UNITED STATES
                       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 quarterly period ended June 30, 2008

                                       OR

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

            For the transition period from __________ to ___________

                        Commission File Number 333-140578


                                CH4 ENERGY, INC.
                 (Name of small business issuer in its charter)

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

                              13047 W. Iliff Drive
                            Lakewood, Colorado 80228
                    (Address of principal executive offices)

                                 (303) 478-4442
                (Issuer's telephone number, including area code)

Indicate by check mark  whether the issuer (1) 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 is a large  accelerated  filer, an
accelerated filer, a non-accelerated filer or a smaller reporting company filer.
See the  definitions  of "large  accelerated  filer,"  "accelerated  filer"  and
"smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer [ ]                        Accelerated Filer [ ]

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

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

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: 2,840,000 shares of common stock, par
value $.001 per share, as of July 31, 2008.
<PAGE>
                                CH4 ENERGY, INC.
                               REPORT ON FORM 10-Q
                  FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2008

                                    CONTENTS

PART I - FINANCIAL INFORMATION...............................................  3

   Item 1 - Financial Statements.............................................  3

   Item 2 - Management's Discussion and Analysis or Plan of Operation........  9

   Item 4 - Controls and Procedures.......................................... 13

PART II - OTHER INFORMATION.................................................. 14

   Item 1 - Legal Proceedings................................................ 14

   Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds...... 14

   Item 3 - Defaults Upon Senior Securities.................................. 14

   Item 4 - Submission of Matters to a Vote of Security Holders.............. 14

   Item 5 - Other Information................................................ 14

   Item 6 - Exhibits......................................................... 15

                                       2
<PAGE>
                         PART I - FINANCIAL INFORMATION

ITEM 1 - FINANCIAL STATEMENTS

                                CH4 ENERGY, INC.
                       (fka Royal Blue Exploration, Inc.)
                         (An Exploration Stage Company)

                           Consolidated Balance Sheets

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

Current assets:
  Cash                                                              $   94,898           $    5,241
  Undeveloped oil and gas properties                                   521,884                   --
                                                                    ----------           ----------

Total assets                                                        $  616,782           $    5,241
                                                                    ==========           ==========

                      LIABILITIES AND STOCKHOLDERS' EQUITY


Current liabilities:
  Accounts payable and accrued expenses                             $   15,331           $       --
  Notes payable to majority stockholder                                574,050                   --
                                                                    ----------           ----------
                                                                       589,381                   --
Stockholders' equity:
  Common stock; $.001 par value; 75,000,000 shares
   authorized; 2,840,000 and 302,000 shares issued
   and outstanding, respectively                                         2,840                  302
  Additional paid-in capital                                            82,110               21,198
  Deficit accumulated during exploration stage                         (57,549)             (16,259)
                                                                    ----------           ----------
                                                                        27,401                5,241
                                                                    ----------           ----------

Total liabilities and stockholders' equity                          $  616,782           $    5,241
                                                                    ==========           ==========
</TABLE>


         See notes to the consolidated financial statements (unaudited).

                                       3
<PAGE>
                                CH4 ENERGY, INC.
                       (fka Royal Blue Exploration, Inc.)
                         (An Exploration Stage Company)

                Consolidated Statements of Operations (Unaudited)

<TABLE>
<CAPTION>
                                                                                                      March 15, 2006
                                     Three Months Ended June 30,       Nine Months Ended June 30,     (inception) to
                                     ---------------------------      ---------------------------        June 30,
                                       2008              2007           2008              2007            2008
                                     ---------         ---------      ---------         ---------       ---------
<S>                                  <C>               <C>            <C>               <C>             <C>
Costs and expenses:
  General and administrative         $  29,746         $   1,904      $  40,543         $   2,630       $  51,802
  Impairment of mineral interest         5,000
  Interest                                 747                --            747                --             747
                                     ---------         ---------      ---------         ---------       ---------
Net loss applicable to
 common stockholders                 $ (30,493)        $  (1,904)     $ (41,290)        $  (2,630)      $ (57,549)
                                     =========         =========      =========         =========       =========
Net loss per common share -
 basic and diluted                   $    (.07)        $    (.01)     $    (.12)        $    (.01)
                                     =========         =========      =========         =========
Weighted average number of
 common shares outstanding             443,000           302,000        349,000           302,000
                                     =========         =========      =========         =========
</TABLE>


         See notes to the consolidated financial statements (unaudited).

