**SECURITIES      AND EXCHANGE COMMISSION **

**FORM      10-QSB **

**QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(D) OF **

**THE      SECURITIES EXCHANGE ACT OF 1934 **

**FOR      THE QUARTERLY PERIOD ENDED March 31, 2007 **

*COMMISSION      FILE NO. 0-09482 *

**COLORADO      WYOMING RESERVE COMPANY **

| Wyoming                                     |   | 83-0246080                         |
|---------------------------------------------|--------|------------------------------------|
| (State                or other jurisdiction |   | (IRS                Employer       |
| of                incorporation)            |   | Identification                No.) |

| 751                Horizon Court, Suite 205, Grand Junction, Colorado |   | 81506                     |
|----------------------------------------------------------------------------|--------|---------------------------|
| (Address                of principal executive offices)                    |   | (Zip                Code) |

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

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**PART      I - FINANCIAL INFORMATION**

**Item      1. Financial Statements.**** **

**COLORADO      WYOMING RESERVE COMPANY**

**(A      DEVELOPMENT STAGE ENTERPRISE)**

**BALANCE      SHEET**

**March      31, 2007**

| CURRENT                  ASSETS:                                                                                                    |   |   |       |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|
|     Cash                  and cash equivalents                                                                  |   | $      | 893        |   |
|     Accounts                  receivable                                                                        |   |   | —    |   |
|                                                                                                                                |   |   |       |   |
| Total                  current assets                                                                                               |   |   | 893        |   |
|                                                                                                                                |   |   |       |   |
| PROPERTY                  AND EQUIPMENT:                                                                                            |   |   |       |   |
|     Unproved                  oil and gas properties                                                            |   |   | 62,570     |   |
|     Other                  property and equipment                                                               |   |   | 14,914     |   |
|                                                                                                                                |   |   |       |   |
|     Less                  accumulated depreciation, other property and equipment                                |   |   | (14,841    | ) |
|                                                                                                                                |   |   |       |   |
|         Net                  property and equipment                                         |   |   | 62,643     |   |
|                                                                                                                                |   |   |       |   |
|     Other                                                                                                       |   |   | 1,960      |   |
|                                                                                                                                |   |   |       |   |
| Total                  assets                                                                                                       |   | $      | 65,495     |   |
|                                                                                                                                |   |   |       |   |
| CURRENT                  LIABILITIES:                                                                                               |   |   |       |   |
|     Trade                  accounts payable                                                                     |   | $      | 98,256     |   |
|     Other                  accrued liabilities                                                                  |   |   | 243,262    |   |
|     Related                  party payables:                                                                    |   |   |       |   |
|       On                  account                                                                     |   |   | 1,036,986  |   |
|       Advances                  from Lightening Draw                                                  |   |   | 122,000    |   |
|       Note                  payable to joint venture                                                  |   |   | 255,000    |   |
|                                                                                                                                |   |   |       |   |
| Total                  current liabilities                                                                                          |   |   | 1,755,504  |   |
|                                                                                                                                |   |   |       |   |
| EQUITY                                                                                                                              |   |   |       |   |
| Common                    Stock, $.01 par value: authorized-75,000,000 shares; issued and                    outstanding-16,646,109 |   |   | 166,461    |   |
|     Additional                  paid-in capital                                                                 |   |   | 9,637,232  |   |
|     Warrants                                                                                                    |   |   | 148,100    |   |
|     Accumulated                  deficit:                                                                       |   |   |       |   |
|          Before                  entering the development stage                        |   |   | (4,441,242 | ) |
|          After                  entering the development stage                         |   |   | (7,200,563 | ) |
|                                                                                                                                |   |   |       |   |
| Total                  Equity                                                                                                       |   |   | (1,690,009 | ) |
|                                                                                                                                |   |   |       |   |
| Total                  liabilities and equity                                                                                       |   | $      | 65,495     |   |

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**COLORADO      WYOMING RESERVE COMPANY**

