U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                    FORM 10-Q


Mark One

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


                       For the period ended June 30, 2009


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


                For the transition period from ______ to _______


                         COMMISSION FILE NO. 333-141060


                        AMERICAN EXPLORATION CORPORATION
                 ______________________________________________
                 (Name of small business issuer in its charter)

             NEVADA                                              98-0518266
_________________________________                            ___________________
  (State or other jurisdiction                                (I.R.S. Employer
of incorporation or organization)                            Identification No.)


               407 2ND STREET SW, CALGARY, ALBERTA, CANADA T2P 2Y3
               ___________________________________________________
                    (Address of principal executive offices)


                                 (403) 233-8484
                           ___________________________
                           (Issuer's telephone number)


Securities registered pursuant to Section         Name of each exchange on which
            12(b) of the Act:                              registered:
                  NONE


          Securities registered pursuant to Section 12(g) of the Act:

                              COMMON STOCK, $0.001
                              ____________________
                                (Title of Class)


<PAGE>


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

Indicate by check mark whether the registrant has submitted  electronically  and
posted on its corporate Web site, if any, every  Interactive  Data File required
to be  submitted  and posted  pursuant to Rule 405 of  Regulation  S-T  (Section
229.405 of this  chapter)  during the  preceding  12 months (or for such shorter
period that the registrant was required to submit and post such files.

                                 Yes [X ] No[ ]

Indicate by check mark whether the registrant is a large  accelerated  filed, an
accelerated filer, a non-accelerated filer, or a smaller reporting company.

Large accelerated filer [ ]                                Accelerated filer [ ]

Non-accelerated filer   [ ]                        Smaller reporting company [X]

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

Applicable  Only  to  Issuer  Involved  in  Bankruptcy  Proceedings  During  the
Preceding Five Years.

                                       N/A

Indicate by  checkmark  whether the issuer has filed all  documents  and reports
required to be filed by Section 12, 13 and 15(d) of the Securities  Exchange Act
of 1934 after the  distribution of securities under a plan confirmed by a court.
Yes[ ] No[ ]

                    Applicable Only to Corporate Registrants

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the most practicable date:

       Class                                  Outstanding as of  August 11, 2009
Common Stock, $0.001                                    54,862,500*

*Increased from 36,575,000 shares of common stock to 54,862,500 shares of common
stock based upon the forward stock split of 1.5 shares for each one share issued
and outstanding effected on the market as of Monday, April 13, 2009.


                                       2


<PAGE>


                        AMERICAN EXPLORATION CORPORATION

                                    Form 10-Q


Part 1.  FINANCIAL INFORMATION                                               4

Item 1.  FINANCIAL STATEMENTS                                                4
            Balance Sheets                                                   4
            Statements of Operations                                         5
            Statements of Cash Flows                                         6
            Statements of Stockholder's Equity                               7
            Notes to Financial Statements                                    8

Item 2.  Management's Discussion and Analysis of Financial Condition and
         Results of Operations                                              18

Item 3.  Quantitative and Qualitative Disclosures About Market Risk         25

Item 4.  Controls and Procedures                                            26

Part II. OTHER INFORMATION                                                  27

Item 1.  Legal Proceedings                                                  27

Item 1A. Risk Factors                                                       27

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds        27

Item 3.  Defaults Upon Senior Securities                                    28

Item 4.  Submission of Matters to a Vote of Security Holders                28

Item 5.  Other Information                                                  28

Item 6.  Exhibits                                                           29


                                       3


<PAGE>


PART I

ITEM 1. FINANCIAL STATEMENTS

<TABLE>
<CAPTION>

                        AMERICAN EXPLORATION CORPORATION
                    (f.k.a. Minhas Energy Consultants, Inc.)
                         (An Exploration Stage Company)
                           Quarter Ended June 30, 2009
                                   (unaudited)

                                 BALANCE SHEETS
                                                                                    December 31, 2008
                                                                June 30, 2009           (audited)
<S>                                                              <C>                   <C>

ASSETS

Current Assets
         Cash - CDN converted to USD                             $     2,232           $    8,176
         Cash - USD                                                   29,311              152,656
                                                                 ___________           __________

Total Current Assets in USD                                           31,544              160,832
                                                                 ___________           __________

Website                                                                8,066                9,725
Option to purchase oil and gas lease (note 8)                      1,106,250              781,250
                                                                 ___________           __________
                                                                   1,114,316              790,525

Total Assets                                                     $ 1,145,860           $  951,807
                                                                 ===========           ==========


LIABILITES & STOCKHOLDERS EQUITY

Current Liabilites
         Accounts Payable                                        $     7,339           $    8,417
         Salaries payable (note 5)                                    18,750                    -
         Due to Director                                                   0                 5000
         Loans from Directors (note 5)                                87,548                    -
                                                                 ___________           __________

Total Liabilites                                                 $   113,637           $   13,417
                                                                 ===========           ==========

Stockholders (Deficiency) Equity
         Authorized:
         150,000,000 Common shares Par Value $0.001

Issued and Outstanding:
         54,862,500 and 137,475,000 respectively (note 4)             54,863              137,475
         Additional Paid in Capital                                1,378,387              965,775
         Deficit Accumulated during exploration stage              (401,027)             (164,861)
                                                                 ___________           __________

Total Stockholders' Equity                                       $ 1,032,223           $  938,389
                                                                 ===========           ==========

Total Liabilites & Stockholders' Equity (Deficiency)             $ 1,145,860           $  951,807
                                                                 ===========           ==========


   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS

</TABLE>


                                       4


<PAGE>

<TABLE>
<CAPTION>

                        AMERICAN EXPLORATION CORPORATION
                    (f.k.a. Minhas Energy Consultants, Inc.)
                         (An Exploration Stage Company)
                           Quarter Ended June 30, 2009
                                   (unaudited)

                            STATEMENTS OF OPERATIONS

                                                                                                        Cumulative
                                                                                                       Amounts from
                                   Three months    Three months     Six months       Six months       Date of incorp
                                       Ended          Ended            Ended            Ended        On May 11, 2006
                                   June 30, 2009   June 30, 2008    June 30, 2009    June 30, 2008    To June 30, 2009
                                   _____________   _____________    _____________    _____________   _________________
<S>                                  <C>             <C>             <C>              <C>               <C>

Revenue                                       -              -                -               -                  -

Operating  Expenses
      Professional  Fees            $   (96,530)                    $  (175,806)                       $  (220,670)
      Amortization                         (833)    $     (203)          (1,658)           (406)            (3,210)
      Advertising                                                                                           (6,030)
      G&A                               (16,417)        (4,207)         (58,499)         (9,426)          (113,629)
      Marketing                                                                         (17,500)           (54,326)
      Organization                                                                                          (1,500)
      Website                                                                                                 (500)
      Other Inc Exp                                                                                         (1,161)
                                    ______________________________________________________________________________

      Loss from ops                    (113,781)        (4,410)        (235,964)        (27,332)          (401,027)
                                    ______________________________________________________________________________
      FX gain (loss)
      Loss before
      Income taxes                     (113,781)        (4,410)        (235,964)        (27,332)          (401,027)
                                    ______________________________________________________________________________

      Provision for
      Income taxes

Net loss                               (113,781)        (4,410)        (235,964)        (27,332)         (401,027)
                                    ===========     ==========      ===========      ==========        ===========

Basic and diluted loss per
      common share (1)

Weighted average number of
      common shares o/s (note 4)
                                     54,862,500      6,475,000       54,862,500       6,475,000         54,862,500
                                    ===========     ==========      ===========      ==========        ===========


   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS

</TABLE>


                                       5

<PAGE>

<TABLE>
<CAPTION>

                        AMERICAN EXPLORATION CORPORATION
                    (f.k.a. Minhas Energy Consultants, Inc.)
                         (An Exploration Stage Company)
                           Quarter Ended June 30, 2009
                                   (unaudited)

                             STATEMENTS OF CASH FLOW

                                                                                                       Cumulative
                                                                                                        Amounts
                                                                                                      From Date of
                                                                    Six Months       Six Months     Incorporation on
                                                                      Ended             Ended       May 11, 2006 to
                                                                  June 30, 2009     June 30, 2008    June 30, 2009
                                                                  _____________     ____________    ________________
<S>                                                                 <C>                <C>               <C>

