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**UNITED STATES
  SECURITIES AND EXCHANGE COMMISSION**
  Washington, D.C. 20549

FORM 10-KSB

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
  EXCHANGE ACT OF 1934

For the fiscal year ended **February 28, 2005.**

TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
  EXCHANGE ACT OF 1934

For the transition period from _________________ to __________________

Commission file number: 333-115637

Cascade Energy, Inc.
  Formerly(Pro-Tech Holdings Ltd.)
  (Exact name of Registrant as specified in its charter)

|**Nevada**                      | 41-2122221                          
|------------------------------- | ------------------------------------
|(State or other jurisdiction of | (I.R.S. Employer Identification No.)
|incorporation or organization)  |                                     

**13405 Folsom Blvd, Suite 820 Folsom, CA 95630**
  (Address of principal executive offices)

**(916) 608-9700**
  Registrant’s telephone number, including area code

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

|Title of each class 
      to be so registered | Name of each exchange on which
      each class is to be registered
|---------------------------------------------- | -------------------------------------------------------------------
|                                               |                                                                    
|**None**                                       | **None**                                                           

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

**Common Stock** 
  (Title of Class)

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Check whether the Issuer (1) filed all reports required to
  be filed by Section 13 or 15(d) of the Securities 
  Exchange Act during the past 12 months (or for such shorter period that the
  registrant was required to file 
  such reports), and (2) has been subject to such filing requirements for the
  past 90 days.

Yes x  No
   ̈

Check if there is no disclosure of delinquent filers in response
  to Item 405 of Regulation S-B not contained in
  this form, and no disclosure will be contained, to the best of registrant’s
  knowledge, in definitive proxy or 
  information statements incorporated by reference in Part III of this Form 10-KSB
  or any amendment to
  this Form 10-KSB.

Yes x  No
   ̈

State issuer’s net revenues for its most recent fiscal
  year:**$189,139**

State the aggregate market value of the voting and non-voting
  common equity held by non-affiliates computed 
  by reference to the price at which the common equity was sold, or the average
  bid and asked price of
  such common equity, as of a specified date within the past 60 days. (See definition
  of affiliate in Rule 12b-2 
  of the Exchange Act.)

**$28,000,000 as at June 7, 2005, based on the
  last sale price of our shares**

State the number of shares outstanding of each of the issuer’s
  classes of common equity, as of the latest practicable date.

**72,800,000****common shares
  as of June 7, 2005.**

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TABLE OF CONTENTS

|         |                                                                                             | Page
|-------- | ------------------------------------------------------------------------------------------- | ----
|         |                                                                                             |     
|ITEM 1:  | DESCRIPTION OF BUSINESS                                                                     | 4   
|         |                                                                                             |     
|ITEM 2:  | DESCRIPTION OF PROPERTY                                                                     | 8   
|         |                                                                                             |     
|ITEM 3:  | LEGAL PROCEEDINGS                                                                           | 8   
|         |                                                                                             |     
|ITEM 4:  | SUBMISSION OF MATTERS TO A VOTE OF SECURITY
      HOLDERS                                   | 8   
|         |                                                                                             |     
|ITEM 5:  | MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER
      MATTERS                              | 9   
|         |                                                                                             |     
|ITEM 6:  | MANAGEMENT’S DISCUSSION AND ANALYSIS
      OR PLAN OF OPERATION                             | 10  
|         |                                                                                             |     
|ITEM 7:  | FINANCIAL STATEMENTS                                                                        | 10  
|         |                                                                                             |     
|ITEM 8:  | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
      ON ACCOUNTING AND FINANCIAL DISCLOSURES | 24  
|         |                                                                                             |     
|ITEM 9:  | DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS
      AND CONTROL PERSONS                          | 24  
|         |                                                                                             |     
|ITEM 10: | EXECUTIVE COMPENSATION                                                                      | 26  
|         |                                                                                             |     
|ITEM 11: | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
      OWNERS AND MANAGEMENT                        | 27  
|         |                                                                                             |     
|ITEM 12: | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS                                              | 27  
|         |                                                                                             |     
|ITEM 13: | EXHIBITS AND REPORTS                                                                        | 28  
|         |                                                                                             |     
|ITEM 14: | CONTROLS AND PROCEDURES                                                                     | 29  

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PART I

ITEM 1:   DESCRIPTION OF BUSINESS

We were incorporated on December 23, 2003 under the laws of
  the State of Nevada. We commenced business operations in February 2004 when
  we negotiated and acquired all of the shares of Power Grow System Ltd. Power
  Grow System Ltd., a company which was incorporated pursuant to the laws of British
  Columbia on August 20, 2001, and has been engaged in the design, manufacturing,
  marketing of a variety of sophisticated, easy to operate and maintain, hydroponics
  plant growing systems since inception. Through this subsidiary, we currently
  assemble and sell our hydroponics plant growing systems to a series of established
  distributors in North America and also directly to end users. We currently manufacture
  and distribute, mainly in the United States, an average of 10 hydroponics plant
  growing systems units on a monthly basis. We earn revenue by selling hydroponics
  plant growing equipment to nurseries, garden centers, selected hydroponics equipment
  retailers as well as home garden hobbyists who want to produce, year round,
  their fresh fruits, herbs, flowers and vegetables, in a controlled environment,
  organically, free of outdoor pollutants and insects and faster than traditional
  gardening. Some of our customers may use our products for the illegal cultivation
  of marijuana, although we do not market our products to such consumers. We are
  not aware of the percentage of customers that may use our products for such
  illegal purposes.

On February 2, 2004, we entered into an acquisition agreement
  with Nick Brusatore and Jason Bleuler to purchase all of the issued and outstanding
  shares in the capital stock of Power Grow System Ltd., a company incorporated
  on August 20, 2001 under the laws of the Province of British Columbia, Canada.
  In consideration for the purchase of all of the outstanding shares of Power
  Grow System Ltd. from, these shareholders, we issued a total of 3,000,000 shares
  of our common stock in equal proportions to Nick Brusatore and Jason Bleuler,
  the two shareholders of Power Grow System Ltd. prior to the acquisition. The
  closing of the agreement took place on February 29, 2004.

Our plan of operations for the fiscal year ended February
  28, 2005 was to expand our business by attempting to:

|1. | Complete the development and initiate the manufacturing
        and marketing of an additional, self contained and ready to operate, hydroponics
        plant growing equipment model called F400. This new compact model, was
        ready for marketing in December 2004 and has received reasonable market
        acceptance.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                    
|2. | In conjunction with the completion of development
        of the new hydroponics equipment model F400, we needed to secure additional
        retail outlets and end users to purchase our hydroponics units while increasing
        the number of our hydroponics units to be sold every month to at least
        20.           

Our objectives is to obtain these operational milestones during
  the fiscal year ended February 28, 2005 have not been met. Furthermore our revenues
  have remained constant and insufficient to cover costs relating to the manufacturing
  and distribution of our hydroponics equipment and to cover costs for general
  administration of our business activities. Even though we will attempt to maintain
  our current operational levels, we cannot give assurances that we will be successful
  in our endeavors to reach a profitable operation.

In view of the losses from operations in our last fiscal year
  and our inability to implement our Business Plan, we have decided to identify
  and secure business opportunities in the Oil and Gas energy sector and subsequent
  to our fiscal year ended February 28, 2005 have acquired a net 33.075% working
  interest in a natural gas exploration prospect located in the Sacramento Basin,
  California known as the Coyote Creek natural gas prospect.

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Industries Overview,

1.         The Hydroponics Industry

Hydroponics has become the most widespread method of growing
  fruits, flowers, herbs and vegetables in commercial quantities in many countries
  of the world in large greenhouses and in self contained units without the utilization
  of soil. In traditional gardening, plants get root support, nutrients, water,
  and oxygen from the soil. In hydroponics systems, water with the added essential
  nutrients that normally would be available in a very fertile soil is infused
  to the plant in a controlled environment and quantities. Plants, like all living
  things, have certain requirements that need to be met for them to grow and thrive.
  These include water, nutrients, light, air, and structural support for the roots.
  Hydroponics culture requires only basic agriculture skills. Production takes
  place inside enclosures designed to control air and root temperatures, light,
  water, plant nutrition and adverse climate. The controlled environment also
  eliminates outdoor pollutants, pests and weeds that are present in soil. This
  is called Controlled Environment Agriculture or CEA. Hydroponics systems drastically
  reduce the amount of time needed to produce good plants, crops and fruit, allowing
  quicker turnaround to market. Countries with lack of arable land and water such
  as Iran, Mexico, Australia and certain Middle East nations are employing and
  researching the technology extensively. Likewise, systems are being used and
  researched in U.S. nuclear submarines, Russian space stations, various offshore
  drilling rigs, and by NASA in outer space to provide astronauts with fresh fruit
  and vegetables. ("History of Hydroponics" by Gary V. Deutschman Sr.)

