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, 2006

[ ] 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               (I.R.S. Employer
       incorporation or organization                Identification No.)

       4400 Post Oak Parkway, Suite 2530                  77027
   (Address of principal executive officer)            (Zip Code)

                                  713/979-2660
                           (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 ___

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


The number of shares of common stock, $.01 par value, outstanding as of August
18, 2006: 21,460,935 shares

Transitional Small Business Disclosure Format (check one):   Yes ___   No  X



<PAGE>


                           WESTSIDE ENERGY CORPORATION
                           PERIOD ENDED JUNE 30, 2006

                                      INDEX

PART I.  FINANCIAL INFORMATION                                           Page

         ITEM 1.  FINANCIAL STATEMENTS

         Financial statements of Westside Energy Corporation:

             Consolidated balance sheets as of June 30, 2006
                and December 31, 2005                                      3

             Consolidated statements of operations for the three
                months and six months ended June 30, 2006 and
                June 30, 2005                                              4

             Consolidated statements of cash flows for the six
                months ended June 30, 2006 and June 30, 2005               5

             Notes to consolidated financial statements                    6

         ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS                    14

         ITEM 3.  CONTROLS AND PROCEDURES                                 21

PART II. OTHER INFORMATION

         ITEM 1.   LEGAL PROCEEDINGS                                      22

         ITEM 2.   UNREGISTERED SALES OF EQUITY SECURITES
                   AND USE OF PROCEEDS                                    22

         ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K                       23

                        (a) Exhibits
                        (b) Reports on Form 8-K

SIGNATURE                                                                 24



                                       2
<PAGE>



PART I.   FINANCIAL INFORMATION

ITEM 1.   FINANCIAL STATEMENTS

                           WESTSIDE ENERGY CORPORATION
                           CONSOLIDATED BALANCE SHEETS
                                   (unaudited)

                                               June 30,         December 31,
                                                 2006              2005
                                              ----------        ----------
ASSETS

Current Assets
  Cash                                       $   2,413,252       $   604,411
  Certificate of deposit and escrow account         27,887            27,693
  Marketable securities                            500,000         1,050,000
  Accounts receivable                            5,351,985           492,349
  Prepaid assets                                   136,578             1,770
  Deferred acquisition charges                           -           289,367
  Deferred financing costs, net of
    accumulated amortization of $20,691            161,659                 -
                                                -----------       -----------
Total current assets                             8,591,361         2,465,590

Oil & gas properties, using successful
 efforts accounting
  Proved properties                             23,577,046         8,513,598
  Unproved properties                           11,810,257         4,282,036
  Accumulated depreciation, depletion,
    amortization & impairment                   (3,001,684)       (1,293,895)
                                                -----------       -----------
Net oil & gas properties                        32,385,619        11,501,739

Loan receivable from EBS                                 -         4,100,000
Property and equipment, net of
      accumulated depreciation of $111,497         136,516                 -
                                                -----------       -----------
TOTAL ASSETS                                   $41,113,496      $ 18,067,329
                                               ===========       ===========
LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities
    Accounts payable and
      accrued expenses                         $11,598,916      $    529,446
    Derivative liability                            55,712                 -
Short term portion of debt                       2,187,134                 -
                                               -----------       -----------
Total current liabilities                       13,841,762           529,446

Non-current liabilities
    Asset retirement obligations                   101,769            27,880
    Long term portion of debt                    2,673,164                 -
                                               -----------       -----------
TOTAL LIABILITIES                               16,616,695           557,326
                                               -----------       -----------
STOCKHOLDERS' EQUITY
Preferred stock, $.01 par value, 10,000,000
  shares authorized, none issued and
  outstanding                                            -                 -
Common stock, $.01 par value, 50,000,000
  shares authorized, 21,150,935 and
  17,376,745 shares issued and outstanding         211,509           173,767
Additional paid in capital                      34,064,114        22,913,214
Deferred compensation                             (535,297)         (176,312)
Accumulated other comprehensive loss               (55,712)                -
Accumulated deficit                             (9,187,813)       (5,400,666)
                                               -----------       -----------
TOTAL STOCKHOLDERS' EQUITY                      24,496,801        17,510,003
                                               -----------       -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY    $ 41,113,496      $ 18,067,329
                                              ============      ============




                                       3
<PAGE>



                           WESTSIDE ENERGY CORPORATION
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (unaudited)

              Three Months Ended June 30, Six Months Ended June 30,

                                2006         2005         2006         2005
                             ---------    ---------    ----------    --------
Revenues
  Oil and gas sales          $ 700,849     $ 49,245    $1,053,250    $121,221


Expenses
  Production                   312,307       39,194       523,409      47,855
  Exploration                      (65)     337,627             -     337,627

  General and administrative 1,809,805      468,488     3,252,207     832,758

  Depreciation, depletion,
    and amortization           758,203       44,048       972,431      95,045
  Impairment                         -            -             -     185,335
                             ---------   ----------    ----------    --------
Total Expenses               2,880,250      889,357     4,748,047   1,498,620
                             ---------   ----------    ----------   ---------

Loss from Operations        (2,179,401)    (840,112)   (3,694,797) (1,377,399)


Other Income (Expense)
  Interest income               59,447       90,019       136,301     169,755
  Interest expense            (187,850)           -      (228,643)          -
                             ---------     --------    ----------   ---------
Total Other Income (Expense)  (128,403)      90,019       (92,342)    169,755
                             ---------     --------    ----------   ---------

Net Loss                   $(2,307,804)   $(750,093)  $(3,787,139)$(1,207,644)
                           ============   ==========  ============ ===========

Basic and diluted loss
    per common share       $     (0.11)   $   (0.04)  $     (0.18) $   (0.07)
Weighted average common
    shares outstanding      20,877,154   17,270,371    20,646,336 17,178,295




                                       4
<PAGE>



                           WESTSIDE ENERGY CORPORATION
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (unaudited)

