UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-K
              ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                        SECURUTIES EXCHANGE ACT OF 1934

                   For the fiscal year ended December 31, 2010
                        Commission file number 000-53253


                                 AVRO ENERGY INC
             (Exact Name of Registrant as Specified in Its Charter)

           Nevada                                                20-8387017
(State or Other Jurisdiction of                               (I.R.S. Employer
 Incorporation or Organization)                              Identification No.)

                               213 E Arkansas Ave
                              Vivian, LA 71082, USA
               (Address of Principal Executive Offices & Zip Code)

                                  318-734-4737
                               (Telephone Number)

           Securities registered pursuant to Section 12(b) of the Act:
                                      None

           Securities registered pursuant to section 12(g) of the Act:
                          Common Stock, $.001 par value


Indicate by check mark if the registrant is a well-known seasoned issuer, as
defined in Rule 405 of the Securities Act. Yes [ ] No [X]

Indicate by check mark if the registrant is not required to file reports
pursuant to Section 13 or Section 15(d) of the Act Yes [ ] No [X]

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

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting company. See
the definitions of "large accelerated filer," "accelerated filer" and "smaller
reporting company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer [ ]                        Accelerated filer [ ]

Non-accelerated filer [ ]                          Smaller reporting company [X]
(Do not check if a smaller reporting company)

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

As of April 15, 2011, the registrant had 40,577,160 shares of common stock
issued and outstanding.
<PAGE>
                                AVRO ENERGY INC.
                                TABLE OF CONTENTS

Item 1. Business.............................................................. 3

Item 1A. Risk Factors......................................................... 6

Item 2. Properties............................................................13

Item 3. Legal Proceedings.....................................................13

Item 4. Submission of Matters to a Vote of Security Holders...................13

Item 5. Market for Common Equity and Related Stockholder Matters..............13

Item 7. Management's Discussion and Analysis of Financial Condition and
        Results of Operations.................................................14

Item 8. Financial Statements..................................................15

Item 9. Changes in and Disagreements with Accountants on Financial Disclosure.29

Item 9A. Controls and Procedures..............................................29

Item 10. Directors, Executive Officers and Control Persons....................32

Item 11. Executive Compensation...............................................33

Item 12. Security Ownership of Certain Beneficial Owners and Management.......34

Item 13. Certain Relationships and Related Transactions.......................35

Item 14. Principal Accounting Fees and Services...............................35

Item 15. Exhibits.............................................................36

Signatures....................................................................36

                                       2
<PAGE>
                                     PART I

ITEM 1. BUSINESS

SUMMARY

COMPANY OVERVIEW

Avro Energy, Inc. (hereinafter referred to as the "Company") was incorporated on
January 31, 2007 by filing Articles of Incorporation under the Nevada Secretary
of State. The Company is engaged in the acquisition, exploration and development
of oil and natural gas properties in North America, with current properties in
the ArkLaTex region. The company seeks to develop low risk opportunities by
itself or with joint venture partners in the oil and natural gas sectors.

The Company filed its articles of incorporation with the Nevada Secretary of
State on January 31, 2007, indicating Mike P. Kurtanjek as its Director and its
President and sole executive officer. Mr. Michael Heenan was appointed as a
Director of the Company on June 1, 2007. Ms. Marilyn Woodruff was appointed as a
Director of the Company on June 1, 2007. Ms. Woodruff was also appointed as the
Secretary for the Company effective June 1, 2007. On June 11, 2008 Ms. Woodruff
resigned as Secretary and Director and Mr. Donny Fitzgerald replaced her as
Secretary and Director.

On January 31, 2007 (inception), the Company issued 25,000,000 founders' shares
for $86,250. On September 1, 2007, the Company issued 264,000 shares for
$66,000. On October 1, 2007, the Company issued 186,560 shares for $46,640. On
May 31, 2010, the Company issued 1,000,000 Units at a price of $0.25 per Unit
for total proceeds of $250,000. Each Unit issued consisted of one restricted
common share and one half share purchase warrant. Two half warrants entitles a
Subscriber to acquire one restricted common share at a purchase price of $0.50
per Share for a period of 18 months from the date of issue. On July 8, 2010 the
company issued 1,125,000 restricted shares at par for a total proceeds of
$1,125. On September 13, 2010, the company entered agreements to convert various
outstanding loans into restricted shares of the Company. The total amount owing
to its creditors was $390,048, and each agreed to the issuance of restricted
shares of the Company to settle this outstanding debt. As a result, the Company
agreed to issue a total of 13,001,600 shares in settlement of this debt, or at a
price of $0.03 per share. The total fair value of the shares was $650,080 based
on the closing price resulting in a loss of settlement of debt of $260,032.

We are contemplating raising additional capital to finance our exploration
programs. No final decisions regarding the program or financing have been made
at this time.

HOSS HOLMES LEASE

On August 26, 2009, Avro entered into an agreement to acquire for $100,000 the
Hoss Holmes Lease located near Hosston, Louisiana, from Fredco LLC, a Louisiana
private oil and gas operator. The company closed the acquisition of the property
on September 30, 2009.

On February 23, 2010 the company divested the assets being the Hoss Holmes, near
Hosston Louisiana for $60,000.

HERRINGS LEASE

On August 10, 2009, Avro Energy, Inc. entered into an agreement to acquire
various oil leases near Hosston, Louisiana, from S.A.M., a Louisiana private
partnership, and private oil and gas operator. Under the terms of the agreement,
the Company has agreed to pay a total of ten dollars ($10) plus a one-fifth
royalty interest in exchange for the exclusive grant, lease, and let of the
following oil and gas leases:

One, Two, Three and Four (1-4) inclusive, Block One (1) Town of Hosston,
together with all abandoned alleyways and streets insofar as it covers and
affects the surface of the earth and the base of the Nacatosh Formation together
with wells being Herring No. 1, Serial No 184124, and Herring No. 2, Serial No.
184735.

                                       3
<PAGE>
MUSLOW LEASE

On September 9, 2009, Avro Energy, Inc. entered into an agreement and acquire
four oil and gas leases in Caddo Parish, Louisiana, from a private oil and gas
operator for $70,000. The first three leases are the Muslow A, B, and C Leases,
which in total comprise of 8 wells and equipment, of which 2 are currently
producing. The fourth lease is the Caddo Levee Board Lease, comprising of 13
wells and equipment, of which 4 are currently producing.