                                       4
<PAGE>
                                CH4 ENERGY, INC.
                       (fka Royal Blue Exploration, Inc.)
                         (An Exploration Stage Company)

                Consolidated Statements of Cash Flows (Unaudited)

<TABLE>
<CAPTION>
                                                                                            March 15, 2006
                                                              Nine Months Ended June 30,    (inception) to
                                                             --------------------------        June 30,
                                                               2008             2007             2008
                                                             ---------        ---------        ---------
<S>                                                          <C>              <C>              <C>
Cash flows from operating activities:
  Net loss                                                   $ (41,290)       $  (2,630)       $ (57,549)
  Adjustments to reconcile net loss to net cash
   (used in) provided by operating activities:
     Impairment of mineral interest                                 --               --            5,000
  Changes in  operating  assets and liabilities:
     Accrued expenses                                           15,331           (5,000)          15,331
                                                             ---------        ---------        ---------
          Net cash (used in) operating activities              (25,959)          (7,630)         (37,218)
                                                             ---------        ---------        ---------
Cash flows from investing activities:
  Additions to undeveloped oil and gas properties                 (384)              --             (384)
  Purchase of mineral interest                                      --               --           (5,000)
                                                             ---------        ---------        ---------
          Net cash (used in) investing activities                 (384)              --           (5,384)
                                                             ---------        ---------        ---------
Cash flows from financing activities:
  Advances from majority stockholder                           116,000               --          116,000
  Proceeds from sale of common stock                                --               --           21,500
                                                             ---------        ---------        ---------
          Net cash provided by financing activities            116,000               --          137,500
                                                             ---------        ---------        ---------

Net increase (decrease) in cash                                 89,657           (7,630)          94,898
Cash at beginning of period                                      5,241           15,742               --
                                                             ---------        ---------        ---------
Cash at end of period                                        $  94,898        $   8,112        $  94,898
                                                             =========        =========        =========
Supplemental disclosure of cash flow information:
  Cash paid for interest                                                                       $      --
                                                                                               =========
  Cash paid for income taxes                                                                   $      --
                                                                                               =========
Supplemental disclosure of noncash investing and
financing activities:
  Purchase of undeveloped oil and gas properties for
   notes payable and common stock                            $(521,500)                        $(521,500)
                                                             =========                         =========
  Notes payable to majority stockholder for undeveloped
   oil and gas properties                                    $ 458,050                         $ 458,050
                                                             =========                         =========
  Common stock                                               $  63,450                         $  63,450
                                                             =========                         =========
</TABLE>

         See notes to the consolidated financial statements (unaudited).

                                       5
<PAGE>
                                CH4 ENERGY, INC.
                       (fka Royal Blue Exploration, Inc.)
                         (An Exploration Stage Company)

           Notes to the Consolidated Financial Statements (Unaudited)


1. BASIS OF PRESENTATION

The accompanying  unaudited consolidated financial statements have been prepared
in accordance with the accounting  principles  generally  accepted in the United
States of America for interim financial information and with the instructions to
Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all
of the information  and footnotes  required by accounting  principles  generally
accepted in the United States of America for annual financial statements. In the
opinion of management, all adjustments,  consisting of normal recurring accruals
considered  necessary for a fair  presentation,  have been  included.  Operating
results  for the three and nine months  ended June 30, 2008 are not  necessarily
indicative of the results that may be expected for the year ending September 30,
2008.  These  financial  statements  should  be read  in  conjunction  with  the
financial  statements  of the Company for the year ended  September 30, 2007 and
notes  thereto  contained  in the Report on Form  10-KSB of the Company as filed
with the  United  States  Securities  and  Exchange  Commission  (the  "SEC") on
December 21, 2007 and the Company's Form 8-K's filed in June of 2008.