OPERATING ACTIVITIES

Net Loss for the period                                             (235,964)          (22,922)          (401,027)
                                                                    ________           _______         __________
ADJUSTMENT TO RECONCILE NET LOSS TO CASH USED BY OPERATING
ACTIVITIES
Amortization Expense                                                     833               203                719
Salaries Payable                                                      18,750                               18,750

Changes in operating assets and liabilities:
Accounts payable and accrued liabilities                                   -            (2,000)             7,339
Write down of obsolete website                                             -                                1,161
FX Adjustment March 31, 2009                                               0
FX adjustment from prior period                                            0                                  203
Loan due to director                                                       -                                5,000
                                                                           -
Net Cash used in operating activities                               (216,381)          (24,719)          (386,605)

INVESTING ACTIVITIES
Website                                                                    -                              (10,000)
Previous website                                                           -                               (2,438)
Operating Lease                                                                                        (1,106,250)
                                                                    ________           _______         __________
Net cash used in investing activities                                                                  (1,118,688)

FINANCING ACTIVITIES
Proceeds from issuance of common stock                                     -                              103,250
Private Placements November 2008                                           -                            1,000,000
Private Placements January 2009                                            -                              325,000
Loans due to director                                                 87,523                               87,523
                                                                    ________           _______         __________
Net cash provided by financing activities                             87,523                            1,515,733

(Decrease) Increase in cash during period                           (131,520)          (24,719)            29,311

Cash, beginning of period                                            160,832            35,550                  0

Cash, end of period                                                   29,311            10,831             29,311
                                                                    ========           =======         ==========

Supplemental information:
Taxes paid                                                                 0                 0                  0
Interest paid                                                              0                 0                  0


   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

</TABLE>


                                       6


<PAGE>

<TABLE>
<CAPTION>


                        AMERICAN EXPLORATION CORPORATION
                    (f.k.a. Minhas Energy Consultants, Inc.)
                         (An Exploration Stage Company)
                           Quarter Ended June 30, 2008
                                   (unaudited)

                       STATEMENTS OF STOCKHOLDER'S EQUITY

                                                                                  Deficit
                                          Common Stock           Additional     Accumulated         Total
                                    ________________________      Paid in       During the      Stockholder's
                                      Shares         Amount       Capital       Exploration        Equity
                                                                                   Stage
_____________________________________________________________________________________________________________
<S>                                  <C>              <C>         <C>            <C>              <C>

Inception May 11, 2006                        -            -              -             -                 -

Initial capitalization, sale of
of common stock to directors on
May 11,2006 $0.0005/share            94,500,000     $ 94,500     $  (90,000)                         $4,500

Private Placement closed
September 30, 2006 0.0024/shr        41,475,000       41,475         57,275                          98,750

Net loss for the year                         -            -              -        (9,055)           (9,055)
                                    _______________________________________________________________________

Inception May 11, 2006              135,975,000      135,975        (32,725)       (9,055)           (9,055)

Net loss for the year                         -            -              -       (60,078)          (60,078)
                                    _______________________________________________________________________

Balance December 31, 2007           135,975,000      135,975        (32,725)      (69,133)           34,117

Private Placement closed
November 19, 2008 $0.692/shr          1,350,000        1,350        898,650                         900,000

Private Placement closed
November 24, 2008 $0.689/shr            150,000          150         99,850                         100,000

Net loss for the year                         -            -              -       (95,728)          (95,728)
                                    _______________________________________________________________________

Balance December 31, 2008           137,475,000      137,475        965,775      (164,861)          938,389

Private Placement closed
January 2009 $0.667/shr                 300,000          300        199,700                         200,000

Private Placement closed
January 2009 $0.667shr                  187,500          188        124,812                         125,000

Forgiven loan from director                   -            -          5,000             -             5,000

Cancellation of shares              (83,100,000)     (83,100)        83,100

Net loss for period                           -            -              -      (217,416)         (217,416)
                                    _______________________________________________________________________

Balance June 30, 2009                54,862,000       54,863      1,378,387      (382,277)        1,050,973
                                    ===========     ========     ==========     =========        ==========


   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

</TABLE>


                                       7


<PAGE>


                        AMERICAN EXPLORATION CORPORATION
                    (f.k.a. Minhas Energy Consultants, Inc.)
                         (An Exploration Stage Company)
                                   (Unaudited)

                          NOTES TO FINANCIAL STATEMENTS

                                  June 30, 2009


NOTE 1. GENERAL ORGANIZATION AND BUSINESS

The Company was originally incorporated under the laws of the state of Nevada on
May 11, 2006. The Company has limited operations and in accordance with SFAS #7,
is  considered  an  Exploration  stage  company,  and has had no  revenues  from
operations to date.

Initial operations have included capital formation,  organization, target market
identification  and marketing  plans.  On August 6, 2008 the Company merged with
its  wholly  owned  subsidiary  and  changed  its name to  American  Exploration
Corporation.  Concurrent with the name change,  management is planning to change
the focus of operations from the provision  consulting  engineering  services to
the oil and gas industry to oil and gas exploration and development.

An  extension  was granted on the  original  option  agreement  to purchase  the
mineral  leases.  The  original  amounts of $781,250  to conduct  due  diligence
increased by $325,000  due to the  extension of the due  diligence  period.  The
outstanding  balance  of  $2,018,750  remains  the same.  The  original  date of
November 17, 2008 to complete due diligence was extended to May 15th,  2009. The
original  spud date of May 31, 2009 was  extended to October 1st,  2009.  In the
third quarter we entered into a further  amendment to the Option  Agreement (the
"Third  Amended  Option  Agreement")  with  Westrock.  Based  upon the terms and
provisions  of the Third  Amended  Option  Agreement we shall pay to Westrock an
unfinalized  amount  in cash,  and/or  an  unfinalized  amount  of shares of our
restricted  common stock.  The  acquisition of the mineral lease is considered a
completed transaction.

BASIS OF PRESENTATION

In the  opinion of  management,  the  accompanying  balance  sheets and  related
interim statements of income,  cash flows, and stockholders'  equity include all
adjustments, consisting only of normal recurring items, necessary for their fair
presentation in conformity with accounting  principles generally accepted in the
United States of America ("U.S. GAAP").  Preparing financial statements requires
management to make estimates and assumptions that affect the reported amounts of
assets,  liabilities,  revenue,  and expenses.  Actual  results and outcomes may
differ from management's estimates and assumptions.

Interim results are not  necessarily  indicative of results for a full year. The
information  included  in this Form  l0-Q  should  be read in  conjunction  with
information included in the Form 10-K.


                                       8


<PAGE>


                        AMERICAN EXPLORATION CORPORATION
                    (f.k.a. Minhas Energy Consultants, Inc.)
                         (An Exploration Stage Company)
                                   (Unaudited)

                          NOTES TO FINANCIAL STATEMENTS

                                  June 30, 2009


NOTE  2. SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES

The relevant accounting policies and procedures are listed below.

ACCOUNTING BASIS

The basis is generally accepted accounting principles.

EARNINGS PER SHARE

In February  1997,  the FASB issued SFAS No. 128,  "Earnings  per Share",  which
specifies the computation, presentation and disclosure requirements for earnings
(loss) per share for entities  with  publicly  held common  stock.  SFAS No. 128
supersedes the provisions of APB No. 15, and requires the  presentation of basic
earnings (loss) per share and diluted earnings (loss) per share. The Company has
adopted the provisions of SFAS No. 128 effective its inception.

The basic earnings (loss) per share are calculated by dividing the Company's net
income available to common shareholders by the weighted average number of common
shares during the year. The diluted  earnings  (loss) per share is calculated by
dividing the Company's net income
 (loss) available to common  shareholders by the diluted weighted average number
of shares  outstanding  during the year. The diluted  weighted average number of
shares  outstanding  is the basic weighted  number of shares  adjusted as of the
first of the year for any potentially dilutive debt or equity.

Since  inception the company has issued  warrants  through two separate  private
placements  totaling  993,750  shares,  exercisable  within one year of issue at
$1.33/share.

DIVIDENDS

The Company has not yet adopted any policy  regarding  payment of dividends.  No
dividends have been paid during the periods shown.

CASH EQUIVALENTS

The Company  considers  all highly  liquid  investments  with  maturity of three
months or less when purchased to be cash equivalents.