ARKANSA LEASE

On October 24, 2009 Avro Energy, Inc. signed a letter agreement to acquire
eleven producible deep oil wells north of Hosston, Louisiana, and in Southern
Arkansas. Seven of these wells are in production. The deepest of these wells
produce from the Smackover formation at 7800 feet. Four other wells are capable
of production after work over operation has been completed. Also included with
the agreement are three disposal wells.

The terms of this agreement allowed the Company to pay $385,000, over a seven
month period, with the first payment of $50,000 paid on November 24, 2009. The
terms of the agreement allow Avro to receive production starting from November
1, 2009. On June 30, 2010 the last payment to complete the purchase for this
property was made.

BANKRUPTCY OR SIMILAR PROCEEDINGS

We have not been the subject of a bankruptcy, receivership or similar
proceedings.

COMPETITION AND MARKETS

We face competition from other oil and natural gas companies in all aspects of
our business, including acquisition of producing properties and oil and natural
gas leases, marketing of oil and natural gas, and obtaining goods, services and
labor. Many of our competitors have substantially larger financial and other
resources than we have. Factors that affect our ability to acquire producing
properties include available funds, available information about prospective
properties and our limited number of employees.

 The availability of a ready market for and the price of any hydrocarbons
produced will depend on many factors beyond our control including, but not
limited to, the amount of domestic production and imports of foreign oil and
liquefied natural gas, the marketing of competitive fuels, the proximity and
capacity of natural gas pipelines, the availability of transportation and other
market facilities, the demand for hydrocarbons, the effect of federal and state
regulation of allowable rates of production, taxation, the conduct of drilling
operations and federal regulation of natural gas. All of these factors, together
with economic factors in the marketing arena, generally affect the supply of
and/or demand for oil and natural gas and thus the prices available for sales of
oil and natural gas.

REGULATORY CONSIDERATIONS

Proposals and proceedings that might affect the oil and gas industry are
periodically presented to Congress, the Federal Energy Regulatory Commission
("FERC"), the Minerals Management Service ("MMS"), state legislatures and
commissions and the courts. We cannot predict when or whether any such proposals
may become effective. This industry is heavily regulated. There is no assurance
that the regulatory approach currently pursued by various agencies will continue
indefinitely. Notwithstanding the foregoing, except for the water quality issue
described below, we currently do not anticipate that compliance with existing
federal, state and local laws, rules and regulations, will have a material or
significantly adverse effect upon our capital expenditures, earnings or
competitive position. No material portion of our business is subject to
renegotiation of profits or termination of contracts or subcontracts at the
election of the federal government.

Our operations are subject to various types of regulation at the federal, state
and local levels. This regulation includes requiring permits for drilling wells,
maintaining bonding requirements in order to drill or operate wells and
regulating the location of wells, the method of drilling and casing wells, the
surface use and restoration of properties upon which wells are drilled, the
plugging and abandoning of wells and the disposal of fluids used or generated in
connection with operations. Our operations are also subject to various
conservation laws and regulations. These include the regulation of the size of
drilling and spacing units or proration units and the density of wells which may
be drilled and the unitization or pooling of oil and natural gas properties. In
addition, state conservation laws sometimes establish maximum rates of

                                       4
<PAGE>
production from oil and natural gas wells, generally prohibit the venting or
flaring of natural gas and impose certain requirements regarding the ratability
of production. The effect of these regulations may limit the amount of oil and
natural gas we can produce from our wells in a given state and may limit the
number of wells or the locations at which we can drill.

Currently, there are no federal, state or local laws that regulate the price for
our sales of natural gas, natural gas liquids, crude oil or condensate. However,
the rates charged and terms and conditions for the movement of gas in interstate
commerce through certain intrastate pipelines and production area hubs are
subject to regulation under the Natural Gas Policy Act of 1978, as amended.
Pipeline and hub construction activities are, to a limited extent, also subject
to regulations under the Natural Gas Act of 1938, as amended. While these
controls do not apply directly to us, their effect on natural gas markets can be
significant in terms of competition and cost of transportation services, which
in turn can have a substantial impact on our profitability and costs of doing
business. Additional proposals and proceedings that might affect the natural gas
and crude oil extraction industry are considered from time to time by Congress,
FERC, state regulatory bodies and the courts. We cannot predict when or if any
such proposals might become effective and their effect, if any, on our
operations. We do not believe that we will be affected by any action taken in
any materially different respect from other crude oil and natural gas producers,
gatherers and marketers with whom we compete.

State regulation of gathering facilities generally includes various safety,
environmental and in some circumstances, nondiscriminatory take requirements.
This regulation has not generally been applied against producers and gatherers
of natural gas to the same extent as processors, although natural gas gathering
may receive greater regulatory scrutiny in the future.

Various federal, state and local laws regulating the discharge of materials into
the environment, or otherwise relating to the protection of the environment,
directly impact oil and natural gas exploration, development and production
operations, and consequently may impact our operations and costs. These
regulations include, among others, (i) regulations by the Environmental
Protection Agency ("EPA"), and various state agencies regarding approved methods
of disposal for certain hazardous and non-hazardous wastes; (ii) the
Comprehensive Environmental Response, Compensation and Liability Act, and
analogous state laws, which regulate the removal or remediation of previously
disposed wastes (including wastes disposed of or released by prior owners or
operators), property contamination (including groundwater contamination), and
remedial plugging operations to prevent future contamination; (iii) the Clean
Air Act and comparable state and local requirements, which may require certain
pollution controls with respect to air emissions from our operations; (iv) the
Oil Pollution Act of 1990, which contains numerous requirements relating to the
prevention of and response to oil spills into waters of the United States; (v)
the Resource Conservation and Recovery Act, which is the principal federal
statute governing the treatment, storage and disposal of hazardous wastes.

