UNITED
      STATES


SECURITIES
      AND EXCHANGE COMMISSION


Washington,
      D.C. 20549





FORM
      10-QSB





x
            Quarterly
                report pursuant to Section 13 or 15(d) of the Securities Exchange
                Act of
                1934 For the quarterly period ended: June 30,
                2007





o
            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: 0-49837





WESTSIDE
      ENERGY CORPORATION


(Exact
      name of small business issuer as specified in its charter)





Nevada
            
            88-0349241(State
                or other jurisdiction of incorporation or organization)
            
            (I.R.S.
                Employer Identification No.)








3131
                Turtle Creek Blvd, Ste 1300, Dallas, TX
            
            75219(Address
                of principal executive offices)
            
            (Zip
                Code)




214/522-8990


(Issuer’s
      telephone number)





Indicate
      by check mark whether the registrant (1) has filed all reports required to
      be
      filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
      the
      preceding 12 months (or for such shorter period that the registrant was required
      to file such reports), and (2) has been subject to such filing requirements
      for
      the past 90 days. Yes x No o





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





The
      number of shares of common stock, $.01 par value, outstanding as of August
      13,
      2007: 21,546,526 shares





Transitional
      Small Business Disclosure Format (check one):   Yes oNo x













WESTSIDE
      ENERGY CORPORATION


PERIOD
      ENDED JUNE 30, 2007





INDEX





PART
                I.  FINANCIAL INFORMATION
            PageITEM
                1.
            FINANCIAL
                STATEMENTS
            1Financial
                statements of Westside Energy Corporation (unaudited):Consolidated
                balance sheets as of June 30, 2007
                and****December 31, 2006
            1Consolidated
                statements of operations for the three months and
                six months ended June 30, 2007 and 2006
            2Consolidated
                statements of cash flows for the six months ended
                June 30, 2007 and 2006
            3Notes
                to consolidated financial statements
            4ITEM
                2.
            MANAGEMENT’S
                DISCUSSION AND ANALYSIS
            8ITEM
                3.
            CONTROLS
                AND PROCEDURES
            14PART
                II.   OTHER INFORMATIONITEM
                1.
            LEGAL
                PROCEEDINGS
            14ITEM
                2.
            UNREGISTERED
                SALES OF EQUITY SECURITIES AND USE OF
                PROCEEDS
            15ITEM
                5.
            OTHER
              INFORMATION
            15ITEM
                6.
            EXHIBITS
            15SIGNATURES
            15




*Index*





**PART
      I.   FINANCIAL INFORMATION**





**ITEM
      1.   FINANCIAL STATEMENTS**




**Westside
                    Energy Corporation**CONSOLIDATED
                    BALANCE SHEETS(unaudited)**June
                    30, 2007**
                
                
                **December
                    31, 2006**ASSETSCurrent
                    assetsCash
                
                $
                9,276,867
                
                
                $
                5,003,803Certificates
                    of deposit and escrow account
                
                
                27,887
                
                
                
                27,887Marketable
                    securities
                
                
                -
                
                
                
                425,000Accounts
                    receivable
                
                
                3,929,021
                
                
                
                5,189,504Derivative
                    asset
                
                
                -
                
                
                
                169,885Prepaid
                    assets
                
                
                22,785
                
                
                
                122,914Total
                    current assets
                
                
                13,256,560
                
                
                
                10,938,993Oil
                    and gas properties, using successful efforts accountingProved
                    properties
                
                
                27,695,015
                
                
                
                23,681,084Unproved
                    properties
                
                
                7,944,484
                
                
                
                10,319,150Accumulated
                    depreciation,depletion and amortization
                
                
                (7,966,616
                )
                
                
                (10,851,176
                )Net
                    oil and gas properties
                
                
                27,672,883
                
                
                
                23,149,058Deferred
                    financing costs, net of accumulated amortization of $40,181and
                    $66,593
                
                
                288,032
                
                
                
                265,907Property
                    and equipment, net of accumulated depreciation of $118,604 and
                    $92,656
                
                
                124,374
                
                
                
                150,322TOTAL
                    ASSETS
                
                $
                41,341,849
                
                
                $
                34,504,280LIABILITIES
                    AND STOCKHOLDERS' EQUITYCurrent
                    liabilitiesAccounts
                    payable and accrued expenses
                
                $
                5,432,524
                
                
                $
                7,171,069Derivative
                    liability
                
                
                6,158
                
                
                
                -Short
                    term portion of debt
                
                
                -
                
                
                
                3,997,500Total
                    current liabilities
                
                
                5,438,682
                
                
                
                11,168,569Non-current
                    liabilitiesLong-term
                    derivative liability
                
                
                51,014
                
                
                
                -Asset
                    retirement obligation
                
                
                67,678
                
                
                
                153,487Long
                    term portion of debt - related party, net of discount of $238,579
                    and $0,
                    respectively
                
                
                24,761,421
                
                
                
                -Long
                    term portion of debt, net of discount of $0 and $404,325,
                    respectively
                
                
                -
                
                
                
                7,609,057TOTAL
                    LIABILITIES
                
                
                30,318,795
                
                
                
                18,931,113.00STOCKHOLDERS'
                    EQUITYPreferred
                    stock, $0.01 par value, 10,000,000 shares authorized, 0
                    shares issued and outstanding
                
                
                -
                
                
                
                -Common
                      stock, $0.01 par value, 50,000,000 shares authorized, 21,536,526
                      and 21,461,909 shares issued and outstanding
                
                
                215,366
                
                
                
                214,619Additional
                    paid-in capital
                
                
                34,672,173
                
                
                
                34,501,241Other
                    comprehensive income - unrealized gain (loss) on derivative
                    instruments
                
                
                (57,172
                )
                
                
                169,885Accumulated
                    deficit
                
                
                (23,807,313
                )
                
                
                (19,312,578
                )Total
                    stockholders' equity
                
                
                11,023,054
                
                
                
                15,573,167TOTAL
                    LIABILITIES AND STOCKHOLDERS' EQUITY
                
                $
                41,341,849
                
                
                $
                34,504,280
 
 See
                    accompanying notes to consolidated financial statements.
  1
 *Index*
  **Westside
                    Energy Corporation**CONSOLIDATED
                    STATEMENTS OF OPERATIONS(unaudited)**Three
                    Months Ended June 30,**
                