**(A      DEVELOPMENT STAGE ENTERPRISE)**

**		CONSOLIDATED ****STATEMENTS      OF OPERATIONS**

**(UNAUDITED)**

|                                                                        |   |                                           |       |                                    |   | **PERIOD                  FROM**        |    |
|-----------------------------------------------------------------------------|--------|------------------------------------------------|------------|-----------------------------------------|--------|-----------------------------------------|---------|
|                                                                        |   | **QUARTERS                    ENDED**MARCH 31, |       | **NINE MONTHS ENDED******					MARCH 31, |   | **JANUARY                  1, 1999 TO** |    |
|                                                                        |   | **2007**                                       |       | **2006**                                |   | **2007**                                |    | **2006** |   | **MARCH****31, 2007** |   |
| REVENUES                                                                    |   | $                                              | —    |                                    | $      | —                                 |    | $ | — |   | $ | — |   | $ | — |   |
|                                                                        |   |                                           |       |                                    |   |                                    |    |   |   |   |   |   |   |   |   |   |
| EXPENSES                                                                    |   |                                           |       |                                    |   |                                    |    |   |   |   |   |   |   |   |   |   |
|    Exploration                  cost                         |   |                                           | 5,500      |                                    |   | 35,972                                  |    |   | 18,097 |   |   | 35,972 |   |   | 741,926 |   |
|    Depreciation,                  depletion and amortization |   |                                           |       |                                    |   |                                    |    |   |   |   |   |   |   |   | 6,320 |   |
|    General                  and administrative               |   |                                           | 100,063    |                                    |   | 128,759                                 |    |   | 303,664 |   |   | 330,109 |   |   | 6,266,713 |   |
|                                                                        |   |                                           |       |                                    |   |                                    |    |   |   |   |   |   |   |   |   |   |
| Total                  expenses                                             |   |                                           | 105,563    |                                    |   | 164,731                                 |    |   | 321,761 |   |   | 366,081 |   |   | 7,014,959 |   |
|                                                                        |   |                                           |       |                                    |   |                                    |    |   |   |   |   |   |   |   |   |   |
| Operating                  loss                                             |   |                                           | (105,563   | )                                       |   | (164,731                                | )  |   | (321,761 | ) |   | (366,081 | ) |   | (7,014,959 | ) |
|                                                                        |   |                                           |       |                                    |   |                                    |    |   |   |   |   |   |   |   |   |   |
| OTHER                  INCOME (EXPENSE)                                     |   |                                           |       |                                    |   |                                    |    |   |   |   |   |   |   |   |   |   |
|    Interest                  income (expense), net           |   |                                           | (64,250    | )                                       |   | (5,350                                  | )  |   | (232,588 | ) |   | (16,050 | ) |   | (184,373 | ) |
|    Loss                  on sale of assets                   |   |                                           | —    |                                    |   | —                                 |    |   | — |   |   | — |   |   | (1,231 | ) |
|                                                                        |   |                                           |       |                                    |   |                                    |    |   |   |   |   |   |   |   |   |   |
| Income                  (Loss) before income taxes                          |   |                                           | (169,813   | )                                       |   | (170,081                                | )  |   | (554,349 | ) |   | (382,131 | ) |   | (7,200,563 | ) |
|                                                                        |   |                                           |       |                                    |   |                                    |    |   |   |   |   |   |   |   |   |   |
| Provision                  for income taxes                                 |   |                                           | —    |                                    |   | —                                 |    |   | — |   |   | — |   |   | — |   |
|                                                                        |   |                                           |       |                                    |   |                                    |    |   |   |   |   |   |   |   |   |   |
|    Net                  loss                                 |   | $                                              | (169,813   | )                                       | $      | (170,081                                | )  | $ | (554,349 | ) | $ | (382,131 | ) | $ | (7,200,563 | ) |
|                                                                        |   |                                           |       |                                    |   |                                    |    |   |   |   |   |   |   |   |   |   |
|    Basic                  and diluted loss per share         |   | $                                              | (0.01      | )                                       | $      | (0.01                                   | )  | $ | (0.03 | )  | $ | (0.03 | ) |   |   |   |
|                                                                        |   |                                           |       |                                    |   |                                    |    |   |   |   |   |   |   |   |   |   |
|    Outstanding                  shares                       |   |                                           | 16,646,109 |                                    |   | 12,037,694                              |    |   | 16,646,109 |   |   | 12,037,694 |   |   |   |   |

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**COLORADO          WYOMING RESERVE COMPANY**