To date, compliance with environmental laws and regulations has not required the
expenditure of any material amount of money. Since environmental laws and
regulations are periodically amended, we are unable to predict the ultimate cost
of compliance. To our knowledge, other than the potential water quality issue
described above, there are currently no material adverse environmental
conditions that exist on any of our properties and there are no current or
threatened actions or claims by any local, state or federal agency, or by any
private landowner against us pertaining to such a condition. Further, we are not
aware of any currently existing condition or circumstance that may give rise to
such actions or claims in the future.

EMPLOYEES

The company employed Donny Fitzgerald as director in 2010 to work on operation
in the Louisiana and Arkansas area. Any other work is performed by contractors
as required by the company.

RESEARCH AND DEVELOPMENT EXPENDITURES

We have not incurred any research or development expenditures since our
incorporation.

PATENTS AND TRADEMARKS

We do not own, either legally or beneficially, any patents or trademarks.

                                       5
<PAGE>
REPORTS TO SECURITIES HOLDERS

We provide an annual report that includes audited financial information to our
shareholders. We will make our financial information equally available to any
interested parties or investors through compliance with the disclosure rules of
Regulation S-K for a small business issuer under the Securities Exchange Act of
1934. We are subject to disclosure filing requirements including filing Form 10K
annually and Form 10Q quarterly. In addition, we will file Form 8K and other
proxy and information statements from time to time as required. We do not intend
to voluntarily file the above reports in the event that our obligation to file
such reports is suspended under the Exchange Act. The public may read and copy
any materials that we file with the Securities and Exchange Commission, ("SEC"),
at the SEC's Public Reference Room at 100 F Street NE, Washington, DC 20549. The
public may obtain information on the operation of the Public Reference Room by
calling the SEC at 1-800-SEC-0330. The SEC maintains an Internet site
(http://www.sec.gov) that contains reports, proxy and information statements,
and other information regarding issuers that file electronically with the SEC.

ITEM 1A. RISK FACTORS

WE ARE AN EXPLORATION STAGE COMPANY AND WE EXPECT TO INCUR OPERATING LOSSES FOR
THE FORESEEABLE FUTURE.

We were incorporated on January 31, 2007 and to date have recently been involved
in the organizational activities, and acquisition of our claims. We have no way
to evaluate the likelihood that our business will be successful. We have earned
minimal revenues as of the date of this annual report. Potential investors
should be aware of the difficulties normally encountered by exploration
companies and the high rate of failure of such enterprises. The likelihood of
success must be considered in light of the problems, expenses, difficulties,
complications and delays encountered in connection with the exploration and
development of the properties that we plan to undertake. These potential
problems include, but are not limited to, unanticipated problems relating to
exploration, and additional costs and expenses that may exceed current
estimates. Prior to completion of our exploration stage, we anticipate that we
will incur increased operating expenses without greatly increasing our revenues.
We expect to incur significant losses into the foreseeable future. We recognize
that if production is not forthcoming, we will not be able to continue business
operations. There is no history upon which to base any assumption as to the
likelihood that we will prove successful, and it is doubtful that we will
generate significant revenues to achieve profitable operations. If we are
unsuccessful in addressing these risks, our business will most likely fail.

WE HAVE YET TO EARN SIGNIFICANT REVENUE TO ACHIEVE PROFITABILITY AND OUR ABILITY
TO SUSTAIN OUR OPERATIONS IS DEPENDENT ON OUR ABILITY TO RAISE ADDITIONAL
FINANCING TO COMPLETE OUR PROGRAM IF WARRANTED. AS A RESULT, OUR ACCOUNTANT
BELIEVES THERE IS SUBSTANTIAL DOUBT ABOUT OUR ABILITY TO CONTINUE AS A GOING
CONCERN.

We have accrued net losses of $1,427,0541 for the period from inception (January
31, 2007) to December 31, 2010, and have revenues of $214,092 to date. Our
future is dependent upon our ability to obtain financing and upon future
profitable operations from the development of our business. These factors raise
substantial doubt that we will be able to continue as a going concern. Our
independent auditor, has expressed substantial doubt about our ability to
continue as a going concern. This opinion could materially limit our ability to
raise additional funds by issuing new debt or equity securities or otherwise. If
we fail to raise sufficient capital when needed, we will not be able to complete
our business plan. As a result we may have to liquidate our business and you may
lose your investment. You should consider our auditor's comments when
determining if an investment in our company is suitable.

                                       6
<PAGE>
BECAUSE OF THE UNIQUE DIFFICULTIES AND UNCERTAINTIES INHERENT IN OIL AND GAS
VENTURES, WE FACE A HIGH RISK OF BUSINESS FAILURE.

You should be aware of the difficulties normally encountered by exploration
companies and the high rate of failure of such enterprises. The likelihood of
success must be considered in light of the problems, expenses, difficulties,
complications and delays encountered in connection with the exploration and
development of the properties that we plan to undertake. These potential
problems include, but are not limited to, unanticipated problems relating to
exploration, and additional costs and expenses that may exceed current
estimates. If the results of our development program do not reveal viable
commercialization options, we may decide to abandon our claim and acquire new
claims. Our ability to acquire additional claims will be dependent upon our
possessing adequate capital resources when needed. If no funding is available,
we may be forced to abandon our operations.

BECAUSE OF THE INHERENT DANGERS INVOLVED IN OIL AND GAS OPERATIONS, THERE IS A
RISK THAT WE MAY INCUR LIABILITY OR DAMAGES AS WE CONDUCT OUR BUSINESS.

The extracting of oil and gas involves numerous hazards. As a result, we may
become subject to liability for such hazards, including pollution, cave-ins and
other hazards against which we cannot insure or against which we may elect not
to insure. At the present time we have no insurance to cover against these
hazards. The payment of such liabilities may result in our inability to complete
our planned program and/or obtain additional financing to fund our program.

AS WE UNDERTAKE DEVELOPMENT OF OUR PROPERTIES, WE WILL BE SUBJECT TO COMPLIANCE
WITH GOVERNMENT REGULATION THAT MAY INCREASE THE ANTICIPATED COST OF OUR
PROGRAM.