                
                **Six
                    Months Ended June 30,****2007**
                
                
                **2006**
                
                
                **2007**
                
                
                **2006****Revenues**Oil
                    and gas sales
                
                $
                1,383,449
                
                
                $
                700,849
                
                
                $
                2,298,676
                
                
                $
                1,053,250**Expenses**Production
                
                
                715,181
                
                
                
                312,307
                
                
                
                1,213,196
                
                
                
                523,409Exploration
                
                
                180,125
                
                
                
                (65
                )
                
                
                180,125
                
                
                
                -General
                    and administrative
                
                
                942,321
                
                
                
                1,809,805
                
                
                
                1,958,545
                
                
                
                3,252,207Depreciation,depletion,
                    and amortization
                
                
                1,105,018
                
                
                
                758,203
                
                
                
                1,946,669
                
                
                
                972,431Total
                    Expenses
                
                
                2,942,645
                
                
                
                2,880,250
                
                
                
                5,298,535
                
                
                
                4,748,047**Loss
                    from operations**
                
                
                (1,559,196
                )
                
                
                (2,179,401
                )
                
                
                (2,999,859
                )
                
                
                (3,694,797
                )**Other
                    Income (Expense)**Interest
                    income
                
                
                154,342
                
                
                
                59,447
                
                
                
                184,545
                
                
                
                136,301Interest
                    expense
                
                
                (623,288
                )
                
                
                (187,850
                )
                
                
                (1,679,421
                )
                
                
                (228,643
                )Total
                    Other Income (Expense)
                
                
                (468,946
                )
                
                
                (128,403
                )
                
                
                (1,494,876
                )
                
                
                (92,342
                )NET
                    LOSS
                
                $
                (2,028,142
                )
                
                $
                (2,307,804
                )
                
                $
                (4,494,735
                )
                
                $
                (3,787,139
                )Other
                    Comprehensive Income (Loss):Unrealized
                    gain (loss) on derivative instruments
                
                
                126,349
                
                
                
                55,220
                
                
                
                (227,057
                )
                
                
                (55,712
                )Total
                    Comprehensive Loss
                
                $
                (1,901,793
                )
                
                $
                (2,252,584
                )
                
                $
                (4,721,792
                )
                
                $
                (3,842,851
                )Basic
                    and diluted loss per common share
                
                $
                (0.09
                )
                
                $
                (0.11
                )
                
                $
                (0.21
                )
                
                $
                (0.18
                )Weighted
                    average common shares outstanding
                
                
                21,478,696
                
                
                
                20,877,154
                
                
                
                21,474,681
                
                
                
                20,646,336
 
 See
                    accompanying notes to consolidated financial statements.
  2
 *Index*
  **Westside
                    Energy Corporation**CONSOLIDATED
                    STATEMENTS OF CASH FLOWS(Unaudited)**Six
                    months ended June 30,****2007**
                
                
                **2006**Net
                    loss
                
                $
                (4,494,735
                )
                
                $
                (3,787,139
                )Adjustments
                    to reconcile net loss to net cash flows from
                    operating activities:Stock-based
                    compensation
                
                
                180,068
                
                
                
                514,452Amortization
                    of discount on note payable
                
                
                437,607
                
                
                
                62,159Depreciation,
                    depletion and amortization
                
                
                1,891,934
                
                
                
                971,498Accretion
                    of asset retirement obligation
                
                
                1,631
                
                
                
                933Amortization
                    of deferred financing cost
                
                
                306,088
                
                
                
                -Changes
                    in :
                
                
                -Accounts
                    receivable
                
                
                
                
                
                
                2,276,625Prepaid
                    assets
                
                
                1,260,482
                
                
                
                (566,994
                )Deferred
                    transactions charges
                
                
                100,129
                
                
                
                20,691Accounts
                    payable and accrued expenses
                
                
                (1,544,244
                )
                
                
                (2,027,938
                )NET
                    CASH USED IN OPERATING ACTIVITIES
                
                
                (1,861,040
                )
                
                
                (2,535,713
                )CASH
                    FLOWS FROM INVESTING ACTIVITIESCash
                    acquired on acquistion of EBS
                
                
                -
                
                
                
                955,774Advances
                    to EBS
                
                
                -
                
                
                
                (3,644,754
                )Proceeds
                    from sale of marketable securities
                
                
                425,000
                
                
                
                550,000Purchase
                    of Office Equipment
                
                
                -
                
                
                
                (37,688
                )Capital
                    expenditures for oil and gas properties
                
                
                (6,976,802
                )
                
                
                (8,754,122
                )NET
                    CASH USED IN INVESTING ACTIVITIES
                
                
                (6,551,802
                )
                
                
                (10,930,790
                )CASH
                    FLOWS FROM FINANCING ACTIVITIESProceeds
                    from sale of common stock, net
                
                
                25,000
                
                
                
                10,295,205Proceeds
                    from loan - related party
                
                
                25,000,000
                
                
                
                -Proceeds
                    from loan - unrelated party
                
                
                -
                
                
                
                5,210,000Deferred
                    financing cost
                
                
                (328,213
                )
                
                
                -Payments
                    on Note
                
                
                (12,010,881
                )
                
                
                (229,861
                )NET
                    CASH PROVIDED BY FINANCING ACTIVITIES
                
                
                12,685,906
                
                
                
                15,275,344NET
                    CHANGE IN CASH
                
                
                4,273,064
                
                
                
                1,808,841CASH
                    BALANCESBeginning
                    of period
                
                
                5,003,803
                
                
                
                604,411End
                    of period
                
                $
                9,276,867
                
                
                $
                2,413,252SUPPLEMENTAL
                    CASH FLOW DISCLOSURESInterest
                    paid
                
                $
                278,192
                
                
                $
                183,129Income
                    taxes paid
                
                
                -
                
                
                
                -NON
                    CASH DISCLOSURESDiscount
                    on note payable
                
                $
                271,861
                
                
                $
                182,000Change
                    in derivative liability
                
                
                227,057
                
                
                
                55,712Deferred
                    stock compensation
                
                
                33,389
                
                
                
                837,875Stock
                    issued for debt
                
                
                -
                
                
                
                20,000Asset
                    retirement  obligation incurred
                
                
                4,058
                
                
                
                49,952Revision
                    of asset retirement obligation
                
                
                91,498
                
                
                
                -
 
 See
                    accompanying notes to consolidated financial statements.