INCOME TAXES

Income taxes are provided in accordance  with Statement of Financial  accounting
Standards No. 109 (SFAS 109),  Accounting for Income Taxes. A deferred tax asset
or liability is recorded for all temporary differences between financial and tax
reporting and net operating loss carry forwards.  Deferred tax expense (benefit)
results  from  the net  change  during  the  year of  deferred  tax  assets  and
liabilities.  Deferred tax assets are reduced by a valuation  allowance when, in
the opinion of  management,  it is more likely than not that some portion of all
of the deferred tax assets will be realized.

Tax assets and  liabilities  are adjusted for the effects of changes in tax laws
and rates on the date of enactment.


                                       9


<PAGE>


                        AMERICAN EXPLORATION CORPORATION
                    (f.k.a. Minhas Energy Consultants, Inc.)
                         (An Exploration Stage Company)
                                   (Unaudited)

                          NOTES TO FINANCIAL STATEMENTS

                                  June 30, 2009


NOTE 2. (CONTINUED)

USE OF ESTIMATES

The preparation of financial statements in conformity with accounting principles
generally  accepted in the United States of America requires  management to make
estimates  and  assumptions  that  affect  the  reported  amounts  of assets and
liabilities  and disclosure of contingent  assets and liabilities at the date of
the financial statements and the reported amounts of revenue and expenses during
the reporting period. Actual results could differ from those estimates.

ADVERTISING COSTS

The  Company's  policy  regarding  advertising  is to expense  advertising  when
incurred.  No advertising  expenses had been incurred in the quarter ending June
30, 2009.

WEBSITE COSTS

Website costs consist of software costs,  which represent  capitalized  costs of
design, configuration, coding, installation and testing of the Company's website
up to its initial implementation.  In December 2006, a website was purchased and
was  amortized  over  its  estimated  useful  life  of  three  years  using  the
straight-line  method.  In the fourth  quarter of 2008 it was written  down to 0
since it was an asset of the former company, Minhas Energy Consultants,  Inc. At
the same  time,  a new  website  was  purchased  for the new  company,  American
Exploration  Corporation.  The price was $10,000  and it will also be  amortized
over a  useful  life  of 3 years  on a  straight  line  basis.  Ongoing  website
post-implementation  costs of  operation,  including  training  and  application
maintenance, will be charged to expense as incurred. See Note 7.

RECENT  ACCOUNTING  PRONOUNCEMENTS  In June  2008,  the FASB  issued  FASB Staff
Position EITF 03-6-1,  DETERMINING  WHETHER  INSTRUMENTS  GRANTED IN SHARE-BASED
PAYMENT TRANSACTIONS ARE PARTICIPATING SECURITIES, ("FSP EITF 03-6-1"). FSP EITF
03-6-1 addresses whether instruments granted in share-based payment transactions
are participating securities prior to vesting, and therefore need to be included
in the computation of earnings per share under the two-class method as described
in FASB  Statement of Financial  Accounting  Standards  No. 128,  "Earnings  per
Share." FSP EITF 03-6-1 is effective for financial  statements issued for fiscal
years  beginning  on  or  after  December  15,  2008  and  earlier  adoption  is
prohibited.  We are not required to adopt FSP EITF 03-6-1; neither do we believe
that FSP EITF 03-6-1 would have material  effect on our  consolidated  financial
position and results of operations if adopted.


                                       10


<PAGE>


                        AMERICAN EXPLORATION CORPORATION
                    (f.k.a. Minhas Energy Consultants, Inc.)
                         (An Exploration Stage Company)
                                   (Unaudited)

                          NOTES TO FINANCIAL STATEMENTS

                                  June 30, 2009


NOTE 2. (CONTINUED)

In May 2008, the Financial  Accounting  Standards Board ("FASB") issued SFAS No.
163, "Accounting for Financial Guarantee Insurance Contracts-and  interpretation
of FASB  Statement  No. 60".  SFAS No. 163 clarifies how Statement 60 applies to
financial   guarantee  insurance   contracts,   including  the  recognition  and
measurement  of premium  revenue and claims  liabilities.  This  statement  also
requires expanded  disclosures about financial  guarantee  insurance  contracts.
SFAS No. 163 is effective  for fiscal years  beginning on or after  December 15,
2008, and interim periods within those years.  SFAS No. 163 has no effect on the
Company's  financial position,  statements of operations,  or cash flows at this
time.

In May 2008, the Financial  Accounting  Standards Board ("FASB") issued SFAS No.
162, "The Hierarchy of Generally Accepted Accounting  Principles".  SFAS No. 162
sets  forth  the  level of  authority  to a given  accounting  pronouncement  or
document by  category.  Where there might be  conflicting  guidance  between two
categories,  the more  authoritative  category will  prevail.  SFAS No. 162 will
become  effective 60 days after the SEC approves  the PCAOB's  amendments  to AU
Section 411 of the AICPA Professional  Standards.  SFAS No. 162 has no effect on
the Company's  financial  position,  statements of operations,  or cash flows at
this time.

In March 2008, the Financial  Accounting  Standards Board, or FASB,  issued SFAS
No. 161,  Disclosures  about Derivative  Instruments and Hedging  Activities--an
amendment of FASB Statement No. 133. This standard requires companies to provide
enhanced   disclosures   about  (a)  how  and  why  an  entity  uses  derivative
instruments,  (b) how  derivative  instruments  and  related  hedged  items  are
accounted for under Statement 133 and its related  interpretations,  and (c) how
derivative  instruments  and related  hedged items affect an entity's  financial
position, financial performance, and cash flows. This Statement is effective for
financial statements issued for fiscal years and interim periods beginning after
November 15, 2008, with early  application  encouraged.  The Company has not yet
adopted  the  provisions  of SFAS No.  161,  but does  not  expect  it to have a
material impact on its consolidated financial position, results of operations or
cash flows.


                                       11


<PAGE>


                        AMERICAN EXPLORATION CORPORATION
                    (f.k.a. Minhas Energy Consultants, Inc.)
                         (An Exploration Stage Company)
                                   (Unaudited)

                          NOTES TO FINANCIAL STATEMENTS

                                  June 30, 2009


NOTE 2. (CONTINUED)

In  December  2007,  the SEC  issued  Staff  Accounting  Bulletin  (SAB) No. 110
regarding  the use of a  "simplified"  method,  as discussed in SAB No. 107 (SAB
107),  in  developing  an  estimate of expected  term of "plain  vanilla"  share
options in accordance with SFAS No. 123 (R), Share-Based Payment. In particular,
the staff  indicated in SAB 107 that it will accept a company's  election to use
the  simplified  method,  regardless  of  whether  the  company  has  sufficient
information to make more refined estimates of expected term. At the time SAB 107
was issued,  the staff believed that more detailed  external  information  about
employee exercise behavior (e.g.,  employee exercise patterns by industry and/or
other categories of companies)  would,  over time,  become readily  available to
companies.  Therefore,  the staff  stated in SAB 107 that it would not  expect a
company to use the simplified  method for share option grants after December 31,
2007.  The staff  understands  that such  detailed  information  about  employee
exercise behavior may not be widely available by December 31, 2007. Accordingly,
the staff will continue to accept, under certain  circumstances,  the use of the
simplified  method  beyond  December 31, 2007.  The Company  currently  uses the
simplified  method for "plain  vanilla"  share  options and  warrants,  and will
assess the impact of SAB 110 for fiscal year 2009.  It is not believed that this
will have an impact on the Company's consolidated financial position, results of
operations or cash flows.