                                                   Six months ended June 30,
                                                     2006             2005
                                                  ----------       ----------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss                                        $ (3,787,139)    $ (1,207,644)
    Adjustments to reconcile net loss to net
      cash used in operating activities:
      Stock issued for services                      514,452          167,441
      Impairment                                           -          185,335
      Depreciation, depletion and amortization       972,431           95,045
      Amortization of discount on note payable        62,159                -
      Amortization of deferred financing costs        20,691                -
      Changes in:
        Accounts receivable                        2,276,625          (12,914)
        Advances to operators                              -         (889,990)
        Prepaid assets                              (566,994)          16,364
    Accounts payable and accrued expenses         (2,027,938)         396,878
                                                  ----------       ----------
NET CASH USED IN OPERATING ACTIVITIES             (2,535,713)      (1,249,485)
                                                  ----------       ----------
CASH FLOWS FROM INVESTING ACTIVITIES
    Cash acquired on acquisition of EBS              955,774                -
    Advances to EBS                               (3,644,754)               -
Purchase of marketable securities                          -       (3,450,081)
Proceeds from sale of marketable securities          550,000          125,000
    Purchase of office equipment                     (37,688)         (25,506)
    Capital expenditures for oil and gas
      properties                                  (8,754,122)      (3,587,999)
                                                  ----------       ----------
NET CASH USED IN INVESTING ACTIVITIES            (10,930,790)      (6,938,586)
                                                  ----------       ----------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from notes payable                        5,210,000                -
Payments for fundraising                                   -           (2,121)
Proceeds from sale of common stock, net           10,295,205          225,000
Payments on note                                    (229,861)               -
                                                  ----------       ----------
NET CASH PROVIDED BY FINANCING ACTIVITIES         15,275,344          222,879
                                                  ----------       ----------
NET CHANGE IN CASH                                 1,808,841       (7,965,192)

CASH BALANCES
    -Beginning of period                             604,411       15,995,691
                                                  ----------       ----------
    -End of period                               $ 2,413,252       $8,030,499
                                                  ==========      ===========

SUPPLEMENTAL CASH FLOW DISCLOSURES:
Interest paid                                    $   183,129                -
Taxes paid                                                 -                -


NON-CASH DISCLOSURES:
Discount on note payable                         $   182,000       $        -
Change in derivative liability                       (55,712)               -
Deferred stock compensation                          837,875                -
Stock issued for debt                                 20,000                -
Unrealized loss on marketable securities                   -              (81)
Stock issued for deferred compensation                     -          249,781




                                       5
<PAGE>




                           WESTSIDE 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 ("SEC"), 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, as amended.
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 2005, as reported
in the 10-KSB, as amended, have been omitted.

The consolidated financial statements include the accounts of Westside and its
wholly-owned subsidiaries from March 15, 2006, the date of the acquisition of
EBS discussed in Note 7. Significant inter-company accounts and transactions
have been eliminated.


NOTE 2 - STOCK-BASED COMPENSATION

On January 1, 2006, Westside adopted SFAS No. 123(R), "Share-Based Payment"
("SFAS 123(R)"). SFAS 123(R) replaced SFAS No. 123 and supersedes APB Opinion
No. 25. SFAS 123(R) requires all share-based payments to employees, including
grants of employee stock options, to be recognized in the financial statements
based on their fair values. The pro forma disclosures previously permitted under
SFAS 123 are no longer an alternative to financial statement recognition.
Westside adopted SFAS 123(R) using the modified prospective method which
requires the application of the accounting standard as of January 1, 2006.

Prior to 2006, Westside began issuing common stock to employees as compensation.
Westside recorded as compensation expense the fair value of such shares as
calculated pursuant to Statement of Financial Accounting Standard No. 123,
Accounting for Stock-Based Compensation ("SFAS No. 123"), recognized over the
related service period. Westside has no option plans for its employees. Westside
accounts for stock-based compensation issued to non-employees in accordance with
the provisions of SFAS No. 123 and EITF No. 96-18, "Accounting for Equity
Investments That Are Issued to Non-Employees for Acquiring, or in Conjunction
with Selling Goods or Services". For expensing purposes, the value of common
stock issued to non-employees and consultants is determined based on the fair
value of the services received or the fair value of the equity instruments
issued, whichever value is more reliably measurable.


NOTE 3 - CONCENTRATION OF RISK

At June 30, 2006, Westside's cash in financial institutions exceeded the
federally insured deposits limit by $1,831,470. An investment of $376,490 in a
reverse repurchase agreement is included in cash and cash equivalents at June
30, 2006. The collateral for this investment consisted of a collateralized
mortgage obligation with a market value of approximately $389,681.


                                       6
<PAGE>

NOTE 4 - 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 is 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.

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 (i.e., cash settlements) 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, 2006,
Westside recognized a derivative liability of $55,712 with the change in fair
value reflected in other comprehensive loss.

                                       7
<PAGE>

NOTE 5 - DEBT

On March 15, 2006, Westside entered into a $45 million three-year Advancing Term
Credit Agreement (the "Credit Agreement")with GasRock Capital,LLC (GasRock) as
lender. The Credit Agreement provides the terms under which GasRock will make
available to the Company a senior secured revolving credit facility in an
aggregate amount of up to $45 million. Borrowing under the Credit Agreement may
be used for the following purposes:

         1.       Up to $9.5 million may be used for closing costs pertaining to
                  the purchase of EBS, for approved drilling and for pipeline
                  expansion.

         2.       Up to $7.5 million may be used for the cash portion of an
                  earn-out agreement entered into in connection with Westside's
                  acquisition of all of the outstanding equity interests (the
                  "Equity Interests") in EBS Oil and Gas Partners Production
                  Company, L.P. and EBS Oil and Gas Partners Operating Company,
                  L.P. (collectively "EBS"), provided that any amount advanced
                  for payment of the earn-out agreement will reduce
                  dollar-for-dollar the amount available for the uses described
                  in purpose 4 below.