3
 *Index*





**WE****STSI****DE
      ENERGY
      CORPORATION**


NOTES
      TO
      CONSOLIDATED FINANCIAL STATEMENTS


(Unaudited)








NOTE
      1 -
      BASIS OF PRESENTATION





The
      accompanying unaudited interim financial statements of Westside Energy
      Corporation (“Westside”), have been prepared in accordance with accounting
      principles generally accepted in the United States of America and the rules
      of
      the Securities and Exchange Commission, and should be read in conjunction with
      the audited financial statements and notes thereto contained in Westside's
      latest annual report filed with the SEC on Form 10-KSB.  In the
      opinion of management, all adjustments, consisting of normal recurring
      adjustments, necessary for a fair presentation of financial position and the
      results of operations for the interim periods presented have been reflected
      herein. The results of operations for interim periods are not necessarily
      indicative of the results to be expected for the full year. Notes to the
      financial statements which would substantially duplicate the disclosure
      contained in the audited financial statements for fiscal year 2006, as reported
      in Form 10-KSB, have been omitted.





Westside’s
      consolidated financial statements include the accounts of Westside and its
      wholly and majority owned subsidiaries.  All significant intercompany
      accounts and transactions have been eliminated in
      consolidation.  Westside’s undivided interests in unincorporated oil
      and gas exploration and production ventures are proportionately
      consolidated.





NOTE
      2 -
      CONCENTRATION OF RISK





At
      June
      30, 2007, Westside's cash in financial institutions exceeded the federally
      insured deposits limit by $9,176,867.





NOTE
      3 -
      DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES





On
      March
      17, 2006, Westside entered into swap agreements in order to provide a measure
      of
      stability to Westside's cash flows due to volatile oil and gas prices and to
      manage the exposure to commodity price risk.





SFAS
      No. 133 “Accounting for Derivative Instruments and Hedging Activities”
requires that all derivative instruments be recorded on the balance sheet at
      their fair value. Changes in the fair value of each derivative are recorded
      each
      period in current earnings or other comprehensive income, depending on whether
      the derivative is designated as part of a hedge transaction and, if it is,
      the
      type of hedge transaction. To make this determination, management formally
      documents the hedging relationship and its risk-management objective and
      strategy for undertaking the hedge, the hedging instrument, the item, the nature
      of the risk being hedged, how the hedging instrument's effectiveness in
      offsetting the hedged risk will be assessed, and a description of the method
      of
      measuring ineffectiveness. This process includes linking all derivatives that
      are designated as cash-flow hedges to specific cash flows associated with assets
      and liabilities on the balance sheet or to specific forecasted
      transactions.





Westside
      also formally assesses, both at the hedge's inception and on an ongoing basis,
      whether the derivatives that are used in hedging transactions are highly
      effective in offsetting cash flows of hedged items. A derivative that is highly
      effective and that is designated and qualifies as a cash-flow
      hedge  has its changes in fair value recorded in other comprehensive
      income to the extent that the derivative is effective as a hedge. Any other
      changes determined to be ineffective do not qualify for cash-flow hedge
      accounting and are reported currently in earnings.




4
 *Index*





Westside
      discontinues cash-flow hedge accounting when it is determined that the
      derivative is no longer effective in offsetting cash flows of the hedged item,
      the derivative expires or is sold, terminated, or exercised, the derivative
      is
      redesignated as a non-hedging instrument because it is unlikely that a
      forecasted transaction will occur, or management determines that designation
      of
      the derivative as a cash-flow hedge instrument is no longer appropriate. In
      situations in which cash-flow hedge accounting is discontinued, Westside
      continues to carry the derivative at its fair value on the balance sheet and
      recognizes any subsequent changes in its fair value in earnings.





When
      the
      criteria for cash-flow hedge accounting are not met, realized gains and losses
      are recorded in other income and expense in the Statements of Operations.
      Similarly, changes in the fair value of the derivative instruments are recorded
      as unrealized gains or losses in the Statements of Operations. In contrast,
      cash
      settlements for derivative instruments that qualify for hedge accounting are
      recorded as additions to or reductions of oil and gas revenues while changes
      in
      fair value of cash flow hedges are recognized, to the extent the hedge is
      effective, in other comprehensive income until the hedged item is recognized
      in
      earnings.




Based
      on
      the above, management has determined that the swaps qualify for cash-flow hedge
      accounting treatment. For the period ended June 30, 2007, Westside recognized
      a
      derivative liability of $57,172 ($6,158 current and $51,014 long term) with
      the
      change in fair value reflected in accumulated comprehensive loss.





NOTE
      4 –
ASSET RETIREMENT OBLIGATION





As
      Westside develops or purchases oil and gas wells, Westside incurs an obligation
      to record a liability commensurate with its working interest share of the future
      abandonment and reclamation costs of each well (“ARO”) and a corresponding
      increase in the carrying value of each well (“ARC”) on the date the liability is
      measured and recorded.  Westside accounts for the ARO and the
      associated ARC in accordance with SFAS 143 “Accounting for Asset Retirement
      Obligations”.





At
      April
      1, 2007, Westside revised its estimated ARO pursuant to a revision in the timing
      of expected cash outflows to settle the ARO.  This revaluation
      resulted in a decrease in the ARO of $91,498 and a decrease in the net book
      value of the ARC of $64,983.





At
      June
      30, 2007, the net present value of Westside’s ARO was estimated to be $67,678
      ($101,769 in 2005) with the undiscounted value being
      $269,396.  Assumptions used in calculating the net present value and
      accretion of the ARO are estimated reserve lives and a discount rate of
      10%.





December
                31, 2006 Balance
            
            $
            153,487Revision
                of Estimate
            
            
            (91,498
            )Liabilities
                Incurred
            
            
            4,058Accretion
                Expense
            
            
            1,631June
                30, 2007 Balance
            
            $
            67,678





NOTE
      5 –
LONG TERM DEBT – RELATED PARTY





On
      March
      27, 2007, Westside closed a $25 million senior secured loan from four entities
      managed by Wellington Management Company, LLP to replace the credit facility
      previously provided by GasRock Capital, LLC.  Two of the lending
      entities are among the largest institutional holders of the Company’s
      outstanding shares.





