      Classification
            Identification
      No.Code
      Number #





Bluebird
Exploration Company


209-3608
Deercrest Drive


North
Vancouver, BC V7G2S8


Telephone: 
604-488-7608


(Address
and Telephone Number of Issuer's Principal Executive Offices)





The
Company Corporation


2711
Centerville Road, Suite 400


Wilmington,
Delaware 19808


Telephone:
302-636-5440


Facsimile:
302-636-5454


(Name,
Address, and Telephone Number of Agent)





Indicate
by check mark whether the registrant (1) has filed all reports required to be
filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements for
the past 90 days.   Yesx        Noo







Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting company. See
the definitions of "large accelerated filer," "accelerated filer" and "smaller
reporting company" in Rule 12b-2 of the Exchange Act.




Large
      Accelerated Filer o
            
            Non-Accelerated
      Filer o(Do
      not check if a smaller reporting company)Accelerated
      Filer o
            
            Smaller
      reporting company x





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


YES x   NO
o














APPLICABLE
ONLY TO ISSUERS INVOLVED IN BANKRUPTCY


PROCEEDINGS
DURING THE PRECEDING FIVE YEARS


Check
whether the registrant filed all documents and reports required to be filed by
Section 12, 13, 15(d) of the Exchange Act after the distribution of the
securities under a plan confirmed by a
court.      YES     NO





APPLICABLE
ONLY TO CORPORATE ISSUERS


Indicate
the number of shares outstanding of each of the issuer's classes of common stock
at the latest practicable date. As of May 1, 2008, the registrant had 13,220,000
shares of common stock, $0.0001 par value, issued and outstanding.





Transitional
Small Business Disclosure Format (Check one):    YESo    NOx





PART
      I - FINANCIAL INFORMATION - UNAUDITEDItem
      1.
            BALANCE
      SHEETSINTERIM
      STATEMENTS OF OPERATIONSINTERIM
      STATEMENT OF STOCKHOLDERS’ EQUITY (DEFICIT)INTERIM
      STATEMENTS OF CASH FLOWSNOTES
      TO INTERIM FINANCIAL STATEMENTSItem
      2.
            Management's
      Discussion and Analysis of Financial Condition and Plan of
      Operations.Item
      3.
            Quantitative
      and Qualitative Disclosures About Market RiskItem
      4.
            Controls
      and ProceduresPART
      II - OTHER INFORMATIONItem
      1.
            Legal
      ProceedingsItem
      2.
            Unregistered  Sales
      of Equity Securities and Use of ProceedsItem
      3.
            Defaults
      Upon Senior SecuritiesItem
      4.
            Submission
      of Matters to a Vote of Security HoldersItem
      5.
            Other
      InformationItem
      6.
            Exhibit
      and Reports on Form 8-K





PART I -
FINANCIAL INFORMATION





Item
1.  Financial Statements (Unaudited- Prepared by
Management)




















2


























Bluebird
Exploration Company


(An
Exploration Stage Company)





INTERIM
FINANCIAL STATEMENTS





MARCH
31, 2008





(Unaudited-Prepared
by Management)












































BALANCE
SHEETS





INTERIM
STATEMENTS OF OPERATIONS





INTERIM
STATEMENT OF STOCKHOLDERS’ EQUITY





INTERIM
STATEMENTS OF CASH FLOWS





NOTES
TO THE INTERIM FINANCIAL STATEMENTS

























3





BLUEBIRD
EXPLORATION COMPANY


(An
Exploration Stage Company)





BALANCE
SHEETS


(Unaudited-Prepared
by Management)





March
      31,
              2008
            
            
            December
      31,
              2007ASSETSCURRENT
      ASSETSCash
            
            $
            656
            
            
            $
            1,771TOTAL
      ASSETS
            
            $
            656
            
            
            $
            1,771LIABILITIES
      AND STOCKHOLDERS’ EQUITY (DEFICIT)CURRENT
      LIABILITIESAccounts
      payable and accrued liabilities
            
            $
            21,083
            
            
            $
            15,118Due
      to related party (Note 6)
            
            
            5,166
            
            
            
            5,166TOTAL
      LIABILITIES
            
            
            26,249
            
            
            