There are several governmental regulations that materially restrict oil
extraction. We will be subject to regulations and laws as we carry out our
program. We may be required to obtain work permits, post bonds and perform
remediation work for any physical disturbance to the area in order to comply
with these laws. The cost of complying with permit and regulatory environment
laws will be greater because the impact on the project area is greater. Permits
and regulations will control all aspects of the production program if the
project continues to that stage. Examples of regulatory requirements can
include:

     (a)  Water discharge will have to meet drinking water standards;

     (b)  Dust generation will have to be minimal or otherwise re-mediated;

     (c)  Dumping of material on the surface will have to be re-contoured and
          re-vegetated with natural vegetation;

     (d)  An assessment of all material to be left on the surface will need to
          be environmentally benign;

     (e)  Ground water will have to be monitored for any potential contaminants;

     (f)  The socio-economic impact of the project will have to be evaluated and
          if deemed negative, will have to be remediated; and

                                       7
<PAGE>
There is a risk that new regulations could increase our costs of doing business
and prevent us from carrying out our exploration program. We will also have to
sustain the cost of reclamation and environmental remediation for all
exploration work undertaken. Both reclamation and environmental remediation
refer to putting disturbed ground back as close to its original state as
possible. Other potential pollution or damage must be cleaned-up and renewed
along standard guidelines outlined in the usual permits. Reclamation is the
process of bringing the land back to its natural state after completion of
exploration activities. Environmental remediation refers to the physical
activity of taking steps to remediate, or remedy, any environmental damage
caused. The amount of these costs is not known at this time as we do not know
the extent of the exploration program that will be undertaken beyond completion
of the recommended work program. If remediation costs exceed our cash reserves
we may be unable to complete our exploration program and have to abandon our
operations.

IF ACCESS TO OUR PROPERTIES IS RESTRICTED BY INCLEMENT WEATHER, WE MAY BE
DELAYED IN ANY FUTURE MINING EFFORTS.

It is possible that adverse weather could cause accessibility to our properties
difficult and this would delay in our timetables.

BASED ON CONSUMER DEMAND, THE GROWTH AND DEMAND FOR ANY OIL OR GAS WE MAY
RECOVER FROM OUR CLAIMS MAY BE SLOWED, RESULTING IN REDUCED REVENUES TO THE
COMPANY.

Our success will be dependent on the growth of demand for petroleum products. If
consumer demand slows our revenues may be significantly affected. This could
limit our ability to generate revenues and our financial condition and operating
results may be harmed.

BECAUSE OUR CURRENT OFFICERS AND DIRECTORS HAVE OTHER BUSINESS INTERESTS, THEY
MAY NOT BE ABLE OR WILLING TO DEVOTE A SUFFICIENT AMOUNT OF TIME TO OUR BUSINESS
OPERATIONS, CAUSING OUR BUSINESS TO FAIL.

Mr. Mike P. Kurtanjek our CEO and director, currently devotes up to 10 hours per
week providing services to the company. While he presently possesses adequate
time to attend to our interest, it is possible that the demands on him from
other obligations could increase, with the result that he would no longer be
able to devote sufficient time to the management of our business. This could
negatively impact our business development. Our other Directors spend similar
amounts of time providing services to the company and there is no guarantee that
they will have sufficient time to devote to the management of our business.

WE MAY BE UNABLE TO OBTAIN ADDITIONAL CAPITAL THAT WE MAY REQUIRE TO IMPLEMENT
OUR BUSINESS PLAN. THIS WOULD RESTRICT OUR ABILITY TO GROW.

The proceeds from our private offerings completed in 2007 and funds borrowed
since this private offering, provide us with a limited amount of working capital
and is not sufficient to fund our proposed operations. We will require
additional capital to continue to operate our business and our proposed
operations. We may be unable to obtain additional capital as and when required.

Future acquisitions and future development, production and marketing activities,
as well as our administrative requirements (such as salaries, insurance expenses
and general overhead expenses, as well as legal compliance costs and accounting
expenses) will require a substantial amount of additional capital and cash flow.

We may not be successful in locating suitable financing transactions in the time
period required or at all, and we may not obtain the capital we require by other
means. If we do not succeed in raising additional capital, the capital we have
received to date may not be sufficient to fund our operations going forward
without obtaining additional capital financing.

                                       8
<PAGE>
Any additional capital raised through the sale of equity may dilute your
ownership percentage. This could also result in a decrease in the fair market
value of our equity securities because our assets would be owned by a larger
pool of outstanding equity. The terms of securities we issue in future capital
transactions may be more favorable to our new investors, and may include
preferences, superior voting rights and the issuance of warrants or other
derivative securities, and issuances of incentive awards under equity employee
incentive plans, which may have a further dilutive effect.

Our ability to obtain needed financing may be impaired by such factors as the
capital markets (both generally and in the resource industry in particular), our
status as a new enterprise without a demonstrated operating history, the
location of our properties and the price of oil and gas on the commodities
markets (which will impact the amount of asset-based financing available to us)
or the retention or loss of key management. Further, if oil and gas prices on
the commodities markets decrease, then our revenues will likely decrease, and
such decreased revenues may increase our requirements for capital. If the amount
of capital we are able to raise from financing activities is not sufficient to
satisfy our capital needs, we may be required to cease our operations.

We may incur substantial costs in pursuing future capital financing, including
investment banking fees, legal fees, accounting fees, securities law compliance
fees, printing and distribution expenses and other costs. We may also be
required to recognize non-cash expenses in connection with certain securities we
may issue, such as convertible notes and warrants, which may adversely impact
our financial condition.

AMENDMENTS TO CURRENT LAWS AND REGULATIONS GOVERNING OUR PROPOSED OPERATIONS
COULD HAVE A MATERIAL ADVERSE IMPACT ON OUR PROPOSED BUSINESS.

Our business will be subject to substantial regulation under state and federal
laws relating to the exploration for, and the development, upgrading, marketing,
pricing, taxation, and transportation of oil and other matters. Amendments to
current laws and regulations governing operations and activities of resource
operations could have a material adverse impact on our proposed business. In
addition, there can be no assurance that income tax laws, royalty regulations
and government incentive programs related to the resource industry generally,
will not be changed in a manner which may adversely affect us and cause delays,
inability to complete or abandonment of properties.

Permits, leases, licenses, and approvals are required from a variety of
regulatory authorities at various stages of mining and extraction. There can be
no assurance that the various government permits, leases, licenses and approvals
sought will be granted to us or, if granted, will not be cancelled or will be
renewed upon expiration.