The commercial hydroponics industry, largely greenhouse based,
  is centered in the affluent countries of the world such as the Netherlands,
  Spain, Canada, Japan, the United Kingdom, the USA, Italy, New Zealand and Australia.
  A 2001 study, "HYDROPONICS as an Agriculture Production System,"conducted
  by Hassal & Associates Pty Ltd. for the Rural Industries Research &
  Development Corporation of Australia reports that these affluent countries account
  for over 19,000 hectares of the world wide (estimated to be 25,000 hectares)
  commercial hydroponics production area. Tomatoes, cucumbers, lettuce, peppers,
  herbs and flowers are the most important crops grown. In the same year, the
  total global value was estimated at $6 to $8 billion. The United States
  and Canada have a combined 2,400 hectares of hydroponics greenhouse crop production.
  This is small in comparison to that of the Netherlands, which has in excess
  of 10,000 acres. Canada has the third largest commercial hydroponics industry,
  and is currently expanding at 25% per annum farm gate value. Over 40% of greenhouses
  in Canada and the USA employ hydroponics in their food production and this figure
  is rising annually. Their produce is sold in most supermarket stores throughout
  North America and Europe to consumers seeking natural, pesticide-free vegetation.
  According to the same study, hydroponics is the most popular method of growing
  vegetables in glasshouses in Canada, and in 1998, greenhouse vegetation production
  accounted for almost 25% of total vegetable production.

The hydroponics retail industry developed as a result of the
  commercial hydroponics industry growth and the consumers' preference for fresh,
  organically grown, and natural foods. The hydroponics retail market ranges from
  small independent retailers to well-established chain stores that manufacture,
  distribute and retail hydroponics equipment and supplies. Consumers can buy
  a number of parts and hydroponics supplies (lamps, water pumps, irrigation systems,
  cabinets, pots, fertilizers, root mediums, plastic sheets, glass, etc.) to build
  their own do-it-yourself hydroponics plant growing equipment. Hydroponics parts
  and supplies are available from a myriad of retail outlets in Canada and the
  USA: hardware stores, nurseries, garden equipment suppliers, plumbers' suppliers,
  greenhouses suppliers, lighting outlets, indoor plant suppliers, hydroponics
  parts suppliers, etc. For those consumers and hobbyists who may not have the
  time and knowledge to build their own hydroponics equipment from parts, they
  can purchase self-contained, ready to operated units. These units can be purchased
  from a number of retailers (hydroponics shops, gardening shops and nurseries)
  and directly from hydroponics plant growing equipment manufacturers and distributors.
  As a result of consumer trends toward fresh, organically grown and environmentally
  friendly food products, there is confidence that this industry will continue
  to grow and thrive.

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2.Oil and
  Gas Industry

The International Energy Outlook Report for 2003 projects
  that primary consumption of oil in the U.S. will increase by 1.5 percent annually
  from 1999 to 2020, and that oil’s share in the U.S. energy mix will increase
  slightly, from 39.4 percent in 1999 to 39.7 percent in 2020, totaling 26.7 million
  barrels per day. Over the next 20 years, the expected trend of pricing should
  facilitate growth in U.S. oil demand. The report states that periodic production
  adjustments by OPEC members are not expected to have a significant long-term
  impact on world oil markets and that prices are expected to rise gradually through
  2020 as the oil resource base is expanded.

California 
  California is the 4th largest oil producing state in the United States, behind
  Louisiana, Texas, and Alaska. California has an estimated reserve of 3.4 billion
  barrels of recoverable crude oil. As the world’s eighth-largest economy,
  California ranks second nationwide in total energy consumption yet produces
  a mere 16 percent of the natural gas it requires to satisfy demands. California
  government agencies are actively searching for incentives and solutions to increase
  natural gas production and infrastructure within the state to help increase
  supply to meet this growing demand and the State will readily buy up any supplies
  produced. Incidentally, California has an excellent infrastructure of natural
  gas pipelines to transmit production throughout the State, which translates
  into easier, timely and less-costly market delivery.

EmployeesWe have no employees other than our officers and directors. Power Grow,
  our wholly owned subsidiary, has an agreement with Mr. Jason Bleuler and C&CB
  Concept and Communication Business Inc., a private British Columbia company
  wholly owned by Mr. Bleuler, for sales and marketing services. Pursuant to the
  terms and conditions of this agreement, he and his company have agreed to provide
  his services to us as an exclusive sales and marketing agent for our hydroponics
  equipment. For his services, Mr. Bleuler and his company are paid a total of
  $3,333 per month and are reimbursed for reasonable expenses incurred by
  him in relation to the performance of his duties. We also reimburse him for
  vehicle's expenses while he acts in his capacity as our exclusive sales and
  marketing agent for our hydroponics plant growing equipment. The agreement commenced
  on January 1, 2003 and will remain in effect until January 30, 2006, unless
  earlier terminated. It may be renewed for an additional six month term with
  the mutual agreement of all parties. Either party may terminate the agreement
  for cause upon 30 days' notice. Mr. Bleuler acts as our Director and President,
  Chief Executive Officer and as a director of our wholly owned subsidiary.

All manual labor required for the assembly of our hydroponics
  plant growing equipment is outsourced to local manufacturing laborers on a part-time
  basis and as needed. These individuals, no more than two at any given time,
  provide us with the manual labor of assembling all electrical and mechanical
  parts and hydroponics components into a turnkey hydroponics equipment. Administrative
  functions and collection of revenues is contracted out on a part-time basis
  to one individual.

Risk Factors

In addition to the other information in this current report,
  the following factors should be carefully considered in evaluating our business
  and prospects:

Unsuccessful Operating History

We have a limited operating history upon which an evaluation
  of our future prospects can be made. Our business history has been limited to
  manufacturing and marketing of our Hydroponics Plant Growing Equipment and recently
  to the exploration and development of Oil and Gas prospects. Since inception
  our operation has been generating losses and we cannot give assurances that
  we will be

---

successful in generating profits, from our recently acquired
  oil and gas prospects, in the future. Therefore we will be reviewing other business
  ventures or acquisition opportunities in the energy industry or other industries
  if they become available to us. Furthermore we cannot give assurances that we
  will be able to raise the financing necessary to maintain our current operation
  or develop any other business plan of new business assets that we may acquire
  in the future.

If We Do Not Obtain Additional Financing, We Will Not Be
  Able to Maintain Present Operation or Acquire Any Assets

As of February 28, 2005, we had no cash on hand and our present
  negative revenues are not sufficient to meet our obligation in connection to
  the hydroponics operation. In order to meet these obligations or acquire any
  additional business interest, we will have to raise funds necessary to meet
  our present Business obligations or to finance new operations. If we are not
  able to raise the funds necessary to fund our business objectives, we may have
  to suspend our present operation and delay the implementation of any future
  business plan.

We do not have arrangements for any financing and we can provide
  no assurance that we will be able to obtain the additional required financing
  needed. Obtaining additional financing will be subject to a number of factors,
  including:

| | • | Market conditions;                                   
| | - | -----------------------------------------------------
| | • | Investor acceptance of potential business assets; and
| | • | Investor sentiment.                                  

These factors may make the timing, amount, terms and conditions
  of additional financing unattractive or unavailable to us. If we are not successful
  in achieving financing in the amount necessary to meet our present obligations
  in connection with our hydroponics equipment manufacturing and oil and gas business
  interests that we presently own or that we may acquire in the future, implementation
  of our business plan may fail or be delayed.

If We Are Unable To Generate Significant Revenues From
  Our Operations, Our Business Will Fail.

If we are unable to generate additional significant revenues
  from our hydroponics equipment manufacturing, our oil and gas and other business
  interest that we may acquire, we will not be able to achieve profitability or
  continue operations.

Because the Trading Market for Our Shares is Speculative
  and Volatile, Shareholders May Not Be Able to Sell Their Shares.

Our shares of common stock are quoted for trading on the OTC
  Bulletin Board and have been trading through the facilities of that quotation
  system. Due to the volatile and speculative nature of our trading market, we
  cannot assure you that you will be able to sell your shares for a reasonable
  price.

Our Securities May Be Subject to Penny Stock Regulation.

If the trading market for our securities remains volatile
  and the price of our common shares remains below $5.00 per share, then we
  will be subject to "penny stock" regulation. "Penny stock" rules impose additional
  sales practice requirements on broker-dealers who sell such securities to persons
  other than established customers and accredited investors (generally those with
  assets in excess of $1,000,000 or annual income exceeding $200,000 or
  $300,000 together with a spouse). For transactions covered by these rules,
  the broker-dealer must make a special suitability determination for the purchase
  of such securities and have received the purchaser's written consent to the
  transaction prior to the purchase.

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Additionally, for any transaction involving a penny stock,
  unless exempt, the rules require the delivery, prior to the transaction, of
  a disclosure schedule prescribed by the Commission relating to the penny stock
  market. The broker-dealer also must disclose the commissions payable to both
  the broker-dealer and the registered representative and current quotations for
  the securities. Finally, monthly statements must be sent disclosing recent price
  information on the limited market in penny stocks. Consequently, the "penny
  stock" rules may restrict the ability of broker-dealers to sell our shares of
  common stock. The market price of our shares would likely suffer as a result.

Forward-Looking Statements

This Annual Report contains forward-looking statements that
  involve risks and uncertainties. We use words such as anticipate, believe, plan,
  expect, future, intend and similar expressions to identify such forward-looking
  statements. You should not place too much reliance on these forward-looking
  statements. Our actual results are most likely to differ materially from those
  anticipated in these forward-looking statements for many reasons, including
  the risks faced by us described in the Risk Factors section and elsewhere in
  this Report.

ITEM 2:   DESCRIPTION OF PROPERTY

Our principal executive and corporate offices are located
  at 13405 Folsom Blvd, Suite 820, Folsom, CA 95630. Mr. Sam Johal, our President
  and Chief Executive Officer, provides the office space and telephone service
  free of charge. The costs associated with the use of the telephone and mailing
  address are deemed by management to be immaterial.