2. ORGANIZATION

CH4 Energy,  Inc.  (formerly Royal Blue Exploration,  Inc.), was incorporated on
March  15,  2006  under  the laws of the  State of  Nevada.  The  Company  is an
exploration  stage company as defined by SFAS No 7 "ACCOUNTING  AND REPORTING BY
DEVELOPMENT STAGE ENTERPRISES". The Company is devoting substantially all of its
efforts on establishing the business and its planned  principal  operations have
not yet commenced.  All losses since  inception have been considered part of the
Company's exploration stage activities.

3. ACQUISITION OF OIL AND GAS LEASES

On June 25, 2008, the Company, along with our subsidiary, entered into a written
agreement to purchase oil and gas lease  interests  from James  Fitzsimons  at a
total cost of $521,500 (the "Agreement"). The Agreement relates to 169 leasehold
properties  totaling  3522.52 gross  (2381.53 net) acres located in Okfuskee and
Okmulgee Counties,  Oklahoma. The Leases were held in the name of Frontier Land,
Inc. ("Frontier") as fiduciary trustee for the benefit of James Fitzsimons,  and
pursuant to the  Agreement,  will now be held by Frontier for the benefit of the
Company's wholly owned subsidiary, CH4 Energy, LLC.

As  consideration  for  the  purchase  of Mr.  Fitzsimons'  oil  and  gas  lease
interests,  the Company agreed to issue James Fitzsimons  2,538,000 shares (post
reverse split) of the Company's common stock, at an agreed value of $63,450. The
Company  became  indebted  to James  Fitzsimons  for the  remaining  balance  of
$458,050 for which the Company issued a Promissory  Note. This Promissory  Note,
which is secured by the Leases,  bears an interest rate of 9.5% per annum and is
payable upon demand.

As part of the  Agreement,  the Company agreed to pay all  outstanding  costs of
Frontier  and all  future  costs  relating  both to the  Prospect  and to future
acquisition of leases within the Prospect by Frontier.  To assist with financing
this  obligation,  Mr.  Fitzsimons  provided an  additional  interim loan to the
Company of $116,000.  This additional loan, which is also secured by the Leases,
is  payable  upon  demand  and bears an  interest  rate of 9.5% per annum and is
payable upon demand.

                                       6
<PAGE>
                                CH4 ENERGY, INC.
                       (fka Royal Blue Exploration, Inc.)
                         (An Exploration Stage Company)

           Notes to the Consolidated Financial Statements (Unaudited)


4. OIL AND GAS PROPERTIES

The Company's oil and gas  exploration  and production  activities are accounted
for using the  successful  efforts  method.  Under  this  method,  all  property
acquisition costs and costs of exploratory and development wells are capitalized
when  incurred,  pending  determination  of  whether  the well has found  proved
reserves.  If an exploratory  well does not find proved  reserves,  the costs of
drilling  the well are  charged to expense and  included  within cash flows from
investing  activities in the  Consolidated  Statements of Cash Flows pursuant to
Statement of Financial  Accounting  Standards No. 19 "FINANCIAL  ACCOUNTING  AND
REPORTING BY OIL AND GAS  PRODUCING  COMPANIES"  ("SFAS No.  19").  The costs of
development wells are capitalized  whether productive or nonproductive.  Oil and
gas lease acquisition  costs are also capitalized.  Interest cost is capitalized
as a component of property  cost for  significant  exploration  and  development
projects that require  greater than six months to be readied for their  intended
use.

Other exploration costs,  including certain geological and geophysical  expenses
and delay  rentals for oil and gas leases,  are charged to expense as  incurred.
The sale of a partial  interest in a proved  property is accounted for as a cost
recovery and no gain or loss is  recognized as long as this  treatment  does not
significantly affect the unit-of-production amortization rate. A gain or loss is
recognized  for all other sales of proved  properties and is classified in other
operating revenues. Maintenance and repairs are charged to expense, and renewals
and  betterments  are  capitalized  to the  appropriate  property and  equipment
accounts.