5
 *Index*




As
      a
      result of this new loan agreement, all previously deferred financing costs
      and
      original issue discounts associated with the loan provided by Gas Rock Capital,
      LLC of $670,232 were recorded in the first quarter of 2007 as a component of
      interest expense.





The
      new
      loan arrangement was provided by four private investment funds managed by
      Wellington Management Company, LLP, then the largest beneficial holder of our
      outstanding common stock at June 30, 2007. The new loan
      arrangement:





·
            provided
                $25 million in funds,
                which were advanced in their entirety upon completion of the new
                loan
                arrangement;


·
            is
                secured by a first lien on all
                of the oil and gas properties comprising our Southeast and Southwest
                Programs;


·
            grants
                to the lenders the right
                to receive a lien in any and all of the proceeds received upon the
                sale of
                a property comprising our North Program or any subsequent property
                acquired with such proceeds;


·
            bears
                annual interest at 10.0%
                (or in the case of default, 12.0%)
                annually;


·
            grants
                to the lenders a three
                percent (3.0%) overriding royalty interest (proportionately reduced
                to our
                working interest) in all oil and gas produced from the properties
                now
                comprising our Southeast and Southwest
                Programs;


·
            contains
                limiting operating
                covenants;


·
            contains
                events of default
                arising from failure to timely repay principal and interest or comply
                with
                certain covenants; and




Westside
      has recorded a discount of $271,861 related to the conveyance of the overriding
      royalty interest discussed above. As of June 30, 2007, $33,282 of this discount
      had been amortized as a component of interest expense. Westside incurred fees
      and other costs directly associated with this loan agreement of $328,213, These
      fees have been recorded as deferred financing costs. As of June 30, 2007,
      $40,181 of these deferred financing costs had been amortized as a component
      of
      interest expense. Both the discount and deferred financing costs are being
      amortized over the expected term of the note using the effective interest
      method.





Westside
      analyzed these instruments for derivative accounting consideration under SFAS
      133 and EITF 00−19 and determined that derivative accounting is not
      applicable.





NOTE
      6 –
EQUITY





Westside
      had the following equity transactions for the six-month period ended June 30,
      2007:





·
            50,000
                warrants were exercised
                for proceeds of $25,000.


·
            37,950
                shares of common stock
                were issued for current and future services to be earned evenly over
                the
                next three years.  Westside recognized $180,068 in expense for
                the amortization of shares issued for future
                compensation.


·
            An
                employee who had previously
                been issued shares resigned from Westside resulting in the cancellation
                13,333 shares previously issued for future
                services.





NOTE
      7 -
      PURCHASE OF EBS OIL AND GAS PARTNERS PRODUCTION COMPANY, L.P.





On
      March
      15, 2006, Westside acquired EBS Oil and Gas Partners Production Company, L.P.
      and EBS Oil and Gas Partners Operating Company, L.P. (collectively "EBS").
      The
      acquired EBS assets consist (in part) of rights in approximately 9,837 gross
      acres and an approximately one-sixth interest in Tri-County Gathering, a
      pipeline system serving part of the Barnett Shale area. The interest in the
      pipeline system was sold in November 2006 for $5,000,000.





6
 *Index*





The
      purchase price for the Equity Interests consisted of an initial purchase price
      paid at closing (the "Initial Purchase Price") and additional consideration
      to
      be paid after closing (the "Additional Consideration"). The Initial Purchase
      Price was set at $9,804,839, subject to certain adjustments. The adjustments
      included a reduction in the Initial Purchase Price for all debt owed by EBS,
      including (a) indebtedness in the approximate amount of $5,850,000 owed by
      EBS
      to Westside, and (b) indebtedness in the approximate amount of $1,600,000 owed
      by EBS to a third party. After making adjustments, Westside paid in cash at
      the
      closing approximately $151,000 to the Class B partners of EBS and an EBS payable
      in the amount of approximately $294,000, and Westside received a credit in
      the
      approximate amount of $1,700,000 against the future payment of the Additional
      Consideration. Funding for the cash paid at the closing and the retirement
      of
      the Third Party Loan was provided from Westside's available cash and by GasRock
      Capital LLC ("GasRock") pursuant to an Advancing Term Credit Agreement (the
      "Credit Agreement"). The additional consideration was resolved and finalized
      in
      2006.




The
      following unaudited pro forma information assumes the acquisition of EBS
      occurred as of January 1, 2006. The pro forma results are not necessarily
      indicative of what actually would have occurred had the acquisition been in
      effect for the period presented.





Six-month
      period ended June 30, 2006:





**As**
              **Reported**
            
            
            **Pro-**
              **Forma**Revenues
            
            $
            1,053,250
            
            
            $
            1,772,071Net
                Loss
            
            $
            (3,787,139
            )
            
            $
            (3,826,995
            )Loss
                Per Share
            
            $
            (0.18
            )
            
            $
            (0.19
            )





NOTE
      8 –
SUBSEQUENT EVENT





Westside
      adopted the 2007 Equity Incentive Plan for directors, officers, employees and
      consultants. The plan terminates in 10 years. The maximum number of shares
      of
      common stock that may be subject to awards is 2.0 million
      shares.  Types of awards that may be granted under the plan are stock
      grants, non-qualified stock options, incentive stock options and stock-based
      awards.





7
 *Index*





**ITEM
      2.   MANAGEMENT’S DISCUSSION AND
      ANALYSIS**





**General**





Westside
      Energy Corporation is an independent exploration and production company based
      in
      Dallas, Texas.  Our operations are focused in the Barnett Shale in
      North Central Texas.   As of June 30, 2007, we owned 81,055 gross
      (67,158 net) acres,in the Barnett Shale., 77,935 gross (66.293 net) of which
      were undeveloped.  As of June 30, 2007, our average daily net
      production had increased to 2.7 MMcfe per day.  As of June 30, 2007,
      our estimated net proved reserves were 8,727 MMcf of natural gas and 152
      thousand barrels of oil, and we had working interests in 44 gross (14.8 net)
      productive wells.





We
      incorporated under Nevada law in November 1995 as “Eventemp Corporation”, a
      company with activities related to the automotive industry.  Following
      several years of business inactivity, we entered the oil and gas industry in
      February 2004.  In the following month, we changed our name to
“Westside Energy Corporation.”