Our Hydroponics administrative and marketing offices are located
  at 595 Howe Street, Suite 323, Vancouver, British Columbia, Canada. Mr. Robert
  Hoegler, our Director, rents these premises to our wholly owned subsidiary,
  on a monthly basis, for $400 per month. There are no formal agreements or
  arrangements with the Mr. Hoegler for the rent of this space.

ITEM 3:   LEGAL PROCEEDINGS

There are no legal proceedings pending or threatened against
  us.

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

In accordance with our bylaws, shareholders representing a
  majority of the shares entitled to vote approved in writing all business required
  to be transacted at an Annual General Meeting and/or Extraordinary Shareholders
  Meetings as follows:

| | 1. | January 4, 2005 Robert Hoegler, Jason Bleuler and
        Floyd Flaman were re-elected as directors of the Company for the ensuing
        year. Shareholders also passed resolutions approving our financial statements,
        the re-appointment of Amisano Hanson, Chartered Accountants as our Auditors
        and all acts of our directors and officers since the date of our last
        Annual General Meeting.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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PART II

ITEM 5:   MARKET FOR COMMON EQUITY AND RELATED
  STOCKHOLDER MATTERS

Market Information

Our shares of common stock have been quoted for trading on
  the National Association of Securities Dealers’ OTC Bulletin Board since
  January 11, 2005. The OTC Bulletin Board is a network of security dealers who
  buy and sell stock. The following table sets forth the high and low closing
  prices and average daily volume, for the periods, of our common shares traded
  on the OTC Bulletin Board since January 11, 2005, (first day of Trading) to.

| | Period                                 | High | Low | 
| | -------------------------------------- | ---- | --- | 
| | January 11, 2005 to February 28, 2005* | 0    | 0   | 

* There were no trading activities of
  shares in our common stock during this period.

The above quotations are taken from information provided by
  Canada Stockwatch and reflect inter-dealer prices, without retail mark-up, mark-down
  or commission and may not represent actual transactions.

We have 44 shareholders of record as of June 8, 2005.

Securities authorized for issuance under equity compensation
  plans:

|                                                                         | Number of securities to be issued
      upon exercise of outstanding
      options, warrants and rights
      (a) | Weighted-average exercise
      price of outstanding options,
      warrants and rights
      (b) | Number of securities remaining available
      for future issuance under equity
      compensation plans(excluding securities
      reflected in column (a)
      (c)
|------------------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Equity compensation
      plans approved by 
      security holders      | 0                                                                                                                 | 0                                                                                                 | 0                                                                                                                                                                    
|Equity compensation 
      plans not approved by 
      security holders | 0                                                                                                                 | 0                                                                                                 | 0                                                                                                                                                                    
|Total                                                                    | 0                                                                                                                 | 0                                                                                                 | 0                                                                                                                                                                    

Dividends

There are no restrictions in our articles of incorporation
  or bylaws that prevent us from declaring dividends. The Nevada Revised Statutes,
  however, do prohibit us from declaring dividends where, after giving effect
  to the distribution of the dividend:

|1. | we would not be able to pay our debts as they become
        due in the usual course of business; or                                                                                                                                              
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                   
|2. | our total assets would be less than the sum of our
        total liabilities plus the amount that would be needed to satisfy the
        rights of shareholders who have preferential rights superior to those
        receiving the distribution.

We have not declared any dividends, and we do not plan to
  declare any dividends in the foreseeable future.

---

ITEM 6:   MANAGEMENT’S DISCUSSION AND ANALYSIS
  OR PLAN OF OPERATION

Plan of Operation

We intend to seek financing necessary to fund our present
  obligations in connection with the Oil and Gas interest that we recently acquired
  and to fund our investigation, negotiation, acquisition of other business acquisition
  opportunities and any potential future operations. Currently, we have limited
  anticipated sources of financing and no specific additional business projects
  that are being reviewed.

We anticipate incurring approximately $90,000 for administrative
  expenses over the next 12 month period including accounting and audit costs
  ($40,000) legal fees ($10,000), rent and office costs ($15,000)
  and general administrative costs ($25,000).

We do not currently have cash on hand to cover these anticipated
  costs and accordingly, we will require additional funding.

Additional funding will be required in the form of equity
  financing from the sale of our common stock or from directors or shareholders
  loans to fund operations and to meet our obligations to earn the 49% working
  interest in the Coyote Creek Oil and Gas prospect. However, we cannot provide
  investors with any assurance that we will be able to secure sufficient funding
  from the sale of our common stock or arrange director or shareholders loans
  in order to continue operations.

Results of Operations

For the fiscal year ended February 28, 2005, we earned gross
  revenues of $189,139 from business operations relating to the manufacturing
  and sales of our hydroponics plant growing equipment. This amount was offset
  by costs of sales of $128,614 and general and administrative expenses of
  $213,911 consisting of accounting and audit fees of $47,530, advertising
  of $16,172, auto expenses of $12,789, bad debt expenses of $16,115,
  bank charges of $6,751, consulting fees of $56,732, filing and listing
  fees $3,112, investor relations $$2,358, legal fees $9,116,
  office and general costs of $8,843, rent of $19,556, salaries and benefits
  $3,107, telephone of $8,577, transfer agent fees of $1,000 and travel
  of $2,153. Accordingly, we incurred a net loss before other items of $153,386
  for the fiscal year. After calculating a gain on foreign exchange loss of $786
  and write-off of goodwill of $90,152 we had a net loss of $244,324 for
  the fiscal year ending February 28, 2005.

At February 28, 2005, we had total assets of $17,377 of
  which $10,568 was in accounts receivable and $6,809 in inventory. As
  of the same date the total amount of our liabilities was $224,715 of which
  $9,453 in bank overdraft, $128,003 in accounts payable and accrued liabilities,
  $70,449 due to related party and $16,810 in loan payables.

ITEM 7:   FINANCIAL STATEMENTS

CASCADE ENERGY, INC.

(Formerly Pro–Tech Holdings Ltd.)

REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

February 28, 2005 and February 29, 2004

(Stated in US Dollars)

---

|**A PARTNERSHIP OF
      INCORPORATED PROFESSIONALS** | **AMISANO HANSONCHARTERED ACCOUNTANTS**
|----------------------------------------------------- | ---------------------------------------



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Stockholders of 
  Cascade Energy, Inc. 
  (Formerly Pro–Tech Holdings Ltd.)

We have audited the consolidated balance sheets of Cascade
  Energy, Inc. (formerly Pro–Tech Holdings Ltd.) and subsidiary as of February
  28, 2005 and February 29, 2004 and the related consolidated statements of operations,
  comprehensive loss, cash flows and stockholders’ equity (deficiency) for
  the year ended February 28, 2005 and the period from December 23, 2003 (Date
  of Inception) to February 29, 2004. These financial statements are the responsibility
  of the Company’s management. Our responsibility is to express an opinion
  on these financial statements based on our audits.

We conducted our audits in accordance with the standards of
  the Public Company Accounting Oversight Board (United States of America). Those
  standards require that we plan and perform an audit to obtain reasonable assurance
  about whether the financial statements are free of material misstatement. An
  audit includes examining, on a test basis, evidence supporting the amounts and
  disclosures in the financial statements. An audit also includes assessing the
  accounting principles used and significant estimates made by management as well
  as evaluating the overall financial statement presentation. We believe that
  our audits provide a reasonable basis for our opinion.

In our opinion, these consolidated financial statements referred
  to above present fairly, in all material respects, the financial position of
  Cascade Energy, Inc. (formerly Pro–Tech Holdings Ltd.) and subsidiary
  as of February 28, 2005 and February 29, 2004 and the results of their operations
  and their cash flows and the changes in stockholders’ equity (deficiency)
  for the year ended February 28, 2005 and the period from December 23, 2003 (Date
  of Inception) to February 29, 2004 in conformity with accounting principles
  generally accepted in the United States of America.

The accompanying financial statements referred to above have
  been prepared assuming that the Company will continue as a going concern. As
  discussed in Note 1 to the financial statements, the Company is dependant on
  its ability to raise capital from stockholders or other sources to sustain operations.
  These factors, as set forth in Note 1, raise substantial doubt that the Company
  will be able to continue as a going concern. The financial statements do not
  include any adjustments that might result from the outcome of this uncertainty.

|Vancouver, Canada | “AMISANO HANSON”     
|----------------- | ---------------------
|April 20, 2005    | Chartered Accountants



|750 WEST PENDER STREET, SUITE 604
      VANCOUVER CANADA
      V6C 2T7 | TELEPHONE: 604-689-0188
      FACSIMILE: 604-689-9773
      E-MAIL: amishan@telus.net
|---------------------------------------------------------------------- | -------------------------------------------------------------------------------------