Unevaluated properties are assessed periodically on a property-by-property basis
and any impairment in value is charged to expense. If the unevaluated properties
are subsequently determined to be productive,  the related costs are transferred
to proved oil and gas  properties.  Proceeds from sales of partial  interests in
unproved leases are accounted for as a recovery of cost without  recognizing any
gain until all costs are recovered.

The Company  reviews its proved oil and gas properties  for impairment  whenever
events  and  circumstances  indicate a decline  in the  recoverability  of their
carrying   value  may  have  occurred.   The  Company   estimates  the  expected
undiscounted  future cash flows of its oil and gas  properties and compares such
undiscounted  future  cash  flows  to the  carrying  amount  of the  oil and gas
properties to determine if the carrying amount is  recoverable.  If the carrying
amount exceeds the estimated  undiscounted  future cash flows,  the Company will
adjust the  carrying  amount of the oil and gas  properties  to fair value.  The
factors used to determine  fair value  include,  but are not limited to,  recent
sales prices of  comparable  properties,  estimates of proved  reserves,  future
commodity   pricing,   future   production   estimates,    anticipated   capital
expenditures,  and a discount rate  commensurate  with the risk  associated with
realizing the expected cash flows projected.

The provision for depreciation,  depletion and amortization  ("DD&A") of oil and
gas   properties   is   calculated   on  a   field-by-field   basis   using  the
unit-of-production method. Oil is converted to natural gas equivalents, Mcfe, at
the rate of one barrel to six Mcf. Taken into  consideration  in the calculation
of DD&A are estimated future  dismantlement,  restoration and abandonment costs,
which are net of estimated salvage values.

                                       7
<PAGE>
                                CH4 ENERGY, INC.
                       (fka Royal Blue Exploration, Inc.)
                         (An Exploration Stage Company)

           Notes to the Consolidated Financial Statements (Unaudited)


5. NOTES TO AN OFFICER/STOCKHOLDER

The Company  has two  secured,  9.5%-interest  bearing  notes  payable on demand
totaling  $574,050 with its President and major  stockholder  James  Fitzsimons.
During the three and nine-month  period ended June 30, 2008 the Company recorded
interest expense of $747.

6. COMMON STOCK

On June 17, 2008, the Company's directors approved a 1:25 reverse stock split of
the  Company's  common  stock  effective  June  30,  2008.  A  majority  of  the
stockholders  approved the reverse  stock split by written  consent in lieu of a
meeting on June 17, 2008 in accordance with the Nevada General  Corporation Law.
All share and per share amounts have been restated.


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

References  to  "Company",  "we" or "us" refer to CH4 Energy,  Inc.,  unless the
context requires otherwise.

FORWARD LOOKING STATEMENTS

The following is provided to supplement, and should be read in conjunction with,
our financial  statements and the accompanying notes included in our Form 10-KSB
as of  September  30, 2007 and the  Company's  Form 8-K's filed in June of 2008.
This report contains  forward-looking  statements and information relating to us
that is based on the beliefs of our management as well as  assumptions  made by,
and  information  currently  available  to,  our  management.  When used in this
report,  the words  "anticipate",  "believe",  "estimate",  "expect",  "intend",
"plan" and  similar  expressions,  as they relate to us or our  management,  are
intended  to  identify  forward-looking  statements.  These  statements  reflect
management's  current  view of us  concerning  future  events and are subject to
certain risks, uncertainties and assumptions, including among many others:

     *    the quality of our properties with regard to, among other things,  the
          existence of reserves in economic quantities;
     *    uncertainties about the estimates of reserves;
     *    our ability to increase our  production and oil and natural gas income
          through exploration and development;
     *    the number of well  locations  to be drilled and the time frame within
          which they will be drilled;
     *    the timing and extent of changes in  commodity  prices for natural gas
          and crude oil;
     *    domestic demand for oil and natural gas;
     *    drilling and operating risks;
     *    the   availability   of   equipment,   such  as   drilling   rigs  and
          transportation pipelines;
     *    changes in our drilling plans and related budgets;
     *    the adequacy of our capital resources and liquidity including, but not
          limited to, access to additional borrowing capacity; and
     *    risks and  uncertainties  described  in the Risk  Factors  section  or
          elsewhere in our Annual Report on Form 10-KSB and the  Company's  Form
          8-K's filed in June of 2008.