ESTIMATES OF OIL RESERVES THAT WE MAKE MAY BE INACCURATE WHICH COULD HAVE A
MATERIAL ADVERSE EFFECT ON US

There are numerous uncertainties inherent in estimating quantities of oil
resources, including many factors beyond our control, and no assurance can be
given that expected levels of resources or recovery of oil will be realized. In
general, estimates of recoverable oil resources are based upon a number of
factors and assumptions made as of the date on which resource estimates are
determined, such as geological and engineering estimates which have inherent
uncertainties and the assumed effects of regulation by governmental agencies and
estimates of future commodity prices and operating costs, all of which may vary
considerably from actual results. All such estimates are, to some degree,
uncertain and classifications of resources are only attempts to define the
degree of uncertainty involved. For these reasons, estimates of the recoverable
oil, the classification of such resources based on risk of recovery, prepared by
different engineers or by the same engineers at different times, may vary
substantially.

                                       9
<PAGE>
ABANDONMENT AND RECLAMATION COSTS ARE UNKNOWN AND MAY BE SUBSTANTIAL.

We will be responsible for compliance with terms and conditions of environmental
and regulatory approvals and all laws and regulations regarding the abandonment
of our properties and reclamation of lands at the end of their economic life,
which abandonment and reclamation costs may be substantial. A breach of such
legislation and/or regulations may result in the issuance of remedial orders,
the suspension of approvals, or the imposition of fines and penalties, including
an order for cessation of operations at the site until satisfactory remedies are
made. It is not possible to estimate with certainty the abandonment and
reclamation costs since they will be a function of regulatory requirements at
the time.

INCREASES IN OUR OPERATING EXPENSES WILL IMPACT OUR OPERATING RESULTS AND
FINANCIAL CONDITION.

Extraction, development, production, marketing (including distribution costs)
and regulatory compliance costs (including taxes) will substantially impact the
net revenues we derive from oil that we produce. These costs are subject to
fluctuations and variation in different locales in which we will operate, and we
may not be able to predict or control these costs. If these costs exceed our
expectations, this may adversely affect our results of operations. In addition,
we may not be able to earn net revenue at our predicted levels, which may impact
our ability to satisfy our obligations.

PENALTIES WE MAY INCUR COULD IMPAIR OUR BUSINESS.

Failure to comply with government regulations could subject us to civil and
criminal penalties, could require us to forfeit property rights, and may affect
the value of our assets. We may also be required to take corrective actions,
such as installing additional equipment or taking other actions, each of which
could require us to make substantial capital expenditures. We could also be
required to indemnify our employees in connection with any expenses or
liabilities that they may incur individually in connection with regulatory
action against them. As a result, our future business prospects could
deteriorate due to regulatory constraints, and our profitability could be
impaired by our obligation to provide such indemnification to our employees.

ENVIRONMENTAL RISKS MAY ADVERSELY AFFECT OUR BUSINESS.

Oil extraction operations present environmental risks and hazards and are
subject to environmental regulation pursuant to a variety of federal, state, and
local laws and regulations. Environmental legislation provides for, among other
things, restrictions and prohibitions on spills, releases or emissions of
various substances produced in association with resource operations. The
legislation also requires that facility sites be operated, maintained, abandoned
and reclaimed to the satisfaction of applicable regulatory authorities.
Compliance with such legislation can require significant expenditures and a
breach may result in the imposition of fines and penalties, some of which may be
material. Environmental legislation is evolving in a manner we expect may result
in stricter standards and enforcement, larger fines and liability and
potentially increased capital expenditures and operating costs.

The discharge of pollutants into the air, soil or water may give rise to
liabilities to governments and third parties and may require us to incur costs
to remedy such discharges. The application of environmental laws to our business
may cause us to curtail our production or increase the costs of our production,
development or exploration activities.

CHALLENGES TO TITLE TO OUR PROPERTIES MAY IMPACT OUR FINANCIAL CONDITION.

Title to oil interests is often not capable of conclusive determination without
incurring substantial expense. While we intend to make appropriate inquiries
into the title of properties and other development rights we acquire, title
defects may exist. In addition, we may be unable to obtain adequate insurance
for title defects, on a commercially reasonable basis or at all. If title
defects do exist, it is possible that we may lose all or a portion of our right,
title and interests in and to the properties to which the title defects relate.

                                       10
<PAGE>
THE LIMITED TRADING OF OUR COMMON STOCK ON THE OTC BULLETIN BOARD MAY IMPAIR
YOUR ABILITY TO SELL YOUR SHARES.

There have been thin volumes of trading of our common stock. The lack of trading
of our common stock and the low volume of any future trading may impair your
ability to sell your shares at the time you wish to sell them or at a price that
you consider reasonable. Such factors may also impair our ability to raise
capital by selling shares of capital stock and may impair our ability to acquire
other companies or technologies by using common stock as consideration.

THE MARKET PRICE OF OUR COMMON STOCK IS LIKELY TO BE HIGHLY VOLATILE AND SUBJECT
TO WIDE FLUCTUATIONS.

Assuming we are able to establish an active trading market for our common stock,
the market price of our common stock is likely to be highly volatile and could
be subject to wide fluctuations in response to a number of factors that are
beyond our control, including:

     *    dilution caused by our issuance of additional shares of common stock
          and other forms of equity securities, which we expect to make in
          connection with future capital financings to fund our operations and
          growth, to attract and retain valuable personnel and in connection
          with future strategic partnerships with other companies;

     *    announcements of acquisitions, reserve discoveries or other business
          initiatives by our competitors;

     *    fluctuations in revenue from our business as new reserves come to
          market;

     *    changes in the market for commodities or in the capital markets
          generally;

     *    quarterly variations in our revenues and operating expenses;

     *    changes in the valuation of similarly situated companies, both in our
          industry and in other industries;

     *    changes in analysts' estimates affecting us, our competitors or our
          industry;

     *    changes in the accounting methods used in or otherwise affecting our
          industry;

     *    additions and departures of key personnel;

     *    fluctuations in interest rates and the availability of capital in the
          capital markets; and

These and other factors are largely beyond our control, and the impact of these
risks, singly or in the aggregate, may result in material adverse changes to the
market price of our common stock and our results of operations and financial
condition.