            20,284STOCKHOLDERS’
      EQUITY (DEFICIT )Capital
      stock (Note 5)Authorized75,000,000
      shares of common stock, $0.0001 par value,Issued
      and outstanding13,220,000
      (2006 – 13,220,000) shares of common stock
            
            
            132
            
            
            
            132Additional
      paid-in capital
            
            
            18,968
            
            
            
            18,968Deficit
      accumulated during the exploration stage
            
            
            (44,693
            )
            
            
            (37,613
            )Total
      Equity ( Deficit)
            
            
            (25,593
            )
            
            
            (18,513
            )TOTAL
      LIABILITIES AND STOCKHOLDERS’ EQUITY(DEFICIT)
            
            $
            656
            
            
            $
            1,771


























The
accompanying notes are an integral part of these financial
statements





4





BLUEBIRD
EXPLORATION COMPANY


(An
Exploration Stage Company)





INTERIM
STATEMENTS OF OPERATIONS


(Unaudited-
prepared by Management)





Three
      months
              ended
              March
      31,
              2008
            
            
            Three
      months
              ended
              March
      31,
              2007
            
            
            Cumulative
      results of operations from
              July
      15,
              2005
      (date of
              inception)
      to
              March
      31,
              2008EXPENSESExploration
      & development
            
            $
            -
            
            
            $
            -
            
            
            $
            6,980Office
      and general
            
            
            180
            
            
            
            118
            
            
            
            5,322Professional
      fees
            
            
            6,900
            
            
            
            500
            
            
            
            32,391NET
      AND COMPREHENSIVE LOSS
            
            $
            (7,080
            )
            
            $
            (618
            )
            
            $
            (44,693
            )











BASIC
      AND DILUTED
              NET
      LOSS PER SHARE
            
            $
            (0.00
            )
            
            $
            (0.00
            )WEIGHTED
      AVERAGE
              NUMBER
      OF COMMON
              SHARES
      OUTSTANDING
            
            
            13,220,000
            
            
            
            13,220,000














The
accompanying notes are an integral part of these financial
statements





5





BLUEBIRD
EXPLORATION COMPANY


(An
Exploration Stage Company)





INTERIM
STATEMENT OF STOCKHOLDERS’ EQUITY (DEFICIT)


(Unaudited-Prepared
by Management)


FROM
INCEPTION (July 15, 2005) TO MARCH 31, 2008





Common
      Stock
            
            
            Additional
      Paid-in
            
            
            Deficit
      Accumulated During theNumber
      of shares
            
            
            Amount
            
            
            Capital
            
            
            Exploration
      Stage
            
            
            TotalBalance,
      July 15, 2005 (Date of Inception)
            
            
            -
            
            
            $
            -
            
            
            $
            -
            
            
            $
            -
            
            
            $
            -Common
      stock issued for cash at $0.0003 per share
              -
      September 30, 2005
            
            
            10,000,000
            
            
            
            100
            
            
            
            2,900
            
            
            
            -
            
            
            
            3,000Net
      loss for the period
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (702
            )
            
            
            (702
            )Balance,
      December 31, 2005
            
            
            10,000,000
            
            
            
            100
            
            
            
            2,900
            
            
            
            (702
            )
            
            
            2,298Common
      stock issued for cash @ $0.005 per share
              -
      December 14, 2006
            
            
            3,220,000
            
            
            
            32
            
            
            
            16,068
            
            
            
            -
            
            
            
            16,100Net
      loss for the year
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (8,725
            )
            
            
            (8,725
            )Balance,
      December 31, 2006
            
            
            13,220,000
            
            
            
            132
            
            
            
            18,968
            
            
            
            (9,427
            )
            
            
            9,673Net
      Loss for year ended December 31, 2007
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            (28,186
            )
            
            
            (28,186
            )Balance,
      December 31, 2007
            
            
            13,220,000
            
            
            
            132
            
            
            
            18,968
            
            
            
            (37,613
            )
            
            
            (18,513
            )Net
      loss for the period ended March 31, 2008
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (7,080
            )
            
            
            (7,080
            )Balance,
      March 31, 2008
            
            
            13,220,000
            
            
            $
            132
            
            
            $
            18,968
            
            
            $
            (44,693
            )
            
            $
            (25,593
            )








All share
amounts have been restated to reflect the 10 to1 forward split in December
2006.














