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

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

| Florida                         | 65-0921319          |
|---------------------------------|---------------------|
| (State or other jurisdiction of | (IRS Employer       |
| incorporation or organization)  | Identification No.) |

| Large accelerated filer  ̈ | Accelerated filer  ̈         |
|--------------------------------|----------------------------------|
| Non-accelerated filer  ̈   | Smaller reporting company þ |

----

| PART I - FINANCIAL INFORMATION |                                                                                        |
|--------------------------------|---------------------------------------------------------------------------------------------|
|                           |                                                                                        |   |
| Item 1.                        | Financial Statements (Unaudited)                                                            | 1 |
|                           |                                                                                        |   |
|                           | Condensed Balance Sheet – September 30, 2011 and 2010                                 | 1 |
|                           |                                                                                        |   |
|                           | Condensed Statement of Operations –                                                   |   |
|                           | For the three and nine months ended September 30, 2011 and 2010                             | 2 |
|                           |                                                                                        |   |
|                           | Condensed Statements of Cash Flows –                                                  |   |
|                           | For the three and nine months ended September 30, 2011 and 2010                             | 4 |
|                           |                                                                                        |   |
|                           | Condensed Notes to Financial Statements                                                     | 6 |
|                           |                                                                                        |   |
| Item 2.                        | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 10 |
|                           |                                                                                        |   |
| Item 3.                        | Quantitative and Qualitative Disclosures about Market Risk                                  |            13 |
|                           |                                                                                        |   |
| Item 4.                        | Controls and Procedures                                                                     |            13 |
|                           |                                                                                        |   |
| PART II - OTHER INFORMATION    |                                                                                        |
|                           |                                                                                        |   |
| Item 1.                        | Legal Proceedings                                                                           |            15 |
| Item 1A.                       | Risk Factors                                                                                |   |
| Item 2.                        | Unregistered Sales of Equity Securities and Use of Proceeds                                 |            15 |
| Item 3.                        | Defaults upon Senior Securities                                                             |            15 |
| Item 4.                        | (Removed and reserved)                                                                      |            15 |
| Item 5.                        | Other Information                                                                           |            15 |
| Item 6.                        | Exhibits                                                                                    |            15 |
|                           |                                                                                        |   |
| SIGNATURES                     |            16                        |

----

| ITEM 1.    | FINANCIAL STATEMENTS |
|---------------------------|----------------------|

|                                                                       | September 30, |   |      | December 31, |   |
|----------------------------------------------------------------------------|---------------|--------|-----------|--------------|--------|
|                                                                       | 2011          |   |      | 2010         |   |
| ASSETS                                                                     |          |
| CURRENT ASSETS                                                             |          |   |      |         |   |   |
| Cash                                                                       |          | $      | 397       |         |   | $ | 1,685 |   |
| Inventory                                                                  |          |   | -         |         |   |   | 8,820 |   |
|                                                                       |          |   |      |         |   |   |   |   |
| TOTAL CURRENT ASSETS                                                       |          | $      | 397       |         |   | $ | 10,505 |   |
|                                                                       |          |   |      |         |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ DEFICIT                                |          |
|                                                                       |          |
| CURRENT LIABILITIES                                                        |          |   |      |         |   |   |   |   |
| Accounts payable and accrued expenses                                      |          | $      | 37,522    |         |   | $ | 7,311 |   |
| Notes payable, related                                                     |          |   | 97,000    |         |   |   | 50,000 |   |
|                                                                       |          |   |      |         |   |   |   |   |
| TOTAL CURRENT LIABILITIES                                                  |          |   | 134,522   |         |   |   | 57,311 |   |
|                                                                       |          |   |      |         |   |   |   |   |
| STOCKHOLDERS’ DEFICIT                                                |          |   |      |         |   |   |   |   |
| Preferred stock, no stated value                                           |          |   |      |         |   |   |   |   |
| Authorized - 10,000,000 shares Issued and outstanding -0- shares           |          |   | -         |         |   |   | - |   |
| Common stock, no par value                                                 |          |   |      |         |   |   |   |   |
| Authorized - 100,000,000 shares Issued and outstanding - 48,300,000 shares |          |   | 243,454   |         |   |   | 243,454 |   |
| Deficit accumulated during the development stage                           |          |   | ( 377,579 | )            |   |   | ( 290,260 | ) |
|                                                                       |          |   |      |         |   |   |   |   |
| TOTAL STOCKHOLDERS’ DEFICIT                                          |          |   | ( 134,125 | )            |   |   | ( 46,806 | ) |
|                                                                       |          |   |      |         |   |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT                          |          | $      | 397       |         |   | $ | 10,505 |   |