OUR OPERATING RESULTS MAY FLUCTUATE SIGNIFICANTLY, AND THESE FLUCTUATIONS MAY
CAUSE OUR STOCK PRICE TO DECLINE.

Our operating results will likely vary in the future primarily as the result of
fluctuations in our revenues and operating expenses, expenses that we incur, the
price of oil and gas in the commodities markets and other factors. If our
results of operations do not meet the expectations of current or potential
investors, the price of our common stock may decline.

                                       11
<PAGE>
WE DO NOT EXPECT TO PAY DIVIDENDS IN THE FORESEEABLE FUTURE.

We do not intend to declare dividends for the foreseeable future, as we
anticipate that we will reinvest any future earnings in the development and
growth of our business. Therefore, investors will not receive any funds unless
they sell their common stock, and stockholders may be unable to sell their
shares on favorable terms or at all. Investors cannot be assured of a positive
return on investment or that they will not lose the entire amount of their
investment in the common stock.

APPLICABLE SEC RULES GOVERNING THE TRADING OF "PENNY STOCKS" WILL LIMIT
THETRADING AND LIQUIDITY OF OUR COMMON STOCK, WHICH MAY AFFECT THE TRADING PRICE
OF OUR COMMON STOCK.

Our common stock is presently considered to be a "penny stock" and is subject to
SEC rules and regulations which impose limitations upon the manner in which such
shares may be publicly traded and regulate broker-dealer practices in connection
with transactions in "penny stocks." Penny stocks generally are equity
securities with a price of less than $5.00 (other than securities registered on
certain national securities exchanges or quoted on the NASDAQ system, provided
that current price and volume information with respect to transactions in such
securities is provided by the exchange or system). The penny stock rules require
a broker-dealer, prior to a transaction in a penny stock not otherwise exempt
from the rules, to deliver a standardized risk disclosure document that provides
information about penny stocks and the risks in the penny stock market. The
broker-dealer must also provide the customer with current bid and offer
quotations for the penny stock, the compensation of the broker-dealer and its
salesperson in the transaction, and monthly account statements showing the
market value of each penny stock held in the customer's account. In addition,
the penny stock rules generally require that prior to a transaction in a penny
stock, the broker-dealer make a special written determination that the penny
stock is a suitable investment for the purchaser and receive the purchaser's
written agreement to the transaction. These disclosure requirements may have the
effect of reducing the level of trading activity in the secondary market for a
stock that becomes subject to the penny stock rules which may increase the
difficulty investors may experience in attempting to liquidate such securities.

FORWARD-LOOKING STATEMENTS

This Form 10-K contains forward-looking statements that involve risks and
uncertainties. We use words such as anticipate, believe, plan, expect, future,
intend and similar expressions to identify such forward-looking statements. You
should not place too much reliance on these forward-looking statements. Our
actual results are likely to differ materially from those anticipated in these
forward-looking statements for many reasons.

ITEM 2. PROPERTIES

We currently do not own any physical property or own any real property. Our
principal executive office is located at 213 E Arkansas Ave, Vivian, LA 71082,
USA.

ITEM 3. LEGAL PROCEEDINGS

We are not currently involved in any legal proceedings and we are not aware of
any pending or potential legal actions.

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

There were no matters submitted to a vote of the security holders during the
year ended December 31, 2010.

                                       12
<PAGE>
                                     PART II

ITEM 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

NO PUBLIC MARKET FOR COMMON STOCK

Our common stock is listed for trading under the symbol "AVOE".

As of the date of this report we have approximately 90 shareholders of record.
We have paid no cash dividends and have no outstanding options. We have no
securities authorized for issuance under equity compensation plans.

The SEC has adopted rules that regulate broker-dealer practices in connection
with transactions in penny stocks. Penny stocks are generally equity securities
with a price of less than $5.00, other than securities registered on certain
national securities exchanges or quoted on the NASDAQ system, provided that
current price and volume information with respect to transactions in such
securities is provided by the exchange or quotation system. The penny stock
rules require a broker-dealer, prior to a transaction in a penny stock, to
deliver a standardized risk disclosure document prepared by the SEC, that: (a)
contains a description of the nature and level of risk in the market for penny
stocks in both public offerings and secondary trading; (b) contains a
description of the broker's or dealer's duties to the customer and of the rights
and remedies available to the customer with respect to a violation to such
duties or other requirements of Securities' laws; (c) contains a brief, clear,
narrative description of a dealer market, including bid and ask prices for penny
stocks and the significance of the spread between the bid and ask price; (d)
contains a toll-free telephone number for inquiries on disciplinary actions; (e)
defines significant terms in the disclosure document or in the conduct of
trading in penny stocks; and (f) contains such other information and is in such
form, including language, type, size and format, as the SEC shall require by
rule or regulation. The broker-dealer also must provide, prior to effecting any
transaction in a penny stock, the customer with: (a) bid and offer quotations
for the penny stock; (b) the compensation of the broker-dealer and its
salesperson in the transaction; (c) the number of shares to which such bid and
ask prices apply, or other comparable information relating to the depth and
liquidity of the market for such stock; and (d) monthly account statements
showing the market value of each penny stock held in the customer's account. In
addition, the penny stock rules require that prior to a transaction in a penny
stock not otherwise exempt from those rules; the broker-dealer must make a
special written determination that the penny stock is a suitable investment for
the purchaser and receive the purchaser's written acknowledgment of the receipt
of a risk disclosure statement, a written agreement to transactions involving
penny stocks, and a signed and dated copy of a suitably written statement.

These disclosure requirements may have the effect of reducing the trading
activity in the secondary market for our stock if it becomes subject to these
penny stock rules. Therefore, if our common stock becomes subject to the penny
stock rules, stockholders may have difficulty selling those securities.