There
      can
      be no assurance that we will be successful in our exploration, development,
      and
      production activities.  The oil and gas business involves numerous
      risks, the principal ones of which are described in the section captioned “Risk
      Factors” in our Annual Report on Form 10-KSB for the year ended December 31,
      2006.





Listed
      below are key Company events that have occurred in 2007 to date:




·
                We
                    completed our first horizontal
                    Hill County well, the Primula #1H well, in which we own a 50%
                    working
                    interest.  This well tested at a gross initial rate of 2.1
                    MMCF/D from its 1,600' productive horizontal
                    section.
 
 ·
                We
                    completed our second
                    horizontal well in Hill County, the Ellison Estate #1H, in which
                    we own a
                    50% working interest.  This well tested at a gross initial rate
                    of 1.9 MMCF/D on a 40/64-inch
                    choke.,
 
 ·
                We
                    completed the Fortenberry #2H
                    horizontal well in Wise County, in which we own a 37.5% working
                    interest.
                    This well tested at a gross initial rate of 982 MCF/D and 82
                    BO/D on a
                    33/64-inch choke.
 
 ·
                We
                    completed the Smith #2
                    vertical well in Cooke County, in which we own a 61.5% working
                    interest.  This well tested at a gross initial rate of 350 BO/D
                    and 360 MCF/D (2.5 MMCFE/D) on a 22/64-inch
                    choke.
 
 ·
                We
                    completed drilling our third
                    well in Hill County, the Primula South #2H, in which we own a
                    50% working
                    interest.  Completion operations for this well commenced August
                    7, 2007. The well was successfully fracture stimulated in four
                    stages, and
                    we are currently flowing back completion
                    fluids.
 
 ·
                We
                    commenced drilling our fourth well in Hill County, the Ellison
                    Estate
                    #2H.
 
 ·
                We
                    entered into a new $25 million
                    loan arrangement to replace our then existing credit facility
                    provided by
                    GasRock Capital LLC.  The new loan arrangement was provided by
                    four private investment funds managed by Wellington Management
                    Company,
                    LLP, then the largest beneficial holder of our outstanding common
                    stock.  For more information about this loan arrangement, see
                    Note 5 above and "Liquidity and Capital Resources"
                    below.


8
 *Index*





The
      following discussion and analysis of our financial condition and results of
      operations should be read in conjunction with our consolidated financial
      statements and related notes included elsewhere in this Report. In addition
      to
      historical information, the discussion in this Report contains forward-looking
      statements that involve risks and uncertainties. Actual results could differ
      materially from those anticipated by these forward-looking statements due to
      factors including, but not limited to, those factors set forth elsewhere in
      this
      Report and in the section captioned "RISK FACTORS" in our Annual Report on
      Form
      10-KSB for the year ended December 31, 2006.





**Material
      Subsequent Events**





**2007
      Equity Incentive Plan**





On
      July 9, 2007, Westside’s Board of
      Directors approved the submission of Westside’s 2007 Equity Incentive Plan (the
“Plan”) to the stockholders for their approval.  The Plan
      received stockholder approval on August 13, 2007.





**Results
      of Operations**








*Quarter
      Ended June 30, 2007 Compared to the Quarter Ended June 30,
      2006*





*Revenues.*******Revenues
      from sales of oil and natural gas were $1,383,449  in the second
      quarter of 2007 as compared to $700,849 in the second quarter of
      2006.  This increase in revenues reflects the impact of higher sales
      volumes for both oil and natural gas and higher sales prices for natural
      gas.  Oil sales volumes increased from an average of 28 to 71 barrels
      per day, and average oil sales prices decreased from $61.04 to $60.39 per
      barrel.  Natural gas sales increased from an average of .9 million
      cubic feet per day (MMCF/D) to 1.8 MMCF/D while average natural gas sales prices
      increased from $5.55 to $6.13 per MCF.





*Expenses.*******Operating
      expenses increased to $2,942,645 in the second quarter of 2007 from $2,880,250
      in the second quarter of 2006.  This change comprises increases in
      production, exploration, and depreciation, depletion, and amortization expense,
      partially offset by a reduction in general and administrative
      expense.





·
            *Production
                Expense.*The increase
                in production
                expense to $715,181 for the three months ended June 30, 2007 from
                $312,307
                for the three months ended June 30, 2006 is a function of increased
                production operations activities associated with an increase in producing
                wells and the resulting substantial increase in sales volumes which
                also
                resulted in higher oil and natural gas severance and production
                taxes.




·
            *Exploration
                Expense.*The increase
                in
                exploration expense to $180,125 for the three months ended June 30,
                2007
                from ($65) for the three months ended June 30, 2006 reflects the
                purchase
                of additional three dimensional seismic
                data.




·
            *General
                and Administrative
                Expense.*The decrease
                in general and
                administrative expense to $942,321 for the three months ended June
                30,
                2007 from $1,809,805 for the three months ended June 30, 2006 primarily
                reflects reduced stock compensation expense and the closing of Westside’s
                Houston office in November
                2006.




·
            *Depreciation,
                depletion, and
                amortization expense.*The increase
                in
                depreciation, depletion and amortization expense to $1,105,018 for
                the
                three months ended June 30, 2007 from $758,203 for the three months
                ended
                June 30, 2006 reflects the substantial increase in volumes of oil
                and
                natural gas produced and the effect of increased capital investment
                in oil
                and gas properties depreciated on a units of production
                basis.





9
 *Index*





*Operating
      Loss.*******As a result of the above described
      revenues and expenses, we incurred an operating loss of $1,559,196 in the second
      quarter of 2007 as compared to an operating loss of $2,179,401 in the second
      quarter of 2006.





*Other
      Income (Expense).*Other income and expense items in the second
      quarter of 2007 include $154,342 in interest income and $623,288 in interest
      expense.  The second quarter of 2006 results included $59,447 in
      interest income and $187,850 in interest expense.****Interest
      expense increased in 2007 as a result of higher debt balances from the
      Wellington credit facility in March 2007.





*Net
      Loss.*We incurred a net loss of $2,028,142, or $.09 per share,
      for the quarter ended June 30, 2007 as compared to a net loss of $2,307,804,
      or
      $0.11 per share, for the quarter ended June 30, 2006.