Should one or more of these  risks or  uncertainties  materialize  or should the
underlying assumptions prove incorrect, actual outcomes and results could differ
materially from those indicated in the forward-looking statements.

Any forward-looking statement speaks only as of the date on which such statement
is made, and we undertake no obligation to update any forward-looking  statement
or statements to reflect  events or  circumstances  after the date on which such
statement is made or to reflect the  occurrence  of  unanticipated  events.  New
factors  emerge  from  time to time and it is not  possible  for  management  to
predict all of such factors,  nor can it assess the impact of each factor on the
business or the extent to which any factor, or combination of factors, may cause
actual results to differ materially from those contained in any  forward-looking
statements.

                                       9
<PAGE>
BUSINESS OVERVIEW

On June 25, 2008, the Company, along with our subsidiary, entered into a written
agreement to purchase oil and gas lease  interests  from James  Fitzsimons  at a
total cost of $521,500 (the "Agreement"). The Agreement relates to 169 leasehold
properties  totaling  3522.52 gross  (2381.53 net) acres located in Okfuskee and
Okmulgee Counties, Oklahoma.

James Fitzsimons was the beneficial owner of oil and gas lease interests located
in Okfuskee County and Okmulgee County,  Oklahoma.  Specifically,  those oil and
gas leases are located in Section 13, Township 11 North, Range 11 East, Okfuskee
County,  Oklahoma; and Sections 2, 3, 4, 5, 6, 8, 9, 10, 11, 12, 15, 16, 17, 18,
19,  20,  21, 22,  26,  27,  28, 34 and 36,  Township  11 North,  Range 12 East,
Okmulgee County,  Oklahoma (these sections hereinafter  collectively referred to
as the "Prospect" and the related leases hereinafter collectively referred to as
the "Leases.").

Pursuant  to  the  Agreement  terms,  the  Company,  through  its  wholly  owned
subsidiary,  acquired 100 % of James Fitzsimons'  right,  title, and interest in
the Leases. The Leases were held in the name of Frontier Land, Inc. ("Frontier")
as fiduciary  trustee for the benefit of James  Fitzsimons,  and pursuant to the
Agreement,  will now be held by Frontier for the benefit of the Company's wholly
owned subsidiary, CH4 Energy, LLC.

The total purchase price for the Leases was $521,500.  As consideration  for the
purchase of James Fitzsimons' oil and gas lease interests, the Company agreed to
issue James  Fitzsimons  2,538,000  shares (post reverse split) of the Company's
common  stock,  at an agreed value of $63,450.  The Company  became  indebted to
James  Fitzsimons  for the  remaining  balance of $458,050 for which the Company
issued a Promissory  Note. This Promissory Note, which is secured by the Leases,
bears an interest rate of 9.5% per annum and is payable upon demand.

As part of the  Agreement,  the Company agreed to pay all  outstanding  costs of
Frontier  and all  future  costs  relating  both to the  Prospect  and to future
acquisition of leases within the Prospect by Frontier.  To assist with financing
this  obligation,  Mr.  Fitzsimons  provided an  additional  interim loan to the
Company of $116,000.  This additional loan, which is also secured by the Leases,
is  payable  upon  demand  and bears an  interest  rate of 9.5% per annum and is
payable upon demand.

As a result of purchasing oil and gas lease  interests and our becoming  engaged
in the business of oil and gas  exploration  and development and upon the advice
of counsel our management believes that our Company ceased to be a shell company
as defined in Rule 12b-2 of the United States  Securities  Exchange Act of 1934,
as amended.