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

FORWARD LOOKING STATEMENTS

This section of this report includes a number of forward-looking statements that
reflect our current views with respect to future events and financial
performance. Forward-looking statements are often identified by words like:
believe, expect, estimate, anticipate, intend, project and similar expressions,
or words which, by their nature, refer to future events. You should not place
undue certainty on these forward-looking statements, which apply only as of the
date of our report. These forward-looking statements are subject to certain

                                       13
<PAGE>
risks and uncertainties that could cause actual results to differ materially
from historical results or our predictions. We are an exploration stage company
and have yet to generated enough revenues to achieve profitability.

RESULTS OF OPERATIONS

We are still in the exploration stage and have generated limited revenues to
date.

We incurred expenses of $533,292 for the year ending December 31, 2010. These
expenses consisted of general operating expenses, professional fees incurred in
connection with the day to day operation of our business and the preparation and
filing of our periodic reports and recognition of impairment loss on our
property for the year ended December 31, 2010. Our net loss for the year ending
December 31, 2010 was $597,214.

Our auditors have issued a going concern opinion. This means that there is
substantial doubt that we can continue as an on-going business for the next
twelve months unless we obtain additional capital to pay our bills. This is
because we have only begun generating revenues and there is no assurance we will
ever reach profitability. We are still in our exploration stage and have
generated minimal revenues to date.

The following table provides selected financial data about our company for the
years ended December 31, 2009 and 2010.

         Balance Sheet Data:             12/31/10            12/31/09
         -------------------            ---------           ---------
         Cash                           $   1,994           $  14,046
         Total assets                   $   5,783           $  38,990
         Total liabilities              $ 304,406           $ 662,904
         Shareholders' deficit          $(298,623)          $(623,914)

LIQUIDITY AND CAPITAL RESOURCES

Our cash balance at December 31, 2010 was $1,994 with outstanding liabilities of
$304,406. Management believes our current cash balance will be unable to sustain
operations for the next 12 months. We will be forced to raise additional funds
by issuing new debt or equity securities or otherwise. If we fail to raise
sufficient capital when needed, we will not be able to complete our business
plan. We are an exploration stage company and have generated minimal revenue to
date.

PLAN OF OPERATION

Our cash balance is $1,994 AND $14,046 as of December 31, 2010 and 2009,
respectively. We believe our cash balance is insufficient to fund our levels of
operations for the next twelve months. As a result we will be forced to raise
additional funds by issuing new debt or equity securities or otherwise. If we
fail to raise sufficient capital when needed, we will not be able to complete
our business plan. We are an exploration stage company and have generated
limited revenue of $214,092 since inceptions.

Our auditor has issued a going concern opinion. This means that there is
substantial doubt that we can continue as an on-going business for the next
twelve months unless we obtain additional capital to pay our bills. This is
because we have generated minimal revenues to date. There is no assurance we
will ever profitability.

OFF-BALANCE SHEET ARRANGEMENTS

We do not have any off-balance sheet arrangements that have or are reasonably
likely to have a current or future effect on our financial condition, changes in
financial condition, revenues or expenses, results of operations, liquidity,
capital expenditures or capital resources that is material to investors.

                                       14
<PAGE>
ITEM 8. FINANCIAL STATEMENTS

             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors
Avro Energy Inc.
(A Exploration Stage Company)

We have  audited  the  accompanying  balance  sheets  of  Avro  Energy  Inc.  (A
Exploration  Stage  Company)  as of  December  31, 2010 and 2009 and the related
statements of operations,  shareholders' equity (deficit) and cash flows for the
twelve month periods ended December 31, 2010 and 2009. The financial  statements
for the period January 31, 2007 (inception) to December 31, 2007 were audited by
other auditors who expressed an unqualified  opinion on those statements.  These
financial  statements are the  responsibility of the Company's  management.  Our
responsibility  is to express an opinion on these financial  statements based on
our audit.

We conducted  our audits in  accordance  with  standards  of the Public  Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements  are free of material  misstatement.  The Company is not  required to
have,  nor were we engaged to perform,  an audit of its  internal  control  over
financial reporting.  Our audits included consideration of internal control over
financial  reporting  as  a  basis  for  designing  audit  procedures  that  are
appropriate  in the  circumstances,  but not for the  purpose of  expressing  an
opinion on the  effectiveness  of the Company's  internal control over financial
reporting. Accordingly, we express no such opinion. An audit includes examining,
on a  test  basis,  evidence  supporting  the  amounts  and  disclosures  in the
financial statements. An audit also includes assessing the accounting principles
used and  significant  estimates made by  management,  as well as evaluating the
overall financial statement  presentation.  We believe that our audits provide a
reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material respects, the financial position of Avro Energy Inc. as of December
31,  2010 and 2009,  and the  results of its  operations  and cash flows for the
periods described above in conformity with U.S. generally accepted principles.

The  accompanying  financial  statements  have been  prepared  assuming that the
Company  will  continue  as a  going  concern.  As  discussed  in  Note 1 to the
financial  statement,  the Company suffered a net loss from operations and has a
net capital  deficiency,  which  raises  substantial  doubt about its ability to
continue as a going concern. Management's plans regarding those matters are also
described in Note 1. The  financial  statements  do not include any  adjustments
that might result from the outcome of this uncertainty.


/s/ M&K CPAS, PLLC
-----------------------------
M&K CPAS, PLLC
www.mkacpas.com
Houston, Texas
April 15, 2011

                                       15
<PAGE>
                                Avro Energy Inc.
                         (An Exploration Stage Company)
                                 Balance Sheets
                             (Stated in US Dollars)

<TABLE>
<CAPTION>
                                                                          As of                As of
                                                                        December 31          December 31
                                                                           2010                 2009
                                                                        ----------           ----------
<S>                                                                     <C>                  <C>
Assets

Current assets
  Cash                                                                  $    1,994           $   14,046
  Accounts Recievable                                                        3,789               24,944
                                                                        ----------           ----------
      Total current assets                                                   5,783               38,990
                                                                        ----------           ----------

      Total Assets                                                      $    5,783           $   38,990
                                                                        ==========           ==========

Liabilities

Current liabilities
  Accounts payable                                                      $   64,434           $   54,534
  Related Party Loan                                                         4,157                4,157
  Loan Payable                                                                 815              269,213
  Property Payable                                                              --              335,000
                                                                        ----------           ----------
      Total current liabilities                                             69,406              662,904