*Six
      Months Ended June 30, 2007 Compared to the Six Months Ended June 30,
      2006*





Financial
      results for the six-month period ended June 30, 2007 are not directly comparable
      to financial results for the six-month period ended June 30, 2006.
****The completion of the EBS acquisition near the end of the
      first quarter of 2006 did not greatly affect the financial results for that
      quarter, but did greatly affected the financial results for subsequent quarters,
      including the first and second quarters of 2007.





*Revenues.*******Revenues
      from sales of oil and natural gas were $2,298,676  in the first six
      months of 2007 as compared to $1,053,250 in the first six months of
      2006.  This increase in revenues reflects the impact of higher sales
      volumes and prices for both oil and natural gas.  Oil sales volumes
      increased from an average of 27 to 57 barrels per day, and average oil sales
      prices increased from $60.52 to $60.61 per barrel.  Natural gas sales
      volumes increased from an average of  .7 million cubic feet per day
      (MMCF/D) to 1.5  MMCF/D while average natural gas sales prices
      increased from $5.57 to $6.25 per MCF.





*Expenses.*******Operating
      expenses increased to $5,298,535 in the first six months of 2007 from $4,748,047
      in the first six months of 2006.  This change comprises increases in
      production, exploration, and depreciation, depletion, and amortization expense,
      partially offset by a reduction in general and administrative
      expense.





·
            *Production
                Expense.*The increase
                in production
                expense to $1,213,196 for the six months ended June 30, 2007 from
                $523,409
                for the three months ended June 30, 2006 is a function of increased
                production operations activities associated with an increase in producing
                wells and the resulting substantial increase in sales volumes which
                also
                resulted in higher oil and natural gas severance and production
                taxes.




·
            *Exploration
                Expense.*The increase
                in
                exploration expense to $180,125 for the six months ended June 30,
                2007
                (2006 - $0) reflects the purchase of additional three dimensional
                seismic
                data.




·
            *General
                and Administrative
                Expense.*The decrease
                in general and
                administrative expense to $1,958,545 for the three months ended June
                30,
                2007 from $3,252,207 for the six months ended June 30, 2006 primarily
                reflects reduced stock compensation expense and the closing of Westside’s
                Houston office in November
                2006.




·
            *Depreciation,
                depletion, and
                amortization expense.*The increase
                in
                depreciation, depletion and amortization expense to $1,946,669 for
                the six
                months ended June 30, 2007 from $972,431 for the six months ended
                June 30,
                2006 reflects the substantial increase in volumes of oil and natural
                gas
                produced and the effect of increased capital investment in oil and
                gas
                properties depreciated on a units of production
                basis.





*Operating
      Loss.*******As a result of the above described
      revenues and expenses, we incurred an operating loss of $2,999,859 in the first
      six months of 2007 as compared to an operating loss of $3,694,797 in the first
      six months of 2006.





10
 *Index*





*Other
      Income (Expense).*Other income and expense items in the first
      six months of 2007 include $184,545 in interest income and $1,679,421 in
      interest expense.  The first six months of 2006 results included
      $136,301 in interest income and $228,643 in interest
      expense.****Interest expense increased in 2007 as a result of
      higher debt balances, the retirement of deferred financing costs associated
      with
      the Gas Rock credit facility and the addition of the Wellington credit
      facility





*Net
      Loss.*We incurred a net loss of $4,494,735, or $.21 per share,
      for the six months ended June 30, 2007 as compared to a net loss of $3,787,139,
      or $0.18 per share, for the six months ended June 30, 2006.





**Liquidity
      and Capital Resources**





*Cash,  Cash
      Equivalents, and Marketable Securities*. As of June 30, 2007, we had cash,
      cash equivalents and marketable securities of approximately $9.3 million,
      representing an increase of $3.8 million from December 31, 2006.





*Hedging*.
      Under our senior secured credit facility, we were required to hedge a
      substantial portion of our reserves. In March 2006, we entered into swap
      contracts covering approximately 75% of our projected production through March
      2008 from our proved developed producing reserves estimated as of December
      31,
      2005 based on a report prepared by LaRoche Petroleum Consultants, Ltd., a
      third-party engineering firm. The prices stated in the swap contracts were
      $8.05
      per MMBtu for natural gas and $66.15 per barrel for oil. In the first quarter
      of
      2007, we added additional hedge positions, extending from February 2007 to
      December 2008. The prices stated in these swap contracts were $7.45 per MMBtu
      of
      natural gas and $55.50 per barrel of oil.





*Senior
      Secured Financing*. In March 2006, we entered into a $45 million senior
      secured revolving credit facility with GasRock Capital LLC (“GasRock”). In
      connection with our acquisition of EBS Oil and Gas Partners Production Company
      L.P. and its affiliated operations company, we borrowed approximately $5.3
      million under the GasRock credit facility for payments at closing, approximately
      $1.6 million to discharge certain of the acquired companies' indebtedness,
      and
      amounts for reimbursement of costs related to previous drilling and future
      development drilling. Subsequently, we borrowed an additional amount of
      approximately $10 million under the GasRock credit facility. During March 2007,
      we entered into a new loan arrangement to replace the GasRock facility, which
      was paid off and terminated. The new loan arrangement was provided by four
      private investment funds managed by Wellington Management Company, LLP, then
      the
      largest beneficial holder of our outstanding common stock. The new loan
      arrangement:




·
              provided
                  $25 million in funds,
                  which were advanced in their entirety upon completion of the new
                  loan
                  arrangement;
 ·
              is
                  secured by a first lien on all
                  of the oil and gas properties comprising our Southeast and Southwest
                  Programs;
 ·
              grants
                  to the lenders the right
                  to receive a lien in any and all of the proceeds received upon
                  the sale of
                  a property comprising our North Program or any subsequent property
                  acquired with such proceeds;
 ·
              bears
                  annual interest at 10.0%
                  (or in the case of default, 12.0%)
                  annually;
 ·
              grants
                  to the lenders a three
                  percent (3.0%) overriding royalty interest (proportionately reduced
                  to our
                  working interest) in all oil and gas produced from the properties
                  now
                  comprising our Southeast and Southwest
                  Programs;
 ·
              contains
                  limiting operating
                  covenants;
 ·
              contains
                  events of default
                  arising from failure to timely repay principal and interest or
                  comply with
                  certain covenants; and
 ·
              requires
                  the repayment of the
                  outstanding balance of the loan in March
                  2009.


