UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                   FORM 10-QSB

[X] Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange
    Act of 1934

    For the period ended March 31, 2008

[ ] Transition Report pursuant to 13 or 15(d) of the Securities Exchange
    Act of 1934

    For the transition period _______________ to _______________

                        Commission File Number 333-140578


                                CH4 Energy, Inc.
        (Exact name of small Business Issuer as specified in its charter)

           Nevada                                         75-3268284
(State or other jurisdiction of                (IRS Employer Identification No.)
 incorporation or organization)

4370 La Jolla Village Drive, Ste. 670
          San Diego,  CA                                     92122
(Address of principal executive offices)              (Postal or Zip Code)

          Issuer's telephone number, including area code: 604-904-2432

                          Royal Blue Exploration, Inc.
                         160 West 5th Street, Suite 208
                      North Vancouver. B.C., Canada V7M 1J8
              (Former name, former address and former fiscal year,
                          if changed since last report)

Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12
months (or for such shorter period that the issuer 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 is a shell company (as defined in
Rule 12b-2 of the Exchange Act). Yes [X] No [ ]

State the number of shares outstanding of each of the issuer's classes of common
stock, as of the latest practicable date: 7,550,000 Shares of $0.001 par value
common stock outstanding as of April 28, 2008.
<PAGE>
                         PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CH4 Energy, Inc.
(An Exploration Stage Company)
Balance Sheets
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                         March 31,        September 30,
                                                                           2008               2007
                                                                         --------           --------
                                                                        (Unaudited)
<S>                                                                      <C>                <C>
                                     ASSETS

CURRENT ASSETS:

  Cash                                                                   $    505           $  5,241

MINERAL INTEREST COSTS                                                         --                 --
                                                                         --------           --------
TOTAL ASSETS                                                             $    505           $  5,241
                                                                         ========           ========

                 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

CURRENT LIABILITIES:
  Accrued liabilities                                                    $     --           $     --
  Due to related party                                                      6,061                 --
                                                                         --------           --------
                                                                            6,061                 --
STOCKHOLDERS' EQUITY (DEFICIT):
  Common stock, $0.001 par value;
   authorized 75,000,000 shares,
   issued and outstanding 7,550,000 shares                                  7,550              7,550
  Additional paid-in capital                                               13,950             13,950
  Deficit accumulated during the exploration stage                        (27,056)           (16,259)
                                                                         --------           --------
                                                                           (5,556)             5,241
                                                                         --------           --------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)                     $    505           $  5,241
                                                                         ========           ========
</TABLE>


See notes to financial statements.

                                       3
<PAGE>
CH4 Energy, Inc.
(An Exploration Stage Company)
Statements of Operations (Unaudited)
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                                                             Cumulative
                                                                                                             during the
                                             Three months    Three months    Six months     Six months    exploration stage
                                                ended           ended          ended          ended       (March 15, 2006
                                               March 31,       March 31,      March 31,      March 31,      to March 31,
                                                 2008            2007           2008           2007             2008)
                                              ----------      ----------     ----------     ----------       ----------
<S>                                           <C>             <C>            <C>            <C>              <C>
COSTS AND EXPENSES
  General and administrative                  $    4,672      $      708     $   10,797     $      726       $   22,056
  Impairment of mineral interest costs                                                                            5,000
                                              ----------      ----------     ----------     ----------       ----------
NET LOSS APPLICABLE TO COMMON SHAREHOLDERS    $   (4,672)     $     (708)    $  (10,797)    $     (726)      $  (27,056)
                                              ==========      ==========     ==========     ==========       ==========

NET LOSS PER SHARE - BASIC AND DILUTED        $    (0.00)     $    (0.00)    $    (0.00)    $    (0.00)
                                              ==========      ==========     ==========     ==========
WEIGHTED AVERAGE NUMBER OF COMMON
 SHARES OUTSTANDING - BASIC AND DILUTED        7,550,000       7,550,000      7,550,000      7,550,000
                                              ==========      ==========     ==========     ==========
</TABLE>


See notes to financial statements.