         3.       Up to $1.5 million may be used in certain circumstances for
                  Westside's overhead.

         4.       Up to an additional $34.0 million may be made available at
                  later dates (subject to GasRock's approval) for additional
                  exploitation of proved developed non-producing reserves,
                  additional lender-approved drilling of new wells, lease
                  acquisitions, pipeline expansion or seismic expenses.

GasRock's commitments under the Credit Agreement will terminate on March 14,
2009, unless terminated earlier by Westside upon repayment of all outstanding
amounts or by GasRock upon an event of default. To secure Westside's obligations
under the Credit Agreement, Westside granted a security interest in all of its
assets in favor of GasRock. The Credit Agreement also requires hedging for a
substantial portion of Westside's reserves. Amounts outstanding under the Credit
Agreement will bear interest at an annual rate equal to the greater of (a) 12.0%
or (b) the one-month London interbank offered rate (LIBOR), plus 6.50%. 85.0% of
monthly revenue from oil & gas production and commodity hedging, net of
production operations related costs, will be applied to the repayment of the
indebtedness under the Credit Agreement, subject to the limited ability of
Westside to remit less than 85% and to retain more than 15% of monthly net
revenue to cover Westside's overhead. Westside will also pay a facility fee
equal to 2.0% of all advances, with the amount of such fee not paid at the time
of the advance but added to the outstanding principal balance and amortized in
accordance with the terms of the Credit Agreement. In consideration of GasRock
providing the financing under the Credit Agreement, GasRock will receive a 1.0%
overriding royalty interest (proportionately reduced to Westside's working
interest) in each producing well and lease within Westside as of the date of the
execution of the Credit Agreement. GasRock will also receive a 1.0% overriding
royalty interest (proportionately reduced to Westside's working interest) in
each producing well and lease and related unit acquired during the term of the
Credit Agreement if Westside uses advances under the Credit Agreement to acquire
same. GasRock will also receive a 1.5% overriding royalty interest
(proportionately reduced to Westside's working interest) in each well and
related unit if Westside uses advances under the Credit Agreement to develop
same. The Credit Agreement contains customary representations and warranties,
customary affirmative and negative covenants (including a maximum leverage
ratio), and customary events of default.

                                       8
<PAGE>

As of June 30, 2006, Westside has borrowed an aggregate of $5,210,000. In
association with this debt, a 3.5% fee is paid to a third party per terms of a
financial services agreement. The fee totaled $182,350 and has been capitalized
as deferred financing costs. The deferred financing costs will be amortized over
the life of the debt using the effective interest method. As of June 30, 2006,
$20,691 has been amortized. In addition to the deferred financing costs,
$154,200 was paid in fees to the lender. These fees were recorded as a discount
to the note payable and are being amortized over the life of the note using the
effective interest method. As of June 30, 2006, $62,159 of the discount has been
amortized.

On July 12, 2006, Westside borrowed an additional $4.6 million under the credit
agreement to fund additional drilling activities.

NOTE 6 - EQUITY

Westside had the following transactions for the quarter ended June 30, 2006:

        o  Westside issued 9,327 common shares for services to a contractor and
           two directors valued at $32,104.

        o  45,000 warrants were exercised for proceeds of $112,500.

        o  20,000 common shares were issued for stock payable of $50,000.

        o  179,972 common shares were purchased by two officers in a private
           offering for proceeds of $566,912.

        o  225,000 common shares were issued to an officer as deferred
           compensation. The shares vest over two years. $391,952 of deferred
           compensation related to the issuance was amortized for the six month
           period ended June 30, 2006.


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. In addition, EBS owns an approximately one-sixth interest in
Tri-County Gathering, a pipeline system (operated by Cimmarron Gathering, LLP)
that is the primary transporter of gas sold by EBS in the Barnett Shale area.
This pipeline is comprised of approximately 14 miles of gathering lines and
three compression stations with approximately 2,500 horsepower of compression
with pipeline capacity of approximately 20 million cubic feet per day. The
statement of operations reflects EBS' operations for the period from March 15,
2006 to June 30, 2006.

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 discussed below. 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"). Funding for the cash portion of
the Additional Consideration will be provided by GasRock pursuant to the Credit
Agreement.

                                       9
<PAGE>

The amount of Additional Consideration will be based on certain EBS wells (the
"CVR Wells") that were in various stages of development as of the date of the
Acquisition Agreement but that did not have production sustained for a
sufficient period of time to permit a third party engineering firm (Netherland,
Sewell & Associates, Inc.) to determine the amount of proved reserves
established by these development activities. The amount of Additional
Consideration will depend upon the amount of proved reserves that the CVR Wells
are determined to have after the acquisition. The determination of the amount of
the Additional Consideration will take place on several occasions after the
acquisition. The following table summarizes the preliminary fair values assigned
to the assets acquired and the liabilities assumed at the date of acquisition:

        Current assets                                             $ 8,094,600
        Property and equipment, net                                 13,204,537
        Other assets, net                                              113,911
                                                                   -----------
            Total assets                                            21,413,048

        Less:
           Total liabilities                                       (12,994,359)
                                                                   -----------
                           Total purchase price                    $ 8,418,689
                                                                   ===========

The following unaudited pro forma information assumes the acquisition of EBS
occurred as of January 1, 2006 and January 1, 2005, respectively. The pro forma
results are not necessarily indicative of what actually would have occurred had
the acquisition been in effect for the period presented.