---

CASCADE ENERGY, INC.
  (Formerly Pro-Tech Holdings Ltd.)
  CONSOLIDATED BALANCE SHEETS
  February 28, 2005 and February 29, 2004
  (Stated in US Dollars)

|                                                                     |   | February 28, |   |   | February 29, |  
|-------------------------------------------------------------------- | - | ------------ | - | - | ------------ | -
|                                                                     |   | 2005         |   |   | 2004         |  
|ASSETS                                                               |  
|                                                                     |   |              |   |   |              |  
|Current                                                              |   |              |   |   |              |  
|Cash                                                                 | $ | -            |   | $ | 57,183       |  
|Accounts receivable
      (net of allowance of $30,535)              |   | 10,568       |   |   | 35,641       |  
|Inventory                                                            |   | 6,809        |   |   | 12,461       |  
|Prepaid expenses and
      deposits                                  |   | -            |   |   | 636          |  
|                                                                     |   |              |   |   |              |  
|                                                                     |   | 17,377       |   |   | 105,921      |  
|Goodwill – Note 4                                                    |   | -            |   |   | 90,152       |  
|                                                                     |   |              |   |   |              |  
|                                                                     | $ | 17,377       |   | $ | 196,073      |  
|                                                                     |   |              |   |   |              |  
|LIABILITIES                                                          |   |              |   |   |              |  
|                                                                     |   |              |   |   |              |  
|Current                                                              |   |              |   |   |              |  
|Bank overdraft                                                       | $ | 9,453        |   | $ | -            |  
|Accounts payable and
      accrued liabilities – Note 3              |   | 128,003      |   |   | 85,368       |  
|Due to related parties
      – Note 3                                |   | 70,449       |   |   | 53,093       |  
|Loans payable –
      Note 5                                         |   | 16,810       |   |   | 9,953        |  
|                                                                     |   |              |   |   |              |  
|                                                                     |   | 224,715      |   |   | 148,414      |  
|                                                                     |   |              |   |   |              |  
|STOCKHOLDERS’ EQUITY (DEFICIENCY)                                    |   |              |   |   |              |  
|                                                                     |   |              |   |   |              |  
|Capital stock – Notes 6 and 11                                       |   |              |   |   |              |  
|Common stock, $0.001
      par value, 200,000,000 shares authorized  |   |              |   |   |              |  
|Preferred stock, $0.001
      par value, 5,000,000 shares authorized |   |              |   |   |              |  
|72,800,000 common
      shares issued and outstanding                |   | 9,100        |   |   | 9,100        |  
|Additional paid-in capital                                           |   | 49,000       |   |   | 49,000       |  
|Accumulated other comprehensive loss                                 |   | (10,673      | ) |   | -            |  
|Accumulated deficit                                                  |   | (254,765     | ) |   | (10,441      | )
|                                                                     |   |              |   |   |              |  
|                                                                     |   | (207,338     | ) |   | 47,659       |  
|                                                                     |   |              |   |   |              |  
|                                                                     | $ | 17,377       |   | $ | 196,073      |  

Nature and Continuance of Operations – Note 1 Subsequent Events –
  Note 11

SEE ACCOMPANYING NOTES

---

CASCADE ENERGY, INC.
  (Formerly Pro-Tech Holdings Ltd.) 
  CONSOLIDATED STATEMENTS OF OPERATIONS 
  for the year ended February 28, 2005 
  and for the period December 23, 2003 (Date of Inception) to February 29, 2004
  
  (Stated in US Dollars)

|                                                     |   |              |   |   | December 23,  |  
|---------------------------------------------------- | - | ------------ | - | - | ------------- | -
|                                                     |   |              |   |   | 2003 (Date of |  
|                                                     |   | Year ended   |   |   | Inception) to |  
|                                                     |   | February 28, |   |   | February 29   |  
|                                                     |   | 2005         |   |   | 2004          |  
|                                                     |   |              |   |   |               |  
|Sales                                                | $ | 189,139      |   | $ | -             |  
|                                                     |   |              |   |   |               |  
|Cost of sales                                        |   | 128,614      |   |   | -             |  
|                                                     |   |              |   |   |               |  
|Gross profit                                         |   | 60,525       |   |   | -             |  
|                                                     |   |              |   |   |               |  
|Expenses                                             |   |              |   |   |               |  
|Accounting and audit
      fees                      |   | 47,530       |   |   | 10,000        |  
|Advertising                                          |   | 16,172       |   |   | -             |  
|Auto expenses                                        |   | 12,789       |   |   | -             |  
|Bad debts                                            |   | 16,115       |   |   | -             |  
|Bank charges and interest                            |   | 6,751        |   |   | -             |  
|Consulting fees –
      Note 3                       |   | 56,732       |   |   | -             |  
|Filing and listing
      fees                        |   | 3,112        |   |   | -             |  
|Investor relations                                   |   | 2,358        |   |   | -             |  
|Legal fees                                           |   | 9,116        |   |   | -             |  
|Office and general                                   |   | 8,843        |   |   | 683           |  
|Rent – Note
      3                                  |   | 19,556       |   |   | -             |  
|Salaries and benefits                                |   | 3,107        |   |   | -             |  
|Telephone                                            |   | 8,577        |   |   | -             |  
|Transfer agent fees                                  |   | 1,000        |   |   | -             |  
|Travel                                               |   | 2,153        |   |   | -             |  
|                                                     |   |              |   |   |               |  
|                                                     |   | 213,911      |   |   | 10,683        |  
|                                                     |   |              |   |   |               |  
|Loss before other items                              |   | (153,386     | ) |   | (10,683       | )
|                                                     |   |              |   |   |               |  
|Other items                                          |   |              |   |   |               |  
|Foreign exchange loss                                |   | (786         | ) |   | 242           |  
|Write-off of goodwill
      – Note 4                 |   | (90,152      | ) |   | -             |  
|                                                     |   |              |   |   |               |  
|Net loss for the period                              | $ | (244,324     | ) | $ | (10,441       | )
|                                                     |   |              |   |   |               |  
|Basic and diluted loss per share                     | $ | (0.00        | ) | $ | (0.00         | )
|                                                     |   |              |   |   |               |  
|Weighted average number of common shares outstanding |   | 72,800,000   |   |   | 24,400,000    |  

SEE ACCOMPANYING NOTES

---

CASCADE ENERGY, INC.
  (Formerly Pro-Tech Holdings Ltd.)
  CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
  for the year ended February 28, 2005
  and for the period December 23, 2003 (Date of Inception) to February 29, 2004
  (Stated in US Dollars)

|                                              |   |              |   |   | December 23,  |  
|--------------------------------------------- | - | ------------ | - | - | ------------- | -
|                                              |   |              |   |   | 2003 (Date of |  
|                                              |   | Year ended   |   |   | Inception) to |  
|                                              |   | February 28, |   |   | February 29   |  
|                                              |   | 2005         |   |   | 2004          |  
|                                              |   |              |   |   |               |  
|Net loss for the period                       | $ | (244,324     | ) | $ | (10,441       | )
|                                              |   |              |   |   |               |  
|Other comprehensive loss                      |   |              |   |   |               |  
|Foreign currency translation
      adjustment |   | (10,673      | ) |   | -             |  
|                                              |   |              |   |   |               |  
|Comprehensive loss                            | $ | (254,997     | ) | $ | (10,441       | )

SEE ACCOMPANYING NOTES

---

CASCADE ENERGY, INC. 
  (Formerly Pro-Tech Holdings Ltd.) 
  CONSOLIDATED STATEMENTS OF CASH FLOWS 
  for the year ended February 28, 2005 
  and for the period December 23, 2003 (Date of Inception) to February 29, 2004
  (Stated in US Dollars)

|                                                                      |   |              |   |   | December 23,  |  
|--------------------------------------------------------------------- | - | ------------ | - | - | ------------- | -
|                                                                      |   |              |   |   | 2003 (Date of |  
|                                                                      |   | Year ended   |   |   | Inception) to |  
|                                                                      |   | February 28, |   |   | February 29,  |  
|                                                                      |   | 2005         |   |   | 2004          |  
|                                                                      |   |              |   |   |               |  
|Operating Activities                                                  |   |              |   |   |               |  
|Net loss for the period                                               | $ | (244,324     | ) | $ | (10,441       | )
|Item not affecting
      cash:                                        |   |              |   |   |               |  
|Write-off of goodwill – Note 4                                        |   | 90,152       |   |   | -             |  
|Change in non-cash
      working capital items related to operations: |   |              |   |   |               |  
|Accounts receivable                                                   |   | 25,073       |   |   | -             |  
|Inventory                                                             |   | 5,652        |   |   | -             |  
|Prepaid expenses and deposits                                         |   | 636          |   |   | -             |  
|Accounts payable and accrued liabilities                              |   | 42,635       |   |   | 10,332        |  
|                                                                      |   |              |   |   |               |  
|Cash flows used in operating activities                               |   | (80,176      | ) |   | (109          | )
|                                                                      |   |              |   |   |               |  
|Financing Activities                                                  |   |              |   |   |               |  
|Bank overdraft                                                        |   | 9,453        |   |   | -             |  
|Increase in due to
      related parties                              |   | 17,356       |   |   | -             |  
|Increase in loans
      payable                                       |   | 6,857        |   |   | -             |  
|Cash acquired –
      Note 4                                          |   | -            |   |   | 2,192         |  
|Proceeds from sale
      of common stock                              |   | -            |   |   | 55,100        |  
|                                                                      |   |              |   |   |               |  
|Cash flows provided by financing activities                           |   | 33,666       |   |   | 57,292        |  
|                                                                      |   |              |   |   |               |  
|Effect of foreign exchange rate changes on cash                       |   | (10,673      | ) |   | -             |  
|                                                                      |   |              |   |   |               |  
|Increase (decrease) in cash during the period                         |   | (57,183      | ) |   | 57,183        |  
|                                                                      |   |              |   |   |               |  
|Cash, beginning of the period                                         |   | 57,183       |   |   | -             |  
|                                                                      |   |              |   |   |               |  
|Cash, end of the period                                               | $ | -            |   | $ | 57,183        |  
|                                                                      |   |              |   |   |               |  
|Supplemental disclosure of cash flow information                      |   |              |   |   |               |  
|Cash paid for:                                                        |   |              |   |   |               |  
|Interest                                                              | $ | -            |   | $ | -             |  
|                                                                      |   |              |   |   |               |  
|Income taxes                                                          | $ | -            |   | $ | -             |  
|                                                                      |   |              |   |   |               |  
|Non-cash Transaction – Note 9                                         |   |              |   |   |               |  