The
accompanying notes are an integral part of these financial
statements





6





BLUEBIRD
EXPLORATION COMPANY


(An
Exploration Stage Company)





INTERIM
STATEMENTS OF CASH FLOWS


(Unaudited-Prepared
by Management)





Three
      months
              ended
              March
      31,
              2008
            
            
            Three
      months
              ended
              March
      31,
              2007
            
            
            Cumulative
      results of operations from inception (July 15, 2005) to
              March
      31,
              2008Cash
      Flows From Operating ActivitiesNet
      loss
            
            $
            (7,080
            )
            
            $
            (618
            )
            
            $
            (44,693
            )Change
      in non-cash working capital - accounts payable and accrued
      liabilities
            
            
            5,965
            
            
            
            500
            
            
            
            21,083Net
      Cash Used In Operating Activities
            
            
            (1,115
            )
            
            
            (118
            )
            
            
            (23,610
            )Cash
      Flows From Investing Activity
            
            
            -
            
            
            
            -
            
            
            
            -Cash
      Flows From Financing ActivitiesProceeds
      from sale of common stock
            
            
            -
            
            
            
            -
            
            
            
            19,100Related
      party advance
            
            
            -
            
            
            
            -
            
            
            
            5,166Net
      Cash Provided By Financing Activities
            
            
            -
            
            
            
            -
            
            
            
            24,266Net
      Increase (Decrease) In Cash
            
            
            (1,115
            )
            
            
            (118
            )
            
            
            656Cash,
      Beginning Of Period
            
            
            1,771
            
            
            
            13,173
            
            
            
            -Cash,
      End Of Period
            
            $
            656
            
            
            $
            13,055
            
            
            $
            656






Supplemental
      cash flow information.Cash
      paid for:Interest
              
              $
              -
              
              
              $
              -
              
              
              $
              -Income
      taxes
              
              $
              -
              
              
              $
              -
              
              
              $
              -












The
accompanying notes are an integral part of these financial
statements








7





BLUEBIRD
EXPLORATION COMPANY
 (An
Exploration Stage Company)
 
 NOTES
TO THE INTERIM  FINANCIAL STATEMENTS
 MARCH
31, 2008
 (Unaudited-Prepared
by Management)
 
 NOTE
1 – NATURE OF CONTINUANCE OF OPERATIONS
 
 Bluebird
Exploration Company (“the Company”) was incorporated in the State of Delaware on
July 15, 2005. The Company is an Exploration Stage Company. The Company has
acquired an option on a mineral property located in the Nelson Mining Division,
British Columbia, Canada, and has not yet determined whether this property
contains reserves that are economically recoverable. The recoverability of
property expenditures will be dependent upon the discovery of economically
recoverable reserves, confirmation of the Company’s interest in the underlying
property, the ability of the Company to obtain necessary financing to satisfy
the expenditure requirements under the property agreement and upon future
profitable production or proceeds for the sale thereof.
 
 The
Company has been in the exploration stage since its formation and has not yet to
realize any revenues from its planned operations. The Company was formed for the
purpose of acquiring exploration and development stage natural resources
properties. The Company has not commenced business operations.
 
 These
financial statements have been prepared on a going concern basis. The Company
has incurred losses since inception resulting in an accumulated deficit of
$44,694 and further losses are anticipated in the development of its business
raising substantial doubt about the Company’s ability to continue as a going
concern. Its ability to continue as a going concern is dependent upon the
ability of the Company to generate profitable operations in the future and/or to
obtain the necessary financing to meet its obligation and repay its liabilities
arising from normal business operations when they come due. Management has plans
to seek additional capital through a private placement and public offering of
its common stock. The financial statements do not include any adjustments
relating to the recoverability and classification of recorded assets, or the
amounts of classification of liabilities that might be necessary in the event
the Company cannot continue in existence.
 
 The
Company filed an SB-2 registration statement with the United States Securities
and Exchange Commission to register 3,220,000 shares of common stock for sale.
This was accepted. The effective date was July 9, 2007.
 NOTE
2 – BASIS OF PRESENTATION
 
 These
interim financial statements have been prepared in accordance with U.S.
generally accepted accounting principles for financial information and with the
instructions to Form 10-Q and Item 310(b) of Regulation S. In the opinion of
management, all adjustments (consisting of normal recurring accruals) considered
necessary for a fair presentation have been included.  Operating
results for the three months ended March 31, 2008 are not necessarily indicative
of the results that may be expected for any interim period or an entire year.
The Company applies the same accounting policies and methods in its interim
financial statements as those in the most recent audited annual financial
statements, except as noted in note 3.
 