                                       10
<PAGE>



                           WESTSIDE ENERGY CORPORATION
                        PRO FORMA STATEMENT OF OPERATIONS
                        Six Months Ended June 30, 2006
                                   (unaudited)



                                                        Pro Forma
                               Westside         EBS     Adjustments  Pro Forma
                             ----------     ---------   -----------  -----------
Revenues
  Oil and gas sales        $  1,053,250      $668,812   $         - $ 1,722,062

Expenses
  Production                    523,409        92,671             -     616,080
  General and administrative  3,252,207       434,163             -   3,686,370
  Depreciation, depletion,
    and amortization            972,431       145,642             -   1,118,073
                             ----------     ---------    ---------- -----------
Total Expenses                4,748,047       672,476             -   5,420,523
                             ----------     ---------    ---------- -----------
Loss from Operations         (3,694,797)       (3,664)            -  (3,698,461)

Other Income (Expense)
   Interest income              136,301             -             -     136,301
   Interest expense            (228,643)      (36,200)            -    (264,843)
                             ----------     ---------    ---------- -----------
Total Other Income (Expense)    (92,342)      (36,200)            -    (128,542)
                             ----------     ---------    ---------- -----------
     NET LOSS               $(3,787,139)   $  (39,864)   $        - $(3,827,003)
                            ===========    ===========   ========== ===========

Basic and diluted loss
    per common share            $ (0.18)                                 $(0.19)
Weighted average common
    shares outstanding       20,646,336                              20,646,336





                                       11
<PAGE>



                           WESTSIDE ENERGY CORPORATION
                        PRO FORMA STATEMENT OF OPERATIONS
                         Six Months Ended June 30, 2005
                                   (unaudited)



                                                                     Pro Forma
                             Westside         EBS      Adjustments   Pro Forma
                            ----------     ---------   -----------  -----------
Revenues
  Oil and gas sales        $   121,221      $715,123   $        -   $  836,344

Expenses
  Production                    47,855        84,711            -      132,566
  Exploration                  337,627             -            -      337,627
  General and administrative   832,758     1,373,059            -    2,205,817
  Depreciation, depletion,
    and amortization            95,045       251,620            -      346,665
  Impairment                   185,335             -            -      185,335
                            ----------     ---------  -----------  -----------
Total Expenses               1,498,620     1,709,390            -    3,208,010
                            ----------     ---------  -----------  -----------
Loss from Operations        (1,377,399)     (994,267)           -   (2,371,666)

Other Income (Expense)
   Interest income             169,755             -            -      169,755
   Interest expense                  -      (178,885)           -     (178,885)
   Other income                      -       441,848            -      441,843
                            ----------     ---------  -----------  -----------
Total Other Income (Expense)   169,755       262,958            -      432,713
                            ----------     ---------  -----------  -----------
     NET LOSS             $ (1,207,644)  $  (731,309) $         - $ (1,938,953)
                          ============   ===========  =========== ============

Basic and diluted loss
    per common share           $ (0.07)                                $ (0.11)
Weighted average common
    shares outstanding      17,178,295                              17,178,295




                                       12
<PAGE>



                           WESTSIDE ENERGY CORPORATION
                        PRO FORMA STATEMENT OF OPERATIONS
                        Three Months Ended June 30, 2005
                                   (unaudited)



                                                      Pro Forma
                             Westside        EBS      Adjustments   Pro Forma
                            ----------   ---------    -----------  -----------
Revenues
  Oil and gas sales        $   49,245     $403,914    $         -   $  453,159

Expenses
  Production                   39,194       49,134              -       88,328
  Exploration                 337,627            -              -      337,627
  General and administrative  468,488      904,063              -    1,372,551
  Depreciation, depletion,
    and amortization           44,048      120,114              -      164,162
                           ----------    ---------    -----------  -----------
Total Expenses                889,357    1,073,311              -    1,962,668
                           ----------    ---------    -----------  -----------
Loss from Operations        (840,112)     (669,397)             -   (1,509,509)

Other Income (Expense)
   Interest income            90,019             -              -       90,019
   Interest expense                -      (133,055)             -     (133,055)
   Other income                    -       428,843              -      428,843
                           ----------    ---------    -----------  -----------
Total Other Income (Expense)  90,019       295,788              -      385,807
                           ----------    ---------    -----------  -----------
     NET LOSS             $ (750,093)  $  (373,609)   $         -  $(1,123,702)
                          ==========   ===========    ===========  ===========

Basic and diluted loss
    per common share         $ (0.04)                                  $ (0.07)
Weighted average common
    shares outstanding    17,270,371                                17,270,271



                                       13
<PAGE>



ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS

                                     General
                                     -------

         Westside Energy Corporation, f/n/a "Eventemp Corporation" (the
"Company"), was incorporated on November 30, 1995 under the laws of the State of
Nevada. In February 2004, the Company decided to focus its efforts on the
acquisition of attractive crude oil and natural gas prospects, and the
exploration, development and production of oil and natural gas on these
prospects. For several years prior to February 2004, the Company had been
dormant from a business perspective. The Company is focusing its efforts
initially in the State of Texas, particularly in the Barnett Shale play located
in the north central part of the state of Texas. The Company's major emphasis is
participation in the oil and gas segment, acquiring interests in producing oil
and gas properties, acquiring interests in undeveloped acreage, and
participating in drilling operations. The Company's principal products are crude
oil and natural gas. The Company is engaged in a broad range of activities
associated with the oil and gas business in an effort to develop oil and gas
reserves. With the assistance of the Company's management, independent
contractors retained from time to time by the Company, and, to a lesser extent,
unsolicited submissions, the Company intends to identify prospects that it
believes are suitable for acquisition and drilling. There can be no assurance
that the Company will be successful in its exploration, exploitation,
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 the Company's Annual Report on Form 10-KSB/A for the
year ended December 31, 2005, as amended.