11
 *Index*





We
      continually evaluate our capital needs and compare them to our capital
      resources. Our budgeted project expenditures for 2007 are approximately $15.0
      million and are to be used primarily for drilling and development of our
      properties. We expect to fund these expenditures from available cash and revenue
      generated during 2007 and, if necessary, from additional financings. The level
      of project expenditures is largely discretionary and the amount of funds devoted
      to any activity may increase or decrease depending on available opportunities,
      commodity prices, cash flows, development results and other
      considerations.





We
      believe that our available cash and access to additional financial resources
      will be sufficient to enable us to pursue our business plans for the next 12
      months.





**Critical
      Accounting Policies and Estimates**





Our
      discussion of our financial condition and results of operations is based on
      the
      information reported in our financial statements. The preparation of our
      financial statements requires us to make assumptions and estimates that affect
      the reported amounts of assets, liabilities, revenues and expenses as well
      as
      the disclosure of contingent assets and liabilities as of the date of our
      financial statements. We base our assumptions and estimates on historical
      experience and other sources that we believe to be reasonable at the time.
      Actual results may vary from our estimates due to changes in circumstances,
      weather, politics, global economics, mechanical problems, general business
      conditions and other factors. Our significant accounting policies are detailed
      in the footnotes to our financial statements included in this Quarterly Report.
      We have outlined below certain of these policies that have particular importance
      to the reporting of our financial condition and results of operations and that
      require the application of significant judgment by our management.





***Key
      Definitions - Proved Oil and Natural Gas Reserves***





Proved
      reserves, as defined by the SEC, are the estimated quantities of crude oil,
      condensate, natural gas and natural gas liquids that geological and engineering
      data demonstrate with reasonable certainty are recoverable in future years
      from
      known reservoirs under existing economic and operating conditions. Valuations
      include consideration of changes in existing prices provided only by contractual
      arrangements, but not on escalations based upon future conditions. Prices do
      not
      include the effect of derivative instruments, if any, entered into by
      us.





Proved
      developed reserves are those reserves expected to be recovered through existing
      equipment and operating methods. Additional oil and gas volumes expected to
      be
      obtained through the application of fluid injection or other improved recovery
      techniques for supplementing the natural forces and mechanisms of primary
      recovery are included as proved developed reserves only after testing of a
      pilot
      project or after the operation of an installed program has confirmed through
      production response that increased recovery will be achieved.





Proved
      undeveloped reserves are those reserves that are expected to be recovered from
      new wells on non-drilled acreage, or from existing wells where a relatively
      major expenditure is required for re-completion. Reserves on non-drilled acreage
      are limited to those drilling units offsetting productive units that are
      reasonably certain of production when drilled. Proved reserves for other
      non-drilled units are claimed only where it can be demonstrated with certainty
      that there is continuity of production from the existing productive
      formation.





***Estimation
      of Reserves***





Volumes
      of reserves are estimates that, by their nature, are subject to revision. The
      estimates are made using all available geological and reservoir data as well
      as
      production performance data. There are numerous uncertainties in estimating
      crude oil and natural gas reserve quantities, projecting future production
      rates
      and projecting the timing of future development expenditures. Natural gas and
      oil reserve engineering must be recognized as a subjective process of estimating
      underground accumulations of natural gas and oil that cannot be measured in
      an
      exact way. Estimates of independent engineers that we use may differ from those
      of other engineers. The accuracy of any reserve estimate is a function of the
      quantity and quality of available data and of engineering and geological
      interpretation and judgment. Accordingly, future estimates are subject to change
      as additional information becomes available.





12
 *Index*





***Revenue
      Recognition***





We
      record
      natural gas and oil revenues using the entitlement method of accounting for
      production, in which any excess amount received by us above our share of
      production is treated as a liability. If we receive less than our share of
      production, the underproduction is recorded as an asset. We did not have an
      imbalance position relative to volumes or values at June 30, 2007.





***Successful
      Efforts Accounting***





We
      utilize the successful efforts method to account for our natural gas and oil
      operations. Under this method, all costs associated with natural gas and oil
      lease acquisitions, successful exploratory wells and all development wells
      are
      capitalized and amortized on a unit-of-production basis over the remaining
      life
      of proved developed reserves and proved reserves on a lease basis. Unproved
      leasehold costs are capitalized pending the results of exploration efforts.
      Exploration costs, including geological and geophysical expenses, exploratory
      dry holes and delay rentals, are expensed when incurred.





***Impairment
      of Properties***





We
      review
      our proved properties for potential impairment at the lease level when
      management determines that events or circumstances indicate that the recorded
      carrying value of any of the properties may not be recoverable. Such events
      include a projection of future natural gas and oil reserves that will be
      produced from a lease, the timing of this future production, future costs to
      produce the natural gas and oil, and future inflation levels. If the carrying
      amount of an asset exceeds the sum of the undiscounted estimated future net
      cash
      flows, we recognize impairment expense equal to the difference between the
      carrying value and the fair market value of the asset, which is estimated to
      be
      the expected present value of future net cash flows from proved reserves,
      without the application of any estimate of risk. We cannot predict the amount
      of
      impairment charges that may be recorded in the future. Unproved leasehold costs
      are reviewed periodically and a loss is recognized to the extent, if any, that
      the cost of a property has been impaired.





***Stock-Based
      Compensation***





Compensation
      expense has been recorded for common stock grants based on the fair value of
      the
      common stock on the measurement date. Statement of Financial Accounting
      Standards No. 123 (R), "Share-Based Payments," or "SFAS No. 123 (R),"
      establishes standards for accounting for transactions in which an entity
      exchanges its equity instruments for goods and services. SFAS No. 123 (R)
      focuses primarily on accounting for transactions in which an entity obtains
      employee services in share-based payment transactions. SFAS No. 123 (R) requires
      that the fair value of such equity instruments be recognized as expense in
      the
      historical financial statements as services are performed. SFAS No. 123 (R)
      was
      effective for us as of the beginning of 2006 and has had no impact on our
      financial statements, because the only equity compensation that we have
      previously made is in the form of grants of common stock, which are recorded
      at
      fair value.