----

|                                                                         |   | Three Month Periods Ended |       |
|------------------------------------------------------------------------------|--------|---------------------------|------------|
|                                                                         |   | September 30,             |       |
|                                                                         |   | 2011                      |       |   | 2010 |   |
| REVENUES                                                                     |   | $                         | -          |   |   | $ | - |   |
|                                                                         |   |                      |       |   |   |   |   |   |
| OPERATING EXPENSES                                                           |   |                      | 9,549      |   |   |   | - |   |
|                                                                         |   |                      |       |   |   |   |   |   |
| NET (LOSS) FROM CONTINUING OPERATIONS                                        |   |                      | (9,549     | ) |   |   | - |   |
|                                                                         |   |                      |       |   |   |   |   |   |
| NET (LOSS) FROM DISCONTINUED OPERATIONS                                      |   |                      | (62,966    | ) |   |   | (8,029 | ) |
|                                                                         |   |                      |       |   |   |   |   |   |
| NET (LOSS)                                                                   |   | $                         | (72,515    | ) |   | $ | (8,029 | ) |
|                                                                         |   |                      |       |   |   |   |   |   |
| NET (LOSS) PER SHARE FROM CONTINUING OPERATIONS – BASIC AND DILUTED    |   | $                         | (.00       | ) |   | $ | N/A |   |
|                                                                         |   |                      |       |   |   |   |   |   |
| NET (LOSS) PER SHARE FROM DISCONTINUED OPERATIONS – BASIC AND DILUTED  |   | $                         | (.00       | ) |   | $ | ( .00 | ) |
|                                                                         |   |                      |       |   |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING – BASIC AND DILUTED |   |                      | 48,300,000 |   |   |   | 48,300,000 |   |

----

|                     |       |   |        |   |       | May 11, 1999       |   |
|--------------------------|------------|--------|-------------|--------|------------|--------------------|--------|
| Nine Month Periods Ended |       |   | (Inception) |   |
| September 30,            |       |   | To          |   |
| 2011                     |       |   | 2010        |   |       | September 30, 2011 |   |
| $                        | -          |   |        | $      | -          |               |   | $ | - |   |
|                     |       |   |        |   |       |               |   |   |   |   |
|                     | 9,549      |   |        |   | -          |               |   |   | 9,549 |   |
|                     |       |   |        |   |       |               |   |   |   |   |
|                     | (9,549     | )      |        |   | -          |               |   |   | (9,549 | ) |
|                     |       |   |        |   |       |               |   |   |   |   |
|                     | (77,770    | )      |        |   | (35,705    | )                  |   |   | (368,030 | ) |
|                     |       |   |        |   |       |               |   |   |   |   |
| $                        | (87,319    | )      |        | $      | (35,705    | )                  |   | $ | (377,579 | ) |
|                     |       |   |        |   |       |               |   |   |   |   |
| $                        | (.00       | )      |        | $      | (.00       | )                  |   | $ | (.00 | ) |
|                     |       |   |        |   |       |               |   |   |   |   |
|                     | (.00       | )      |        | $      | (.00       | )                  |   | $ | (.01 | ) |
|                     |       |   |        |   |       |               |   |   |   |   |
|                     | 48,300,000 |   |        |   | 48,300,000 |               |   |   | 48,300,000 |   |