         As of the end of the period covered by this Report, the Company had
acquired a total leased acreage position of 74,523 gross acres and 65,999 net
acres in various Texas counties in the Barnett Shale, including Denton, Cooke,
Montague, Hill, Ellis, Hamilton, Comanche and Mills Counties. As of the end of
the period covered by this Report, all of this acreage (other than 2,740 gross
acres and 668 net acres) is "undeveloped acreage," which the U.S. Securities and
Exchange Commission (the "Commission") defines as "lease acreage on which wells
have not been drilled or completed to a point that would permit the production
of commercial quantities of oil and gas regardless of whether such acreage
contains proved reserves." Of the Company's acreage, 2,740 gross acres and 668
net acres are regarded as "developed" acreage. During the period covered by this
Report, two additional North Program area vertical wells were drilled to their
targeted depths and five wells were completed. Of the completed wells, three
have been turned to sales and the remaining two are currently flowing back
completion fluids. As of the end of the second quarter 2006, the Company owned
interests in 62 gross and 14.1 net wells. A net of 8.8 wells are currently on
production and the other 5.3 net wells are non-producing, waiting on completion
or pipeline hook-up.

         Subsequent to the end of the period covered by this Report, on July 13,
2006, the Company entered into a joint exploration agreement (the "Agreement")
with Forest Oil Corporation. The Agreement has an effective date of June 26,
2006 and has a term of three years. The Agreement also contains provisions
regarding the following:

1.                (a) The Company's future assignment to Forest of a 50%
                  interest in approximately 8,568 gross and 6,798.48 net leased
                  acres in Hill County, Texas held by the Company (the
                  "Company's Acreage") with an associated net revenue interest
                  of not less than 80%, (b) the Company's future assignment to
                  Forest of a 50% interest in certain pipelines and other
                  facilities, rights-of-way, a 3-D seismic survey, and other
                  assets owned by the Company within or relating to the area in
                  which the Company's Acreage is located, and (c) Forest's
                  assignment to the Company of a 50% interest in approximately
                  8,569 gross and 6,899 net leased acres in Hill County, Texas
                  held by Forest ("Forest's Acreage") with an associated net
                  revenue interest of not less than 80%.

2.                The Company's and Forest's participation in the drilling of an
                  initial well through completion on a mutually agreeable
                  location on the Company's Acreage. The drilling of the initial
                  well has commenced, with the Company serving as operator.

3.                The Company's service as operator with respect to all other
                  wells drilled on the Company's Acreage, and Forest's service
                  as operator with respect to all other wells drilled on
                  Forest's Acreage.

                                       14
<PAGE>

         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 the
Company's Annual Report on Form 10-KSB for the year ended December 31, 2005.

                              Results of Operations
                              ---------------------

         Financial results for the quarter and half-year ended June 30, 2006 are
not directly comparable to financial results for the equivalent periods ended
June 30, 2005. During the first half of 2005, the Company had limited operations
consisting of the Company's first operated well (the Lucille Pruett #1), which
was completed during November 2004, and three marginal non-operated wells that
were sold in the fourth quarter of 2005. By the beginning of 2006, the Company
had greatly expanded its operations compared to 2005, and the completion of the
EBS acquisition during the first quarter of 2006 greatly affected the financial
results for the second quarter and first half of 2006 compared to the financial
results for the equivalent periods of 2005.

Quarter Ended June 30, 2006 Compared to the Quarter Ended June 30, 2005
-----------------------------------------------------------------------

         Revenues from sales of oil and natural gas were $700,849 in the second
quarter of 2006 as compared to $49,245 in the second quarter of 2005. This
increase in revenues reflects the impact of higher sales volumes for both oil
and gas, and higher oil sales prices. Oil sales volumes increased from an
average of two to 28 barrels per day, and average oil sales prices increased
from $52.61 to $61.04 per barrel. Natural gas sales increased from an average of
80 to 852 thousand cubic feet (MCF) per day while average natural gas sales
prices sales decreased from $6.25to $5.55 per MCF.

         Operating expenses increased from $889,357 in the second quarter of
2005 to $2,880,250 for the second quarter of 2006. This significant increase
reflects the impact on expenses of higher oil and gas sales volumes in the
second quarter of 2006 and increases in staff post the second quarter of 2005.
Production expenses were $312,307 in the second quarter of 2006 as compared to
$39,194 in the second quarter of 2005, reflecting increased production
operations activity associated with the increase in production volumes as well
as higher oil and gas severance taxes due to both higher volumes and higher oil
prices. Exploration expenses in the second quarter of 2005 of $337,627 were for
the three-dimensional seismic acquisition program conducted in that period.
General and administrative expenses increased from $468,488 in the second
quarter of 2005 to $1,809,805 in the second quarter of 2006. $461,918 of this
increase was the result of the expense recorded in the 2006 period for the
sign-on, common stock bonus for the Company's recently hired Chief Executive
Officer and performance common stock bonuses for the Company's Chief Executive
Officer and Chief Financial Officer. The remaining $879,399 increase in general
and administrative expenses reflects salaries for additional staff (both the two
positions discussed above as well as other staff added as a result of the
closing of the EBS acquisition in the first quarter of 2006) and additional
overhead costs resulting from a substantial increase in business support
activities.

         Depreciation, depletion and amortization costs increased from $44,048
in the second quarter of 2005 to $758,203 in the second quarter of 2006
reflecting the impact of the substantial increase in volumes of oil and natural
gas produced and sold and the expensing of capitalized costs on a
units-of-production basis. The pipeline acquired in the EBS transaction is
depreciated on a straight-line basis.

         As a result of the above described revenues and expenses, the Company
incurred an operating loss of $2,179,401 in the second quarter of 2006 as
compared to an operating loss of $840,112 in the second quarter of 2005.

         Other income and expense items in the second quarter of 2006 included
$59,447 in interest income and $187,850 in interest expense. The second quarter
of 2005 results included $90,019 in interest income and had no interest expense.
Interest expense increased substantially as a result of the initial draw against
the GasRock credit facility in March 2006.

         The Company incurred a net loss of $2,307,804, or $.11 per share, for
the quarter ended June 30, 2006 as compared to a net loss of $750,093, or $.04
per share, for the quarter ended June 30, 2005.