CH4 Energy,  Inc.  (formerly Royal Blue Exploration,  Inc.), was incorporated on
March 15,  2006  under the laws of the State of  Nevada.  We are an  exploration
stage  Company  engaged  in the  acquisition,  exploration  and,  if  warranted,
development  of  prospective  oil and gas  properties.  Our office is located at
13047 W.  Iliff  Drive,  Lakewood,  CO 80228 and our  telephone  number is (303)
478-4442.

PLAN OF OPERATION

Our plan of operation is to conduct  exploration work on each of our current and
future properties in order to ascertain whether any of them possess commercially
exploitable  quantities  of oil and gas reserves.  There is no assurance  that a
commercially  viable oil and gas reserve exists on any of our current and future

                                       10
<PAGE>
properties,  and a great deal of further  exploration  will be required before a
final  evaluation as to the economic  feasibility for our future  exploration is
determined.  To date,  we do not  know if any  economically  viable  oil and gas
reserves  exist on any of our  current  or  future  properties  and  there is no
assurance that we will discover any.

OIL AND GAS PROPERTIES

REPORTED RESERVES

We have not filed,  or included in any reports,  any estimates of total,  proved
net oil or gas  reserves to any Federal  authority or agency with respect to our
oil and gas assets.

PRODUCTION

We have not  entered  into  production  with  respect  to any of our oil and gas
interests and there is no indication or guarantee that we will do so.

PRODUCTIVE WELLS AND ACREAGE

We do not own any productive wells or developed oil and gas acreage.

UNDEVELOPED ACREAGE

We hold lease  interests in  approximately  3522.52  gross  (2381.53  net) acres
located in Okfuskee and Okmulgee  Counties,  Oklahoma.  There are no  additional
requirements,  such as minimum exploration or drilling deadlines,  to retain our
lease interests.  A summary of the property covered by our lease interests is as
follows:

  Section-Township-Range            Gross Acres            Net Acres
  ----------------------            -----------            ---------

       13-11N-11E                     40.00                  40.0000
       02-11N-12E                    205.00                 139.4531
       03-11N-12E                    120.00                  43.3333
       04-11N-12E                    404.89                 384.8900
       05-11N-12E                    204.18                 127.9896
       06-11N-12E                    160.00                  70.0000
       08-11N-12E                    120.00                   7.5000
       09-11N-12E                    120.00                  98.1767
       10-11N-12E                    305.67                 247.5450
       11-11N-12E                    160.00                  80.0000
       12-11N-12E                     40.00                  40.0000

                                       11
<PAGE>
       15-11N-12E                    175.00                  52.7500
       16-11N-12E                     80.00                  60.0000
       17-11N-12E                     50.00                  12.5000
       18-11N-12E                    159.29                  93.4873
       19-11N-12E                    199.70                 130.5415
       20-11N-12E                    160.00                 160.0000
       21-11N-12E                     80.00                  33.3333
       22-11N-12E                    120.00                 120.0000
       26-11N-12E                    278.79                 268.8885
       27-11N-12E                    120.00                  88.3360
       28-11N-12E                     80.00                  18.3367
       34-11N-12E                     80.00                  40.0000
       36-11N-12E                     60.00                  24.4792
     TOTALS                         3522.52                 2381.531

The Oklahoma leases are near oil and gas fields with proved developed production
and within the general area of the "Woodford shale play,"  however,  the Company
has not yet  conducted  detailed  geological  mapping of the leases and does not
make any representations as to their future production, if any.

DRILLING ACTIVITY

We  have  not  engaged  in  any  oil  and  gas  drilling   activity   since  our
incorporation.

PRESENT ACTIVITIES

We do not hold an  interest  in any oil and gas wells that are in the process of
drilling  (including  wells  temporarily  suspended),  waterfloods in process of
installation, pressure maintenance operations or any other related operations of
material importance.