SEE ACCOMPANYING NOTES

---

CASCADE ENERGY, INC.
  (Formerly Pro-Tech Holdings Ltd.) 
  CONSOLDIATED STATEMENT OF STOCKHOLDERS’ EQUITY (DEFICIENCY) 
  for the period December 23, 2003 (Date of Inception) to February 28, 2005
  (Stated in US Dollars)

|                                            |              |  |   |                 |  |   | Additional    |  |   | Other   |   |   |          |   |   |          |  
|------------------------------------------- | ------------ |  | - | --------------- |  | - | ------------- |  | - | ------- | - | - | -------- | - | - | -------- | -
|                                            | Common Stock |  |   | Paid-in         |  |   | Comprehensive |  |   |         |   |   |          |  
|                                            | Number*      |  |   | Par
      Value |  |   | Capital       |  |   | Loss    |   |   | Deficit  |   |   | Total    |  
|                                            |              |  |   |                 |  |   |               |  |   |         |   |   |          |   |   |          |  
|Issuance of common stock                    |              |  |   |                 |  |   |               |  |   |         |   |   |          |   |   |          |  
|for cash              
      – at $0.001    | 40,800,000   |  | $ | 5,100           |  | $ | -             |  | $ | -       |   | $ | -        |   | $ | 5,100    |  
|                                            |              |  |   |                 |  |   |               |  |   |         |   |   |          |   |   |          |  
|Issuance of common stock                    |              |  |   |                 |  |   |               |  |   |         |   |   |          |   |   |          |  
|for acquisition of
      Power              |              |  |   |                 |  |   |               |  |   |         |   |   |          |   |   |          |  
|Grow System Ltd.                            |              |  |   |                 |  |   |               |  |   |         |   |   |          |   |   |          |  
|–
      at $0.001                           | 24,000,000   |  |   | 3,000           |  |   | -             |  |   | -       |   |   | -        |   |   | 3,000    |  
|                                            |              |  |   |                 |  |   |               |  |   |         |   |   |          |   |   |          |  
|Issuance of common stock                    |              |  |   |                 |  |   |               |  |   |         |   |   |          |   |   |          |  
|for
      cash             –
      at $0.05 | 8,000,000    |  |   | 1,000           |  |   | 49,000        |  |   | -       |   |   | -        |   |   | 50,000   |  
|                                            |              |  |   |                 |  |   |               |  |   |         |   |   |          |   |   |          |  
|Net loss for the period                     | -            |  |   | -               |  |   | -             |  |   | -       |   |   | (10,441  | ) |   | (10,441  | )
|                                            |              |  |   |                 |  |   |               |  |   |         |   |   |          |   |   |          |  
|Balance, February 29, 2004                  | 72,800,000   |  |   | 9,100           |  |   | 49,000        |  |   | -       |   |   | (10,441  | ) |   | 47,659   |  
|                                            |              |  |   |                 |  |   |               |  |   |         |   |   |          |   |   |          |  
|Other comprehensive loss                    |              |  |   |                 |  |   |               |  |   |         |   |   |          |   |   |          |  
|for the year                                | -            |  |   | -               |  |   | -             |  |   | (10,673 | ) |   | -        |   |   | (10,673  | )
|                                            |              |  |   |                 |  |   |               |  |   |         |   |   |          |   |   |          |  
|Net loss for the year                       | -            |  |   | -               |  |   | -             |  |   | -       |   |   | (244,324 | ) |   | (244,324 | )
|                                            |              |  |   |                 |  |   |               |  |   |         |   |   |          |   |   |          |  
|Balance, February 28, 2005                  | 72,800,000   |  | $ | 9,100           |  | $ | 49,000        |  | $ | (10,673 | ) | $ | (254,765 | ) | $ | (207,338 | )

|* | The common stock issued has been retroactively restated to reflect a
      forward split of 8 new shares for 1 old share effective on April 28, 2005.
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------

SEE ACCOMPANYING NOTES

---

CASCADE ENERGY, INC. 
  (Formerly Pro-Tech Holdings) 
  NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
  February 28, 2005 and February 29, 2004
  (Stated in US Dollars)

|Note 1 | Nature and Continuance of Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|       | The Company and its subsidiary, Power
        Grow System Ltd. (“PGS”), a private British Columbia, Canada
        company, are in the business of the design, manufacture and sale of a
        variety of hydroponics plant growing systems in British Columbia, Canada.
        Subsequent to February 28, 2005, the Company indicated its intention to
        explore and develop oil and gas properties in California, United States
        of America (Note 11). The Company is a public company, having filed an
        SB2 Registration Statement with the United States Securities and Exchange
        Commission during the year ended February 28, 2005, whose shares trade
        on the OTC Bulletin Board.                                                                                                                                                                                                                                                                               
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|       | At February 28, 2005, the Company has
        a working capital deficiency of $207,338, has yet to achieve profitable
        operations and has incurred losses since inception totalling $254,765.
        The Company’s ability to continue as a going concern is dependent
        on raising additional capital to fund future operations and ultimately
        to attain profitable operations. Accordingly, these factors raise substantial
        doubt as to the Company’s ability to continue as a going concern.
        These financial statements do not give affect to adjustments that would
        be necessary to the carrying values and classification of assets and liabilities
        should the Company be unable to continue as a going concern. Management
        plans to continue to provide for its capital needs during the year ended
        February 28, 2006 by the development of its sales, by issuing equity securities
        or by obtaining related party loans.
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|       | The Company was incorporated on December
        23, 2003 in the State of Nevada and has adopted February 28 as its fiscal
        year end.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|Note 2 | Summary of Significant Accounting
        Policies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|       | These consolidated financial statements
        have been prepared in accordance with generally accepted accounting principles
        in the United States of America. Because a precise determination of many
        assets and liabilities is dependent upon future events, the preparation
        of financial statements for a period necessarily involves the use of estimates
        which have been made using careful judgement. Actual results may differ
        from these estimates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|       | The financial statements, in management’s
        opinion, have been properly prepared within reasonable limits of materiality
        and within the framework of the significant accounting policies summarized
        below:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|       | Principles of Consolidation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|       | These consolidated financial statements
        include the accounts of the Company and its wholly-owned subsidiary, Power
        Grow System Ltd., from the date of acquisition (Note 4). All inter-company
        transactions and account balances have been eliminated.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               

17

---

|Note 2 | Summary of Significant Accounting
        Policies– (cont’d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|       | Revenue Recognition                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|       | The Company’s subsidiary generates
        revenue from selling hydroponics plant growing systems in Canada and the
        United States of America. The Company records sales revenue when a unit
        has been shipped and collection is reasonably assured. The consolidated
        financial statements for the year ended February 29, 2004 have not reported
        any revenue as the acquisition of the subsidiary was effective February
        29, 2004. Revenue has been recorded for the year ended February 28, 2005.                                                                     
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|       | A one-year warranty is provided by the
        Company. The Company does not have a history of warranty claims and management
        considers that future claims, if any, will not be material and therefore
        has not made any provision for future warranty costs in the financial
        statements. The Company will review this policy annually.                                                                                                                                                                                                                                                
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|       | Allowance for Doubtful Accounts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|       | The Company estimates and records allowance
        for doubtful accounts to include accounts receivable that are more than
        90 days past due.                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|       | Inventory                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|       | Inventory, which is comprised of raw
        materials, is valued at the lower of cost and net realizable value. Cost
        is determined using the average cost method.                                                                                                                                                                                                                                                                                                                                                                                                                                    
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|       | Foreign Currency Translation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|       | The Company uses Canadian dollars as
        its functional currency and US dollars as its reporting currency. Current
        assets and liabilities are translated at the exchange rate in effect at
        the date of the balance sheet. Capital assets, stockholders’ equity,
        revenues and expenses are translated at the exchange rates in effect at
        the date of the transaction. Any gains or losses arising as a result of
        such translations are not included in operations but are reported as a
        separate component of equity as cumulative translation adjustments.
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|       | Financial Instruments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|       | The carrying values of the Company’s
        financial instruments, consisting of cash, accounts receivable, bank overdraft,
        accounts payable and accrued liabilities, due to related parties and loan
        payable approximate their fair value due to the short maturity of such
        instruments. Unless otherwise noted, it is management’s opinion
        that the Company is not exposed to significant interest, currency or credit
        risks arising from these financial instruments.                                                                                             