                                       15
<PAGE>

Six Months Ended June 30, 2006 Compared to the Six Months Ended June 30, 2005
-----------------------------------------------------------------------------

         Revenues from sales of oil and natural gas were $1,053,250 in the first
half of 2006 as compared to $121,221 in the first half of 2005. This increase
in revenues reflects the impact of higher sales volumes for both oil and gas,
and higher oil sales prices. Oil sales volumes increased from an average of two
to 27 barrels per day, and average oil sales prices increased from $49.06 to
$60.52 per barrel. Natural gas sales increased from an average of 96 to 660
thousand cubic feet (MCF) per day while average natural gas sales prices sales
decreased slightly from $5.85 to $5.57 per MCF.

         Operating expenses increased from $1,498,620 in the first half of 2005
to $4,748,047 for the first half of 2006. This significant increase reflects
the impact on expenses of higher oil and gas sales volumes in the first half of
2006 and increases in staff. Production expenses were $523,409 in the first
half of 2006 as compared to $47,855 in the first half of 2005, reflecting
increased production operations activity associated with the increase in
production volumes as well as higher oil and gas severance taxes due to both
higher volumes and higher oil prices. Exploration expenses in the first half of
2005 of $337,627 were for the three-dimensional seismic acquisition program
conducted in that period. General and administrative expenses increased from
$832,758 in the first half of 2005 to $3,252,207 in the first half of 2006.
$1,210,788 of this increase was the result of the expense recorded in the 2006
period for the sign-on, common stock bonus for the Company's recently hired
Chief Executive Officer and performance common stock bonuses for the Company's
Chief Executive Officer and Chief Financial Officer. The remaining $1,208,661
increase in general and administrative expenses reflects salaries for additional
staff (both the two positions discussed above as well as other staff added as a
result of the closing of the EBS acquisition in the first quarter of 2006) and
additional overhead costs resulting from a substantial increase in business
support activities.

         Depreciation, depletion and amortization costs increased from $95,045
in the first half of 2005 to $972,431 in the first half of 2006 reflecting the
impact of the substantial increase in volumes of oil and natural gas produced
and sold and the expensing of capitalized costs on a units-of-production basis.
The pipeline acquired in the EBS transaction is depreciated on a straight-line
basis.

         As a result of the above described revenues and expenses, the Company
incurred an operating loss of $3,694,797 in the first half of 2006 as compared
to an operating loss of $1,377,399 in the first half of 2005.

         Other income and expense items in the first half of 2006 included
$136,301 in interest income and $228,643 in interest expense. The first half of
2005 results included $169,755 in interest income and had no interest expense.
Interest expense increased substantially as a result of the initial draw against
the GasRock credit facility in March 2006.

         The Company incurred a net loss of $3,787,139, or $.18 per share, for
the half-year ended June 30, 2006 as compared to a net loss of $1,207,644, or
$.07 per share, for the half-year ended June 30, 2005.

                                       16
<PAGE>

                         Liquidity and Capital Resources
                         -------------------------------

            From the time that the Company changed its business focus to oil and
gas activities in February 2004 through the beginning of November 2004, the
Company financed its business through a series of financings that could be
regarded as involving "seed" capital or bridge financing. These financings were
undertaken to sustain the Company until it could raise additional long-term
capital. Many of these financings were funded in whole or in part by members of
the Company's management, either directly or through entities controlled by
them. The most significant of the "seed" capital and bridge financings included
(a) a total of $1.11 million in debt financing, all of which has either been
repaid or converted into equity, and (b) a private placement of 385,500 units
comprised of two shares of the Company's common stock and a warrant to purchase
one share of the Company's common stock that raised $771,000.

            Since November 2004, the Company has undertaken two larger private
placements. On November 2, 2004, the Company completed the private placement of
an aggregate of 10,000,000 shares of its common stock, $.01 par value, at a
price of $2.00 per share. The cash offering resulted in $20 million in gross
proceeds and approximately $18.5 million in net proceeds to the Company after
deducting placement-related costs. The shares were issued to a total of 50
investors, all of whom were accredited. On January 9, 2006, the Company
completed the private placement of an aggregate of 3,278,000 shares of its
common stock at a price of $3.15 per share. This cash offering resulted in
$10,325,700 in gross proceeds and approximately $9.5 million in net proceeds to
the Company after deducting placement-related costs. The shares were issued to a
total of 27 investors, all of whom were accredited. In addition, during May,
June and July of 2006, the Company raised approximately $1.29 million dollars
from (a) the issuance and sale of 290,000 shares of the Company's common stock
at a per-share price of $2.50 to a total of 16 persons who exercised warrants
issued during the second quarter of 2004 (all such warrants now having been
exercised or expired), and (b) the issuance and sale of 179,972 shares of the
Company's common at a per-share price $3.15 to two company executives.

            On March 15, 2006, the Company, as borrower, entered into a $45
million three-year Advancing Term Credit Agreement (the "Credit Agreement") with
GasRock Capital LLC ("GasRock"), as lender. The Credit Agreement provides the
terms under which GasRock will make available to the Company a senior secured
revolving credit facility in an aggregate amount of up to $45 million.
Borrowings under the Credit Agreement may be used for the following purposes:

            1.         Up to $9.5 million may be used for closing costs
                       pertaining to the EBS transaction, for approved drilling
                       and for pipeline expansion.

            2.         Up to $7.5 million may be used for the cash portion of an
                       earn-out agreement entered into in connection with the
                       Company's acquisition of all of the outstanding equity
                       interests (the "Equity Interests") in EBS Oil and Gas
                       Partners Production Company, L.P. and EBS Oil and Gas
                       Partners Operating Company, L.P. (collectively "EBS"),
                       provided that any amount advanced for payment of the
                       earn-out agreement will reduce dollar-for-dollar the
                       amount available for the uses described in purpose 4
                       below.