In December  2007,  the FASB issued SFAS No. 160,  Non-controlling  Interests in
Consolidated  Financial  Statements--an  amendment of ARB No. 51. This statement
amends  ARB  51  to  establish   accounting  and  reporting  standards  for  the
non-controlling  interest  in a  subsidiary  and  for the  deconsolidation  of a
subsidiary.  It clarifies that a non-controlling  interest in a subsidiary is an
ownership interest in the consolidated  entity that should be reported as equity
in the  consolidated  financial  statements.  Before this  statement was issued,
limited guidance existed for reporting  noncontrolling  interests.  As a result,
considerable  diversity in practice existed.  So-called  minority interests were
reported in the consolidated  statement of financial  position as liabilities or
in the mezzanine section between liabilities and equity. This statement improves
comparability  by eliminating  that  diversity.  This statement is effective for
fiscal years,  and interim  periods  within those fiscal years,  beginning on or
after  December 15, 2008 (that is,  January 1, 2009,  for entities with calendar
year-ends). Earlier adoption is prohibited. The effective date of this statement
is the same as that of the related  Statement  141 (revised  2007).  The Company
will adopt this Statement  beginning March 1, 2009. It is not believed that this
will have an impact on the Company's consolidated financial position, results of
operations  or cash  flows.  In  December  2007,  the FASB,  issued  FAS No. 141
(revised 2007), Business  Combinations'.  This Statement replaces FASB Statement
No. 141,  Business  Combinations,  but retains the  fundamental  requirements in
Statement 141. This Statement  establishes  principles and  requirements for how
the  acquirer:  (a)  recognizes  and measures in its  financial  statements  the
identifiable assets acquired,  the liabilities  assumed,  and any noncontrolling
interest in the acquiree;  (b) recognizes and measures the goodwill  acquired in
the business  combination or a gain from a bargain purchase;  and (c) determines
what  information  to disclose to enable users of the  financial  statements  to
evaluate the nature and financial effects of the business combination.


                                       12


<PAGE>


                        AMERICAN EXPLORATION CORPORATION
                    (f.k.a. Minhas Energy Consultants, Inc.)
                         (An Exploration Stage Company)
                                   (Unaudited)

                          NOTES TO FINANCIAL STATEMENTS

                                  June 30, 2009


NOTE 2. (CONTINUED)

This statement  applies  prospectively  to business  combinations  for which the
acquisition  date is on or after the  beginning  of the first  annual  reporting
period  beginning  on or after  December  15,  2008.  An entity may not apply it
before that date.  The effective  date of this  statement is the same as that of
the related FASB  Statement No. 160,  Noncontrolling  Interests in  Consolidated
Financial  Statements.  The Company will adopt this statement beginning March 1,
2009.  It is not  believed  that  this  will  have an  impact  on the  Company's
consolidated financial position, results of operations or cash flows.

In February  2007,  the FASB,  issued SFAS No.  159,  The Fair Value  Option for
Financial Assets and  Liabilities--Including  an Amendment of FASB Statement No.
115.  This  standard  permits  an entity to choose  to  measure  many  financial
instruments  and certain other items at fair value.  This option is available to
all  entities.  Most of the  provisions  in FAS 159 are  elective;  however,  an
amendment  to FAS 115  Accounting  for  Certain  Investments  in Debt and Equity
Securities   applies  to  all  entities  with  available  for  sale  or  trading
securities.  Some requirements  apply differently to entities that do not report
net income.  SFAS No. 159 is effective as of the beginning of an entity's  first
fiscal year that begins after November 15, 2007.  Early adoption is permitted as
of the beginning of the previous fiscal year provided that the entity makes that
choice in the first 120 days of that  fiscal  year and also  elects to apply the
provisions of SFAS No. 157 Fair Value Measurements.  The Company will adopt SFAS
No. 159 beginning March 1, 2008 and is currently evaluating the potential impact
the  adoption  of this  pronouncement  will have on its  consolidated  financial
statements.

In September 2006, the FASB issued SFAS No. 157, Fair Value  Measurements.  This
statement  defines fair value,  establishes a framework for measuring fair value
in generally accepted  accounting  principles  (GAAP),  and expands  disclosures
about fair value  measurements.  This statement  applies under other  accounting
pronouncements that require or permit fair value measurements,  the Board having
previously  concluded in those accounting  pronouncements that fair value is the
relevant measurement attribute. Accordingly, this statement does not require any
new fair value measurements. However, for some entities, the application of this
statement  will  change  current  practice.  This  statement  is  effective  for
financial  statements issued for fiscal years beginning after November 15, 2007,
and  interim  periods  within  those  fiscal  years.   Earlier   application  is
encouraged,  provided  that the  reporting  entity has not yet issued  financial
statements for that fiscal year,  including financial  statements for an interim
period within that fiscal year. The Company will adopt this  statement  March 1,
2008,  and it is not  believed  that this  will have an impact on the  Company's
consolidated financial position, results of operations or cash flows.


                                       13


<PAGE>


                        AMERICAN EXPLORATION CORPORATION
                    (f.k.a. Minhas Energy Consultants, Inc.)
                         (An Exploration Stage Company)
                                   (Unaudited)

                          NOTES TO FINANCIAL STATEMENTS

                                  June 30, 2009


NOTE 2. (CONTINUED)

CONCENTRATIONS OF RISKS - CASH BALANCES

The Company  maintains its cash in institutions  insured by the Canadian Deposit
Insurance  Corporation  (CDIC).  This Canadian  government  corporation  insures
balances  up to  $100,000  Canadian  dollars on savings  accounts  and  chequing
accounts  that are held in Canadian  dollars.

NOTE 3. GOING CONCERN

The  accompanying  financial  statements  have been  prepared  assuming that the
Company  will  continue  as a going  concern,  which  contemplates,  among other
things,  the realization of assets and satisfaction of liabilities in the normal
course of business.  The Company has net losses for the period from inception to
June 30, 2009 of  $(401,027).  The Company  intends to fund  initial  operations
through equity financing arrangements.  In fact some financing agreements are in
progress and are noted in Note 8.

The  ability of the Company to emerge from the  exploration  stage is  dependent
upon the  Company's  successful  efforts to raise  sufficient  capital  and then
attaining profitable operations.  In response to these problems,  management has
planned the following actions:

     o    The Company has completed an SB-2 Registration  Statement and obtained
          a trading symbol for its common shares on the OTCBB.

     o    Management intends to raise additional funds through public or private
          placement offerings.

     o    Management  has changed the focus of the  Company's  operations to oil
          and gas exploration and development  from the provision of engineering
          services to generate  revenue.  There can be no  assurances,  however,
          that management's expectations of future revenues will be realized.


                                       14


<PAGE>


                        AMERICAN EXPLORATION CORPORATION
                    (f.k.a. Minhas Energy Consultants, Inc.)
                         (An Exploration Stage Company)
                                   (Unaudited)

                          NOTES TO FINANCIAL STATEMENTS

                                  June 30, 2009


NOTE 4. STOCKHOLDERS' EQUITY

AUTHORIZED

The Company is authorized to issue 150,000,000 shares of $0.001 par value common
stock. All common stock shares have equal voting rights,  are non-assessable and
have one vote per share. Voting rights are not cumulative.

ISSUED AND OUTSTANDING

On May 11, 2006  (inception),  the Company issued 4,500,000 shares of its common
stock to its Directors for cash of $4,500.  See Note 5 (pre-forward split 14:1).
On September  30, 2006,  the Company  closed a private  placement  for 1,975,000
common  shares  at a price  of $0.05  per  share,  or an  aggregate  of  $98,750
(pre-forward  split 14:1). The Company accepted  subscriptions  from 38 offshore
non-affiliated investors.

On August 18, 2008,  the Company  affected a 14 for 1 forward stock split of its
issued and  outstanding  par value $0.001 common shares.  6,475,000  outstanding
common shares prior to the split resulted in 90,650,000 shares subsequent to the
split.  All comparative  share numbers have been adjusted to reflect the forward
split.

On November 19th and 24th,  2008, the Company closed two private  placements for
900,000  and  100,000  shares  respectively,  at a price of $1.00 for a total of
$1,000,000.  Included with each share in these private  placements  was one-half
non-transferable  share  purchase  warrant in the capital of the  company.  Each
whole warrant  entitles the subscriber to purchase one  additional  share of the
company 12 months from the date of  issuance  at an exercise  price of $2.00 per
warrant  share.  As  of  December   31st/2008,   there  were  91,650,000  shares
outstanding;  when  the  warrants  may be  exercised,  outstanding  shares  will
increase by 500,000 shares.

In  February  of  2009  the  company  raised  $325,000  in a  private  placement
increasing  the  number  of  shares  outstanding  to  91,975,000.   Two  private
placements were completed for a total of $325,000 in February 2009. $200,000 was
raised on February 11, 2009 and $125,000 was raised on February 18, 2009.