18

---

|Note 2 | Summary of Significant Accounting
      Policies– (cont’d)
|------ | ----------------------------------------------------------
|       |                                                           
|       | Financial Instruments–
      (cont’d)                     
|       |                                                           
|       | a)                                                        
|       |                                                           
|       |                                                           
|       |                                                           
|       | b)                                                        
|       |                                                           
|       |                                                           
|       |                                                           
|       | Income Taxes                                              

| | The Company follows Statement of Financial
        Accounting Standards (“FAS”) No. 109, “Accounting for
        Income Taxes” which requires the use of the asset and liability
        method of accounting of income taxes. Under the assets and liability method
        of FAS 109, deferred tax assets and liabilities are recognized for future
        tax consequences attributable to temporary differences between the financial
        statements carrying amounts of existing assets and liabilities and loss
        carry forwards and their respective tax bases. Deferred tax assets and
        liabilities are measured using enacted tax rates expected to apply to
        taxable income in the year in which those temporary differences are expected
        to be recovered or settled.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | Goodwill and Intangible Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | The Company has adopted the provisions
        of the FAS No. 142, Goodwill and Intangible Assets". Under FAS 142, goodwill
        and intangible assets with indefinite lives are not amortized but are
        annually tested for impairment. The determination of any impairment includes
        a comparison of the estimated future operating cash flows anticipated
        during the remaining life for the net carrying value of the asset as well
        as a comparison of the fair value to the book value of the Company or
        the reporting unit to which the goodwill can be attributed.                                                                                                                                                                                                 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | Basic and Diluted Loss Per Share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | The Company reports basic loss per share
        in accordance with the FAS No. 128, “Earnings Per Share”.
        Basic loss per share is computed using the weighted average number of
        shares outstanding during the period.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           

19

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|Note 2 | Summary of Significant Accounting Policies–
      (cont’d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|       | Leases                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|       | Leases are classified as capital
        or operating leases. A lease that transfers substantially all of the  benefits
        and risk incidental to ownership of property is classified as a capital
        lease. At the  inception of a capital lease, an asset and an obligation
        are recorded at an amount equal to the  lessor of the present value
        of the minimum lease payments and the property’s fair value at the
         beginning of the lease. All other leases are accounted for as operating
        leases wherein rental  payments are expenses as incurred.                                                                                        
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|       | Oil and Gas Project Costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|       | The Company will use the successful
        efforts method of accounting for oil and gas activities. All costs  associated
        with the acquisition of, exploration for and development of oil and gas
        reserves will be  capitalized. Costs of exploratory wells that do
        not find proved and economically recoverable  reserves including
        costs of related geological and geophysical studies and costs of carrying
        the  retained property will be expensed.                                                                                                                                                                                         
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|       | Unproved oil and gas properties
        that are individually significant will be periodically assessed for  impairment
        of value and a loss will be recognized at the time of impairment by providing
        an  impairment allowance. Other unproved properties will be amortized
        based on the Company’s  experience of successful drilling and
        average holding period. Capitalized assets of producing  properties,
        including provision for estimated abandonment costs and salvage values
        will be  amortized using the unit-of-production method. Other tangible
        well equipment will be amortized  over their estimated useful lives.
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|       | New Accounting Standards                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|       | Management does not believe
        that any recently issued but not effective accounting standards if currently
        adapted could have a material affect on the accompanying financial statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|Note 3 | Related Party Transactions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|       | During the year ended February
        28, 2005 the Company incurred consulting fees of $45,028  (December
        23, 2003 (Date of Inception) to February 29, 2004: $Nil) charged by
        companies with  directors in common with the Company.                                                                                                                                                                                                                                                                                                                                                                                                                                     
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|       | By an agreement dated January
        1, 2003, the Company entered into a sales and marketing agency  agreement
        with a company with a director in common with the Company for $3,333
        per month.  This agreement terminates on January 30, 2006.                                                                                                                                                                                                                                                                                                                                                                                                                          
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|       | During the year ended February
        28, 2005 the Company incurred rent of $5,994 (December 23, 2003  (Date
        of Inception) to February 29, 2004: $Nil) charged by a company with
        a director in common  with the Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                

20

---

|Note 3 | Related Party Transactions–
        (cont’d)                                                                                                                                                                                                                                             
|------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                                                                                          
|       | These charges were measured by the exchange
        amount which is the amount agreed upon by the transacting parties.                                                                                                                                                                   
|       |                                                                                                                                                                                                                                                                                          
|       | Included in accounts payable at February
        28, 2005 is $6,577 (February 29, 2004: $Nil) owing to directors
        of the Company and to companies with directors in common.                                                                                                       
|       |                                                                                                                                                                                                                                                                                          
|       | The amounts due to related parties represent
        advances and unpaid charges due to directors of the Company or to companies
        with directors in common with the Company and such advances are unsecured,
        non-interest bearing and have no specific terms of repayment.
|       |                                                                                                                                                                                                                                                                                          
|Note 4 | Acquisition of Power Grow System Ltd.                                                                                                                                                                                                                                                    
|       |                                                                                                                                                                                                                                                                                          
|       | By an agreement dated February 2, 2004
        and completed on February 29, 2004, the Company acquired 100% of the issued
        and outstanding shares of Power Grow System Ltd. (“PGS”),
        in consideration for 3,000,000 common shares of the Company.                        
|       |                                                                                                                                                                                                                                                                                          
|       | This acquisition has been accounted for
        using the purchase method of accounting. The value assigned to the capital
        stock of the Company issued for the acquisition is equal to the fair value
        of the capital stock of the Company.                               
|       |                                                                                                                                                                                                                                                                                          
|       | The fair value of PGS's assets and liabilities
        at February 29, 2004, the date of the acquisition, was as follows:                                                                                                                                                                

| | Cash                                                               | $ | 2,192   |  
| | ------------------------------------------------------------------ | - | ------- | -
| | Accounts receivable                                                |   | 35,641  |  
| | Inventory                                                          |   | 12,461  |  
| | Prepaid expenses and deposits                                      |   | 636     |  
| | Goodwill                                                           |   | 90,152  |  
| |                                                                    |   |         |  
| | Total assets                                                       |   | 141,082 |  
| | Less:          Accounts
      payable and accrued liabilities      |   | (75,036 | )
| | Due to related parties                                             |   | (53,093 | )
| | Loans payable                                                      |   | (9,953  | )
| |                                                                    |   |         |  
| | Purchase price – 3,000,000 common shares at $0.001
      per share | $ | 3,000   |  

|       | At February 28, 2005, the Company
        has determined that the goodwill recorded on the acquisition of PGS is
        impaired and consequently has written it down to its net realizable value,
        being $Nil.
|------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                        
|Note 5 | Loans Payable                                                                                                                                                                                                          
|       |                                                                                                                                                                                                                        
|       | The loans payable are due to
        Gerry Brownridge, an unrelated party. The loans are unsecured, non-interest
        bearing and due on demand.                                                                    

21

---

|Note 6 | Capital Stock– Note 11                                                                                                                                                                                                                                                                                                
|------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                                                                                                                       
|       | The Company's capitalization is 200,000,000
        common shares, with a par value of $0.001 per share and 5,000,000
        preferred shares with a par value of $0.001 per share. As at February
        28, 2005, the Company has issued 72,800,000 common shares.                                                
|       |                                                                                                                                                                                                                                                                                                                       
|       | During the period ended February 29,
        2004, the Company received $50,000 under an Offering Memorandum towards
        8,000,000 common shares at $0.05 per share. The Offering Memorandum
        has closed and the shares have been issued.                                                                  
|       |                                                                                                                                                                                                                                                                                                                       
|       | At February 28, 2005, the Company has
        not granted any stock options and has not recorded any stock-based compensation.                                                                                                                                                                                        
|       |                                                                                                                                                                                                                                                                                                                       
|       | On April 28, 2005, the Company approved
        a forward split of its common stock on the basis of 1 old share for 8
        new shares. The number of shares referred to in these financial statements
        have been restated wherever applicable to give retroactive effect to the
        forward stock split.
|       |                                                                                                                                                                                                                                                                                                                       
|Note 7 | Income Taxes                                                                                                                                                                                                                                                                                                          
|       |                                                                                                                                                                                                                                                                                                                       
|       | The Company and its subsidiary have net
        operating loss carry-forwards of approximately $251,765, which may
        be available to offset future taxable income. These losses will begin
        to expire in 2010.                                                                                           
|       |                                                                                                                                                                                                                                                                                                                       
|Note 8 | Deferred Tax Assets                                                                                                                                                                                                                                                                                                   
|       |                                                                                                                                                                                                                                                                                                                       
|       | The following table summarizes the significant
        components of the Company’s deferred tax assets:                                                                                                                                                                                                               

| |                                            |   | Total   |  
| | ------------------------------------------ | - | ------- | -
| |                                            |   |         |  
| | Deferred Tax Assets                        |   |         |  
| | Non-capital
      loss carryforwards       | $ | 76,635  |  
| | Valuation allowance for deferred tax asset |   | (76,635 | )
| |                                            |   |         |  
| |                                            | $ | -       |  

|       | The amount taken into income as deferred
        tax assets must reflect that portion of the income tax loss carry-forward
        that is likely to be realized from future operations. The Company has
        chosen to provide an allowance of 100% against all available income tax
        loss carryforwards, regardless of their time of expiry.               
|------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                                                                                                                                                                        
|Note 9 | Non-Cash Transaction                                                                                                                                                                                                                                                                                                                                                   
|       |                                                                                                                                                                                                                                                                                                                                                                        
|       | Investing and financing activities that
        do not have a direct impact on current cash flows are excluded from the
        statement of cash flows. During the period ended February 29, 2004, the
        Company issued 3,000,000 common shares at $0.001 per share to acquire
        PGS. This transaction has been excluded from the statement of cash flows.