 NOTE
3 – RECENT ACCOUNTING PRONOUNCEMENTS
 
 In
February 2007, the FASB issued SFAS No. 159, “The Fair Value Option for
Financial Assets and Financial Liabilities”. This Statement permits entities to
choose to measure many financial assets and financial liabilities at fair value.
Unrealized gains and losses on items for which the fair value option has been
elected are reported in earnings. SFAS No. 159 is effective for fiscal years
beginning after November 15, 2007. The Company adopted SFAS No. 159
effective January 1, 2008.
 
 
 
  8
  BLUEBIRD
EXPLORATION COMPANY
 (An
Exploration Stage Company)
 
 NOTES
TO THE INTERIM FINANCIAL STATEMENTS
 MARCH
31, 2008
 (Unaudited-Prepared
by Management)
 NOTE
3 – RECENT ACCOUNTING PRONOUNCEMENTS (continued)
 
 In
September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements” ("SFAS
No. 157"). SFAS 155 establishes framework for measuring fair value and expands
disclosures about fair value measurements. The changes to current practice
resulting from the application of this statement relate to the definition of
fair value, the methods used to measure fair value, and the expanded disclosures
about fair value measurements.  The statement is effective for fiscal
years beginning after November 15, 2007 and periods within those fiscal years.
The Company adopted SFAS No. 157 effective January 1, 2008.
 
 The
Financial Accounting Standards Board has issued SFAS No. 155 “Accounting for Certain Hybrid
Financial Instruments  an amendment of FASB Statements No. 133 and
140” and No. 156 “Accounting for Servicing of
Financial Assets – an amendment of FASB Statement No.140”,but they are
not expected to have a material effect in Company’s results of operations or
financial position.
 
 The
adoption of these new pronouncements did not have a material effect on the
Company’s financial position or results of operations.
 
 
 NOTE
4 – NATURAL RESOURCE PROPERTIES and RELATED EXPLORATION EXPENSES
 
 Pursuant
to an option to purchase agreement dated August 4, 2006 and amended September
25, 2007, the Company obtained the option to acquire a right to a 100% undivided
right, title and interest in a mineral claim in the Nelson Mining Division of
British Columbia, Canada by incurring exploration expenditures of at least
$7,084 ($7,000 CDN) by September 30, 2008 and a further $25,000($25,000 CDN) by
September 30, 2009.  Upon the exercise of the option, the company
agrees to pay the vendor, commencing January 1, 2010 the sum of $25,000($25,000
CDN) per annum for so long as the company, or its permitted assigns, holds any
interest in the claims.   All obligations are in Canadian
dollars.
 
 The
option was acquired from the president of the Company.
 
 NOTE
5– SHARE CAPITAL
 
 On
September 30, 2005, the Company issued 10,000,000 common shares at $0.0003 for
total cash proceeds of $3,000 to the president and director of the
Company.
 
 On
December 14, 2006, the Company issued 3,220,000 common shares at $0.005 for
total proceeds of $16,100.
 
 On
December 19, 2006 the Company split its shares on a ten for one basis. All
references in these financial statements to a number of shares, price and
weighted average number of common shares outstanding prior to the forward split
have been adjusted to record the effect of the forward split on a retroactive
basis.
 
 As at
March 31, 2008 and December 31, 2007 there were no outstanding stock options or
warrants.
 
 
 
 
 
  9
  BLUEBIRD
EXPLORATION COMPANY
 (An
Exploration Stage Company)
 
 NOTES
TO THE INTERIM FINANCIAL STATEMENTS
 MARCH
31, 2008
 (Unaudited-Prepared
by Management)
 NOTE 6– RELATED PARTY TRANSACTIONS
 
 As
described in Note 3 the Company entered into an option to purchase agreement
with its President on August 4, 2006 and amended September 25,
2007.  The option agreement, if exercised, provides for annual
payments of $25,000 ($25,000 CDN) commencing January 1, 2010.
 