**(A      DEVELOPMENT STAGE ENTERPRISE)**

**		 CASH      FLOW STATEMENTS**

|                                                                                                            |   |                              |     | **PERIOD                  FROM**        |   |
|-----------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|----------|-----------------------------------------|--------|
|                                                                                                            |   | **NINE MONTHS****ENDED**MARCH 31, |     | **JANUARY                  1, TO 1999** |   |
| **            **                                    |   | **2007**                          |     | **2006**                                |   | **MARCH                  31, 2007** |   |
| Cash                  flows from operating activities:                                                          |   |                              |     |                                    |   |   |   |
| Net                  loss                                                                                       |   | $                                 | (554,348 | )                                       | $      | (382,131) |   |   | (7,200,562 | ) |
| Adjustments                  to reconcile net loss to net used in operating                  activities:        |   |                              |     |                                    |   |   |   |   |   |   |
|         Stock based Compensation                                        |   |                              |     |                                    |   |   |   |   | 95,600 |   |
|         Stock				issued for Services                                    |   |                              |     |                                    |   |   |   |   | 3,690,000 |   |
|         Stock				issued for Financing Costs                             |   |                              | 184,154  |                                    |   |   |   |   | 211,154 |   |
|         Stock				based Deferred Compensation                                 |   |                              |     |                                    |   |   |   |   |   |   |
|         Stock				issued for Oil and Gas Properties                           |   |                              |     |                                    |   |   |   |   |   |   |
|        				Warrants issued for Financing Costs                               |   |                              |     |                                    |   |   |   |   |   |   |
|          Depletion,                  depreciation and amortization |   |                              | —  |                                    |   | — |   |   | 6,320 |   |
|          Loss                  on asset sale                       |   |                              | —  |                                    |   | — |   |   | 1,231 |   |
|          Amortization                  of note payable discount         |   |                              | —  |                                    |   | — |   |   | 35,000 |   |
|          Loss from joint venture investment                             |   |                              |     |                                    |   |   |   |   | 361,767 |   |
|                                                                                                            |   |                              |     |                                    |   |   |   |   |   |   |
| Changes                  in current assets and liabilities:                                                     |   |                              |     |                                    |   |   |   |   |   |   |
|          Receivables                                               |   |                              | —  |                                    |   | — |   |   | 3,126 |   |
|         Payables                                                        |   |                              | 310,138  |                                    |   | 135,818 |   |   | 1,408,748 |   |
|         Other                                                           |   |                              |     |                                    |   |   |   |   | (436 | ) |
|                                                                                                            |   |                              |     |                                    |   |   |   |   |   |   |
| Net                  cash (used in) operating activities                                                        |   |                              | (60,056) |                                    |   | (246,313 | ) |   | (1,388,052 | ) |
|                                                                                                            |   |                              |     |                                    |   |   |   |   |   |   |
| Cash                  flows from investing activities:                                                          |   |                              |     |                                    |   |   |   |   |   |   |
|    Additions                  to unproved properties                                             |   |                              | —  |                                    |   | (35,972 | )  |   | (46,544 | ) |
|    Unproved                  property cost recovery                                              |   |                              |     |                                    |   | — |   |   | 191,467 |   |
|    Asset                  purchases                                                              |   |                              | —  |                                    |   | — |   |   | (1,269 | ) |
|    Proceeds                  from asset sale                                                     |   |                              | —  |                                    |   | — |   |   | (2,354 | ) |
|                                                                                                            |   |                              |     |                                    |   |   |   |   |   |   |
| Net                  cash (used in) provided by investing activities                                            |   |                              | 0        |                                    |   | (35,972 | )  |   | 141,300 |   |
|                                                                                                            |   |                              |     |                                    |   |   |   |   |   |   |
| Cash                  flows from financing activities:                                                          |   |                              |     |                                    |   |   |   |   |   |   |
