| Delaware                                                      | 84-0811316                       |
|---------------------------------------------------------------|----------------------------------|
| (State or other jurisdiction ofincorporation or organization) | (IRS EmployerIdentification No.) |
|                                                          |                             |
| 830 Tenderfoot Hill Road, Suite 310Colorado Springs, CO       |  80906                      |
| (Address of principal executive offices)                      | (Zip Code)                       |

|                                                                       |                              |
|----------------------------------------------------------------------------|-----------------------------------|
| Large accelerated filer o                                                  | Accelerated filer o          |
| Non-accelerated filer o (Do not check if a smaller reporting company) |  Smaller reporting company X |
|                                                                       |                              |

|                          |                            |
|-------------------------------|---------------------------------|
| Class                         | Outstanding at November 1, 2010 |
| Common stock, $.005 par value | 21,778,866                      |

----

|                                                                                                |   |       |
|-----------------------------------------------------------------------------------------------------|--------|------------|
|                                                                                                |   |  Page |
| Item 1. Financial Statements                                                                        |   |       |
|                                                                                                |   |       |
| Condensed Consolidated Balance Sheets                                                               |   | 3          |
|                                                                                                |   |       |
| Condensed Consolidated Statements of Operations                                                     |   | 4          |
|                                                                                                |   |       |
| Condensed Consolidated Statements of Cash Flows                                                     |   | 5          |
|                                                                                                |   |       |
| Notes to Condensed Consolidated Financial Statements                                                |   | 6          |
|                                                                                                |   |       |
| Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations |   | 20         |
|                                                                                                |   |       |
| Item 3. Quantitative and Qualitative Disclosures about Market Risk                                  |   | 32         |
|                                                                                                |   |       |
| Item 4. Controls and Procedures                                                                     |   | 32         |
|                                                                                                |   |       |
|                                                                                                |   |       |
| Part II                                                                                             |   |       |
|                                                                                                |   |       |
| Item 1. Legal Proceedings                                                                           |   | 33         |
|                                                                                                |   |       |
| Item 2. Unregistered Sales of Equity Securities and Use of Proceeds                                 |   | 33         |
|                                                                                                |   |       |
| Item 3. Defaults Upon Senior Securities                                                             |   | 33         |
|                                                                                                |   |       |
| Item 4. Reserved                                                                                    |   | 33         |
|                                                                                                |   |       |
| Item 5. Other Information                                                                           |   | 33         |
|                                                                                                |   |       |
| Item 6. Exhibits                                                                                    |   | 34         |

----

|                                                                                                                                                                                                                                                                                                                               |   | September 30, |       |   | December 31, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|------------|--------|--------------|--------|
|                                                                                                                                                                                                                                                                                                                               |   | 2010          |       |   | 2009         |   |
|                                                                                                                                                                                                                                                                                                                               |   | (Unaudited)   |       |   |         |   |
| ASSETS                                                                                                                                                                                                                                                                                                                             |   |          |       |   |         |   |
| Current Assets                                                                                                                                                                                                                                                                                                                     |   |          |       |   |         |   |
| Cash and cash equivalents                                                                                                                                                                                                                                                                                                          |   | $             | 905,858    |   |         | $      | 148,486 |   |
| Accounts receivable, net                                                                                                                                                                                                                                                                                                           |   |          | 1,970,299  |   |         |   | 2,131,592 |   |
| Prepaid expenses and other current assets                                                                                                                                                                                                                                                                                          |   |          | 882,551    |   |         |   | 262,076 |   |
| Inventories                                                                                                                                                                                                                                                                                                                        |   |          | 328,698    |   |         |   | 309,927 |   |
| Income taxes receivable                                                                                                                                                                                                                                                                                                            |   |          | 351,348    |   |         |   | 385,192 |   |
| Deferred tax asset                                                                                                                                                                                                                                                                                                                 |   |          | 62,715     |   |         |   | 82,435 |   |
| Total current assets                                                                                                                                                                                                                                                                                                               |   |          | 4,501,469  |   |         |   | 3,319,708 |   |
|                                                                                                                                                                                                                                                                                                                               |   |          |       |   |         |   |   |   |
| Property and Equipment, net                                                                                                                                                                                                                                                                                                        |   |          | 14,414,949 |   |         |   | 16,452,812 |   |
| Non-Competition Agreements, net                                                                                                                                                                                                                                                                                                    |   |          | 480,000    |   |         |   | 660,000 |   |
| Goodwill                                                                                                                                                                                                                                                                                                                           |   |          | 301,087    |   |         |   | 301,087 |   |
| Other Assets                                                                                                                                                                                                                                                                                                                       |   |          | 152,347    |   |         |   | 97,034 |   |
|                                                                                                                                                                                                                                                                                                                               |   |          |       |   |         |   |   |   |
| TOTAL ASSETS                                                                                                                                                                                                                                                                                                                       |   | $             | 19,849,852 |   |         | $      | 20,830,641 |   |
|                                                                                                                                                                                                                                                                                                                               |   |          |       |   |         |   |   |   |
| LIABILITIES AND MEMBERS’ EQUITY                                                                                                                                                                                                                                                                                              |   |          |       |   |         |   |   |   |
| Current Liabilities                                                                                                                                                                                                                                                                                                                |   |          |       |   |         |   |   |   |
| Accounts payable and accrued liabilities                                                                                                                                                                                                                                                                                           |   | $             | 1,487,378  |   |         | $      | 1,276,071 |   |
| Line of credit borrowings                                                                                                                                                                                                                                                                                                          |   |          | 370,000    |   |         |   | 1,339,507 |   |
| Current portion of long-term debt                                                                                                                                                                                                                                                                                                  |   |          | 2,397,077  |   |         |   | 1,132,412 |   |
| Total current liabilities                                                                                                                                                                                                                                                                                                          |   |          | 4,254,455  |   |         |   | 3,747,990 |   |
|                                                                                                                                                                                                                                                                                                                               |   |          |       |   |         |   |   |   |
| Long-Term Liabilities                                                                                                                                                                                                                                                                                                              |   |          |       |   |         |   |   |   |
| Related party payables                                                                                                                                                                                                                                                                                                             |   |          | -          |   |         |   | 199,995 |   |
| Subordinated debt – related party                                                                                                                                                                                                                                                                                            |   |          | 1,700,000  |   |         |   | 500,000 |   |
| Long-term debt, less current portion                                                                                                                                                                                                                                                                                               |   |          | 8,215,642  |   |         |   | 10,692,516 |   |
| Interest rate swaps                                                                                                                                                                                                                                                                                                                |   |          | -          |   |         |   | 140,733 |   |
| Deferred income taxes, net                                                                                                                                                                                                                                                                                                         |   |          | 1,099,349  |   |         |   | 2,468,984 |   |
| Total long-term liabilities                                                                                                                                                                                                                                                                                                        |   |          | 11,014,991 |   |         |   | 14,002,228 |   |
| Total liabilities                                                                                                                                                                                                                                                                                                                  |   |          | 15,269,446 |   |         |   | 17,750,218 |   |
|                                                                                                                                                                                                                                                                                                                               |   |          |       |   |         |   |   |   |
| Commitments and Contingencies (Note 11)                                                                                                                                                                                                                                                                                            |   |          |       |   |         |   |   |   |
|                                                                                                                                                                                                                                                                                                                               |   |          |       |   |         |   |   |   |
| Equity                                                                                                                                                                                                                                                                                                                             |   |          |       |   |         |   |   |   |
|     Common stock. $.005 par value       Authorized: 50,000,000 shares        Issued and outstanding: 21,778,866 at September 30, 2010           and -0- at December 31, 2009 |   |          | 108,894    |   |         |   | - |   |
| Additional paid-in-capital                                                                                                                                                                                                                                                                                                         |   |          | 5,440,142  |   |         |   | - |   |
| Retained earnings                                                                                                                                                                                                                                                                                                                  |   |          | (1,005,798 | )      |         |   | - |   |
| Accumulated other comprehensive loss – investment securities                                                                                                                                                                                                                                                                 |   |          | 37,168     |   |         |   | - |   |
| Members’ equity                                                                                                                                                                                                                                                                                                              |   |          |       |   |         |   | 3,080,423 |   |
| Total equity                                                                                                                                                                                                                                                                                                                       |   |          | 4,580,406  |   |         |   | 3,080,423 |   |
|                                                                                                                                                                                                                                                                                                                               |   |          |       |   |         |   |   |   |
| TOTAL LIABILITIES AND EQUITY                                                                                                                                                                                                                                                                                                       |   | $             | 19,849,852 |   |         | $      | 20,830,641 |   |