                                       4
<PAGE>
CH4 Energy, Inc.
(An Exploration Stage Company)
Statements of Stockholders' Equity (Deficit) (Unaudited)
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                                           Deficit
                                                   Common Stock,                         Accumulated
                                                 $0.001 Par Value         Additional     During the         Total
                                               ---------------------       Paid-in       Development     Stockholders'
                                               Shares         Amount       Capital          Stage           Equity
                                               ------         ------       -------          -----           ------
<S>                                          <C>            <C>           <C>             <C>             <C>
Common stock issued for cash
   April 21, 2006 at $0.001 per share        6,500,000      $   6,500     $      --       $      --       $   6,500
   July 26, 2006 at $0.01 per share          1,000,000          1,000         9,000              --          10,000
   August 16, 2006 at $0.10 per share           50,000             50         4,950              --           5,000
Net loss for the period                             --             --            --         (10,758)        (10,758)
                                             ---------      ---------     ---------       ---------       ---------
Balance, September 30, 2006                  7,550,000          7,550        13,950         (10,758)         10,742
Net loss for the year                               --             --            --          (5,501)         (5,501)
                                             ---------      ---------     ---------       ---------       ---------
Balance, September 30, 2007                  7,550,000          7,550        13,950         (16,259)          5,241
Net loss for the period                                                                     (10,797)        (10,797)
                                             ---------      ---------     ---------       ---------       ---------

Balance, March 31, 2008                      7,550,000      $   7,550     $  13,950       $ (27,056)      $  (5,556)
                                             =========      =========     =========       =========       =========
</TABLE>

See notes to financial statements.

                                       5
<PAGE>
CH4 Energy, Inc.
(An Exploration Stage Company)
Statements of Cash Flows (Unaudited)
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                                                 Cumulative
                                                                                                 during the
                                                           Six months         Six months      exploration stage
                                                             ended              ended         (March 15, 2006
                                                            March 31,          March 31,        to March 31,
                                                              2008               2007               2008)
                                                            --------           --------           --------
<S>                                                         <C>                <C>                <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net loss                                                  $(10,797)          $   (726)          $(27,056)
  Adjustments to reconcile net loss to net cash
   (used in) provided by operating activities:
     Impairment of mineral interest costs                         --             (5,000)             5,000
  Changes in operating assets and liabilities:
     Accrued liabilities                                          --                 --                 --
                                                            --------           --------           --------
NET CASH (USED IN) OPERATING ACTIVITIES                      (10,797)            (5,726)           (22,056)
                                                            --------           --------           --------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Acquisition of mineral interest costs                           --                 --             (5,000)
                                                            --------           --------           --------
NET CASH (USED IN) INVESTING ACTIVITIES                           --                 --             (5,000)
                                                            --------           --------           --------
CASH FLOWS FROM FINANCING ACTIVITIES:
  Increase in due to related party                             6,061                 --              6,061
  Proceeds from sales of common stock                             --                 --             21,500
                                                            --------           --------           --------
NET CASH PROVIDED BY FINANCING ACTIVITIES                      6,061                 --             27,561
                                                            --------           --------           --------

(DECREASE) INCREASE IN CASH                                   (4,736)            (5,726)               505
CASH BEGINNING OF PERIOD                                       5,241             15,742                 --
                                                            --------           --------           --------

CASH END OF PERIOD                                          $    505           $ 10,016           $    505
                                                            ========           ========           ========

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
  Interest paid                                             $     --           $     --           $     --
                                                            ========           ========           ========
  Income taxes paid                                         $     --           $     --           $     --
                                                            ========           ========           ========
</TABLE>


See notes to financial statements.