 As of
March 31, 2008 the Company received advances from a director of the Company in
the amount of $5,166.  The amount due to the related party is
unsecured and non-interest bearing with no terms of repayment.
 
 These
transactions have been recorded at the exchange amount, being the amount of
consideration agreed to by the parties.
 
 NOTE
7 – INCOME TAXES
 
 The
Company has adopted FASB No. 109 and FIN 48 for reporting purposes. As of March
31, 2008 the Company had net operating loss carry forwards of approximately
$44,693 that may be available to reduce future years’ taxable income and will
expire beginning in 2025. Availability of loss usage is subject to change of
ownership limitations under Internal Revenue Code 382. Future tax benefits which
may arise as a result of these losses have not been recognized in these
financial statements, as their realization is determined not likely to occur and
accordingly, the Company has recorded a valuation allowance for the future tax
loss carryforwards.
 
 NOTE
8 – FINANCIAL INSTRUMENTS
 
 At March
31, 2008 the Company had the following financial liabilities in Canadian
dollars:
 
 US
      equivalent
              
              
              Canadian
      DollarsAccrued
      liabilities
              
              $
              12,633
              
              
              $
              12,633
 
 
 NOTE
9– SUBSEQUENT EVENTS
 
 As at
April 23, 2008 a shareholders loan in the amount of $20,000 Canadian was
deposited into the bank account of the Company.














10





THIS
REPORT CONTAINS FORWARD-LOOKING STATEMENTS THAT INVOLVE RISKS AND UNCERTAINTIES
SUCH AS THE DEPENDENCE OF THE COMPANY ON AND THE ADEQUACY OF CASH FLOWS. THESE
FORWARD-LOOKING STATEMENTS AND OTHER STATEMENTS MADE ELSEWHERE IN THIS REPORT
ARE MADE IN RELIANCE ON THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995.





Item 2. Management's Discussion and
Analysis of Financial Condition and Plan of Operations.





Description
Of Business





In
General





We intend
to commence operations as an exploration stage company. We will be engaged in
the exploration of mineral properties with a view to exploiting any mineral
deposits we discover.  We own an option to acquire an undivided 100%
beneficial interest in two mineral claims in the Nelson Mining Division, located
due south of Nelson, British Columbia, Canada. There is no assurance that a
commercially viable mineral deposit exists on the claims.  We do not have
any current plans to acquire interests in additional mineral properties, though
we may consider such acquisitions in the future.





Mineral
property exploration is typically conducted in phases.  Each subsequent
phase of exploration work is recommended by a geologist based on the results
from the most recent phase of exploration.  We have not yet commenced the
initial phase of exploration on the claims.  Once we have completed each
phase of exploration, we will make a decision as to whether or not we proceed
with each successive phase based upon the analysis of the results of that
program.  Our director will make this decision based upon the
recommendations of the independent geologist who oversees the program and
records the results.





Our plan
of operation is to conduct exploration work on the claim in order to ascertain
whether it possesses economic quantities of copper, nickel and cobalt.
 There can be no assurance that an economic mineral deposit exists on the
claims until appropriate exploration work is completed.





Even if
we complete our proposed exploration programs on the claims and we are
successful in identifying a mineral deposit, we will have to spend substantial
funds on further drilling and engineering studies before we will know if we have
a commercially viable mineral deposit.





Location,
Access and Description





The
claims are part of the Bluebird mineral claim group located 9 kilometers due
south of Nelson, British Columbia, in the Nelson Mining Division. The claims
enclose 810 hectares from Apex Creek across the summit of Evening Ridge to
Highway 6 between the towns of Nelson and Salmo.  The center of claim
512465 is located at 117*13’43”W, 49*25’24”N.  The center of claim
512466 is located at 117*11’41” W, 49*25’30”N.  Coordinates are within
National Topographic System (NTS) map-area 082F06W and the Terrain Resources
Integrated Management (TRIM) maps 082F044 and 082F045.  Locations are
given as National Topographic System coordinates using a Universal Transverse
Mercator (UTM) grid and the North American Datum of 1983 (NAD83); the area lies
entirely within Zone 11U of the grid.





The
property is accessed directly from Highway 6 between Nelson and Salmo, 9
kilometers south of Nelson, and also by a well-maintained gravel road which
leads to the Apex Ski Resort.  Access to the claims is on foot via an
overgrown logging road up the right bank of Apex Creek.