DELIVERY COMMITMENTS

We are not obligated to provide a fixed and determinable  quantity of oil or gas
to any third party pursuant to any contracts or agreements.

RESULTS OF OPERATIONS

Three Months Ended June 30, 2008 Compared to Three Months Ended June 30, 2007

During  the  quarter  ended  June 30,  2008,  we  incurred a net loss of $30,493
compared to a net loss of $1,904 for the 2007 quarter.  During the 2008 quarter,
the Company paid  professional  fees of $25,726,  which related primarily to the
development  of the Company's  business plan and costs  associated  with being a

                                       12
<PAGE>
public company,  as compared to $-0- for the 2007 quarter.  Also during the 2008
quarter,  the Company paid general and administrative  expenses of $4,020, which
included rent,  telephone and other office costs,  as compared to $1,904 for the
2007   quarter.   Interest   expense   of   $747   was   computed   on  the  two
officer/stockholder notes at 9.5% during the 2008 quarter.

Nine Months Ended June 30, 2008 Compared to Nine Months Ended June 30, 2007

During the nine months  ended June 30,  2007,  we incurred a net loss of $41,290
compared  to a net loss of $2,630  for the 2007  period.  The  $38,660  net loss
increase  is  primarily  due to the fact  that  the  Company  had  very  limited
operations  during 2007 and paid no rent or professional  fees.  During the nine
months ended September 30, 2007, the Company paid  professional fees of $33,292,
which related  primarily to the  development of the Company's  business plan and
costs  associated with being a public company,  as compared to $-0- for the 2007
period.  Also  during the nine months  ended June 30,  2008,  the  Company  paid
general and administrative  expenses of $7,251,  which included rent,  telephone
and other office  costs,  as compared to $2,630 for the 2007 period.  During the
nine months ended June 30, 2008 interest expense of $747 was computed on the two
officer/stockholder notes at 9.5%.

LIQUIDITY AND CAPITAL RESOURCES

Our Company's principal cash requirements are for exploration  expenses which we
anticipate  will rise as we proceed to determine the  feasibility  of developing
our current or future  property  interests.  As of June 30, 2008, we had cash of
$94,898  and  working  capital of $75,567.  Our net cash  provided by  financing
activities  during the period from our  inception to June 30, 2008 was $659,000.
The  Company  has two notes  from an  officer/stockholder  that are  payable  on
demand.

We anticipate that additional  funding/financing  will be required from the sale
of our common  stock  and/or  loans from our  officers/stockholders.  However we
cannot  provide  with any  assurance  that we will be able to  raise  sufficient
funding to meet all  anticipated  expenses.  We do not have any  arrangements in
place for any equity financing.

CRITICAL ACCOUNTING POLICIES

Financial  Reporting  Release  No. 60 of the SEC  encourages  all  companies  to
include a  discussion  of critical  accounting  policies or methods  used in the
preparation of the financial statements. There are no current revenue generating
activities  that give rise to  significant  assumptions  or estimates.  Our most
critical  accounting policies relate to the accounting and disclosure of related
party  transactions.   Our  financial   statements  include  a  summary  of  the
significant  accounting  policies  and methods  used in the  preparation  of our
financial statements.

OFF-BALANCE SHEET ARRANGEMENTS

We have never entered into any off-balance sheet financing arrangements and have
not formed any special  purpose  entities.  We have not  guaranteed  any debt or
commitments  of other  entities  or entered  into any  options on  non-financial
assets.

ITEM 4. CONTROLS AND PROCEDURES

An evaluation was carried out under the supervision  and with the  participation
of our management,  including our Chief Financial Officer and President,  of the
effectiveness  of our  disclosure  controls and  procedures as of the end of the

                                       13
<PAGE>
period covered by this report on Form 10-Q.  Disclosure  controls and procedures
are procedures that are designed with the objective of ensuring that information
required to be disclosed in our reports filed under the Securities  Exchange Act
of  1934,  such as this  Form  10-Q,  is  recorded,  processed,  summarized  and
reported,  within the time  period  specified  in the  Securities  and  Exchange
Commission's  rules and forms,  and that such  information is accumulated and is
communicated to our management,  including our principal executive and principal
financial officers, or persons performing similar functions, as appropriate,  to
allow timely decisions regarding required disclosure.  Based on that evaluation,
our management  concluded that, as of June 30, 2008, our disclosure controls and
procedures are effective to satisfy the objectives for which they are intended.