|    Sale                  of common stock                                                         |   |                              | 59,486   |                                    |   | 315,000 |   |   | 1,243,942 |   |
|    Borrowings					under credit agreement                                                         |   |                              | —  |                                    |   |   |   |   | 130,509 |   |
|    Repayment                  of joint venture advances                                          |   |                              |          |                                    |   | — |   |   | — |   |
|    Repayment                  of notes payable                                                   |   |                              | —  |                                    |   | — |   |   | (130,000 | ) |
|                                                                                                            |   |                              |     |                                    |   |   |   |   |   |   |
| Net                  cash provided by financing activities                                                      |   |                              | 59,486   |                                    |   | 315,000 |   |   | 1,244,451 |   |
|                                                                                                            |   |                              |     |                                    |   |   |   |   |   |   |
| Net                  increase (decrease) in cash and equivalents                                                |   |                              | (570)    |                                    |   | 32,715 |   |   | (2,300 | ) |
| Cash                  and equivalents at beginning of period                                                    |   |                              | 1,463    |                                    |   | 17,553 |   |   | 3,191 |   |
|  Rounding                                                                                                  |   |                              |     |                                    |   |   |   |   | 2  |   |
| Cash                  and equivalents at end of period                                                          |   | $                                 | 893      |                                    | $      | 50,268 |   | $ | 893 |   |
|                                                                                                            |   |                              |     |                                    |   |   |   |   |   |   |
| **SUPPLEMENTAL                  SCHEDULE OF CASH FLOW INFORMATION**                                             |   |                              |     |                                    |   |   |   |   |   |   |
|                                                                                                            |   |                              |     |                                    |   |   |   |   |   |   |
| Cash                  paid for interest expense                                                                 |   | $                                 | —  |                                    | $      | — |   |   |   |   |
|                                                                                                            |   |                              |     |                                    |   |   |   |   |   |   |
| **SUPPLEMENTAL                  DISCLOSURES OF NON-CASH INVESTING AND FINANCING                  ACTIVITIES**   |   |                              |     |                                    |   |   |   |   |   |   |
|                                                                                                            |   |                              |     |                                    |   |   |   |   |   |   |
| Stock                  based compensation                                                                       |   | $                                 | —  |                                    | $      | — |   |   |   |   |
|                                                                                                            |   |                              |     |                                    |   |   |   |   |   |   |
| Stock                  issued for services                                                                      |   | $                                 | —  |                                    | $      | — |   |   |   |   |
|                                                                                                            |   |                              |     |                                    |   |   |   |   |   |   |
| Stock                  based deferred compensation                                                              |   | $                                 |     |                                    | $      |  — |   |   |   |   |
|                                                                                                            |   |                              |     |                                    |   |   |   |   |   |   |
| Stock                  issued for oil and gas properties                                                        |   | $                                 |     |                                    | $      |  — |   |   |   |   |
|                                                                                                            |   |                              |     |                                    |   |   |   |   |   |   |
| Warrants                  issued for oil and gas property consulting                                            |   | $                                 |     |                                    | $      |  — |   |   |   |   |
|                                                                                                            |   |                              |     |                                    |   |   |   |   |   |   |
| Stock                  issued for financing costs                                                               |   | $                                 | 184,154  |                                    | $      | — |   |   |   |   |
|                                                                                                            |   |                              |     |                                    |   |   |   |   |   |   |
| Warrants                  issued for financing costs                                                            |   | $                                 |     |                                    | $      |  — |   |   |   |   |