----

|                                                           |   | For the Three Months Ended |       |   | For the Nine Months Ended |   |
|----------------------------------------------------------------|--------|----------------------------|------------|--------|---------------------------|--------|
|                                                           |   | September 30,              |       |   | September 30,             |   |
|                                                           |   | 2010                       |       |   | 2009                      |   |   | 2010 |   |   | 2009 |   |
|                                                           |   | (Unaudited)                |       |   | (Unaudited)               |   |   | (Unaudited) |   |   | (Unaudited) |   |
|                                                           |   |                       |       |   |                      |   |   |   |   |   |   |   |
| Revenues                                                       |   | $                          | 3,406,290  |   |                      | $      | 2,981,924 |   |   | $ | 12,626,500 |   |   | $ | 11,661,914 |   |
|                                                           |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Cost of Revenue                                                |   |                       | 2,960,385  |   |                      |   | 3,030,517 |   |   |   | 10,102,887 |   |   |   | 10,353,931 |   |
|                                                           |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Gross Profit                                                   |   |                       | 445,905    |   |                      |   | (48,593 | ) |   |   | 2,523,613 |   |   |   | 1,307,983 |   |
|                                                           |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Operating Expenses                                             |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| General and administrative expenses                            |   |                       | 1,031,883  |   |                      |   | 457,237 |   |   |   | 1,878,011 |   |   |   | 884,479 |   |
| Depreciation and amortization                                  |   |                       | 993,977    |   |                      |   | 907,694 |   |   |   | 2,918,670 |   |   |   | 3,390,861 |   |
| Total operating expenses                                       |   |                       | 2,025,860  |   |                      |   | 1,364,931 |   |   |   | 4,796,681 |   |   |   | 4,275,340 |   |
|                                                           |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Income (Loss) from Operations                                  |   |                       | (1,579,955 | )      |                      |   | (1,413,524 | ) |   |   | (2,273,068 | ) |   |   | (2,967,357 | ) |
|                                                           |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Other (Expense) Income                                         |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                               |   |                       | (177,553   | )      |                      |   | (150,675 | ) |   |   | (551,794 | ) |   |   | (490,757 | ) |
| Gain (loss) on disposals of equipment                          |   |                       | (19,200    | )      |                      |   | 3,906 |   |   |   | (12,075 | ) |   |   | 12,602 |   |
| Interest and other income                                      |   |                       | 108,996    |   |                      |   | 337 |   |   |   | 192,360 |   |   |   | 5,491 |   |
| Total other (expense)                                          |   |                       | (87,757    | )      |                      |   | (146,432 | ) |   |   | (371,509 | ) |   |   | (472,664 | ) |
|                                                           |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Income (Loss) Before Income Tax (Expense) Benefit              |   |                       | (1,667,712 | )      |                      |   | (1,559,956 | ) |   |   | (2,644,577 | ) |   |   | (3,440,021 | ) |
|                                                           |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Income Tax (Expense) Benefit                                   |   |                       | 661,913    |   |                      |   | 116,887 |   |   |   | 962,374 |   |   |   | 572,961 |   |
|                                                           |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net Income (Loss)                                              |   | $                          | (1,005,799 | )      |                      | $      | (1,443,069 | ) |   | $ | (1,682,203 | ) |   | $ | (2,867,060 | ) |
|                                                           |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Other Comprehensive Income (Loss)                         |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized gains (losses) on investment securities, net of tax |   |                       | 37,168     |   |                      |   | - |   |   |   | (484,296 | ) |   |   | - |   |
| Comprehensive Income (Loss)                                    |   | $                          | (968,631   | )      |                      | $      | (1,443,069 | ) |   | $ | (2,166,499 | ) |   | $ | (2,867,060 | ) |