On March 21, 2009 our prior executive  officers and founders agreed to return an
aggregate  55,400,000  shares of our  common  stock.  They did not  receive  any
compensation  from the  cancellation  and return to  treasury.  Total issued and
outstanding as of March 31, 2009 was reduced to 36,575,000 shares outstanding.

On April 13,  2009 a 1.5:1 stock split took  effect  leaving  54,862,500  shares
outstanding.


                                       15


<PAGE>


                        AMERICAN EXPLORATION CORPORATION
                    (f.k.a. Minhas Energy Consultants, Inc.)
                         (An Exploration Stage Company)
                                   (Unaudited)

                          NOTES TO FINANCIAL STATEMENTS

                                  June 30, 2009


NOTE 5. RELATED PARTY TRANSACTIONS

The $5,000  amount  loaned to the  company  from a director  was  forgiven as of
January 1, 2009.  A total of $87,548 USD was loaned to the company by  directors
to cover operating expenses. Terms of the loan were finalized in Q3. Interest of
10% per annum will be paid to the lenders beginning July 1,09. As of the date of
this filing  approximately 1.5 months interest is owed to the lenders.  As well,
the president and CFO agreed to be  remunerated  at a later date for one month's
work to ensure that funds were available to pay other obligations.

NOTE 6.  INCOME TAXES

Net  deferred  tax  assets  are $nil.  Realization  of  deferred  tax  assets is
dependent  upon  sufficient   future  taxable  income  during  the  period  that
deductible temporary differences and carry-forwards are expected to be available
to reduce taxable  income.  As the achievement of required future taxable income
is  uncertain,  the  Company  recorded a 100%  valuation  allowance.  Management
believes it is likely that any deferred tax assets will not be realized.

As of June 30,  2009,  the Company  has a net  operating  loss carry  forward of
approximately $401,027, of which $9,055 will expire by December 31, 2026 and the
balance of $391,972 by December 31, 2027.

NOTE 7.  REPLACEMENT OF WEBSITE

Former Minhas website:

________________________________________________________________________________

                             ACCUMULATED
                   COST      AMORTIZATION     WRITE-DOWN     NET BOOK VALUE
________________________________________________________________________________

Website costs     $2,438        $1,277          $1,161            $  -
________________________________________________________________________________

Website costs are amortized on a straight line basis over 3 years, its estimated
useful life.


                                       16


<PAGE>


                        AMERICAN EXPLORATION CORPORATION
                    (f.k.a. Minhas Energy Consultants, Inc.)
                         (An Exploration Stage Company)
                                   (Unaudited)

                          NOTES TO FINANCIAL STATEMENTS

                                  June 30, 2009


NOTE 7. CONTINUED

In the third quarter of 2008, the website was written down to nil.

NEW AMERICAN EXPLORATION CORP WEBSITE:

________________________________________________________________________________

                                         ACCUMULATED
                          COST           AMORTIZATION       NET BOOK VALUE

________________________________________________________________________________

     Website Costs       $10,000          $1,933.00             $8,066
________________________________________________________________________________

Once the company embarked on a new business front in the fourth quarter of 2008,
a new website was constructed to better reflect this new business.  This website
is being amortized on a straight line basis over its estimated  useful life of 3
years. See WWW.AMERICANEXPLORATIONCORP.COM

NOTE 8. SUBSEQUENT EVENTS

In the third quarter we entered into a further amendment to the Option Agreement
(the "Third Amended Option  Agreement") with Westrock.  Based upon the terms and
provisions of the Third Amended Option  Agreement:  (i) we shall pay to Westrock
an unfinalized  amount in cash,  and/or an  unfinalized  amount of shares of our
restricted  common stock.  The  acquisition of the mineral lease is considered a
completed transaction.

The terms of the loan agreement totaling $87,543 from directors was finalized in
Q3 to be 10% interest per annum.

American  Exploration  Corp is no longer employing Moore and Associates as their
auditor  due  to a  change  of  focus  of  Michael  Moore.  Due to a  change  in
professional concentration Mr. Moore has turned his audit practice over to Seale
& Beers, CPAs, whom AEXP has now hired as their auditor.


                                       17


<PAGE>


                           FORWARD LOOKING STATEMENTS


Statements  made in this Form 10-Q that are not  historical or current facts are
"forward-looking  statements"  made  pursuant to the safe harbor  provisions  of
Section  27A of the  Securities  Act of 1933 (the  "Act") and Section 21E of the
Securities Exchange Act of 1934. These statements often can be identified by the
use  of  terms  such  as  "may,"  "will,"  "expect,"  "believe,"   "anticipate,"
"estimate," "approximate" or "continue," or the negative thereof. We intend that
such  forward-looking  statements  be  subject  to the  safe  harbors  for  such
statements.  We wish to caution  readers not to place undue reliance on any such
forward-looking  statements,   which  speak  only  as  of  the  date  made.  Any
forward-looking  statements represent  management's best judgment as to what may
occur in the future. However,  forward-looking  statements are subject to risks,
uncertainties  and important  factors beyond our control that could cause actual
results and events to differ  materially from  historical  results of operations
and events  and those  presently  anticipated  or  projected.  We  disclaim  any
obligation  subsequently  to revise any  forward-looking  statements  to reflect
events or  circumstances  after the date of such  statement  or to  reflect  the
occurrence of anticipated or unanticipated events.


ITEM 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

GENERAL

American Exploration Corporation was incorporated under the laws of the State of
Nevada  on May 11,  2006  under  the name of  Minhas  Energy  Consultants,  Inc.
Previously,   we  were  engaged  in  the  business  of  providing   professional
engineering  consulting services to the oil and gas industry,  including clients
such as petroleum and natural gas companies,  oil service  companies,  utilities
and  manufacturing  companies  with  petroleum  and/or natural gas interests and
government  agencies.  After  the  effective  date  of  March  14,  2007  of our
registration  statement  filed with the  Securities  and Exchange  Commission on
March 5, 2007, we commenced trading on the Over-the-Counter Bulletin Board.

On August 6, 2008,  with the approval of our Board of Directors,  we merged with
our subsidiary,  American Exploration  Corporation,  and amended our Articles of
Incorporation  to change  our name to  "American  Exploration  Corporation".  We
currently are a natural resource  exploration and production  company  currently
engaged  in  the  exploration,  acquisition  and  development  of  oil  and  gas
properties  in the United  States and within  North  America.  Effective  at the
opening for trading on August 19, 2008,  our trading symbol for our shares trade
on the Over-the-Counter Bulletin Board changed to "AEXP.OB".


                                       18


<PAGE>


Please note that throughout this Annual Report,  and unless otherwise noted, the
words "we," "our," "us," the  "Company,"  or "American  Exploration,"  refers to
American Exploration Corporation.

RECENT DEVELOPMENTS

APRIL 2009 FORWARD STOCK SPLIT

On March 26,  2009,  our Board of  Directors  authorized  and approved a forward
stock split of 1.5 for one (1.5:1) of our total issued and outstanding shares of
common  stock (the  "Forward  Stock  Split").  The  Forward  Stock Split will be
effectuated  based on market conditions and upon a determination by our Board of
Directors that the 2009 Forward Stock Split was in our best interests and of the
shareholders.  Certain  factors were discussed among the members of the Board of
Directors  concerning  the need  for the  Forward  Stock  Split,  including  the
increased  potential for financing.  The intent of the Forward Stock Split is to
increase the marketability of our common stock.

The  Forward  Stock  Split was  effectuated  on April 13,  2009 upon  filing the
appropriate  documentation  with NASDAQ.  The Forward Stock Split  increased our
total  issued  and  outstanding  shares  of  common  stock  from  36,575,000  to
approximately  54,862,500 shares of common stock. The common stock will continue
to be $0.001 par value.

AMENDMENT TO ARTICLES OF INCORPORATION

On March 26, 2009,  our Board of  Directors  approved the filing with the Nevada
Secretary of State an amendment to our Articles of Incorporation to increase our
authorized  capital  structure  commensurate  with the  increase  of our  shares
pursuant to the Reverse Stock Split. Therefore, as of the date of this Quarterly
Report,  our authorized  capital  structure has been increased from  100,000,000
shares of common  stock to  150,000,000  shares  of common  stock,  par value of
$0.001.