**Forward-Looking
      Statements**





Statements
      in the preceding discussion relating to future plans, projections, events,
      or
      conditions are forward-looking statements.  Actual results, including
      production growth and capital spending, could differ materially due to changes
      in long-term oil or gas prices or other changes in market conditions affecting
      the oil and gas industry; political events or disturbances; severe weather
      events; reservoir performance; changes in OPEC quotas; timely completion of
      development projects; changes in technical or operating conditions; and other
      factors including those discussed herein and in the section captioned "RISK
      FACTORS" in our Annual Report on Form 10-KSB for the year ended December 31,
      2006.





13
 *Index*





**ITEM
      3.  CONTROLS AND
      PROCEDURES**





We
      conducted an evaluation, under the supervision and with the participation of
      the
      Chief Executive Officer and Chief Financial Officer, of the effectiveness of
      our
      disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e)
      under the Securities Exchange Act of 1934 as amended (the "Exchange Act")).
      Based on this evaluation, the Chief Executive Officer and Chief Financial
      Officer concluded that our disclosure controls and procedures as of the end
      of
      the fiscal quarter covered by this Quarterly Report on Form 10-QSB were
      effective at a reasonable assurance level to ensure that information required
      to
      be disclosed by us in reports that we file or submit under the Exchange Act
      is
      recorded, processed, summarized and reported within the time periods specified
      in Securities and Exchange Commission rules and forms.





Our
      internal controls over financial reporting (as defined in Rule 13a-15(f) or
      Rule
      15d-15(f) under the Exchange Act) have improved significantly during the last
      two and one-half years. The improvements include the expansion of the Board
      of
      Director's on March 31, 2005 to include three independent directors, each of
      whom was appointed a member of the Audit Committee, and the addition to staff
      of
      a Chief Financial Officer/Principal Accounting Officer, who initially also
      served as our Controller.  Systems improvements include the
      installation of a more robust accounting system specifically designed to meet
      the needs of an oil and gas company. The Audit Committee members were actively
      involved in reviews of the financial statements for each of the quarters since
      March 2005. The Chairman of the Audit Committee met with our independent
      auditors in May 2005, and the independent auditors met with the full Audit
      Committee on March 28, 2006 and March 29, 2007. The addition of a Chief
      Financial Officer has allowed us to enhance controls over the authorization,
      recording, processing and reporting of transactions. Additional accounting
      staff, including an operational controller, joined us as a result of the EBS
      transaction, enhancing our ability to segregate duties and improve our internal
      controls.





During
      the quarter ended June 30, 2007, our internal controls over financial reporting
      were further enhanced with the addition to the accounting staff of a member
      designated as our Corporate Controller, a CPA with an extensive background
      in
      the oil and gas industry and in financial systems, controls and
      reporting.





Management
      does not expect that our disclosure controls and procedures will prevent or
      detect all errors or fraud. Any control system, no matter how well designed
      and
      operated, is based upon certain assumptions and can provide only reasonable,
      but
      not absolute, assurance that its objectives will be met. Further, no evaluation
      of controls can provide absolute assurance that misstatements due to error
      or
      fraud will not occur.





**PART
      II. OTHER INFORMATION**





**ITEM
      1.  LEGAL PROCEEDINGS**





We
      are
      not now a party to any legal proceeding requiring disclosure in accordance
      with
      the rules of the U.S. Securities and Exchange Commission.  In the
      future, we may become involved in various legal proceedings from time to time,
      either as a plaintiff or as a defendant, and either in or outside the normal
      course of business.  We are not now in a position to determine when
      (if ever) such a legal proceeding may arise. If we ever become involved in
      such
      a legal proceeding, our financial condition, operations, or cash flows could
      be
      materially and adversely affected, depending on the facts and circumstances
      relating to such proceeding.




14
 *Index*





**ITEM
      2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF
      PROCEEDS.**





During
      the second quarter of 2007, a stockholder of ours exercised warrants issued
      during the second quarter of 2004 to purchase 40,000 shares of our common stock
      at a per-share price of $.50. The issuance of the common stock is claimed to
      be
      exempt pursuant to Rule 506 of Regulation D under the Securities Act of 1933
      (the "Act"). No advertising or general solicitation was employed in offering
      these securities. The offering and sale were made only to an accredited
      investor, and subsequent transfers were restricted in accordance with the
      requirements of the Act.





**ITEM
      5. OTHER INFORMATION.**





On
      August
      13, 2007, the Company’s stockholders at their 2007 annual meeting undertook the
      following actions:




(a)           Re-elected
      the following persons as the Company's five directors: Craig S. Glick, Douglas
      G. Manner, John T. Raymond, Keith D. Spickelmier, and Herbert C. Williamson;
      and




(b)           Approved
      the Company's 2007 Equity Incentive Plan; and




(c)           Approved
      the appointment of Malone & Bailey, PC as the Company's independent public
      accountants for fiscal 2007.





**ITEM
      6.  EXHIBITS**





(a)           The
      following exhibits are filed with this Quarterly Report or are incorporated
      herein by reference:





Exhibit


Number   Description





1
            23.01
            Consent
                of LaRoche Petroleum Consultants, Ltd.2
            31.01
            Certification
                pursuant to Rule 13a-14(a) of the Securities Exchange Act of
                1934.3
            31.02
            Certification
                pursuant to Rule 13a-14(a) of the Securities Exchange Act of
                1934.4
            32.01
            Certification
                Pursuant to 18 U.S.C. Section 1350, as pursuant to Section 906 of
                the
                Sarbanes-Oxley Act of 2002.5
            32.02
            Certification
                Pursuant to 18 U.S.C. Section 1350, as pursuant to Section 906 of
                the
                Sarbanes-Oxley Act of 2002.





**SIGNATURES**





In
      accordance with the requirements of the Exchange Act, the Small Business Issuer
      has duly caused this Report to be signed on its behalf by the undersigned,
      thereunto duly authorized.




WESTSIDE
                ENERGY CORPORATION(Small
                Business Issuer)By:
            /s/Douglas
                G. MannerDouglas
                G. Manner,Chief
                Executive Officer(Principal
                Executive Officer)By:
            /s/
                Sean J. AustinSean
                J. Austin,Vice
                President and Chief Financial Officer(Principal
                Financial Officer and Principal Accounting
                Officer)


August
      15, 2007






15