|   |   |   |   |   |
|--------|--------|--------|--------|--------|

| Earnings per Common Share – Basic and Diluted  Income (Loss) Per Common Share |   | $ | (0.05 | ) |   | $ | (0.10 | ) |   | $ | (0.10 | ) |   | $ | (0.20 | ) |
|-----------------------------------------------------------------------------------------------|--------|---|-------|---|--------|---|-------|---|--------|---|-------|---|--------|---|-------|---|

| Weighted average number of common shares outstanding       (presented on an equivalent basis) |   |   | 19,648,325 |   |   |   | 14,519,244 |   |   |   | 16,247,725 |   |   |   | 14,519,244 |   |
|-----------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|--------|------------|--------|--------|--------|------------|--------|

| Proforma Information (presented for the nine months ended September 30, 2010 and 2009)  |   |
|----------------------------------------------------------------------------------------------|--------|
| Proforma Revenues                                                                            |   | $ | 12,626,500 |   |   | $ | 11,661,914 |   |
|                                                                                         |   |   |   |   |   |   |   |   |
| Proforma Net Income (Loss)                                                                   |   | $ | (2,085,040 | ) |   | $ | (3,901,231 | ) |
|                                                                                         |   |   |   |   |   |   |   |   |
| Income (Loss) Per Common Share - Basic and Diluted                                           |   | $ | (0.13 | ) |   | $ | (0.18 | ) |
|                                                                                         |   |   |   |   |   |   |   |   |
| Weighted average number of common shares outstanding                                         |   |   | 16,247,725 |   |   |   | 21,778,866 |   |

----

|                                                                             | For the Three Months Ended |       |   | For the Nine Months Ended |   |
|----------------------------------------------------------------------------------|----------------------------|------------|--------|---------------------------|--------|
|                                                                             | September 30,              |       |   | September 30,             |   |
|                                                                             | 2010                       |       |   | 2009                      |   |   | 2010 |   |   | 2009 |   |
|                                                                             | (unaudited)                |       |   | (unaudited)               |   |   | (unaudited) |   |   | (unaudited) |   |
| OPERATING ACTIVITIES                                                             |                       |       |   |                      |   |   |   |   |   |   |   |
| Net income (loss)                                                                | $                          | (1,005,799 | )      |                      | $      | (1,443,069 | ) |   | $ | (1,682,203 | ) |   | $ | (2,867,060 | ) |
| Adjustments to reconcile net income to net cash provided by operating activities |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation and amortization                                                    |                       | 993,977    |   |                      |   | 907,694 |   |   |   | 2,918,670 |   |   |   | 3,390,861 |   |
| (Gain) loss on disposal of equipment                                             |                       | 19,200     |   |                      |   | (3,906 | ) |   |   | 12,075 |   |   |   | (12,602 | ) |
| Deferred income taxes                                                            |                       | (1,049,455 | )      |                      |   | (160,266 | ) |   |   | (1,349,915 | ) |   |   | (506,429 | ) |
| Unrealized (gain) loss on derivatives                                            |                       | -          |   |                      |   | (47,224 | ) |   |   | (140,733 | ) |   |   | - |   |
| Stock-based compensation                                                         |                       | 292,596    |   |                      |   | - |   |   |   | 292,596 |   |   |   | - |   |
| Warrants issued in consideration to vendor                                       |                       | 81,771     |   |                      |   | - |   |   |   | 81,771 |   |   |   | - |   |
| Changes in operating assets and liabilities                                      |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Accounts receivable                                                              |                       | (337,328   | )      |                      |   | 77,227 |   |   |   | 161,293 |   |   |   | 2,413,743 |   |
| Income taxes receivable                                                          |                       | 33,844     |   |                      |   | 43,379 |   |   |   | 33,844 |   |   |   | (66,532 | ) |
| Inventories                                                                      |                       | (63,392    | )      |                      |   | (25,765 | ) |   |   | (18,771 | ) |   |   | 73,726 |   |
| Other current assets                                                             |                       | (242,066   | )      |                      |   | 206,054 |   |   |   | (620,475 | ) |   |   | 368,292 |   |
| Accounts payable and accrued expenses                                            |                       | 126,003    |   |                      |   | 184,620 |   |   |   | 211,307 |   |   |   | (211,506 | ) |
| Net cash (used) provided in operating activities                                 |                       | (1,150,649 | )      |                      |   | (261,256 | ) |   |   | (100,541 | ) |   |   | 2,582,493 |   |
|                                                                             |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| INVESTING ACTIVITIES                                                             |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Purchases of property and equipment                                              |                       | (687,673   | )      |                      |   | (144,639 | ) |   |   | (1,268,007 | ) |   |   | (1,243,080 | ) |
| Proceeds from sales of equipment                                                 |                       | -          |   |                      |   | 3,906 |   |   |   | 555,125 |   |   |   | 12,602 |   |
| (Decrease) increase in related party payables                                    |                       | (100,000   | )      |                      |   | - |   |   |   | (199,995 | ) |   |   | - |   |
| Decrease (increase) in other assets                                              |                       | (98,993    | )      |                      |   | (176,682 | ) |   |   | (55,313 | ) |   |   | (303,236 | ) |
| Unrealized (gain) loss on available-for-sale securities                          |                       | (37,168    | )      |                      |   | - |   |   |   | (35,039 | ) |   |   | - |   |
| Net cash used in investing activities                                            |                       | (923,834   | )      |                      |   | (317,415 | ) |   |   | (1,003,229 | ) |   |   | (1,533,714 | ) |
|                                                                             |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| FINANCING ACTIVITIES                                                             |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net line of credit borrowings                                                    |                       | (1,354,591 | )      |                      |   | (150,000 | ) |   |   | (969,507 | ) |   |   | (22,500 | ) |
| Proceeds from issuance of long-term debt                                         |                       | 226,902    |   |                      |   | - |   |   |   | 11,026,902 |   |   |   | 1,070,000 |   |
| Distributions to members                                                         |                       | -          |   |                      |   | (30,000 | ) |   |   | (569,712 | ) |   |   | (130,778 | ) |
| Contributions from members                                                       |                       | 74,336     |   |                      |   | 735,148 |   |   |   | 87,756 |   |   |   | 605,089 |   |
| Merger of Aspen Exploration and Dillco Fluid Services                            |                       | 3,324,814  |   |                      |   | - |   |   |   | 3,324,814 |   |   |   | - |   |
| Repayment of long-term debt                                                      |                       | (217,497   | )      |                      |   | (502,386 | ) |   |   | (11,039,111 | ) |   |   | (3,102,939 | ) |
| Net cash provided (used) in financing activities                                 |                       | 2,053,964  |   |                      |   | 52,762 |   |   |   | 1,861,142 |   |   |   | (1,581,128 | ) |
|                                                                             |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net (Decrease) Increase in Cash and Cash Equivalents                             |                       | (20,519    | )      |                      |   | (525,909 | ) |   |   | 757,372 |   |   |   | (532,349 | ) |
|                                                                             |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Cash and Cash Equivalents, Beginning of Period                                   |                       | 926,377    |   |                      |   | 909,545 |   |   |   | 148,486 |   |   |   | 915,985 |   |
|                                                                             |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Cash and Cash Equivalents, End of Period                                         | $                          | 905,858    |   |                      | $      | 383,636 |   |   | $ | 905,858 |   |   | $ | 383,636 |   |