CURRENT BUSINESS OPERATIONS

We are a start-up  natural  resource  exploration  and production  company which
intends to engage in the exploration, acquisition and development of oil and gas
properties in the United States and within North  America.  Our primary focus is
the proposed  acquisition  of a 100% of the working  interest and 75% of the net
revenue  interest  in  certain  contiguous  leases  (the  "Leases")  located  in
Mississippi   owned  by  Westrock  Land  Corp.,  a  private  Texas   corporation
("Westrock").  We believe we have  identified a prospect with an  over-thickened
Haynesville Shale gas reservoir  situated below the properties  covered by these
Leases.

WESTROCK OPTION AGREEMENT

Effective on November 3, 2008,  our Board of Directors  authorized the execution
of an option agreement (the "Option Agreement") with Westrock. Westrock owns all
right, title and interest in and to approximately 5,000 net acres in oil and gas
Leases located in Mississippi.  We have an option to acquire 100% of the working
interest  and 75% of the net  revenue  interest in the Leases at $625.00 per net
acre for a total  purchase  price of  approximately  $3,125,000.  The contiguous
acreage involves several landowners, with mineral lease expiry ranging from June
through  September of 2011.  Terms of the Option Agreement  required  spudding a
well on or before  October 1, 2009.  The effective date of the conveyance of the
revenue interest in the Leases to us was to be no later than May 15, 2009 with a
final payment of the remaining balance of $2,018,750.


                                       19


<PAGE>


Effective  on January  8,  2009,  we  entered  into an  amendment  to the Option
Agreement  (the  "Amended  Option  Agreement")  with  Westrock.  Pursuant to the
Amended  Option  Agreement,  Westrock  granted to us until  February  2, 2009 to
complete  our due  diligence.  Effective  on March 18,  2009,  we entered into a
further   amendment  to  the  Option  Agreement  ("the  "Second  Amended  Option
Agreement") with Westrock.  Pursuant to the Second Amended Option Agreement: (i)
Westrock granted to us until May 15, 2009 to complete our due diligence; (ii) we
shall  pay to  Westrock  an  additional  non-refundable  amount of  $325,000  as
consideration for the extension;  and (iii) the effective date of the conveyance
of the revenue interest in the Leases to us shall be no later than May 15, 2009.

During the quarter ended June 30, 2009, two separate evaluations were undertaken
to review the land title status of the Leases.  Both evaluations  concluded that
all was satisfactory and title could be cleanly transferred to us from Westrock.
In the third quarter we entered into a further amendment to the Option Agreement
(the "Third Amended Option  Agreement") with Westrock.  Based upon the terms and
provisions of the Third Amended Option  Agreement:  (i) we shall pay to Westrock
an  unfinalized  amount  in  cash,  and  (ii) we  shall  issue  to  Westrock  an
unfinalized  amount of shares of our restricted common stock. The acquisition of
the mineral lease is considered a completed transaction.

<TABLE>
<CAPTION>

RESULTS OF OPERATION
_____________________________________________________________________________________
                                                               FOR THE PERIOD FROM
                                  SIX MONTH PERIOD ENDED     MAY 11, 2006 (INCEPTION)
                                  JUNE 30, 2009 AND 2008         TO JUNE 30, 2009
_____________________________________________________________________________________
<S>                               <C>           <C>                 <C>

STATEMENT OF OPERATIONS DATA
REVENUE                               -0-            -0-                  -0-
OPERATING EXPENSES
   Professional fees               $175,806         $-0-            $ 220,670
   Amortization                       1,658          406                3,210
   Advertising                          -0-          -0-                6,030
   General and administrative        58,499        9,426              113,629
   Marketing                            -0-       17,500               54,326
   Organization                         -0-          -0-                1,500
   Website                              -0-          -0-                  500
   Other income expense                 -0-          -0-                1,161
NET LOSS                          ($235,964)    ($27,332)           ($401,027)
_____________________________________________________________________________________

</TABLE>

                                       20


<PAGE>


We have incurred  recurring  losses to date. Our financial  statements have been
prepared assuming that we will continue as a going concern and, accordingly,  do
not include adjustments relating to the recoverability and realization of assets
and classification of liabilities that might be necessary should we be unable to
continue in operation.

We expect we will  require  additional  capital to meet our long term  operating
requirements. We expect to raise additional capital through, among other things,
the sale of equity or debt securities.

SIX MONTH PERIOD ENDED JUNE 30, 2009 COMPARED TO SIX MONTH PERIOD ENDED JUNE 30,
2008.

Our net  loss for the six  month  period  ended  June  30,  2009 was  ($235,964)
compared to a net loss of  ($27,332)  during the six month period ended June 30,
2008 (an increase of $208,632). During the six month periods ended June 30, 2009
and 2008, we did not generate any revenue.

During the six month period ended June 30, 2009, we incurred  operating expenses
of  approximately  $235,964  compared to $27,332  incurred  during the six month
period ended June 30, 2008. The Operating Expenses incurred during the six month
period  ended June 30,  2009  consisted  of: (i)  professional  fees of $175,806
(2008:  $-0-);  (ii)  amortization  of $1,658  (2008:  $406);  (iii) general and
administrative  of $58,499  (2008:  $9,426);  and (iv)  marketing of $-0- (2008:
$17,500).

Operating  expenses  incurred  during the six month  period  ended June 30, 2009
compared to six month period ended June 30, 2008 increased  primarily due to the
incurrence  of  professional  fees  and  general  and  administrative   expenses
associated  with the  increased  scope  and  scale of our  business  operations.
General  and  administrative  expenses  generally  include  corporate  overhead,
financial and  administrative  contracted  services,  marketing,  and consulting
costs.

The weighted  average  number of shares  outstanding  was 54,862,500 for the six
month period ended June 30, 2009 (taking into  consideration  the Forward  Stock
Split) compared to 6,475,000 for the six month period ended June 30, 2008.


                                       21


<PAGE>


THREE MONTH PERIOD ENDED JUNE 30, 2009 COMPARED TO THREE MONTH PERIOD ENDED JUNE
30, 2008.

Our net loss for the three  month  period  ended  June 30,  2009 was  ($113,781)
compared to a net loss of ($4,410)  during the three month period ended June 30,
2008 (an increase of  $109,371).  During the three month  periods ended June 30,
2009 and 2008, we did not generate any revenue.

The  operating  expenses  incurred  during the three month period ended June 30,
2009  consisted  of:  (i)  professional  fees  of  $96,530  (2008:  $-0-);  (ii)
amortization of $833 (2008:  $203);  (iii) general and administrative of $16,417
(2008: $4,207); and (iv) marketing of $-0- (2008: $0).

Operating  expenses  incurred  during the three month period ended June 30, 2009
compared to three month period ended June 30, 2008  increased  primarily  due to
the  incurrence of  professional  fees and general and  administrative  expenses
associated with the increased scope and scale of our business operations.

The weighted  average number of shares  outstanding was 54,862,500 for the three
month period ended June 30, 2009 (taking into  consideration  the Forward  Stock
Split) compared to 6,475,000 for the three month period ended June 30, 2008.

LIQUIDITY AND CAPITAL RESOURCES

AS AT JUNE 30, 2009

As at the six month period ended June 30, 2009,  our current assets were $31,544
and our current  liabilities were $113,637,  which resulted in a working capital
deficiency of ($82,093). As at the six month period ended June 30, 2009, current
assets were  comprised  of: (i) $2,232 in cash  consisting  of Canadian  dollars
converted to U.S. dollars;  and (ii) $29,311 in cash consisting of U.S. Dollars.
As at the six  month  period  ended  June 30,  2009,  current  liabilities  were
comprised of $113,637 of which $7,339 was accounts payable and $87,548 was short
term loans from directors. The terms of the loan are 10% annualized.


                                       22


<PAGE>


As at the six month period ended June 30, 2009, our total assets were $1,145,860
comprised of: (i) $31,544 in current assets;  (ii) $8,066 in website;  and (iii)
$1,106,250  in valuation  of option to purchase the interest in the Leases.  The
slight  increase in total assets during the six month period ended June 30, 2009
from fiscal year ended  December 31, 2008 was  primarily due to the valuation of
the option to purchase the interest in the Leases.

As at the six month  period  ended June 30,  2009,  our total  liabilities  were
$113,637 comprised entirely of current liabilities.  The increase in liabilities
during the six month period ended June 30, 2009 from fiscal year ended  December
31, 2008 was primarily due to loans from directors in the amount of $87,523. See
"--Material Commitments".