The
Bluebird claim group is located in the western Kootenai Mountains of
southeastern British Columbia, in an area of moderate, locally steep topography
with elevations ranging from 920 meters above sea level near Highway 6 to as
much as 1850 meters above sea level on Midnight Ridge.  Despite the
locally steep slopes, nearly all of the property is accessible on foot, with
proper caution.





The
climate is characterized by warm summers, cool equinoxes and mild
winters.  Annual precipitation is 730 centimeters, of which roughly a
third falls as snow during the winter months of November through
March.  Moderate, locally thick growth of subalpine conifers and alder
occurs on north-facing slopes.  Logging roads are lined by poplar,
aspen and alder.








11





Plan
Of Operation





Based on
previous studies done on the area, the Company plans to undertake an initial
exploration program consisting of two phases.  The first phase would
consist of geological mapping, prospecting and geochemical sampling. Geological
mapping involves plotting previous exploration data relating to a property on a
map in order to determine the best property locations to conduct subsequent
exploration work. Prospecting involves analyzing rocks on the property surface
with a view to discovering indications of potential mineralization.
 Geochemical sampling involves gathering rock and soil samples from
property areas with the most potential to host economically significant
mineralization.  All samples gathered are sent to a laboratory where they
are crushed and analyzed for metal content.





The first
phase is estimated to cost $8,500 as described below.




Budget
      – Phase IMobilization/Demobilization
            
            
            $
            2,000Geologist
            (3
      days @ $400/day)
            
            $
            1,200Geotechnician
            (3
      days @ $300/day)
            
            $
            900Equipment
      rental, fuel, food, supplies
            
            
            $
            700Assays
            (20
      @ $30 each)
            
            $
            600Helicopter
            (3
      hours @ $800/hour)
            
            $
            2,400Report
            
            
            $
            500Filing
      Fees
            
            
            $
            200Total
            
            
            $
            8,500





The
second phase would consist of a follow-up of the initial stage geological
mapping and include a detailed geophysical survey.  As much of the property
remains unmapped, the entire claim block would be flown by airborne magnetic and
electromagnetic surveys.  Horizontal loop electromagnetic (HLEM)
surveying should be carried out over the entire claim block wherever
possible.  This will help determine the probability of sulphide
mineralization occurring within the claim block.  Also HLEM surveying
and ground magnetic surveying would need to be carried out over any areas of
positive results from airborne surveying.





The
second phase would cost approximately $36,500 as outlined below.




Budget
      – Phase IIMobilization\Demobilization
            
            $
            5,000Airborne
      MAG-EM Survey
            
            $
            12,500Horizontal
      Loop Electromagnetic Survey
            
            $
            9,500Data
      Reduction and Report
            
            $
            2,500Administration
      Fees and Taxes
            
            $
            7,000Total
            
            $
            36,500





We plan
to commence the phase one exploration program on the two mineral claims within
the Bluebird group in the second quarter of 2008.  The program and
follow-up report should take approximately one month to complete. We will then
undertake the phase two work program during the Summer/Fall of 2008.  This
program will take approximately one month to complete.  We do not have any
verbal or written agreement regarding the retention of any qualified engineer or
geologist for either of these exploration programs. In
addition we anticipate administrative costs in the amount of $16,000 over the
next twelve months.









12





Total
expenditures over the next 12 months are therefore expected to be
$61,000.





We will
require additional funding in order to proceed with the exploration on the two
mineral claims within the Bluebird group and satisfy the option agreement by and
between Mr. Wells and the Company.  We anticipate that additional funding
will be in the form of equity financing from the sale of our common stock or
from director loans.  We do not have any arrangements in place for any
future equity financing or loans.





Liquidity
and Capital Resources





As of
March 31, 2008, we have $656 of cash available.  We have current
liabilities of $26,249 ($21,083- accounts payable and accrued liabilities and
unsecured non-interest bearing loan in the amount of $5,166 due to a related
party.)  From the date of inception (July 15, 2005) to March 31, 2008
the Company has recorded a net loss of $44,693 of which were expenses relating
to the initial development of the Company, filing its Registration Statement on
Form SB-2 (deemed effective July 9, 2007),  and expenses relating to
maintaining reporting company status with the Securities and Exchange
Commission.  We will require additional capital investments or
borrowed funds to meet cash flow projections and carry forward our business
objectives. There can be no guarantee or assurance that we can raise adequate
capital from outside sources to fund the new proposed business
direction.