----

----

----

----

|   | Level 1: | Quoted prices are available in active markets for identical assets or liabilities; |
|--------|----------|------------------------------------------------------------------------------------|

|   | Level 2: | Quoted prices in active markets for similar assets and liabilities that are observable for the asset or liability; or |
|--------|----------|-----------------------------------------------------------------------------------------------------------------------|

|   | Level 3: | Unobservable pricing inputs that are generally less observable from objective sources, such as discounted cash flow models or valuations. |
|--------|----------|-------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                       |   |                |                |
|----------------------------------------------------------------------------|--------|---------------------|---------------------|
| Non-competition agreements - net, at January 1, 2009                       |   | $                   | 1,621,673           |   |
|                                                                       |   |                |                |   |
| Amortization for the year ended December 31, 2009                          |   |                | (961,673            | ) |
|                                                                       |   |                |                |   |
| Non-competition agreements - net, at December 31, 2009                |   |                | 660,000             |   |
|                                                                       |   |                |                |   |
| Amortization for the nine months ended September 30, 2010                  |   |                |  (180,000      | ) |
|                                                                       |   |                |                |   |
|     Non-competition agreements - net, at September 30, 2010 |   |  $   |   480,000 |   |

| Twelve Months Ending September 30, |   |   |    |
|------------------------------------|--------|--------|---------|
|                               |   |   |    |
| 2011                               |   | $      | 240,000 |   |
| 2012                               |   |   | 195,000 |   |
| 2013                               |   |   | 45,000  |   |
| Thereafter                         |   |   | -       |   |
|                               |   |   |    |   |
| Total                              |   | $      | 480,000 |   |

----

|                         |   | For the period ended, |       |
|------------------------------|--------|-----------------------|------------|
|                         |   | September 30, 2010    |       |   | December 31, 2009 |   |
|                         |   |                  |       |   |   |   |
| Trucks and vehicles          |   | $                     | 17,128,968 |   |   | $ | 15,775,425 |   |
| Other equipment              |   |                  | 2,913,029  |   |   |   | 3,982,089 |   |
| Buildings and improvements   |   |                  | 1,696,418  |   |   |   | 1,705,313 |   |
| Trucks in process            |   |                  | 1,308,724  |   |   |   | 1,164,161 |   |
| Capitalized truck leases     |   |                  | 177,779    |   |   |   | - |   |
| Land                         |   |                  | 521,420    |   |   |   | 516,420 |   |
| Disposal wells               |   |                  | 574,373    |   |   |   | 476,496 |   |
| Total property and equipment |   |                  | 24,320,711 |   |   |   | 23,619,904 |   |
| Accumulated depreciation     |   |                  | (9,905,762 | ) |   |   | (7,167,092 | ) |
|                         |   |                  |       |   |   |   |   |   |
| Property and equipment - net |   | $                     | 14,414,949 |   |   | $ | 16,452,812 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | For the period ended, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | September 30, 2010    |   |   | December 31, 2009 |   |
| Note payable to a bank, original principal of $3,975,154, payable in interest only installments through June 2010 and monthly principal and interest installments through December 2014, variable rate interest of LIBOR plus 4%, collateralized by substantially all assets of the Company, guaranteed by the members of the Company, and was subject to financial covenants.  Subsequent to the year ended December 31, 2009, the Company refinanced the terms of the note payable (Note 14).  |   | $                     | -      |   |   | $ | 3,975,154 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                  |   |   |   |   |   |   |
| Note payable to a bank, original principal of $4,525,000, payable in monthly principal and interest installments through December 2012, variable rate interest of LIBOR plus 4% swapped for fixed (see interest rate swaps below), collateralized by substantially all assets of the Company, guaranteed by the members of the Company, and was subject to financial covenants.  Subsequent to the year ended December 31, 2009, the Company refinanced the terms of the note payable (Note 14). |   |                  | -      |   |   |   | 2,510,859 |   |

| Note payable to a bank, original principal of $2,450,000, payable in monthly principal and interest installments through May 2012, variable rate interest of LIBOR plus 4% swapped for fixed (see interest rate swaps below), collateralized by substantially all assets of the Company, guaranteed by the members of the Company, and was subject to financial covenants.  Subsequent to the year ended December 31, 2009, the Company refinanced the terms of the note payable (Note 14).        |   |   | -         |   |   |   | 1,686,236 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|
|  Note payable to a bank, original principal of $1,736,000, payable in monthly principal and interest installments through July 2012, variable rate interest of LIBOR plus 4% swapped for fixed (see interest rate swaps below), collateralized by substantially all assets of the Company, guaranteed by the members of the Company, and was subject to financial covenants.  Subsequent to the year ended December 31, 2009, the Company refinanced the terms of the note payable (Note 14). |   |   | -         |   |   |   | 1,295,115 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |      |   |   |   |      |   |
| Notes payable to member, subordinated to all bank debt, fixed interest at 3% compounding annually, interest paid in arrears December 31st of each year, due in December 2018.                                                                                                                                                                                                                                                                                                                                |   |   | 1,700,000 |   |   |   | 500,000   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |      |   |   |   |      |   |
| Notes payable to equipment finance companies, interest at 2.97% to 4.74%, due in monthly principal and interest installments through January 2012, secured by equipment.                                                                                                                                                                                                                                                                                                                                     |   |   | 280,924   |   |   |   | 459,180   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |      |   |   |   |      |   |
| Note payable to the seller of Heat Waves, interest at 8%, due in installments in January and May 2009, secured by land.  The note was garnished by the Internal Revenue Service (“IRS”) in 2009 and is due on demand.                                                                                                                                                                                                                                                                  |   |   | 395,000   |   |   |   | 422,000   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |      |   |   |   |      |   |
| Note payable to a bank, original principal of $400,000, payable in monthly interest only installments through June 2010 and principal and interest installments through July 2013, interest at LIBOR plus 4% with a 5% floor, collateralized by substantially all assets of the Company, guaranteed by the members of the Company, subject to financial covenants.  Subsequent to the year ended, the Company refinanced the terms of the note payable (Note 14).                                  |   |   | -         |   |   |   | 365,178   |   |