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**COLORADO      WYOMING RESERVE COMPANY **

**NOTES      TO FINANCIAL STATEMENTS**

**		Periods Ended March 31, 2007 and 2006 **

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In      years      2000 to 2002 the Company acquired 68,000 acre leases and then shot, processed      and interpreted 16,640 acres, state of the art 3D Seismic shoot. In 2003 the      interpretation of the shoot was perfected. In 2004, the Partners and the Company      drilled two, 3D Science confirming wells, in May and December respectively,      on      structure one. In 2005 the Company and Partners caused the Pipeline Contract      and      hook-up of two wells on structure one. The Company anticipates an aggressive      posture in pursuit of this area.

The      Company is currently focusing its exploratory efforts on its mineral interests      in approximately 22,640 gross leased acres (approximately 6,764 net leased      acres) in the central Paradox Basin of southeastern Utah (the "Paradox Basin      Project" or the "Project"). During fiscal 2001, the Company obtained a 3D      seismic survey (the "Seismic Survey") covering a 26 square mile portion of      its      Paradox Basin leasehold position. The survey results indicate that further      exploratory work is warranted on the Paradox Basin Project. Together with its      joint venture partners, CWYR has undertaken drilling and intends to raise      additional capital in order to be able to participate in the development of      the      Paradox Basin Project. On      March      3, 2005, the Company confirmed its proprietary 3D Seismic Science with two      exploratory successes at its Paradox Basin Exploration Project in Southeast      Utah. The science, four years under development, has been confirmed by the      completion of the Federal 1-31 and the Evelyn Chambers wells on the Southwest      Lisbon structure, 3 1⁄2 miles southwest of the Lisbon Field in the same      Mississippian formation. Both wells tested in the range of 2 MMCFD in the      formation analogous to the productive formation at Lisbon. The ‘Evelyn Chambers’well is hooked up to the plant, line laid and producing. The Federal 1-31 well      currently has a work-over rig on it examining other potentially productive      zones. It is also already hooked up to the plant, line laid but currently not      producing. At June 30, 2006 CWYR owns only an after-payout interest in these      two      productive oil and gas wells and the associated developed acreage. Variables      affecting payout are: Price per mcf of gas and price per barrel of oil.		These vary over time and have been very volatile of late. Payout will		occur after the some $6 million dollars spent by the partners is		recovered from the production of these wells. From an economic		standpoint the income from these wells continues to be sporadic and		insufficiently regular to enable an accurate and reliable assessment to		be made as to whether the wells will ever reach payout. Since the		Company's interest in these wells is a 10.6% interest AFTER PAYOUT, as		of May 15, 2007 the Company still has no ownership of any producing      property. The      Company owns 10.6% APO of this 700-acre structure and 10.6% of the surrounding      8,960 acres.  Further additional seismic work in light of this successful      discovery is anticipated on the structure. The      Company owns 42 1⁄2 % of two other, 3D delineated, structures in the Paradox Basin      Project.  Additionally, the Company will have 42 1⁄2 % of three other,      tentatively identified, structures in the area. The      Company plans additional 3D Seismic science work in the whole of the Paradox      Basin Project area as well as a development drilling program in the Southwest      Lisbon structure.   On      July      21, 2005 the Company announced that it had received BLM approval to drill a      third well on its previously 3D seismic identified Southwest Lisbon structure      in      the Paradox Basin Exploration Project in Southeast Utah. There is the      possibility that up to a total of 12 to 16 wells from multiple zones on the      Southwest Lisbon structure can be drilled. The Company already owns the acreage      where this drilling is expected to occur.The      Company anticipates an extensive 3D seismic shooting program and drilling on      its      currently identified structures.In      May      2006 the Company acquired a 42 1⁄2% interest in an additional 6,000 acres      underneath and bordering its 3D Seismic Shoot in Southeast Utah. The acquisition      of the 6,000 acres raises the Company’s acreage position in the area to 22,640      acres (approximately 6,764 net leased acres). The acquired acreage borders      the      Company’s 16,640-acre 3D Seismic Shoot. Additional      3D Seismic Shooting is planned for and the Company anticipates 3 test wells      in      the area in 2007.
 6CURRENT      DEVELOPMENT:In      October 2006 we learned from the Operator that some of the partners in the      Federal 1-31 well were intending to re-enter the well with a view to examining      the possibility of producing hydrocarbons from the three other potentially      productive zones that had been encountered while drilling to the Mississippian      previously. This work finally began upon a work-over rig becoming available      in      the latter half of October. As of May 15, 2007 we have not learned of any		major improvements in production resulting from this latest activity. At		a meeting with the Operator in March 2007 it was learned that further		drilling may be initiated in the next 12 to 18 months and that the		Company would be required to come up with its share of costs or make		trades with other independents to take care of these obligations. 		We have unitized 6,985.09 acres in the north end of our project being		the SW Lisbon Unit. CWYR is a participant for 10.625% working interest		in the majority of the unitized leasehold. 		The Agreement requires us to commence a well to adequate test the Gothic		Shale formation by September 28, 2007. All leasehold within in the unit		remain in effect until such time as the obligation well is unsuccessful		and we do not make continuous efforts to continue drilling, or in the		event we do not drill the obligation well within the designated time.		