                                       6
<PAGE>
CH4 ENERGY, INC.
(formerly Royal Blue Exploration, Inc.)
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
March 31, 2008
(Unaudited)
--------------------------------------------------------------------------------

Note 1. Interim Financial Statements

     The unaudited financial statements as of March 31, 2008 and for the periods
     ended  March 31,  2008 and 2007,  have been  prepared  in  accordance  with
     accounting  principles  generally accepted in the United States for interim
     financial  information.   In  the  opinion  of  management,  the  unaudited
     financial  statements  have been  prepared  on the same basis as the annual
     financial statements and reflect all adjustments, which include only normal
     recurring  adjustments,  necessary to present fairly the financial position
     as of March 31, 2008 and the results of  operations  and cash flows for the
     periods  ended  March  31,  2008 and  2007.  The  financial  data and other
     information  disclosed in these notes to the interim  financial  statements
     related to these  periods  are  unaudited.  The  results  for the six month
     period ended March 31, 2008 is not necessarily indicative of the results to
     be expected for any subsequent  quarter of the entire year ending September
     30, 2008. The balance sheet at September 30, 2007 has been derived from the
     audited financial statements at that date.

     Certain information and footnote disclosures normally included in financial
     statements  prepared in accordance  with  accounting  principles  generally
     accepted in the United  States have been  condensed or omitted  pursuant to
     the  Securities  and Exchange  Commission's  rules and  regulations.  These
     unaudited  financial  statements  should  be read in  conjunction  with our
     audited financial statements and notes thereto for the year ended September
     30, 2007 included in our Form 10-KSB filed December 21, 2007.

Note 2. Organization and Business Operations

     CH4 Energy,  Inc. (the  "Company") was  incorporated  under the laws of the
     State of Nevada on March 15, 2006 as "Royal Blue Exploration, Inc.". During
     the period ended  September 30, 2006, the Company  commenced  operations by
     issuing  shares and  acquiring a mineral  property  located in the State of
     Nevada.  The Company has not yet determined  whether this property contains
     reserves that are economically recoverable.

Note 3. Related Party Balances/Transactions

     At March 31, 2008, the Company is indebted to a director of the company for
     $6,061, which is non-interest bearing, unsecured and due on demand.

Note 4. Mineral Interests Acquisition Costs

     On June 22,  2006,  the  Company  acquired  a 100%  interest  in a  mineral
     exploration  claim Royal Pit in the Yellow Pine Mining District  located in
     the SE Quarter,  Section 7, TWNSP 25 South,  Range 60 East Meridian,  Clark
     County Nevada for total consideration of $2,500.

     The mineral  interest is held in trust for the Company by the vendor of the
     property.  Upon request from the Company, the title will be recorded in the
     name of the Company with the appropriate mining recorder.

                                       7
<PAGE>
CH4 ENERGY, INC.
(formerly Royal Blue Exploration, Inc.)
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
March 31, 2008
(Unaudited)
--------------------------------------------------------------------------------

     After a review of all relevant data relating to the mineral  interest,  the
     Company  decided  to record a reserve  for  impairment  of all the  mineral
     interest acquisition costs at September 30, 2006.

Note 5. Common Stock

     From March 15, 2006 (inception) to September 30, 2006, the Company issued a
     total of 7,550,000  shares of common stock for total cash  consideration of
     $21,500. No stock options or warrants have been issued.

     On February 9, 2007,  the Company  filed a  registration  statement on Form
     SB-2  with the U.S.  Securities  and  Exchange  Commission  (the  "SEC") to
     register 3,550,000 shares of common stock held by certain stockholders (the
     "selling  shareholders")  of the Company.  The  registration  statement was
     declared  effective by the SEC on July 27, 2007;  the selling  shareholders
     may sell their  shares at $.10 per share until the shares are quoted on the
     OTC Bulletin Board and thereafter at prevailing  market prices or privately
     negotiated prices.

Note 6. Income Taxes

     Potential  benefits of income tax losses are not recognized in the accounts
     until  realization  is more likely than not. At March 31, 2008, the Company
     had a net operating loss carryforward of $27,056, which may be available to
     reduce future years' taxable income through 2028. The $27,056 net operating
     loss  carryforward  expires $ 10,758 in year 2026, $5,501 in year 2027, and
     $10,797 in year 2028.  Pursuant to SFAS No.109,  the Company is required to
     compute  tax asset  benefits  for net  operating  loss  carryforwards.  The
     potential  benefits of the net  operating  loss has not been  recognized in
     these financial  statements because the Company has not determined it to be
     more  likely  than  not  that  it  will  utilize  the  net  operating  loss
     carryforward  in future years.  At March 31, 2008, the valuation  allowance
     established against the deferred tax asset is $9,199.