----

|                                                                            |   |   |     |   |   |   |     | May 11, 1999       |   |
|---------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|----------|--------------------|--------|
|                                                                            |   |   |     |   |   |   |     | (Inception)        |   |
|                                                                            |   |   |     |   |   |   |     | To                 |   |
|                                                                            |   | 2011   |     |   | 2010   |   |     | September 30, 2011 |   |
|                                                                            |   |   |     |   |   |   |     |               |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                           |   |   |     |   |   |   |     |               |   |
| Net (loss) from continuing operations                                           |   | $      | ( 9,549  | )      |   | $      | -        |               |   | $ | ( 9,549 | ) |
| Net (loss) from discontinued operations                                         |   |   | ( 77,770 | )      |   |   | ( 35,705 | )                  |   |   | ( 368,030 | ) |
| Adjustments to reconcile net (loss) to net cash (used) by operating activities: |   |   |     |   |   |   |     |               |   |   |   |   |
| Common stock issued for services                                                |   |   | -        |   |   |   | -        |               |   |   | 3,635 |   |
| Stock based compensation                                                        |   |   | -        |   |   |   | -        |               |   |   | 45,474 |   |
| Changes in operating assets and liabilities:                                    |   |   |     |   |   |   |     |               |   |   |   |   |
| Accounts receivable                                                             |   |   | -        |   |   |   | 96       |               |   |   | - |   |
| Inventory                                                                       |   |   | 8,820    |   |   |   | 18       |               |   |   | - |   |
| Accounts payable and accrued expenses                                           |   |   | 30,211   |   |   |   | 10,415   |               |   |   | 37,522 |   |
|                                                                            |   |   |     |   |   |   |     |               |   |   |   |   |
| NET CASH (USED) BY OPERATING ACTIVITIES                                         |   |   | ( 48,288 | )      |   |   | ( 25,176 | )                  |   |   | ( 290,948 | ) |
|                                                                            |   |   |     |   |   |   |     |               |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                            |   |   | -        |   |   |   | -        |               |   |   | - |   |
|                                                                            |   |   |     |   |   |   |     |               |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVIITES                                            |   |   |     |   |   |   |     |               |   |   |   |   |
| Proceeds from notes payable                                                     |   |   | 97,000   |   |   |   | 25,000   |               |   |   | 182,000 |   |
| Repayment of notes payable                                                      |   |   | ( 50,000 | )      |   |   | -        |               |   |   | ( 85,000 | ) |
| Issuance of common stock for cash                                               |   |   | -        |   |   |   | -        |               |   |   | 192,000 |   |
| Cash contributed by stockholder                                                 |   |   | -        |   |   |   | -        |               |   |   | 2,345 |   |
|                                                                            |   |   |     |   |   |   |     |               |   |   |   |   |
| NET CASH PROVIDED BY FINANCING ACTIVITIES                                       |   |   | 47,000   |   |   |   | 25,000   |               |   |   | 291,345 |   |

----

|                                                  |   |   |    |   |   |   |   | May 11, 1999       |   |
|-------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------------------|--------|
|                                                  |   |   |    |   |   |   |   | (Inception)        |   |
|                                                  |   |   |    |   |   |   |   | To                 |   |
|                                                  |   | 2011   |    |   | 2010   |   |   | September 30, 2011 |   |
|                                                  |   |   |    |   |   |   |   |               |   |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS  |   | $      | ( 1,288 | )      |   | $      | ( 176  | )                  |   | $ | 397 |   |
|                                                  |   |   |    |   |   |   |   |               |   |   |   |   |
| CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD        |   |   | 1,685   |   |   |   | 469    |               |   |   | - |   |
|                                                  |   |   |    |   |   |   |   |               |   |   |   |   |
| CASH AND CASH EQUIVALENTS, END OF PERIOD         |   | $      | 397     |   |   | $      | 293    |               |   | $ | 397 |   |
|                                                  |   |   |    |   |   |   |   |               |   |   |   |   |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION |   |   |    |   |   |   |   |               |   |   |   |   |
|                                                  |   |   |    |   |   |   |   |               |   |   |   |   |
| CASH PAID DURING THE YEAR FOR:                        |   |   |    |   |   |   |   |               |   |   |   |   |
|                                                  |   |   |    |   |   |   |   |               |   |   |   |   |
| Interest                                              |   | $      | 559     |   |   | $      | -      |               |   | $ | 559 |   |
|                                                  |   |   |    |   |   |   |   |               |   |   |   |   |
| Taxes                                                 |   | $      | -       |   |   | $      | -      |               |   | $ | - |   |
|                                                  |   |   |    |   |   |   |   |               |   |   |   |   |
| NON-CASH INVESTING ACTIVITIES                         |   |   |    |   |   |   |   |               |   |   |   |   |
|                                                  |   |   |    |   |   |   |   |               |   |   |   |   |
| Stock-based compensation                              |   | $      | -       |   |   | $      | -      |               |   | $ | 45,474 |   |

----

| NOTE 1  | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
|--------------|--------------------------------------------|