Stockholders'  equity increased from $938,389 for fiscal year ended December 31,
2008 to  stockholders'  equity of $1,032,223 for the six month period ended June
30, 2009.

CASH FLOWS FROM OPERATING ACTIVITIES

We have not generated positive cash flows from operating activities. For the six
month period ended June 30,  2009,  net cash flows used in operating  activities
was ($131,520), consisting primarily of a net loss of ($113,781). Net cash flows
used in operating  activities was changed by: (i) $833 in amortization  expense;
(ii) $7,339 relating to accounts payable and accrued liabilities;  (iii) $203 as
FX adjustment from prior period and (iv) ($108) as FX adjustment March 31, 2009.
For the six month period  ended June 30, 2008,  net cash flows used in operating
activities was ($24,719),  consisting primarily of a net loss of ($22,922).  Net
cash flows used in operating activities was changed by: (i) $203 in amortization
expense; and (ii) ($2,000) in accounts payable and accrued liabilities

CASH FLOWS FROM INVESTING ACTIVITIES

For the six month period  ended June 30, 2009,  net cash flows used in investing
activities  was $0. For the six month period ended June 30, 2008, net cash flows
used in investing activities was $-0-.

CASH FLOWS FROM FINANCING ACTIVITIES

We have  financed  our  operations  primarily  from either  advancements  or the
issuance of equity and debt instruments. For the six month period ended June 30,
2009, net cash flows provided from financing  activities was $87,523 compared to
$-0- for the six month period ended June 30, 2008.  This amount was due to short
term loans to the company from directors at 10% annualized interest.

We expect that working capital requirements will continue to be funded through a
combination  of our  existing  funds and further  issuances of  securities.  Our
working capital requirements are expected to increase in line with the growth of
our business.


                                       23


<PAGE>


PLAN OF OPERATION AND FUNDING

A substantial  portion of the second quarter was dedicated to both financing and
identification of a potential  drilling partner.  Financing partners were sought
with the intent of  conducting a private  placement to raise funds for primarily
finalizing the mineral lease acquisition in Mississippi and participation in the
drilling  of a well on those  lands.  Monies  were not  raised  through  private
placement  during the second quarter.  Concerns noted from some of the financial
institutions  focused  primarily on our OTC listing,  our share structure (total
number of outstanding  shares and the initial price of shares  purchased  within
the predecessor company,  Minhas Energy Consultants,  as well as challenges seen
in natural gas pricing over the near term.

Financing  and the  securing of a drilling  partner  continues  to be an ongoing
process for the company.  Although  market  conditions and natural gas commodity
pricing have been  challenging,  the high  quality of the  prospect  that we are
pursuing has encouraged us to remain optimistic.

Existing working capital, further advances and debt instruments, and anticipated
cash flow are expected to be adequate to fund our  operations  over the next six
months.  We have no  lines  of  credit  or other  bank  financing  arrangements.
Generally,  we have  financed  operations  to date  through the  proceeds of the
private  placement  of  equity  and debt  instruments.  In  connection  with our
business plan, management anticipates additional increases in operating expenses
and capital expenditures relating to: (i) oil and gas operating properties; (ii)
possible drilling initiatives on current Lease and future properties;  and (iii)
future property  acquisitions.  We intend to finance these expenses with further
issuances of securities, and debt issuances.  Thereafter, we expect we will need
to raise additional  capital and generate  revenues to meet long-term  operating
requirements. Additional issuances of equity or convertible debt securities will
result in dilution to our current  shareholders.  Further, such securities might
have rights,  preferences or privileges  senior to our common stock.  Additional
financing may not be available  upon  acceptable  terms,  or at all. If adequate
funds are not available or are not available on acceptable  terms, we may not be
able to take advantage of prospective new business  endeavors or  opportunities,
which could significantly and materially restrict our business operations.

During the three month  period  ended  March 31,  2009,  we  completed a private
placement under Regulation S consisting of 325,000 Pre-Forward Stock Split units
and  received  gross  proceeds of $325,000  (487,500  Units  Post-Forward  Stock
Split).

MATERIAL COMMITMENTS

PROMISSORY NOTES

A  material  commitment  during  fiscal  year  2009  relates  to  those  certain
promissory notes entered into by us as follows (i) May 15, 2009 in the amount of
$30,000 USD with an unrelated  third  party;  (ii) May 29, 2009 in the amount of
$7,523 USD with an unrelated  third party;  and (iii) June 5, 2009 in the amount
of $50,000 USD with one of our directors (collectively, the "Debt").


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<PAGE>


The Debt was evidenced by those certain  convertible  promissory  notes dated of
same date above (collectively, the "Convertible Notes"), which Convertible Notes
provided for conversion of the Debt into shares of our  restricted  common stock
at $0.03 per share. We re-negotiated  the terms of the Convertible  Notes. As of
August  18,  2009,  we  entered  into  rescission  agreements  with  each of the
above-referenced creditors (collectively, the "Rescission Agreement"),  pursuant
to which we rescind and set aside the Convertible  Notes. As of August 18, 2009,
we entered into promissory notes with the respective creditor (collectively, the
"Note"),  which  evidences  the debt and is  payable  upon  demand  and  accrues
interest at 10% per annum.

PURCHASE OF SIGNIFICANT EQUIPMENT

We do not intend to purchase any  significant  equipment  during the next twelve
months.

OFF-BALANCE SHEET ARRANGEMENTS

As of the date of this Quarterly  Report,  we do not have any off-balance  sheet
arrangements  that have or are  reasonably  likely  to have a current  or future
effect on our financial condition,  changes in financial condition,  revenues or
expenses,  results of operations,  liquidity,  capital  expenditures  or capital
resources that are material to investors.

GOING CONCERN

The independent auditors' report accompanying our December 31, 2008 and December
31, 2007  financial  statements  contains an  explanatory  paragraph  expressing
substantial  doubt  about  our  ability  to  continue  as a going  concern.  The
financial  statements  have been prepared  "assuming  that we will continue as a
going concern," which  contemplates  that we will realize our assets and satisfy
our liabilities and commitments in the ordinary course of business.

ITEM III. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Market risk represents the risk of loss that may impact our financial  position,
results of  operations or cash flows due to adverse  change in foreign  currency
and  interest  rates.

EXCHANGE RATE

Our reporting currency is United States Dollars ("USD"). In the event we acquire
any properties  outside of the United States,  the fluctuation of exchange rates
may have  positive or negative  impacts on our results of  operations.  However,
since all of our properties are currently located within the United States,  any
potential  revenue and expenses will be denominated in U.S. Dollar,  and the net
income effect of appreciation  and devaluation of the currency  against the U.S.
Dollar would be limited to our costs of acquisition of property.


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<PAGE>


INTEREST RATE

Interest  rates in the United  States are  generally  controlled.  Any potential
future loans will relate mainly to  acquisition of properties and will be mainly
short-term.  However our debt may be likely to rise in connection with expansion
and if  interest  rates  were to rise at the  same  time,  this  could  become a
significant  impact  on our  operating  and  financing  activities.  We have not
entered  into  derivative  contracts  either  to  hedge  existing  risks  of for
speculative purposes.

ITEM IV. CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

We have performed an evaluation under the supervision and with the participation
of our  management,  including  our  Chief  Executive  Officer  (CEO)  and Chief
Financial  Officer (CFO), of the  effectiveness  of our disclosure  controls and
procedures,  (as defined in Rules  13a-15(e)  and  15d-15(e)  under the Exchange
Act).  Based on that  evaluation,  our  management,  including  our CEO and CFO,
concluded that our disclosure  controls and procedures were effective as of June
30,  2009 to  provide  reasonable  assurance  that  information  required  to be
disclosed  by us in the reports  filed or submitted by us under the Exchange Act
is  recorded,  processed,  summarized  and  reported  within  the  time  periods
specified in the SEC's rules and forms.

MANAGEMENT'S ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

Our management is responsible for establishing and maintaining adequate internal
control  over  financial  reporting  (as  defined  in Rule  13a-15(f)  under the
Exchange  Act).  Under  the  supervision  and  with  the  participation  of  our
management,  including  our CEO and CFO, we evaluated the  effectiveness  of our
internal  control over  financial  reporting as of June 30, 2009. In making this
assessment,  management  used  the  criteria  set  forth  by  the  Committee  of
Sponsoring  Organizations  of  the  Treadway  Commission  ("COSO")  in  Internal
Control-Integrated Framework.