In the south end of the project, we are in the process of requesting the		BLM suspend leasehold terms for those leases since they are contiguous		to the leases we acquired a year ago but have not been issued due to		environmental concerns filed to the BLM by SUWA (Southern Utah		Wilderness Alliance). We		will also request the suspension on the State leasehold. The BLM has		requested more information and we are in the process of putting together		a geologic report for them to validate our request.		Due to the lack of funds the Company was unable to file its quarterly		financials in a timely manner. The Company made arrangements with the		major insiders to convert the amounts owed them into stock and also to		commit to funding the Company to a minimum of $100,000. The terms were		agreed to and funds were expected within three months of the date of		Agreement, May 1, 2007. The Company managed to make the filings within		the extension allowed relying on these assurances without endangering		our over the counter bulletin board status but the funding difficulties		continue and will need to be solved if the Company is to survive.		Providing the funds arrive within the stipulated timeframe all the		transactions hereinabove envisioned would occur at $0.05 per restricted		share and a total of 20,300,000 restricted shares would be issued.  3.      COMMITMENTS AND CONTINGENCIES 		At May 15, 2007, the Company had no revenues. These factors raise substantial      doubts about the Company's ability to continue as a going concern without      raising significant additional capital. 
		Due to the lack of funds the Company was unable to file its quarterly		financials in a timely manner. The Company made arrangements with the		major insiders to convert the amounts owed them into stock and also to		commit to funding the Company to a minimum of $100,000. The terms were		agreed to and funds were expected within three months of the date of		Agreement, May 1, 2007. The Company managed to make the filings within		the extension allowed relying on these assurances without endangering		our over the counter bulletin board status but the funding difficulties		continue and will need to be solved if the Company is to survive.		Providing the funds arrive within the stipulated timeframe all the		transactions hereinabove envisioned would occur at $0.05 per restricted		share and a total of 20,300,000 restricted shares would be issued.4.      LOSS      PER SHARE Basic      and      diluted earnings per share are the same, as the effect of warrants and options      is antidilutive. 7 5.      FARMOUT AGREEMENT  In      October 2006 we learnt from the Operator that some of the partners in the      Federal 1-31 well were intending to re-enter the well with a view to examining      the possibility of producing hydrocarbons from the three other potentially      productive zones that had been encountered while drilling to the Mississippian      previously. This work finally began upon a work-over rig becoming available      in      the latter half of October but as of May 15, 2007 we have not learned of		any major improvements in production resulting from this latest		activity. The well appears to have suffered mud damage and remedial work		is still continuing. 6.      RECENTLY ISSUED FINANCIAL ACCOUNTING STANDARDS:  In      December 2004, the FASB issued SFAS 123(R), "Share-Based Payment," which is      a      revision of SFAS No. 123, Accounting for Stock-Based Compensation. SFAS 123(R)      is effective for public companies for interim or annual periods beginning after      June 15, 2005, supersedes APB Opinion 25, Accounting for Stock Issued to      Employees, and amends SFAS 95, Statement of Cash Flows.  SFAS      123(R) requires all share-based payments to employees, including grants of      employee stock options, to be recognized in the income statement based on their      fair values. Pro-forma disclosure is no longer an alternative. We have adopted      SFAS 123 (R) as of January 1, 2006. **ITEM      2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS      OF      OPERATIONS** **UNCERTAINTY      OF FORWARD-LOOKING INFORMATION**This      quarterly report on Form 10-QSB includes statements that are not purely      historical and are "forward-looking statements" within the meaning of Section      27A of the Securities Act of 1933, as amended, and Section 21E of the Securities      Exchange Act of 1934, as amended. Forward-looking statements involve risks      and      uncertainties that could cause actual results to differ from projected results.      Such statements address activities, events or developments that the Company      expects, believes, projects, intends or anticipates will or may occur, including      such matters as its ability to raise capital sufficient enough to repay      outstanding indebtedness, to fund its share of maintaining and marketing the      Project and to participate in future Paradox Basin activities, the Company's      use      of proceeds from any financing or sale of its interest, the Company's beliefs      regarding results of the Seismic survey and the next phase of development,      volatility of common Stock prices, anticipated lack of revenues, anticipated      losses, plans to market the Project to third parties and the effect of the      application of certain accounting rules. Factors that could cause actual results      to differ materially ("Cautionary Disclosures") include, among others: general      economic conditions, the market price of oil and natural gas, concentration      of      the Company's properties in a small area in the Paradox Basin, the timing and      results of the seismic shoot to be conducted under the farmout agreement, the      success or failure in finding commercial quantities of oil and gas, the strength      and financial resources of the Company's competitors, climatic conditions,      environmental risks, the results of financing efforts and regulatory      developments and the factors identified in the Company's Annual Report on Form      10-KSB for the fiscal year ended June 30, 2006, under the caption "Business-Risk      Factors.". Many of such factors are beyond the Company's ability to control      or      predict. All forward-looking statements included in this Form 10-QSB are based      on information available to the Company on the date hereof. Although the Company      believes that the assumptions and expectations reflected in such forward-looking      statements are reasonable, it can give no assurance that such expectations      will      prove to have been correct or that the Company will take any actions that may      presently be planned. All forward-looking statements attributable to the Company      or persons acting on its behalf are expressly qualified in their entirety by      the      Cautionary Disclosures. **PLAN      OF OPERATIONS**		At May 15, 2007, the Company had no cash, no operations and no revenues.      