----

|                                                                                                                                                                                                                                                                                                                                      |   |    | For the period ended,    |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|--------------------------|
|                                                                                                                                                                                                                                                                                                                                      |   |    | September 30, 2010  |   |   |   | December 31, 2009  |   |
| Mortgage payable to a bank, interest at 8%, due in monthly payments through May 2012 with a balloon payment of $229,198 on June 15, 2012, secured by land, guaranteed by one of the members.                                                                                                                                              |   |    | 284,373                  |   |   |   | 307,520 |   |
|                                                                                                                                                                                                                                                                                                                                      |   |    |                     |   |   |   |   |   |
| Holdback payable to the seller of Dillco, interest at 6%, due in bi-monthly installments of $50,000 in February 2010 and $66,667 every two months thereafter, matured August 2010, unsecured.                                                                                                                                             |   |    | -                        |   |   |   | 250,000 |   |
|                                                                                                                                                                                                                                                                                                                                      |   |    |                     |   |   |   |   |   |
| Note payable to the seller of Hot Oil Express, non-interest bearing, due in annual installments of $100,000 through March 2011, unsecured. Imputed interest is not significant.                                                                                                                                                           |   |    | 100,000                  |   |   |   | 200,000 |   |
|                                                                                                                                                                                                                                                                                                                                      |   |    |                     |   |   |   |   |   |
| Mortgage payable to a bank, interest at 8%, payable in monthly payments through August 2012 with a balloon payment of $141,707 on September 1, 2012, secured by land.                                                                                                                                                                     |   |    | 157,973                  |   |   |   | 163,689 |   |
|                                                                                                                                                                                                                                                                                                                                      |   |    |                     |   |   |   |   |   |
| Notes payable to a vehicle finance company, interest at fixed rates from 6.19% to 10.25%, due in monthly installments through May 2013, secured by vehicles, guaranteed by one of the members.                                                                                                                                            |   |    | 120,736                  |   |   |   | 155,949 |   |
|                                                                                                                                                                                                                                                                                                                                      |   |    |                     |   |   |   |   |   |
| Term Loan entered into as part of the debt refinancing, as described further within Note 14.                                                                                                                                                                                                                                              |   |    | 9,049,383                |   |   |   | - |   |
|  Note Payable to finance a vehicle, fixed interest rate of 7.8%, due in 60 monthly installments through 8/31/2015, secured by the vehicle.                                                                                                                                                                                           |   |    | 48,445                   |   |   |   | - |   |
|  Capital leases entered into with a leasing company in order to purchase trucks and trailers, interest at a fixed rate of 5%.  Truck lease term of 24 months, due in monthly installments through September 2012.  Trailer lease term of 36 months, payments due in monthly installments through September 2013. |   |    | 175,885                  |   |   |   | - |   |
|  Other notes payable, interest at 6% to 8%, due in monthly installments through August 2010, secured by equipment.                                                                                                                                                                                                                   |   |    | -                        |   |   |   | 34,048 |   |
|  Total                                                                                                                                                                                                                                                                                                                               |   |    | 12,312,719               |   |   |   | 12,324,928 |   |
| Less current portion                                                                                                                                                                                                                                                                                                                      |   |    | (2,397,077               | ) |   |   | (1,132,412 | ) |
| Long-term debt, net of current portion                                                                                                                                                                                                                                                                                                    |   | $  | 9,915,642                |   |   | $ | 11,192,516 |   |

| Twelve Months Ending September 30, |   |   |       |
|------------------------------------|--------|--------|------------|
|                               |   |   |       |
| 2011                               |   | $      | 2,397,077  |   |
| 2012                               |   |   | 2,250,731  |   |
| 2013                               |   |   | 1,921,976  |   |
| 2014                               |   |   | 1,773,854  |   |
| 2015                               |   |   | 1,773,854  |   |
| Thereafter                         |   |   | 2,195,227  |   |
|                               |   |   |       |   |
| Total                              |   | $      | 12,312,719 |   |

----

|                         |   | December 31, 2009 |   |
|------------------------------|--------|-------------------|--------|
|                         |   | Level 1           |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
|                         |   |              |   |   |   |   |   |   |   |   |   |   |
| Interest rate swap liability |   | $                 | -      |   |   | $ | - |   |   | $ | 140,733 |   |   | $ | 140,733 |   |

|                         |   | September 30, 2010 |   |
|------------------------------|--------|--------------------|--------|
|                         |   | Level 1            |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
|                         |   |               |   |   |   |   |   |   |   |   |   |   |
| Interest rate swap liability |   | $                  | -      |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |

----

| Balance, January 1, 2008    |   | $      | -        |   |
|-----------------------------|--------|--------|----------|--------|
| Change in value             |   |   | 200,574  |   |
|                        |   |   |     |   |
| Balance, December 31, 2008  |   |   | 200,574  |   |
| Change in value             |   |   | (59,841  | )      |
|                        |   |   |     |   |
| Balance, December 31, 2009  |   |   | 140,733  |   |
| Change in value             |   |   | (140,733 | )      |
|                        |   |   |     |   |
| Balance, September 30, 2010 |   | $      | -        |   |

| Twelve Months Ending September 30, |   |   |    |
|------------------------------------|--------|--------|---------|
|    2011             |   | $      | 198,722 |   |
|    2012             |   |   | 104,000 |   |
|    2013             |   |   | 36,000  |   |
|    2014             |   |   | 11,000  |   |
| Total                              |   | $      | 349,722 |   |