This Quarterly  Report does not include an attestation  report of our registered
public  accounting firm Seale & Beers regarding  internal control over financial
reporting.  Management's report was not subject to attestation by our registered
public  accounting firm pursuant to temporary rules of the SEC that permit us to
provide only management's report in this Quarterly Report on Form 10-Q.

INHERENT LIMITATIONS ON EFFECTIVENESS OF CONTROLS

We believe that a controls  system,  no matter how well  designed and  operated,
cannot provide absolute assurance that the objectives of the controls system are
met, and no  evaluation  of controls  can provide  absolute  assurance  that all
control  issues  and  instances  of fraud,  if any,  within a company  have been
detected.  Our  disclosure  controls  and  procedures  are  designed  to provide
reasonable assurance of achieving their objectives, and our CEO and our CFO have
concluded that these  controls and  procedures are effective at the  "reasonable
assurance" level.

CHANGES IN INTERNAL CONTROLS

No significant  changes were implemented in our internal controls over financial
reporting  during  the  period  covered  by this  report  that  have  materially
affected,  or are reasonably likely to materially  affect,  our internal control
over financial reporting.


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<PAGE>


AUDIT COMMITTEE

Our Board of Directors has not  established an audit  committee.  The respective
role of an audit committee has been conducted by our Board of Directors.  We are
contemplating  establishment of an audit committee during fiscal year 2009. When
established,  the audit  committee's  primary function will be to provide advice
with  respect to our  financial  matters and to assist our Board of Directors in
fulfilling its oversight  responsibilities  regarding finance,  accounting,  and
legal compliance. The audit committee's primary duties and responsibilities will
be to: (i) serve as an independent  and objective party to monitor our financial
reporting  process and  internal  control  system;  (ii) review and appraise the
audit  efforts of our  independent  accountants;  (iii)  evaluate our  quarterly
financial performance as well as its compliance with laws and regulations;  (iv)
oversee  management's  establishment  and enforcement of financial  policies and
business  practices;  and (v) provide an open avenue of communication  among the
independent accountants, management and our Board of Directors.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Management  is  not  aware  of  any  legal   proceedings   contemplated  by  any
governmental authority or any other party involving us or our properties.  As of
the date of this Quarterly  Report,  no director,  officer or affiliate is (i) a
party adverse to us in any legal proceeding,  or (ii) has an adverse interest to
us in any  legal  proceedings.  Management  is not  aware  of  any  other  legal
proceedings pending or that have been threatened against us or our properties.

ITEM 1A. RISK FACTORS

No report required.

ITEM 2. UNREGISTERED SALES OF SECURITIES AND USE OF PROCEEDS

2009 PRIVATE PLACEMENT

During  February  2009,  we completed a private  placement  offering  (the "2009
Private Placement Offering"), whereby we issued an aggregate of 325,000 Pre-2009
Forward  Stock Split units at $1.00 per unit for  proceeds of $325,000  (487,500
units  Post-2009  Forward Stock  Split).  Each unit consists of one share of our
restricted  common stock and  one-half of one  non-transferable  share  purchase
warrant  exercisable  at $2.00  Pre-2009  Forward  Stock Split ($1.33  Post-2009
Forward  Stock  Split) per share for a period of twelve  months from the date of
share issuance. The 2009 Private Placement Offering was completed in reliance on
Regulation S of the Securities Act. Sales were made to only non-U.S.  residents.
The 2009 Private Placement  Offering was not registered under the Securities Act
or under  any  state  securities  laws and may not be  offered  or sold  without
registration  with the  Securities  and  Exchange  Commission  or an  applicable
exemption from the  registration  requirements.  The per share price of the 2009
Private Placement Offering was arbitrarily  determined by our Board of Directors
based upon analysis of certain factors  including,  but not limited to, stage of
development,  industry status,  investment climate,  perceived investment risks,
our assets and net estimated worth.


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<PAGE>


2009 FORWARD STOCK SPLIT

On March 26,  2009,  our Board of  Directors  authorized  and approved a forward
stock split of 1.5 for one (1.5:1) of our total issued and outstanding shares of
common  stock (the  "Forward  Stock  Split").  The  Forward  Stock Split will be
effectuated  based on market conditions and upon a determination by our Board of
Directors  that the  Forward  Stock Split was in our best  interests  and of the
shareholders.  Certain  factors were discussed among the members of the Board of
Directors  concerning  the need  for the  Forward  Stock  Split,  including  the
increased  potential for financing.  The intent of the Forward Stock Split is to
increase the marketability of our common stock.

The  Forward  Stock  Split was  effectuated  on April 13,  2009 upon  filing the
appropriate  documentation  with NASDAQ.  The Forward Stock Split  increased our
total  issued  and  outstanding  shares  of  common  stock  from  36,575,000  to
approximately  54,862,500 shares of common stock. The common stock will continue
to be $0.001 par value.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

No report required.

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

No report required.

ITEM 5. OTHER INFORMATION

Effective  August 11,  2009,  we engaged  Seale and Beers,  CPAs  ("S&B") as our
principal  independent  registered public accounting firm.  Concurrent with this
appointment,  we  accepted  the  resignation  of Moore &  Associates,  Chartered
Accountants  ("Moore"),  effective  August 10, 2009.  The decision to change our
principal independent registered public accounting firm has been approved by our
board of directors.

The report of Moore on our financial  statements for fiscal years ended December
31, 2008 and December 31, 2007 (which  included the balance sheet as of December
31, 2008 and the statement of operations,  cash flows and  stockholders'  equity
for the period from May 11, 2006 (inception) through December 31, 2008), did not
contain an adverse  opinion or disclaimer of opinion,  nor was it modified as to
uncertainty,  audit  scope or  accounting  principles,  other than to state that
there is  substantial  doubt as to our ability to  continue as a going  concern.
During our fiscal year ended December 31, 2008, and during the subsequent period
through to the date of Moore's resignation,  there were no disagreements between
us and Moore, whether or not resolved, on any matter of accounting principles or
practices,  financial  statement  disclosure,  or auditing  scope or  procedure,
which, if not resolved to the satisfaction of Moore,  would have caused Moore to
make reference thereto in its report on our audited financial statements.


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<PAGE>


We have provided Moore with a copy of a Current Report on Form 8-K and requested
that Moore  furnish us with a letter  addressed to the  Securities  and Exchange
Commission  stating whether or not Moore agrees with the statements made in this
Current  Report on Form 8-K with  respect  to Moore  and,  if not,  stating  the
aspects  with which they do not agree.  We received  the  requested  letter from
Moore wherein they have  confirmed  their  agreement to our  disclosures  in the
Current  Report with respect to Moore.  A copy of Moore's letter was filed as an
exhibit to the Current Report.

In connection with our appointment of S&B as our principal registered accounting
firm at this  time,  we have not  consulted  S&B on any matter  relating  to the
application of accounting principles to a specific transaction, either completed
or  contemplated,  or the type of audit  opinion  that might be  rendered on our
financial statements.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

        Exhibits:

         16.1.   Letter from Moore & Associates dated August 11, 2009 as filed
                 with the Current Report on Form 8-K filed with the Securities
                 and Exchange Commission on August 17, 2009.

         31.1    Certification of Chief Executive Officer pursuant to Securities
                 Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a).

         31.2    Certification of Chief Financial Officer pursuant to Securities
                 Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a).

         32.1    Certifications pursuant to Securities Exchange Act of 1934 Rule
                 13a-14(b) or 15d-

                 14(b) and 18 U.S.C. Section 1350, as adopted pursuant to
                 Section 906 of the Sarbanes- Oxley Act of 2002.


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<PAGE>


                                   SIGNATURES


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


                                                AMERICAN EXPLORATION CORPORATION

Dated: August 13, 2009

                                                By: /s/ STEVE HARDING
                                                    ____________________________
                                                        Steve Harding
                                                        President and
                                                        Chief Executive Officer


Dated: August 13, 2009

                                                By: /s/ BRIAN MANKO
                                                    ____________________________
                                                        Brian Manko
                                                        Chief Financial Officer


















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