On April
23, 2008, the Company received proceeds in the amount of $20,000CAD, which was
the result of a non-secured shareholder loan.  However, the failure to
secure additional adequate outside funding immediately or within the next 60
days would have an adverse affect on our plan of operation and a direct negative
impact on shareholder liquidity, which would likely result in a complete loss of
any funds invested in the common stock.





To date
there is no public market for the Company’s common stock.  Management
plans to continue to focus efforts on obtaining quotation of the Company’s
common stock on the Over-The-Counter Bulletin Board (OTCBB.)  There
can be no guarantee or assurance that they will be successful in accomplishing
this task; moreover, even if the common stock is listed on the OTCBB there can
be no guarantee that a market would develop for the Company’s common stock.
Failure to create a market for the Company’s common stock would result in
business failure and a complete loss of any investment made into the
Company.





Off-Balance
Sheet Arrangements





As of the
date of this Quarterly Report, other than the below described “Bluebird Claim
Purchase Agreement,” the Company does not have any off-balance sheet
arrangements that have or are reasonably likely to have a current or future
effect on the Company's financial condition, changes in financial condition,
revenues or expenses, results of operations, liquidity, capital expenditures or
capital resources that are material to investors. The term "off-balance sheet
arrangement" generally means any transaction, agreement or other contractual
arrangement to which an entity unconsolidated with the Company is a party, under
which the Company has (i) any obligation arising under a guarantee contract,
derivative instrument or variable interest; or (ii) a retained or contingent
interest in assets transferred to such entity or similar arrangement that serves
as credit, liquidity or market risk support for such assets.





Bluebird
Claim Purchase Agreement





On August
4, 2006, Bluebird Exploration Company (“the Company”) entered into an Option to
Purchase Agreement with Peter Lawrence Wells, our officer and director, who is
the sole beneficial owner of 100% of the two mineral claims identified by Tenure
Numbers 512465 and 512466 located 9 kilometers due south of Nelson, British
Columbia, Canada, in the Nelson Mining Division. The agreement grants the
Company the exclusive right and option to acquire an undivided 100% of the
right, title and interest in and to the claims upon satisfying certain terms and
conditions.  On September 25, 2007 this agreement was amended by the
parties.








13





The
option to acquire the claims is contingent on the Company incurring exploration
costs on the claims of a minimum of $7,000USD ($7,000CAD) on or before
September 30, 2008; as well as the Company incurring exploration costs on the
claims of a further $25,000USD ($25,000CAD) (for aggregate minimum exploration
costs of $32,000USD ($32,000CAD)) on or before September 30,
2009.  Upon exercise of the option, the Company agrees to pay the
seller, Peter Lawrence Wells, our officer and director, the sum of $25,000USD
($25,000CAD) per annum, commencing January 1, 2010, for so long as the Company
holds any interest in the claims.





Product
Research and Development





The
Company does not anticipate any costs or expenses to be incurred for product
research and development within the next twelve months.





Employees





There are
no employees of the Company, excluding the current President and Director, Peter
Lawrence Wells, of the corporation.





Item
3. Quantitative and Qualitative Disclosures About Market Risk





Not
Applicable.





Item
4. Controls and Procedures





The
management of the Company is responsible for establishing and maintaining
adequate internal control over financial reporting, as required by
Sarbanes-Oxley (SOX) Section 404 A. The Company's internal control over
financial reporting is a process designed under the supervision of the Company's
Chief Executive Officer and Chief Financial Officer to provide reasonable
assurance regarding the reliability of financial reporting and the preparation
of the Company's financial statements for external purposes in accordance with
U.S. generally accepted accounting principles.





As of
March 31, 2008 management assessed the effectiveness of the Company's internal
control over financial reporting based on the criteria for effective internal
control over financial reporting established in SEC guidance on conducting such
assessments. Based on that evaluation, they concluded that, during the period
covered by this report, such internal controls and procedures were not effective
to detect the inappropriate application of US GAAP rules as more fully described
below. This was due to deficiencies that existed in the design or operation of
our internal control over financial reporting that adversely affected our
internal controls and that may be considered to be material
weaknesses.