            3.         Up to $1.5 million may be used in certain circumstances
                       for the Company's overhead.

            4.         Up to an additional $34.0 million may be made available
                       at later dates (subject to GasRock's approval) for
                       additional exploitation of proved developed non-producing
                       reserves, additional lender-approved drilling of new
                       wells, lease acquisitions, pipeline expansion or seismic
                       expenses.

                                       17
<PAGE>

In connection with the acquisition of the Equity Interests, the Company borrowed
$5.4 million under the Credit Agreement for the payment of cash at closing, the
retirement of a third party loan in the approximate amount of $1.6 million, the
reimbursement of costs associated with previous drilling, and future development
drilling. An additional $4.6 million was borrowed under the Credit Agreement on
July 12, 2006 to fund additional drilling activities.

         GasRock's commitments under the Credit Agreement will terminate on
March 14, 2009, unless terminated earlier by the Company upon repayment of all
outstanding amounts or by GasRock upon an event of default. To secure the
Company's obligations under the Credit Agreement, the Company granted a security
interest in all of its assets in favor of GasRock. Amounts outstanding under the
Credit Agreement will bear interest at an annual rate equal to the greater of
(a) twelve percent (12.0%) or (b) the one-month London interbank offered rate
(LIBOR), plus 6.50%. Eighty-five percent (85.0%) of monthly revenue from oil &
gas production and commodity hedging, net of production operations related
costs, will be applied to the repayment of the indebtedness under the Credit
Agreement, subject to the limited ability of the Company to remit less than 85%
and to retain more than 15% of monthly net revenue to cover the Company's
overhead. The Company will also pay a facility fee equal to 2.0% of all
advances, with the amount of such fee not paid at the time of the advance but
added to the outstanding principal balance and amortized in accordance with the
terms of the Credit Agreement. In consideration of GasRock providing the
financing under the Credit Agreement, GasRock will receive a one percent (1.0%)
overriding royalty interest (proportionately reduced to the Company's working
interest) in each producing well and lease within the Company as of the date of
the execution of the Credit Agreement. GasRock will also receive a one percent
(1.0%) overriding royalty interest (proportionately reduced to the Company's
working interest) in each producing well, each lease and any related unit (as
defined in the Credit Agreement) acquired during the term of the Credit
Agreement if the Company uses advances under the Credit Agreement to acquire
same. GasRock will also receive a one and one-half percent (1.5%) overriding
royalty interest (proportionately reduced to the Company's working interest) in
each well and related unit (as defined in the Credit Agreement) if the Company
uses advances under the Credit Agreement to develop same. The Credit Agreement
contains customary representations and warranties, customary affirmative and
negative covenants (including a maximum leverage ratio), and customary events of
default.

         In addition to the security interest in favor of GasRock, the Credit
Agreement requires hedging for a substantial portion of the Company's reserves.
As of the end of the second quarter of 2006, the Company had entered into swap
contracts covering 75% of the projected production from the Company's 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 for the swap contracts were $8.05 per MMBTU for
natural gas and $66.15 per barrel for crude oil.

         The following list contains information as to the Company's financial
position as of June 30, 2006.

       * The Company had cash, cash equivalents and marketable securities
         totaling $2.9 million.
       * The Company's accounts receivable were $5.4 million.
       * The Company's current assets were $8.6 million and current liabilities
         were $13.8 million.
       * Of the $45.0 million available to Westside under the Credit Agreement,
         approximately $40 million of the facility remained undrawn.

                                       18
<PAGE>

         Subsequent to the end of the second quarter of 2006, on July 12, 2006,
an additional $4.6 million was borrowed under the Credit Agreement to fund
additional drilling activities.

          Management believes that the Company will have sufficient funds
available to pursue its business plan for the next 12 months. The principal
sources of these funds are expected to be the proceeds from the January 9, 2006
private placement of 3,278,000 shares, draws on the Credit Agreement, and the
Company's anticipated cash flow from operations. Management's belief is
predicated on the assumption that the Company's exploration efforts prove up
reserves in accordance with management's expectations and that funds remain
available under the Credit Agreement. There can be no assurance that either of
these events will occur. If for any reason the Company fails to have sufficient
funds from the preceding sources, it would be forced to identify alternative
sources of capital or to modify its business plan. There can be no assurance
that the Company would find such sources of capital. If required alternative
financing is not available on acceptable terms, the Company would be forced to
pursue a less ambitious plan, which could materially and adversely affect its
business and financial condition.

         To conserve on cash, the Company may in the future issue shares in lieu
of cash payments to employees and outside consultants, as it has done on a
limited basis in the past. Moreover, the Company intends to occasionally seek
other industry investors who are willing to participate in the Company's oil and
gas activities. The Company expects to retain a promotional interest in these
prospects, but generally the Company will fund a portion (and sometimes a
significant portion) of the acquisition and drilling costs. Also, the Company
may acquire interests in properties by issuing shares of its common stock.

                   Critical Accounting Policies and Estimates
                   ------------------------------------------

         Critical accounting policies are defined as those significant
accounting policies that are most critical to an understanding of a company's
financial condition and results of operations. We consider an accounting
estimate or judgment to be critical if (1) it requires assumptions to be made
that were uncertain at the time the estimate was made, and (2) changes in the
estimate or different estimates that could have been selected could have a
material impact on our results of operations or financial condition.

                  We believe that the following significant accounting policies
will be most critical to an evaluation of our future financial condition and
results of operations.

Proved Oil and Natural Gas Reserves

            Proved reserves are defined by the SEC as 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 the Company.

            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.

                                       19
<PAGE>

            Proved undeveloped oil and gas reserves are 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.

            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.
Oil and gas reserve engineering must be recognized as a subjective process of
estimating underground accumulations of oil and gas 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.