These      factors raise substantial doubts about the Company's ability to continue as      a      going concern without raising significant additional capital. On      March      3, 2005, the Company confirmed its proprietary 3D Seismic Science with two      exploratory successes at its Paradox Basin Exploration Project in Southeast      Utah. The science, four years under development, has been confirmed by the      completion of the Federal 1-31 and the Evelyn Chambers wells on the Southwest      Lisbon structure, 3 1⁄2 miles southwest of the Lisbon Field in the same      Mississippian formation. Both wells tested in the range of 2 MMCFD in the      formation analogous to the productive formation at Lisbon. The ‘Evelyn Chambers’well is hooked up to the plant, line laid and producing. The Federal 1-31 well      currently has a work-over rig on it examining other potentially productive      zones. It is also already hooked up to the plant, line laid but currently not      producing. CWYR owns only an after-payout interest in two productive oil and      gas      wells and the associated developed acreage at May 15, 2007. Variables      affecting payout are: Price per mcf of gas and price per barrel of oil. These      vary over time and have been very volatile of late. Payout will occur after      the      some $6 million dollars spent by the partners is recovered from the production      of these wells. From an economic standpoint the income from these wells      continues to be sporadic and insufficiently regular to enable an accurate and      reliable assessment to be made as to whether the wells will ever reach payout.      Since the Company’s interest in these wells is a 10.6% interest AFTER PAYOUT, as      of May 15, 2007 the Company still has no ownership of any producing      property. 8 On      May      25, 2006 the Company announced that it has acquired a 42 1⁄2% interest in an      additional 6,000 acres underneath and bordering its 3D Seismic Shoot in      Southeast Utah. The acquisition of the 6,000 acres raises the Company’s acreage      position in the area to 22,640 acres (approximately 6,764 net leased acres).      The      acquired acreage borders the Company’s 16,640-acre 3D Seismic Shoot.		Additional      3D Seismic Shooting is planned for later this year and the Company anticipates      3      test wells in the area in 2007.We have unitized 6,985.09 acres in the north end of our project being		the SW Lisbon Unit. CWYR is a participant for 10.625% working interest		in the majority of the unitized leasehold. The Agreement requires us to commence a well to adequate test the Gothic		Shale formation by September 28, 2007. All leasehold within in the unit		remain in effect until such time as the obligation well is unsuccessful		and we do not make continuous efforts to continue drilling, or in the		event we do not drill the obligation well within the designated time.In the south end of the project, we are in the process of requesting the		BLM suspend leasehold terms for those leases since they are contiguous		to the leases we acquired a year ago but have not been issued due to		environmental concerns filed to the BLM by SUWA (Southern Utah		Wilderness Alliance). Wewill also request the suspension on the State leasehold. The BLM has		requested more information and we are in the process of putting together		a geologic report for them to validate our request.  **LIQUIDITY      AND CAPITAL RESOURCES** The      Company has a negative working capital balance of approximately $1.8 mm at		March 31, 2007. The principal owed amounts are to management $900,000		(no interest accrues on these owed amounts), Convertible bondholders		$255,000, the Operator $230,000, other working interest partners		$165,000, for a total of approximately $1.6mm. The amounts owed to		management are accrued but not paid and an understanding is in place		that these will not be payable till the Company is reasonably		well-funded. In May 2007 almost all the monies owed to Management were		converted into stock and a cash injection of $100,000 was agreed upon		within three months of May 1, 2007 to maintain operations while efforts		continued to find further funds and/or make other arrangements to keep		the Company viable. Providing the funds arrive within the stipulated		timeframe all the transactions hereinabove envisioned would occur at		$0.05 per restricted share and a total of 20,300,000 restricted shares		would be issued. Under      	the farmout agreements to which the Company is a party, the Company is obligated      to      pay its 50% share of all costs associated with maintaining the Paradox Basin      property. Further the Company anticipates no revenues for fiscal 2007, and      any      expenses incurred by the Company will exacerbate its working capital deficit.      In      order to remedy the existing working capital deficit and to fund future      expenditures, the Company will need to raise additional capital through a debt      or equity financing. If the Company is not successful in raising additional      capital, the Company may have to liquidate on terms unfavorable to its      shareholders.  **RESULTS      OF OPERATIONS** 		GENERAL AND ADMINISTRATIVE EXPENSE. The general and administrative		expense was slightly lower than in the third quarter of 2006 due to the		fact that last year some overdue interest payments were included.  OTHER.      	Cost associated with shares issued consequent to Warrants previously		issued being exercised. A total of 320,000 warrants were exercised.		Their original exercise price was $0.10 but due to anti-dilution		provisions this price was adjusted down very minutely to $0.0996191.		Also the Warrant holders took benefit of the cashless exercise provision		and consequently a total of 280,127 shares were issued .. the remaining		39,873 shares being used to pay the exercise price due. The price of the		stock on the day these shares were issued was $0.12 so a cost of		$33,615.24 was booked. 
 