     Current United States income tax laws limit the amount of loss available to
     offset against future taxable income when a substantial change of ownership
     occurs. Therefore, the amount available to offset future taxable income may
     be limited.

Note 7. Subsequent Events

     On May 9, 2008, the  shareholders  of the Company holding a majority of the
     outstanding  shares voted to change the name of the Company from Royal Blue
     Exploration, Inc. to CH4 Energy, Inc. The change became effective on May 9,
     2008 upon the filing of the  Company's  Amended  and  Restated  Articles of
     Incorporation with the Nevada Secretary of State.

                                       8
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

                           FORWARD-LOOKING STATEMENTS

This Form 10-QSB includes "forward-looking statements" within the meaning of the
"safe-harbor" provisions of the Private Securities Litigation Reform Act of
1995. Such statements are based on management's current expectations and are
subject to a number of factors and uncertainties that could cause actual results
to differ materially from those described in the forward-looking statements.

All statements other than historical facts included in this Form, including
without limitation, statements under "Plan of Operation", regarding our
financial position, business strategy, and plans and objectives of management
for the future operations, are forward-looking statements.

Although we believe that the expectations reflected in such forward-looking
statements are reasonable, it can give no assurance that such expectations will
prove to have been correct. Important factors that could cause actual results to
differ materially from our expectations include, but are not limited to, market
conditions, competition and the ability to successfully complete financing.

                                PLAN OF OPERATION

Our plan of operations for the twelve months following the date of this report
is to complete the recommended phase one, two and three exploration programs on
the Royal Pit Lode Claim. We anticipate that the cost of these programs will
total $69,000. To date, we have not commenced exploration on the Royal Pit Lode
Claim.

The first phase would consist of trenching and sampling over known mineralized
zones. The exploration program would take approximately three weeks to complete
and would cost approximately $5,500.

The second phase would entail soil geochemical surveys, sampling and geological
mapping. The phase two program would take approximately two months to complete
and would cost approximately $23,500.

The third phase would involve test diamond drilling of the prime targets. This
program would take approximately two months to complete and would cost $40,000.

We have not retained a geologist to conduct any of the anticipated exploration
work. Mr. Sookochoff, the author of the geological report on the Royal Pit Lode
Claim, has indicated that he would be willing to conduct the proposed
exploration programs on our behalf, subject to his availability. However, we do
not have any agreement with him in this regard.

In the next 12 months, we also anticipate spending an additional $20,000 on
administrative expenses, including fees payable in connection with our
compliance with reporting obligations.

Total expenditures over the next 12 months are therefore expected to be $89,000.

While we have sufficient funds on hand to cover the phase one exploration costs,
we will require additional funding in order to complete the phase two and three
exploration program and to cover all of our anticipated administrative expenses
and to proceed with any subsequent exploration work on the Royal Pit Lode Claim.
We anticipate that additional funding will be required in the form of equity
financing from the sale of our common stock and from loans from our director.
However, we cannot provide investors with any assurance that we will be able to
raise sufficient funding from the sale of our common stock to fund all of our
anticipated expenses. We do not have any arrangements in place for any future
equity financing.

            RESULTS OF OPERATIONS FOR THE PERIOD ENDED MARCH 31, 2008

We did not earn any revenues during the six-month period ended March 31, 2008.
We do not anticipate earning revenues unless we enter into commercial production
on the Royal Pit Lode Claim, which is doubtful. We have not commenced the
exploration stage of our business and can provide no assurance that we will
discover economic mineralization on the property, or if such minerals are
discovered, that we will enter into commercial production.

                                       9
<PAGE>
We incurred operating expenses in the amount of $9,027 during six-month period
ended March 31, 2008. These consisted solely of general and administrative
expenses.