22

---

|Note 10 | Segmented Information                                                                                                                                                                                                      
|------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|        |                                                                                                                                                                                                                            
|        | The Company operates in one business
        segment and has sales in Canada and the United States of America. All
        assets of the Company are located in Canada. Sales by geographic segment
        are as follows:

| |                          |   |              |  |   | December 23, 2003 | 
| | ------------------------ | - | ------------ |  | - | ----------------- | 
| |                          |   | Year ended   |  |   | (Date of          | 
| |                          |   |              |  |   | Incorporation)    | 
| |                          |   | February 28, |  |   | to February 29,   | 
| |                          |   | 2005         |  |   | 2004              | 
| |                          |   |              |  |   |                   | 
| | Canada                   | $ | 19,768       |  | $ | -                 | 
| | United States of America |   | 169,371      |  |   | -                 | 
| |                          |   |              |  |   |                   | 
| |                          | $ | 189,139      |  | $ | -                 | 

|Note 11 | Subsequent Events
|------- | -----------------
|        |                  
|        | a)               
|        |                  
|        | b)               

23

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ITEM 8:   CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
  AND FINANCIAL DISCLOSURE

None.

PART III

ITEM 9:   DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS
  AND CONTROL PERSONS

Our executive officers and directors and their respective
  ages as of February 28, 2005, are as follows:

Directors:

|Name of Director    | Age |                                                  
|------------------- | --- | -------------------------------------------------
|Robert Hoegler      | 61  |                                                  
|                    |     |                                                  
|Jason Bleuler       | 39  |                                                  
|                    |     |                                                  
|Floyd Flaman        | 66  |                                                  
|                    |     |                                                  
|Executive Officers: |     |                                                  
|                    |     |                                                  
|Name of Officer     | Age | Office                                           
|Robert Hoegler      | 61  | President and Chief Executive Officer            
|                    |     |                                                  
|Floyd Flaman*       | 36  | Secretary, Treasurer, and Chief Financial Officer

Set forth below is a brief description of the background and
  business experience of each of our executive officers and directors for the
  past five years.

Robert Hoegler, age 61, has been our President, Chief
  Executive Officer and a member of our Board of Directors since inception on
  July 14, 2003. Mr. Hoegler has 20 years experience as an advisor and consultant
  in the corporate and financial markets. In a consulting capacity, he has developed
  financial and administrative programs for clients in the high-tech, manufacturing
  and natural resources markets. He has been responsible for financing many of
  these companies and for securing share-listing status for more than 10 of them,
  both on U.S. and Canadian exchanges. From June 1993 to June 2003,, Mr. Hoegler
  was a Director of MCA Equities Ltd., a consulting company that provided management
  and administrative advice and assistance to private and public companies in
  both Canada and the United States. Since June 2003, Mr. Hoegler has been acting
  as President and a director of Roma Equities Ltd., a British Columbia company
  involved in the business of providing management and administrative consulting
  services. We estimate that Mr. Hoegler intends to spend approximately ten (10%)
  percent of his business time working on our business. There is no affiliation
  between MCA Equities Ltd, Roma Equities Ltd. and us.

Floyd Flaman, age 66, has been our Secretary, Treasurer
  and Chief Financial Officer and member of our Board of Directors since inception
  on December 23, 2003. Mr. Flaman has over 30 years sales and marketing experience
  in the carpet and flooring industry. During this period he has acted as representative
  for various carpet and flooring manufacturers and distributors primarily as
  the sales and marketing agent. In 1985, Mr. Flaman established FF Karpet King
  Ltd., a Vancouver based carpet and flooring company that specializes in commercial
  carpeting and flooring. Since inception, Mr. Flaman has been the sole shareholder,
  Director, Chief Executive and Chief Financial Officer of FF Karpet King Ltd.
  and, in these capacities, oversees and

24

---

supervises the marketing and sales activities and the administrative
  and management activities of this company.

Jason Bleuler, age 39, has been a member of our Board
  of Directors since February 2, 2004 and has been President, Chief Executive
  Officer and Director of our wholly owned subsidiary, Power Grow System Ltd.,
  since its inception in August 2001. Mr. Bleuler has over ten years of sales
  and marketing experience. He was a sales manager for Vancouver Lifestyles Magazine,
  an established Vancouver area lifestyles publication, from June 1992 to August
  1996. From September 1996 to August 2001, he was Director, Officer, principal
  shareholder and sales and marketing agent for All-Round Industries, a Vancouver
  area machine and fabrication firm, which manufactures precision machine parts.
  In addition to his responsibilities on our Board of Directors, Mr. Bleuler is
  in charge of our sales and marketing activities and is also responsible for
  a majority of our sales. Our subsidiary, Power Grow, has a consulting agreement
  with Mr. Bleuler for his sales and marketing services. Pursuant to the terms
  and conditions of this agreement, he has agreed to provide consulting services
  to us as an exclusive sales and marketing agent. For his consulting services,
  Mr. Bleuler receives $3,333 as a monthly payment as well as reimbursement
  for reasonable expenses incurred in performance of his duties. We also reimburse
  his vehicle expense incurred in his capacity as our exclusive sales and marketing
  agent for our hydroponics plant growing equipment.

Subsequent Events

Subsequent to our fiscal year ending February 28, 2005 the
  following corporate developments took place:

| | a. | On April 21, 2005 Mr. Floyd Flaman resigned his
        positions as Director, Secretary, Treasurer and Chief Financial Officer
        from our board of directors. His decision to resign was based on personal
        and professional considerations and to pursue other business opportunities.
        There were no disagreements or conflicts amongst our board of directors
        and Mr. Flaman relating to operational or policy matters during his tenure
        as our officer and director.                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | b. | On April 21, 2005 Mr. Robert Hoegler resigned as
        President and Chief executive officer from our board of directors but
        retained his position as director of the company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|
| | c. | On April 21, 2005 Mr. Sam Johal, of Sacramento California
        was appointed as our director, chief executive officer and president of
        our board of directors and Mr. Chris Foster was appointed as our director,
        chief financial officer and treasurer on our board of directors.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|
| |    | Mr. Sam Johalhad an educational background
        in business administration and has acquired over 15 years of knowledge
        and experience in all facets of the complex energy and technology sectors.
        In a variety of capacities, Mr. Johal’s experience has included
        roles in marketing and risk management, project finance, international
        trade, manufacturing, commodity trading and consulting. Previously, Mr.
        Johal served as corporate manager for five years with Shell, the world’s
        third largest energy company. Among his many achievements, Mr. Johal brings
        a long track record of success and expertise to his position as President
        and Director for Pro-Tech. As a seasoned entrepreneur, Mr. Johal has demonstrated
        the drive and energy required in providing outstanding service as an independent
        business consultant for a variety of corporations.
|
| |    | Mr. Chris Fosteris a seasoned financial
        professional with a proven track record in accounting, financial analysis
        and administration. Mr. Foster has spent the last four years at a venture
        capital firm as a financial manager facilitating IPO’s and conducting
        financial and administrative management for primarily development stage
        resource companies. Prior to this position, Mr. Foster gained five years
        of public practice experience as an Accountant for a chartered accounting
        firm working with clients in a variety of industries. In addition, Mr.
        Foster previously held a public company management position for more than
        three years and has over 10 years experience as an active investor in
        the public markets.                                                                                                                                 
|
| |    | Mr. Foster received his professional accounting
        designation from the Certified General Accountants Association in 2003
        and holds a diploma in Financial Management with a minor in Computing
        Science Technology.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

25

---

| | d. | On April 28, 2005 we formally changed our corporate
        name to Cascade Energy, Inc. to better reflect the change of direction
        of our business operations. On the same date our share capital structure
        has been such as every one (1) old common share in our capital stock will
        be converted to eight (8) new common shares in our capital stock. The
        authorized capital stock has been increased to 200, 000,000 common shares
        at a par value of $0.001 per share and our preferred stock has remained
        unchanged at 5,000,000 preferred shares at a par value of $0.001 per
        share.                                                                     
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |    | Our trading symbol on the Over the Counter Bulletin
        Board, as of May 5, 2005, has changed to CSCE.OB.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| | e. | On May 6, 2005 we executed a farm-in agreement with
        CALCOR Energy Partners, LLC, an Arizona limited liability company, to
        acquire a 33.075% working interest in the Coyote Creek Project. Under
        the terms of the farm-in agreement, we will earn the 33.075% working interest
        in the project by drilling, casing and completing one exploratory natural
        gas well on the leased acreage. In order to gain our interest in the Coyote
        Creek Project, we have to expand the anticipated cost of drilling which
        will be approximately $350,000 and additionally, subject to positive
        results from drilling, approximately $350,000 for completion of well.
|
| |    | We do not currently have cash on hand to cover these
        anticipated costs and accordingly, we will require additional funding.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|
| |    | We cannot provide investors with any assurance that
        we will be able to secure sufficient funding from the sale of our common
        stock or arrange director or shareholders loans in order to secure the
        funds necessary to earn our interest in the Coyote Creek project.                                                                                                                                                                                                                                                                                                                                                                                                                         

Term of Office

Our Directors are appointed for a one-year term to hold office
  until the next annual general meeting of our shareholders or until removed from
  office in accordance with our bylaws. Our officers are appointed by our board
  of directors and hold office until removed by the board.

Significant Employees

We have no employees other than the officers and directors
  described above.