Revenue Recognition

            We record oil and gas revenues following the entitlement method of
accounting for production, in which any excess amount received above our share
is treated as a liability. If less than our share is received, the
underproduction is recorded as an asset. We did not have an imbalance position
in terms of volumes or values at June 30, 2006.

Successful Efforts Accounting

            We utilize the successful efforts method to account for our crude
oil and natural gas operations. Under this method of accounting, all costs
associated with oil and gas 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 field 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 charged to expense 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 the properties may not be recoverable. Such
events include a projection of future oil and natural gas reserves that will be
produced from a lease, the timing of this future production, future costs to
produce the oil and natural gas, 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 the property has been impaired.

                                       20
<PAGE>

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. SFAS No 123R "Shared
Based Payments" ("SFAS No. 123R") establishes standards for accounting for
transactions in which an entity exchanges its equity instruments for goods and
services. This Statement focuses primarily on accounting for transactions in
which an entity obtains employee services in share-based payment transactions.
SFAS No 123R requires that the fair value of such equity instruments be
recognized as expense in the historical financial statements as services are
performed. SFAS No. 123R was effective for us as of the beginning of 2006 and
has had no impact on our financial statements as the only stock-based
compensation that we have previously issued is common stock grants, 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 the Company's Annual Report on Form
10-KSB for the year ended December 31, 2005, as amended.

ITEM 3.  CONTROLS AND PROCEDURES

         The Company conducted an evaluation, under the supervision and with the
participation of the Chief Executive Officer and Chief Financial Officer, of the
effectiveness of the Company's 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 the Company's 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 the Company in reports
that it files or submits under the Exchange Act is recorded, processed,
summarized and reported within the time periods specified in Securities and
Exchange Commission rules and forms. The Company's 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 18 months. 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 and a 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 in 2005
and the first two quarters in 2006. The Chairman of the Audit Committee met with
the Company's independent auditors in May 2005, and the independent auditors met
with the full Audit Committee on March 28, 2006. The addition of a Chief
Financial Officer has allowed the Company to enhance controls over the
authorization, recording, processing and reporting of transactions. Additional
accounting staff, including a Controller, joined the Company as a result of the
EBS transaction, enhancing the Company's ability to segregate duties and improve
our internal controls. Management does not expect that the Company's 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.

                                       21
<PAGE>

PART II. OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

         The Company is currently involved in several pending legal proceedings.
The Company believes that each of the proceedings in which it is involved is
routine and arose in the normal course of business. In the future, the Company
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. The Company is not now in a position to determine when (if ever) such
a legal proceeding may arise. If the Company ever becomes involved in a legal
proceeding, the Company's financial condition, operations, or cash flows could
be materially and adversely affected, depending on the facts and circumstances
relating to such proceeding.

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITES AND USE OF PROCEEDS.

         During June 2006, a total of 16 persons exercised warrants issued
during the second quarter of 2004 to purchase an aggregate of 290,000 shares of
the Company's common stock at a per-share price of $2.50. The issuances of the
common stock are 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 accredited investors, and subsequent transfers were restricted in accordance
with the requirements of the Act.

         During May 2006, the Company sold 150,000 shares of its common at a
price of $3.15 per share to Douglas G. Manner, a director and currently the
Chief Executive Officer of the Company. In addition, during May 2006 the Company
issued to Mr. Manner, as incentive compensation, 225,000 restricted shares (the
majority of which are subject to the risk of forfeiture). Moreover, during May
2006, the Company sold 29,972 shares of its common at a price of $3.15 per share
to Sean J. Austin, currently the Chief Financial Officer, Vice President and
Corporate Controller of the Company. Because of Messrs. Manner's and Austin's
positions with the Company, the issuances of these shares are claimed to be
exempt pursuant to Section 4(2) of the Act.





                                       22
<PAGE>


ITEM 6.     EXHIBITS AND REPORTS ON FORM 8-K

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

 Exhibit
 Number     Description

 3.01       First Amendment to the Company's Amended and Restated Bylaws
23.01       Consent of LaRoche Petroleum Consultants, Ltd.
31.01       Certification pursuant to Rule 13a-14(a) of the Securities
            Exchange Act of 1934.
31.02       Certification pursuant to Rule 13a-14(a) of the Securities Exchange
            Act of 1934.
32.01       Certification Pursuant to 18 U.S.C. Section 1350, as pursuant to
            Section 906 of the Sarbanes-Oxley Act of 2002.
32.02       Certification Pursuant to 18 U.S.C. Section 1350, as pursuant to
            Section 906 of the Sarbanes-Oxley Act of 2002.

                  (b) Reports on Form 8-K

                  The Registrant filed Current Reports on Form 8-K on each of
                  April 10, 2006, June 6, 2006 and June 8, 2006, pursuant to
                  which Registrant filed copies of certain slides that the
                  Registrant intended at those times to use in presentations to
                  interested parties, including analysts and prospective
                  investors and to post on the Registrant's Web site.

                  The Registrant filed a Current Report on Form 8-K/A on May 31,
                  2006 filing financial statements relating to Registrant's
                  acquisition of EBS Oil and Gas Partners Production Company,
                  L.P.

                  The Registrant filed a Current Report on Form 8-K on June 1,
                  2006 reporting on changes with regard to Registrant's
                  management positions, an amendment to the Company's Amended
                  and Restated Bylaws, and the scheduled annual meeting of
                  stockholders.

                                       23
<PAGE>

                                    SIGNATURE

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

                            WESTSIDE ENERGY CORPORATION
                            (Registrant)


                            By: /s/ Douglas G. Manner
                            Douglas G. Manner,
                            Chief Executive Officer
                            (Principal Executive Officer)


                            By: /s/ Sean J. Austin
                            Sean J. Austin,
                            Vice President and Chief Financial Officer
                            (Principal Financial Officer and
                            Principal Accounting Officer)



Dated: August 21, 2006

                                       24