We have not attained profitable operations and are dependent upon obtaining
financing to pursue exploration activities. For these reasons our auditors
believe that there is substantial doubt that we will be able to continue as a
going concern.

ITEM 3. CONTROLS AND PROCEDURES

                        EVALUATION OF DISCLOSURE CONTROLS

We evaluated the effectiveness of our disclosure controls and procedures as of
March 31, 2008. This evaluation was conducted by Larry Sostad, our chief
executive officer and our principal accounting officer.

Disclosure controls are controls and other procedures that are designed to
ensure that information that we are required to disclose in the reports we file
pursuant to the Securities Exchange Act of 1934 is recorded, processed,
summarized and reported.

                    LIMITATIONS ON THE EFFECTIVE OF CONTROLS

Our management does not expect that our disclosure controls or our internal
controls over financial reporting will prevent all error and fraud. A control
system, no matter how well conceived and operated, can provide only reasonable,
but no absolute, assurance that the objectives of a control system are met.
Further, any control system reflects limitations on resources, and the benefits
of a control system must be considered relative to its costs. These limitations
also include the realities that judgments in decision-making can be faulty and
that breakdowns can occur because of simple error or mistake. Additionally,
controls can be circumvented by the individual acts of some persons, by
collusion of two or more people or by management override of a control. A design
of a control system is also based upon certain assumptions about potential
future conditions; over time, controls may become inadequate because of changes
in conditions, or the degree of compliance with the policies or procedures may
deteriorate. Because of the inherent limitations in a cost-effective control
system, misstatements due to error or fraud may occur and may not be detected.

                                   CONCLUSIONS

Based upon his evaluation of our controls, our chief executive officer and
principal accounting officer has concluded that, subject to the limitations
noted above, the disclosure controls are effective providing reasonable
assurance that material information relating to us is made known to management
on a timely basis during the period when our reports are being prepared. There
were no changes in our internal controls that occurred during the quarter
covered by this report that have materially affected, or are reasonably likely
to materially affect our internal controls.

                           PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

The Company is not a party to any pending legal proceeding. Management is not
aware of any threatened litigation, claims or assessments.

ITEM 2. CHANGES IN SECURITIES

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

                                       10
<PAGE>
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None.

ITEM 5. OTHER INFORMATION

On May 9, 2008, the shareholders owning a majority of the outstanding shares
resolved to change the Company's name from Royal Blue Exploration, Inc. to CH4
Energy, Inc.. The change became effective on May 9, 2008 with the filing of the
Company's Amended and Restated Articles of Incorporation with the Nevada
Secretary of State.

ITEM 6. EXHIBITS AND REPORT ON FORM 8-K

31.1 Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
     Section 302 of the Sarbanes-Oxley Act of 2002

31.2 Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
     Section 906 of the Sarbanes-Oxley Act of 2002

32.1 Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
     Section 906 of the Sarbanes-Oxley Act of 2002

32.2 Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
     Section 906 of the Sarbanes-Oxley Act of 2002

We filed the following current reports on Form 8-K subsequent to the quarter
ended December 31, 2007:

1.   We filed a current report on Form 8-K dated January 24, 2008 disclosing
     that Gudmund Lovang had resigned as our director and officer on January 23,
     2008; and

2.   We filed a current report on Form 8-K dated February 21, 2008 disclosing
     that Gudmund Lovang had sold 2,000,000 shares of our restricted common
     stock to our President, Larry Sostad.

3.   We filed a current report on Form 8-K dated May 16, 2008 disclosing that,
     on May 9, 2008, the shareholders owning a majority of the outstanding
     shares resolved to change the Company's name from Royal Blue Exploration,
     Inc. to CH4 Energy, Inc.. The change became effective on May 9, 2008 with
     the filing of the Company's Amended and Restated Articles of Incorporation
     with the Nevada Secretary of State.

                                       11
<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.

May 20, 2008

CH4 Energy, Inc.


/s/ Larry Sostad
------------------------------
Larry Sostad, President

                                       12