ITEM 10:  EXECUTIVE COMPENSATION

The table below summarizes all compensation awarded to, earned
  by, or paid to our executive officers by us for all services rendered in all
  capacities to us for the fiscal years ended February 28, 2005 and February 29,
  2004.

|         |            | Annual Compensation | Long Term Compensation
|-------- | ---------- | ------------------- | ----------------------
|         |            |                     |                       
|         |            |                     |                       
|Name (1) | Title      | Year                | Salary                
|Robert   | President/ | 2005                | $0                    
|Hoegler  | Director   | 2004                | $0                    
|         |            |                     |                       
|Floyd    | CFO/       | 2005                | $0                    
|Flaman   | Secretary  | 2004                | $0                    
|Jason    | Director   | 2005                | $0                    
|Bleuler  |            | 2004                | $0                    

26

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Section 16(A) Beneficial Ownership Reporting Compliance

Section 16(a) of the Exchange Act requires our executive officers
  and directors, and persons who beneficially own more than 10% of our equity
  securities, to file reports of ownership and changes in ownership with the Securities
  and Exchange Commission. Officers, directors and greater than 10% shareholders
  are required by SEC regulation to furnish us with copies of all Section 16(a)
  forms they file. Based on our review of the copies of such forms we received,
  we believe that during the fiscal year ended February 28, 2005 all such filing
  requirements applicable to our officers and directors were complied with.

ITEM 11:  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
  OWNERS AND MANAGEMENT

The following table sets forth information regarding the beneficial
  ownership of our shares of common stock at February 28, 2005 by (i) each person
  known by us to be the beneficial owner of more than 5% of our outstanding shares
  of common stock, (ii) each of our directors, (iii) our executive officers, and
  (iv) by all directors and executive officers as a group. Each person named in
  the table, has sole voting and investment power with respect to all shares shown
  as beneficially owned by such person and can be contacted at our executive office
  address.

|               | Name and Address            | Amount and Nature   | Percent 
|-------------- | --------------------------- | ------------------- | --------
|Title of Class | of Beneficial Owner         | of Beneficial Owner | of Class
|               |                             |                     |         
|Common Stock   | Robert Hoegler              | 1,500,000           | 16.48%  
|               | 604-7040 Granvillle Ave.    |                     |         
|               | Richmond, British Columbia  |                     |         
|               |                             |                     |         
|Common Stock   | Jason Bleuelr               | 1,500,000           | 16.48%  
|               | 5076 Payne Street           |                     |         
|               | Burnaby, British Columbia   |                     |         
|               |                             |                     |         
|Common Stock   | Floyd Flaman                | 1,000,000           | 10.9%   
|               | 5621 52ndStreet             |                     |         
|               | Delta, British Columbia     |                     |         
|               | Canada, V4K 2C7             |                     |         
|               |                             |                     |         
|Common Stock   | Nick Brusatore              | 1,500,000           | 16.48%  
|               | 5-910 Tupper Avenue         |                     |         
|               | Coquitlan, British Columbia |                     |         
|               | Canada V3C 6P3              |                     |         
|               |                             |                     |         
|Common Stock   | All executive officers and  | 5,500,000           | 60.34%  
|               | directors as a group        |                     |         
|               |                             |                     |         

The percent of class is based on 9,100,000 shares of common
  stock issued and outstanding as of February 28, 2005. These figures are based
  on number of shares outstanding prior to the 8 to 1 forward split of our common
  shares that took place as a subsequent event to the year end.

ITEM 12:  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

Except as disclosed below, during our most recently completed
  fiscal year, none of our directors or officers, nor any proposed nominee for
  election as a director, nor any person who beneficially owns, directly or indirectly,
  shares carrying more than 10% of the voting rights attached to all of our outstanding
  shares, nor any promoter, nor any relative or spouse of any of the foregoing
  person had any material interest, direct or

27

---

indirect, in any transaction since our incorporation nor in
  any presently proposed transaction which, in either case, has or will materially
  affect us.

| | 1. | Our wholly owned subsidiary has a consulting agreement
        with Mr. Jason Bleuler for his sales and marketing services. Pursuant
        to the terms and conditions of this agreement, he has agreed to provide
        consulting services to us as an exclusive sales and marketing agent. For
        his consulting services, Mr. Bleuler receives $3,333 as a monthly
        payment as well as reimbursement for reasonable expenses incurred in performance
        of his duties.
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Our current management has other business expertise and knowledge
  and may, in the future become involved in other business ventures. If a specific
  business opportunity becomes available, such persons may face a conflict in
  selecting between our business and their other business interests. In the event
  that a conflict of interest arises at a meeting of our directors, a director
  who has such a conflict will disclose his interest in a proposed transaction
  and will abstain from voting for or against the approval of such transaction.

ITEM 13:  EXHIBITS AND REPORTS

|     | Exhibits                                                                                                                                                           
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                    
|31.1 | Certification
        of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley
        Act of 2002                                                 
|     |                                                                                                                                                                    
|31.2 | Certification
        of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
        Act of 2002                                                 
|     |                                                                                                                                                                    
|32.1 | Certification
        of Chief Executive Officer pursuant to 18 U.S.C. section 1350,as
        adopted pursuant to  section 906 of the Sarbanes-Oxley act of 2002. 
|     |                                                                                                                                                                    
|32.2 | Certification
        of Chief Accounting Officer pursuant to U. S. C. section 1350, as adopted
        pursuant to  section 906 of the Sarbanes-Oxley act of 2002.

Reports on Form 8-K

Subsequent to fiscal year ending February 28, 2005, on May
  11, 2005 reports were filed on Form 8K concerning the following corporate developments:

| | 1. | Assignment of Interest agreement with CALCOR Energy
        Partners, LLC, an Arizona limited liability company, whereby we have purchased
        a 49% Working Interest in certain mineral leases (Coyote Creek) located
        in Tehama County, Ca, comprising sections 14, 15, 16, 22, 23, 24, 25,
        26, 35 and 36 in Township 26 North Range 3 West and sections 1 and 2 in
        Township 25 North Range 3 West.                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 2. | Change of our corporate name to Cascade Energy,
        Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | 3. | Completion of a forward split of our capital stock
        whereby each common share in the capital stock of Pro-Tech Holdings Ltd.
        (our former corporate name) issued and outstanding at the end of day of
        May 5, 2005, will be converted, upon surrender, into eight common shares
        in capital stock of Cascade Energy, Inc. The authorized common shares
        in our capital stock will be fixed at 200,000,000 common shares at a par
        value of $0.001 per share. Our authorized preferred stock will remain
        unchanged at 5,000,000 preferred shares at a par value of $0.001 per
        share. The Amendment to the Articles of Incorporation concerning the name
        change and capital stock restructuring became effective on May 5, 2005.We
        are now quoted on the OTC BB with the trading symbol OTC BB: CSCE.
| | 4. | Resignation of Mr. Floyd Flaman has from his position
        as director and officer of our board of Directors and resignation of Mr.
        Robert Hoegler from his position of Chief Executive Officer and President
        of our Board of Directors.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | 5. | Appointment of Mr. Sam Johal, of Sacramento, California,
        to the positions of Director,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               

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| |  | Chief Executive Officer and president our board and
        appointment of Mr. Chris Foster, of Vancouver, British Columbia to the
        positions of Director, Treasurer and Chief Financial Officer of our Board
        of Directors
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

ITEM 14:  Controls and Procedures.

As of February 28, 2005 we carried out an evaluation, under
  their supervision and with the participation of our management, including the
  Chief Executive Officer and the Chief Financial Officer, of the effectiveness
  of the design and operation of our disclosure controls and procedures pursuant
  to Rule 15d-15 under the Securities Exchange Act of 1934. Based on that evaluation,
  our Chief Executive Officer and Chief Financial Officer concluded that our disclosure
  controls and procedures are effective in insuring that the information required
  to be disclosed in the reports we file or submit under the Securities Exchange
  Act of 1934 is recorded, processed, summarized and reported within the time
  periods specified in the SEC’s rules and forms. We have adopted a code
  of ethics for our Chief Executive Officer, our Chief Financial Officer and other
  senior officers who perform financial management functions as required under
  the Sarbanes-Oxley Act of 2002.

There have been no changes in internal controls over financial
  reporting that has materially affected, or are reasonably likely to materially
  affect, our internal control over financial reporting subsequent to the date
  the Chief Executive Officer and Chief Financial Officer complete their evaluation.

In compliance with the Sarbanes- Oxley Act of 2002, on January
  4, 2005, we have appointed an Audit Committee consisting of Mr. Robert Hoegler,
  Mr. Floyd Flaman and Mr. Jason Bleuler.

We have engaged the firm of Amisano Hanson, Chartered Accountants,
  to audit and review our financial statements for the period commencing February
  29, 2004 to February 28, 2005. The total fees charged and/or accrued to us by
  Amisano Hanson, Chartered Accountants for audit and other assurances services
  for this period were $37,562

SIGNATURES

Pursuant to the requirements of Section 13 and 15 (d) of the
  Securities Exchange Act of 1934, the Registrant has duly caused this report
  to be signed on its behalf by the undersigned, thereunto duly authorized.

Cascade Energy, Inc.

|By | /s/Sam Johal             
|-- | -------------------------
|   | Sam Johal                
|   | President, CEO & Director
|   | Date: June 13, 2005      

In accordance with the Securities Exchange Act, this report
  has been signed below by the following persons on behalf of the registrant and
  in the capacities and on the dates indicated.

|By | /s/ Sam Johal                                
|-- | ---------------------------------------------
|   | Sam Johal                                    
|   | President, CEO & Director                    
|   | Date: June 13, 2005                          
|   |                                              
|By | /s/ Chris Foster                             
|   | Chris Foster                                 
|   | Director, Chief Financial Officer & Secretary
|   | Date: June 13, 2005                          

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