----

| Capitalized Trucks              |   | $      | 84,184  |   |
|---------------------------------|--------|--------|---------|--------|
| Capitalized Trailers            |   |   | 93,595  |   |
| Less: Accumulated Depreciation  |   |   | (2,116  | )      |
| Net Assets Under Capital Leases |   | $      | 175,663 |   |

| Twelve Months Ending September 30,              |   | Minimum Lease Payment |    |
|-------------------------------------------------|--------|-----------------------|---------|
|    2011                          |   | $                     | 77,981  |   |
|    2012                          |   |                  | 76,595  |   |
|    2013                          |   |                  | 32,609  |   |
| Total minimum lease payments                    |   |                  | 187,185 |   |
| Less: Interest                                  |   |                  | (11,300 | ) |
| Net minimum lease payments                      |   |                  | 175,885 |   |
| Less: Current portion                           |   |                  | (70,940 | ) |
| Long-term portion of net minimum lease payments |   | $                     | 104,945 |   |

----

----

|                                   |   | Number of Shares |      |   | Weighted-Average Exercise Price |   |   | Weighted-Average Remaining Contractual Term |
|----------------------------------------|--------|------------------|-----------|--------|---------------------------------|--------|--------|---------------------------------------------|
|                                   |   |             |      |   |                            |   |   |                                        |   |   |   |
| Outstanding at July 1, 2009*           |   |             | 578,766   |   |                            | $      | 2.32   |                                        |   |   | 2.71 |
|    Granted              |   |             | 350,000   |   |                            |   | 0.41   |                                        |   |   |   |
|    Exercised            |   |             | -         |   |                            |   | -      |                                        |   |   |   |
|    Forfeited or Expired |   |             | (428,338  | )      |                            |   | 1.29   |                                        |   |   |   |
|                                   |   |             |      |   |                            |   |   |                                        |   |   |   |
| Outstanding at June 30, 2010*          |   |             | 500,428   |   |                            | $      | 0.96   |                                        |   |   | 4.01 |
|    Granted              |   |             | 1,975,000 |   |                            |   | 0.49   |                                        |   |   |   |
|    Exercised            |   |             | -         |   |                            |   | -      |                                        |   |   |   |
|    Forfeited or Expired |   |             | -         |   |                            |   | -      |                                        |   |   |   |
|                                   |   |             |      |   |                            |   |   |                                        |   |   |   |
| Outstanding at September 30, 2010      |   |             | 2,475,428 |   |                            | $      | 0.59   |                                        |   |   | 3.34 |
|  Exercisable at June 30, 2010     |   |             | 150,428   |   |                            | $      | 2.24   |                                        |   |   | 2.57 |
| Exercisable at September 30, 2010      |   |             | 1,308,761 |   |                            | $      | 0.49   |                                        |   |   | 3.34 |

|                              |   | Number of Shares |       |   | Weighted-Average Grant-Date Fair Value |   |
|-----------------------------------|--------|------------------|------------|--------|----------------------------------------|--------|
|  Nonvested at July 1, 2009*  |   |             | 258,338    |   |                                   | $      | 0.91 |   |
|    Granted         |   |             | 350,000    |   |                                   |   | 0.41 |   |
|    Vested          |   |             | -          |   |                                   |   | - |   |
|    Forfeited       |   |             | (258,338   | )      |                                   |   | 0.91 |   |
|  Nonvested at June 30, 2010* |   |             | 350,000    |   |                                   | $      | 0.41 |   |
|    Granted         |   |             | 1,975,000  |   |                                   |   | 0.49 |   |
|    Vested          |   |             | (1,158,333 | )      |                                   |   | 0.47 |   |
|    Forfeited       |   |             | -          |   |                                   |   | - |   |
|                              |   |             |       |   |                                   |   |   |   |
| Nonvested at September 30, 2010   |   |             | 1,166,667  |   |                                   | $      | 0.49 |   |

----

----

|   | • | future capital requirements and uncertainty of obtaining additional funding on terms acceptable to us; |
|--------|---------|--------------------------------------------------------------------------------------------------------|

|   | • | a decline in oil or natural gas production or oil or natural gas prices, the impact of price volatility in the oil and natural gas industries and the impact of general economic conditions on the demand for the services we offer to the oil and natural gas industries; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | activities of our competitors, many of whom have greater financial resources than we have; |
|--------|---------|--------------------------------------------------------------------------------------------|

|   | • | geographical diversity of our operations and the difficulties inherent in managing such geographically diverse operations; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------|

|   | • | ongoing U.S. and global economic uncertainty; |
|--------|---------|-----------------------------------------------|

|   | • | our ability to generate sufficient cash flows to repay our debt obligations; |
|--------|---------|------------------------------------------------------------------------------|

|   | • | availability of borrowings under our credit facility; |
|--------|---------|-------------------------------------------------------|

|   | • | unanticipated increases in the cost of our operations; |
|--------|---------|--------------------------------------------------------|

|   | • | historical incurrence of losses; |
|--------|---------|----------------------------------|

|   | • | reliance on limited number of customers and creditworthiness of our customers; |
|--------|---------|--------------------------------------------------------------------------------|

|   | • | increases in interest rates and our failure to hedge against possible interest rate increases; |
|--------|---------|------------------------------------------------------------------------------------------------|

|   | • | our ability to retain key members of our senior management and key technical employees, and conflicts of interests with respect to our directors; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | our level of indebtedness; |
|--------|---------|----------------------------|

----

|   | • | impact of environmental, health and safety, and other governmental regulations, and of current or pending legislation; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------|

|   | • | effect of seasonal factors; |
|--------|---------|-----------------------------|

|   | • | further sales or issuances of common stock; and |
|--------|---------|-------------------------------------------------|

|   | • | our common stock’s limited trading history. |
|--------|---------|---------------------------------------------------|

|   | · | southern Kansas and northwestern Oklahoma, |
|--------|--------|--------------------------------------------|

|   | · | northeastern Utah, |
|--------|--------|--------------------|

|   | · | northern New Mexico, |
|--------|--------|----------------------|

|   | · | southern Wyoming and Colorado (D-J Basin and Niobrara formation), and |
|--------|--------|-----------------------------------------------------------------------|

|   | · | northwestern West Virginia and southwest Pennsylvania in the Marcellus Shale region. |
|--------|--------|--------------------------------------------------------------------------------------|