There  were  no  changes  in  our  internal  control  over  financial  reporting
identified in connection with the evaluation  performed that occurred during the
fiscal  quarter  covered  by this  report  that has  materially  affected  or is
reasonably  likely to materially  affect,  our internal  control over  financial
reporting.

                           PART II - OTHER INFORMATION

ITEM 1 - LEGAL PROCEEDINGS

The Company is not currently a party to any legal proceedings.

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

On June 25, 2008, the Company entered into a material definitive  agreement with
James  Fitzsimons  wherein the Company agreed to issue  2,538,000  (post reverse
split)  shares of its  common  stock to Mr.  Fitzsimons  at an  agreed  price of
$63,450.  The Shares were sold in a transaction  exempt from registration  under
Regulation S of the Securities Act of 1933, as amended (the  "Securities  Act").
The Shares are not registered  under the Securities Act or any state  securities
laws and, unless so registered, may not be offered or sold except pursuant to an
applicable  exemption from the  registration  requirements of the Securities Act
and applicable state  securities  laws. The purchaser of the Shares  represented
that it was acquiring the Shares for its own account,  for investment,  and that
the  purchaser  was not a US Person  within  the  meaning of  Regulation  S. The
Company  has no  obligation  to  register  the  resale of the  Shares  under the
Securities  Act.  The  proceeds  from  the sale of the  Shares  will be used for
working capital purposes.

ITEM 3 - DEFAULTS UPON SENIOR SECURITIES

None.

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

None.

ITEM 5 - OTHER INFORMATION

None.

                                       14
<PAGE>
ITEM 6 - EXHIBITS

   Exhibit
   Number                             Exhibit Description
   ------                             -------------------

     3.1       Amended and Restated  Articles of Incorporation - Incorporated by
               reference  to like  numbered  exhibit  to the  Company's  Current
               Report on Form 8-K filed May 16, 2008.

     3.2       Bylaws -  Incorporated  by reference to like numbered  exhibit to
               the  Company's  Registration  Statement  on Form SB-2 File Number
               333-140578.

     21        Description of Subsidiaries.**

     31.1      Rule 13a-14(a)/15d-14(a) Certification by the Principal Executive
               Officer and Principal Financial Officer.**

     32.1      Section 1350 Certification by the Principal Executive Officer and
               Principal Financial Officer.**

----------
** Filed herewith

                                       15
<PAGE>
                                    SIGNATURE

In accordance with the  requirements of the Securities  Exchange Act of 1934, as
amended,  the  registrant  caused  this  Report on Form 10-Q to be signed on its
behalf by the undersigned, thereunto duly authorized.

                                         CH4 ENERGY, INC.


Date: August 19, 2008                    By: /s/ James Fitzsimons
                                             -----------------------------------
                                             James Fitzsimons, President and CFO



                                       16
<PAGE>
                                  EXHIBIT INDEX

   Exhibit
   Number                             Exhibit Description
   ------                             -------------------

     3.1       Amended and Restated  Articles of Incorporation - Incorporated by
               reference  to like  numbered  exhibit  to the  Company's  Current
               Report on Form 8-K filed May 16, 2008.

     3.2       Bylaws -  Incorporated  by reference to like numbered  exhibit to
               the  Company's  Registration  Statement  on Form SB-2 File Number
               333-140578.

     21        Description of Subsidiaries.**

     31.1      Rule 13a-14(a)/15d-14(a) Certification by the Principal Executive
               Officer and Principal Financial Officer.**

     32.1      Section 1350 Certification by the Principal Executive Officer and
               Principal Financial Officer.**

----------
** Filed herewith