----

| NOTE 1 | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
|--------|--------------------------------------------------------|

| NOTE 2 | OPERATING LEASE, RELATED PARTY |
|--------|--------------------------------|

----

| NOTE 3    | NOTES PAYABLE, RELATED |
|--------------------------|------------------------|

| NOTE 4 | STOCK OPTIONS |
|--------|---------------|

| NOTE 5 | CHANGE OF OWNERSHIP AND DISCONTINUED OPERATIONS |
|--------|-------------------------------------------------|

|                                    |   | 2011 |     |   | 2010   |   |
|-----------------------------------------|--------|------|----------|--------|--------|--------|
| Operating expenses                      |   | $    | 77,770   |   |   | $      | 35,705 |   |
| Net (loss) from discontinued operations |   | $    | ( 77,770 | )      |   | $      | ( 35,705 | ) |

| NOTE 6 | GOING CONCERN |
|--------|---------------|

----

| NOTE 6 | GOING CONCERN (CONTINUED) |
|--------|---------------------------|

| NOTE 7 | SUBSEQUENT EVENTS |
|--------|-------------------|

----

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

----

----

|                                    |   | Nine Months Ended  |     |   | Nine Months Ended  |   |     |       |   |
|-----------------------------------------|--------|--------------------|----------|--------|--------------------|--------|----------|------------|--------|
|                                    |   | September 30, 2011 |     |   | September 30, 2010 |   |     | Increase/  |   |
|                                    |   | (Unaudited)        |     |   | (Unaudited)        |   |     | (Decrease) |   |
| Revenue                                 |   | $                  | -        |   |               | $      | -        |       |   | $ | - |   |
| Operating expenses                      |   |               | 9,549    |   |               |   | -        |       |   |   | 9,549 |   |
| Net (loss) from continuing operations   |   |               | ( 9,549  | )      |               |   | -        |       |   |   | ( 9,549 | ) |
| Net (loss) from discontinued operations |   |               | ( 77,770 | )      |               |   | ( 35,705 | )          |   |   | ( 42,065 | ) |
| Net (loss)                              |   | $                  | ( 87,319 | )      |               | $      | ( 35,705 | )          |   | $ | ( 51,614 | ) |
| Net (loss) per share                    |   | $                  | ( 0.00   | )      |               | $      | ( 0.00   | )          |   | $ | ( 0.00 | ) |

----

|                |   | September 30, |      |   | September 30, |   |
|---------------------|--------|---------------|-----------|--------|---------------|--------|
|                |   | 2011          |      |   | 2010          |   |
|                |   |          |      |   |          |   |
| Current assets      |   | $             | 397       |   |          | $      | 9,403 |   |
| Current liabilities |   |          | 134,522   |   |          |   | 21,569 |   |
| Deficit             |   | $             | ( 134,125 | )      |          | $      | ( 12,166 | ) |

----

| ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
|---------|------------------------------------------------------------|

| ITEM 4.    | CONTROLS AND PROCEDURES |
|---------------------------|-------------------------|

----

| ITEM 1.   | LEGAL PROCEEDINGS |
|---------------------|-------------------|

| ITEM 1A.   | RISK FACTORS |
|----------------------|--------------|

| ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
|---------|-------------------------------------------------------------|

| ITEM 3.  | DEFAULTS UPON SENIOR SECURITIES |
|---------------|---------------------------------|

| ITEM 4.    | (REMOVED AND RESERVED) |
|---------------------------|------------------------|

| ITEM 5.      | OTHER INFORMATION |
|---------------------------------------|-------------------|

| ITEM 6.       | EXHIBITS |
|---------------------------------------------|----------|

|   | No. | Title |
|--------|-----|-------|

|   | 10.1  | Promissory Notes with Blue Sky Energy and Power, Inc. and affiliates from June 24, 2011 through November 2, 2011 |
|--------|------------|------------------------------------------------------------------------------------------------------------------|

|   | 31.1 | Certification of President Pursuant to the Securities Exchange Act of 1934, Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.2 | Certification of Chief Financial Officer Pursuant to the Securities Exchange Act of 1934, Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32 | Certifications Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|--------|----|-------------------------------------------------------------------------------------------------------------------------|

----

| DATED: November 11, 2011         | SAGA ENERGY, INC.                                                                                             |   |
|--------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|--------|
|                                                                     |                                                                                                          |   |
|                                                                     | /s/ Ilyas Chaudhary                                                                                           |   |
|                                                                     | BY: Ilyas Chaudhary                                                                                           |   |
|                                                                     | ITS: President and Chief Executive Officer(Principal Executive Officer)                                       |   |
|                                                                     |                                                                                                          |   |
|                                                                     | /s/ Dading Soetarso                                                                                           |   |
|                                                                     | BY: Dading SoetarsoITS: Chief Financial Officer(Principal Financial Officer and Principal Accounting Officer) |   |
|                                                                     |                                                                                                          |   |
|                                                                     |                                                                                                          |   |

----