----

----

|                                              |   |                                    |       |   |        |   |       |       |   |
|---------------------------------------------------|--------|-----------------------------------------|------------|--------|-------------|--------|------------|------------|--------|
|                                              |   | For the Three Months EndedSeptember 30, |       |   |        |   |
|                                              |   |                                    |       |   |        |   |       | Increase   |   |
|                                              |   | 2010                                    |       |   | 2009        |   |       | (Decrease) |   |
|                                              |   | (Unaudited)                             |       |   | (Unaudited) |   |       |       |   |
|                                              |   |                                    |       |   |        |   |       |       |   |
| Revenues                                          |   | $                                       | 3,406,290  |   |        | $      | 2,981,924  |       |   | $ | 424,366 |   |
| Cost of Revenue                                   |   |                                    | 2,960,385  |   |        |   | 3,030,517  |       |   |   | (70,132 | )  |
| Gross Profit                                      |   |                                    | 445,905    |   |        |   | (48,593    | )          |   |   | 494,498 |   |
| Operating Expenses                                |   |                                    |       |   |        |   |       |       |   |   |   |   |
| General and administrative expenses               |   |                                    | 1,031,883  |   |        |   | 457,237    |       |   |   | 574,646 |   |
| Depreciation and amortization                     |   |                                    | 993,977    |   |        |   | 907,694    |       |   |   | 86,283 |   |
| Total operating expenses                          |   |                                    | 2,025,860  |   |        |   | 1,364,931  |       |   |   | 660,929 |   |
| Income (Loss) from Operations                     |   |                                    | (1,579,955 | )      |        |   | (1,413,524 | )          |   |   | (166,431 | )  |
| Other (Expense) Income                            |   |                                    | (87,757    | )      |        |   | (146,432   | )          |   |   | 58,675 |   |
| Income (Loss) Before Income Tax (Expense) Benefit |   |                                    | (1,667,712 | )      |        |   | (1,559,956 | )          |   |   | (107,756 | )  |
| Income Tax (Expense) Benefit                      |   |                                    | 661,913    |   |        |   | 116,887    |       |   |   | 545,026 |   |
| Net Income (Loss)                                 |   | $                                       | (1,005,799 | )      |        | $      | (1,443,069 | )          |   | $ | 437,270 |   |

| Income (Loss) Per Common Share (Basic and Diluted)       |   |  $ | (0.05  | )  |   |  $ | (0.10  | )      |
|---------------------------------------------------------------|--------|---------|-------------|---------|--------|---------|-------------|--------|
|                                                          |   |    |        |    |   |    |        |   |
| Weighted average number of common shares outstanding          |   |    | 19,648,325  |    |   |    | 14,519,244  |   |
| (used to calculate basic and diluted income (loss) per share) |   |    |        |    |   |    |        |   |

|                                              |   |   | For the Nine Months EndedSeptember 30,  |   |   |   |   |              |
|---------------------------------------------------|--------|--------|----------------------------------------------|--------|--------|--------|--------|-------------------|
|                                              |   |   |                                         |   |   |   |   |              |   |   |   | Increase  |   |
|                                              |   |   |  2010                                   |   |   |   |   | 2009         |   |   |   | (Decrease)  |   |
|                                              |   |   | (Unaudited)                             |   |   |   |   | (Unaudited)  |   |   |   |   |   |
|                                              |   |   |                                         |   |   |   |   |              |   |   |   |   |   |
| Revenues                                          |   | $      | 12,626,500                                   |   |   |   | $      | 11,661,914        |   |   | $ | 964,586 |   |
| Cost of Revenue                                   |   |   | 10,102,887                                   |   |   |   |   | 10,353,931        |   |   |   | (251,044 | )  |
| Gross Profit                                      |   |   | 2,523,613                                    |   |   |   |   | 1,307,983         |   |   |   | 1,215,630 |   |
| Operating Expenses                                |   |   |                                         |   |   |   |   |              |   |   |   |   |   |
| General and administrative expenses               |   |   | 1,878,011                                    |   |   |   |   | 884,479           |   |   |   | 993,532 |   |
| Depreciation and amortization                     |   |   | 2,918,670                                    |   |   |   |   | 3,390,861         |   |   |   | (472,191 | )  |
| Total operating expenses                          |   |   | 4,796,681                                    |   |   |   |   | 4,275,340         |   |   |   | 521,341 |   |
| Income (Loss) from Operations                     |   |   | (2,273,068                                   | )      |   |   |   | (2,967,357        | ) |   |   | 694,289 |   |
| Other (Expense) Income                            |   |   | (371,509                                     | )      |   |   |   | (472,664          | ) |   |   | 101,155 |   |
| Income (Loss) Before Income Tax (Expense) Benefit |   |   | (2,644,577                                   | )      |   |   |   | (3,440,021        | ) |   |   | 795,444 |   |
| Income Tax (Expense) Benefit                      |   |   | 962,374                                      |   |   |   |   | 572,961           |   |   |   | 389,413 |   |
| Net Income (Loss)                                 |   | $      | (1,682,203                                   | )      |   |   | $      | (2,867,060        | ) |   | $ | 1,184,857 |   |

| Income (Loss) Per Common Share (Basic and Diluted)                  |   |  $ | (0.10  | )      |   |  $ | (0.20  | )      |
|---------------------------------------------------------------------|--------|---------|-------------|--------|--------|---------|-------------|--------|
|                                                                |   |    |        |   |   |    |        |   |
| Weighted average number of common shares outstanding           |   |    | 16,247,725  |   |   |    | 14,519,244  |   |
|  (used to calculate basic and diluted income (loss) per share) |   |    |        |   |   |    |        |   |

----

|   | (1) | a reduction in labor costs due to policies enacted restricting overtime and unbillable “shop” time; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------|

|   | (2) | a decrease in worker’s compensation insurance premiums due to a decrease in our experience modification factor arising from an increased attention to worker safety and therefore a reduction in the number of accidents; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | a decrease in equipment insurance expenses resulting from renewing policies at lower rates. |
|--------|-----|---------------------------------------------------------------------------------------------|