9  **Item 4.      CONTROLS AND PROCEDURES**In      accordance with Exchange Act Rules 13a-15 and 15d-15, we carried out an      evaluation, under the supervision and with the participation of management,      including our President and Chief Executive Officer, and Chief Financial      Officer, of the effectiveness of our disclosure controls and procedures as      of      the end of the period covered by this report. Based on that evaluation, our      President and Chief Executive Officer, and Chief Financial Officer concluded      that our disclosure controls and procedures were effective as of March 31, 2007 to provide reasonable assurance that information      required to be disclosed in our reports filed or submitted under the Exchange      Act is recorded, processed, summarized and reported within the time periods      specified in the SEC’s rules and forms. Disclosure      controls and procedures, no matter how well designed and implemented, can      provide only reasonable assurance of achieving an entity’s disclosure      objectives. The likelihood of achieving such objectives is affected by      limitations inherent in disclosure controls and procedures. These limitations      include the fact that human judgment in decision-making can be faulty and that      breakdowns in internal control can occur because of human failures such as      simple errors or mistakes or because of intentional circumvention of the      established process. During      the period covered by this report, there have been no changes in our internal      controls over financial reporting or in other factors, which could significantly      affect internal controls over financial reporting.           **PART      II.** **PART      II - OTHER INFORMATION****Item      1. Legal Proceedings.**None.       **Item 1A      — RISK FACTORS** In      addition to the other information set forth in this report, you should carefully      consider the risk factors discussed in Part I, “Item 1 Description of      Business” in our Annual Report on Form 10-KSB for the year ended June 30, 2006,      which could materially affect our business, financial condition or future      results. The risks described in our Annual Report on Form 10-KSB, are not the      only risks facing our Company. Additional risks and uncertainties not currently      known to us or that we currently deem to be immaterial also may materially      adversely affect our business, financial condition and/or operating results.      There have been no material changes in our risk factors from those disclosed      in      our 2006 annual report on Form 10-KSB **Item      2. Changes in Securities and Use of Proceeds.**On March 29, 2007 a total of 280,127 shares were issued		to four warrant holders who had the right to cashlessly exercise a total		of 320,000 warrants at $0.10 per share. A total of 320,000 warrants were		exercised on dates ranging from October 16, 2006 to November 7, 2006.		Their original exercise price was $0.10 but due to anti-dilution		provisions this price was adjusted down very minutely to $0.0996191.		Also the Warrant holders took benefit of the cashless exercise provision		and consequently a total of 280,127 shares were issued .. the remaining		39,873 shares being used to pay the exercise price due. The price of the		stock on the day these shares were issued was $0.12 so a cost of		$33,615.24 was booked.		In May 2007 almost all the monies owed to Management were converted into		stock and a cash injection of $100,000 was agreed upon within three		months of May 1, 2007 to maintain operations while efforts continued to		find further funds and/or make other arrangements to keep the Company		viable. Providing the funds arrive within the stipulated timeframe all		the transactions hereinabove envisioned would occur at $0.05 per		restricted share and a total of 20,300,000 restricted shares would be		issued. 10**Item      3. Defaults Upon Senior Securities.**None.       **Item      4. Submission of Matters to a Vote of Security Holders.**None.      **Item      5. Other Information.**The Company is		in the early stages of establishing a Company Website on the internet:		www.coloradowyoming.com**Item      6. Exhibits**(a)      Exhibits 31.1       Certification      of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act      of      2002.31.2       Certification      of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act      of      2002.32.1 Certification      of Chief Executive Officer Pursuant to U.S.C. 18, Section 1350.32.2 Certification      Chief Financial Officer Pursuant to U.S.C. 18, Section 1350. 11**SIGNATURES**In      accordance with the requirements of the Exchange Act, the Registrant caused      this      Report to be signed on its behalf by the undersigned, thereunto duly authorized.      **COLORADO      WYOMING RESERVE COMPANY**           Dated:                May 15, 2007By:  /s/ Waseem              A. Sayed Waseem                A. Sayed President,                Chief Executive Officer(Principal                  Executive Officer)             By:  /s/ Rafiq              A. Sayed Rafiq              A. Sayed Chief                Financial Officer(Principal                  Financial Officer)  12