The
matters involving internal controls and procedures that the Company's management
considered to be material weaknesses under the standards of the Public Company
Accounting Oversight Board were: (1) lack of a functioning audit committee and
lack of a majority of outside directors on the Company's board of directors,
resulting in ineffective oversight in the establishment and monitoring of
required internal controls and procedures; (2) inadequate segregation of duties
consistent with control objectives; (3) insufficient written policies and
procedures for accounting and financial reporting with respect to the
requirements and application of US GAAP and SEC disclosure requirements; and (4)
ineffective controls over period end financial disclosure and reporting
processes. The aforementioned material weaknesses were identified by the
Company's Chief Financial Officer in connection with the review of our financial
statements as of March 31, 2008 and communicated the matters to our
management.








14





Management
believes that the material weaknesses set forth in items (2), (3) and (4) above
did not have an affect on the Company's financial results. However, management
believes that the lack of a functioning audit committee and lack of a majority
of outside directors on the Company's board of directors, resulting in
ineffective oversight in the establishment and monitoring of required internal
controls and procedures can result in the Company's determination to its
financial statements for the future years.





We are
committed to improving our financial organization. As part of this commitment,
we will create a position to segregate duties consistent with control objectives
and will increase our personnel resources and technical accounting expertise
within the accounting function when funds are available to the Company: i)
Appointing one or more outside directors to our board of directors who shall be
appointed to the audit committee of the Company resulting in a fully functioning
audit committee who will undertake the oversight in the establishment and
monitoring of required internal controls and procedures; and ii) Preparing and
implementing sufficient written policies and checklists which will set forth
procedures for accounting and financial reporting with respect to the
requirements and application of US GAAP and SEC disclosure
requirements.





Management
believes that the appointment of one or more outside directors, who shall be
appointed to a fully functioning audit committee, will remedy the lack of a
functioning audit committee and a lack of a majority of outside directors on the
Company's Board. In addition, management believes that preparing and
implementing sufficient written policies and checklists will remedy the
following material weaknesses (i) insufficient written policies and procedures
for accounting and financial reporting with respect to the requirements and
application of US GAAP and SEC disclosure requirements; and (ii) ineffective
controls over period end financial close and reporting processes. Further,
management believes that the hiring of additional personnel who have the
technical expertise and knowledge will result proper segregation of duties and
provide more checks and balances within the department. Additional personnel
will also provide the cross training needed to support the Company if personnel
turn over issues within the department occur. This coupled with the appointment
of additional outside directors will greatly decrease any control and procedure
issues the Company may encounter in the future.





We will
continue to monitor
and  evaluate  the  effectiveness  of
our  internal controls and procedures and our internal controls over
financial reporting on an ongoing  basis and
are  committed  to
taking  further  action  and  implementing
additional enhancements or improvements, as necessary and as funds
allow.





Changes
In Internal Controls.





There
were no significant changes in the Company's internal controls or, to the
Company's knowledge, in other factors that could significantly affect these
controls subsequent to the date of their evaluation.








15





PART
II - OTHER INFORMATION





Item
1. Legal Proceedings





The
Company is not a party to any pending legal proceedings, and no such proceedings
are known to be contemplated.





No
director, officer, or affiliate of the Company and no owner of record or
beneficial owner of more than 5.0% of the securities of the Company, or any
associate of any such director, officer or security holder is a party adverse to
the Company or has a material interest adverse to the Company in reference to
pending litigation.





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


None.





Item
3. Defaults Upon Senior Securities


None.





Item
4. Submission of Matters to Vote of Security Holders


None.





Item
5. Other Information


None.





Item  6.
Exhibits





3.1  Articles
of Incorporation*





3.2  By-Laws*





31.1 Rule
13(a)-14(a)/15(d)-14(a) Certification of Chief Executive Officer and Chief
Financial Officer





32.1
Section 1350 Certification of Chief Executive Officer and Chief Financial
Officer





*Filed
previously as an exhibit to the Company’s registration statement with the
Commission on June 15, 2007.





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





Bluebird
      Exploration Company.Dated:
      May 12, 2008
            /s/
      Peter Lawrence
      WellsChief
      Executive Officer andChief
      Financial Officer







16