----

----

|                                                 |   | For the Three Months Ended |       |   | For the Nine Months Ended |   |
|------------------------------------------------------|--------|----------------------------|------------|--------|---------------------------|--------|
|                                                 |   | September 30,              |       |   | September 30,             |   |
|                                                 |   | 2010                       |       |   | 2009                      |   |   | 2010 |   |   | 2009 |   |
|                                                 |   | (unaudited)                |       |   | (unaudited)               |   |   | (unaudited) |   |   | (unaudited) |   |
|                                                 |   |                       |       |   |                      |   |   |   |   |   |   |   |
| Net cash (used) provided in operating activities     |   | $                          | (1,150,649 | )      |                      | $      | (261,256 | ) |   | $ | (100,541 | ) |   | $ | 2,582,493 |   |
| Net cash provided (used) in investing activities     |   |                       | (923,834   | )      |                      |   | (317,415 | ) |   |   | (1,003,229 | ) |   |   | (1,533,714 | ) |
| Net cash (used) provided in financing activities     |   |                       | 2,053,964  |   |                      |   | 52,762 |   |   |   | 1,861,142 |   |   |   | (1,581,128 | ) |
| Net Increase (Decrease) in Cash and Cash Equivalents |   |                       | (20,519    | )      |                      |   | (525,909 | ) |   |   | 757,372 |   |   |   | (532,349 | ) |
|                                                 |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Cash and Cash Equivalents, Beginning of Period       |   |                       | 926,377    |   |                      |   | 909,545 |   |   |   | 148,486 |   |   |   | 915,985 |   |
|                                                 |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Cash and Cash Equivalents, End of Period             |   | $                          | 905,858    |   |                      | $      | 383,636 |   |   | $ | 905,858 |   |   | $ | 383,636 |   |

----

|                                                       |   | September 30, |       |   | December 31, |   |
|------------------------------------------------------------|--------|---------------|------------|--------|--------------|--------|
|                                                       |   | 2010          |       |   | 2009         |   |
|                                                       |   | (Unaudited)   |       |   |         |   |
| Current Assets                                             |   | $             | 4,501,469  |   |         | $      | 3,319,708 |   |
| Total Assets                                               |   |          | 19,849,852 |   |         |   | 20,830,641 |   |
| Current Liabilities                                        |   |          | 4,254,455  |   |         |   | 3,747,990 |   |
| Total Liabilities                                          |   |          | 15,269,446 |   |         |   | 17,750,218 |   |
| Working Capital (Current Assets less: Current Liabilities) |   |          | 247,014    |   |         |   | (428,282 | ) |
| Stockholders’ equity                                 |   |          | 4,580,406  |   |         |   | 3,080,423 |   |

|   | 1. | A $1 million payment on the outstanding balance of our asset based, revolving line of credit utilizing cash received in the Merger Transaction consummated in our third quarter. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | An increase in cash of $760,000 primarily due to the cash received in the Merger Transaction. |
|--------|----|-----------------------------------------------------------------------------------------------|

|   | 3. | An increase of $620,000 in prepaid expenses and other currents assets resulting from (1) renewal of insurance policies ($190,000) in the first quarter and (2) $350,000 of public company stocks received in the Merger Transaction. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | An increase in accrued expenses of approximately $200,000 due to the difference in timing of when payrolls were paid at the end of December versus the end of September. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | A decrease in accounts receivable of $160,000 due to the summer months being the slowest in terms of revenues. |
|--------|----|----------------------------------------------------------------------------------------------------------------|

|   | 3. | An increase in the current portion of long-term debt of $1.26 million as a result of principal that will become due beginning in July of 2011 on the Company’s debt $9.1 million loan with our primary lender.  There were no current maturities at December 31, 2009 on this loan as it is interest only until June 2, 2011.  Beginning July 2011, fixed monthly payments begin and a one-time  $1 million dollar pay-down is required . |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | Level 1: | Quoted prices are available in active markets for identical assets or liabilities; |
|--------|----------|------------------------------------------------------------------------------------|

|   | Level 2: | Quoted prices in active markets for similar assets and liabilities that are observable for the asset or liability; or |
|--------|----------|-----------------------------------------------------------------------------------------------------------------------|

|   | Level 3: | Unobservable pricing inputs that are generally less observable from objective sources, such as discounted cash flow models or valuations. |
|--------|----------|-------------------------------------------------------------------------------------------------------------------------------------------|

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| Exhibit No. |   | Title                                                                                                                                                                                                               |
|-------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |   |                                                                                                                                                                                                                |
| 3.01(ii)    |   | Amended and Restated Bylaws. (1)                                                                                                                                                                                    |
| 10.01       |   | Employment Agreement between Aspen Exploration Corporation and Michael D. Herman. (1)                                                                                                                               |
| 10.02       |   | Employment Agreement between Aspen Exploration Corporation and Rick Kasch.(1)                                                                                                                                       |
| 10.03       |   | Aspen Exploration Corporation 2010 Stock Incentive Plan. (1)                                                                                                                                                        |
| 10.4        |   | Employment Agreement between Aspen Exploration Corporation and Bob Maughmer. (2)                                                                                                                                    |
| 31.1        |   | Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Michael Herman, Chief Executive Officer).                                                                                             |
| 31.2        |   | Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Rick D. Kasch, Chief Financial Officer).                                                                                              |
| 32          |   | Certification Pursuant to 18 U.S.C. §1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Michael D. Herman, Chief Executive Officer, and Rick D. Kasch, Chief Financial Officer). |

|                               |                                       |
|------------------------------------|--------------------------------------------|
|                               |                                       |
|                               | ASPEN EXPLORATION CORPORATION              |
|                               |                                       |
|                               |                                       |
|                               |                                       |
|                               |                                       |
| Date:  November 12, 2010 | /s/ Michael D. Herman                      |
|                               | Michael D. Herman, Chief Executive Officer |
|                               |                                       |
|                               |                                       |
| Date:  November 12, 2010 | /s/ Rick D. Kasch                          |
|                               | Rick D. Kasch, Chief Financial Officer     |
|                               |                                       |

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