Long Term Liabilities
  ARO Obligation                                                           235,000                   --
                                                                        ----------           ----------
      Total long Term Liabilities                                          235,000                   --
                                                                        ----------           ----------
      Total Liabilities                                                    304,406              662,904
                                                                        ----------           ----------

Stockholders' Deficit
  Common Stock, $0.001 par value100,000,00 Common Shares
   Authorized; 40,577,160 and 25,450,560 issued and oustanding
   as of December 31, 2010 and 2009, respectively                           40,578               25,451
  Additional paid-in capital                                             1,085,047              177,669
  Accumulated comprehensive income                                           2,803                2,803
  Deficit accumuated during exploration period                          (1,427,051)            (829,837)
                                                                        ----------           ----------
      Total stockholders' deficit                                         (298,623)            (623,914)
                                                                        ----------           ----------

      Total liabilites and stockholders' deficit                        $    5,783           $   38,990
                                                                        ==========           ==========
</TABLE>


   The accompanying notes are an integral part of these financial statements.

                                       16
<PAGE>
                                Avro Energy Inc.
                         (An Exploration Stage Company)
                            Statements of Operations
                             (Stated in US Dollars)

<TABLE>
<CAPTION>
                                                  For the year           For the year          From inception
                                                     ending                 ending         (January 31, 2007) to
                                                  December 31,           December 31,           December 31,
                                                      2010                   2009                   2010
                                                  ------------           ------------           ------------
                                                                                                 (unaudited)
<S>                                               <C>                    <C>                    <C>
Revenue                                           $    177,409           $     36,683           $    214,092
                                                  ------------           ------------           ------------
Expenses
  Recognition of an Impairment Loss
    (Property Expenses)                                     --                596,388                616,388
  Operations Expense                                   288,709                     --                288,709
  Accretion Expense                                    235,000                     --                235,000
  Accounting & Professional Fees                        23,883                 34,351                239,846
  Office and Administration                              5,700                    776                 35,638
                                                  ------------           ------------           ------------
Total Expenses                                         553,292                631,515              1,415,581
                                                  ------------           ------------           ------------
Net (loss) from operations                            (375,883)              (594,832)            (1,201,489)

Other Income and Expenses
  Gain on sale of lease properties                      60,000                     --                 60,000
  Loss on converstion of debt                         (260,032)                    --               (260,032)
  Interest Expense                                     (21,299)                (4,231)               (25,530)
                                                  ------------           ------------           ------------
Total Other Income and Expenses                       (221,331)                (4,231)              (225,562)
                                                  ------------           ------------           ------------

Net Income (Loss)                                 $   (597,214)          $   (599,063)          $ (1,427,051)
                                                  ============           ============           ============
Other Comprehensive Loss
  Loss (gain) on foreign exchange                           --                     --                  2,803
                                                  ------------           ------------           ------------
Total Loss and comprehensive Loss                      597,214                599,063              1,429,854
Provision for income tax                                    --                     --                     --

Basic & Diluted (Loss) per Common Share                 (0.020)                (0.024)
                                                  ------------           ------------
Weighted Average Number of Common Shares            30,503,439             25,450,560
                                                  ------------           ------------
</TABLE>


   The accompanying notes are an integral part of these financial statements.

                                       17
<PAGE>
                                Avro Energy Inc.
                         (An Exploration Stage Company)
                        STATEMENT OF STOCKHOLDER'S EQUITY
                   (DEFICIT) From Inception (January 31, 2007)
                              to December 31, 2010
                             (Stated in US Dollars)

<TABLE>
<CAPTION>
                                                                                                  Deficit
                                                                                                Accumulated
                                               Common Stock                         Other          During
                                           --------------------       Paid in   Comprehensive   Exploration      Equity
                                           Shares        Amount       Capital       Income         Stage          Total
                                           ------        ------       -------       ------         -----          -----
<S>                                        <C>           <C>          <C>           <C>            <C>            <C>
Stock Issued for Cash
  January 31, 2007                        25,000,000    $ 25,000    $   61,250     $     --     $        --     $  86,250
Stock issued for Cash
 September 1, 2007                           264,000         264        65,736                                     66,000
Stock issued for Cash
 October 1, 2007                             186,560         187        46,453                                     46,640
Foreign Currency
 translation adjustment                                                               3,482                         3,482
Net (Loss) for period                                                                              (194,066)     (194,066)
                                         -----------    --------    ----------     --------     -----------     ---------
Balance, December 31, 2007                25,450,560      25,451       173,439        3,482        (194,066)        8,306
                                         -----------    --------    ----------     --------     -----------     ---------
Foreign Currency translation adjustment                                                (679)                         (679)
Net (Loss) for period                                                                               (36,708)      (36,708)
                                         -----------    --------    ----------     --------     -----------     ---------
Balance, December 31, 2008                25,450,560      25,451       173,439        2,803        (230,774)      (29,081)
                                         -----------    --------    ----------     --------     -----------     ---------
Imputed Interest                                                         4,230                                      4,230
Net (Loss) for period                                                                              (599,063)     (599,063)
                                         -----------    --------    ----------     --------     -----------     ---------
Balance, December 31, 2009                25,450,560      25,451       177,669        2,803        (829,837)     (623,914)
                                         -----------    --------    ----------     --------     -----------     ---------
Imputed Interest                                                        21,299                                     21,299
Stock issued for Cash
 May 31, 2010                              1,000,000       1,000       249,000                                    250,000
Stock issued for Cash
 July 8, 2010                              1,125,000       1,125                                                    1,125
Stock issued for to
 settle debt September 13, 2010           13,001,600      13,002       637,079                                    650,081
Net (Loss) for period                                                                              (597,214)     (597,214)
                                         -----------    --------    ----------     --------     -----------     ---------

Balance, December 31, 2010                40,577,160    $ 40,578    $1,085,047     $  2,803     $(1,427,051)    $(298,623)
                                         ===========    ========    ==========     ========     ===========     =========
</TABLE>


   The accompanying notes are an integral part of these financial statements.

                                       18
<PAGE>
                                Avro Energy Inc.
                         (An Exploration Stage Company)
                            Statements of Cash Flows
                             (Stated in US Dollars)

<TABLE>
<CAPTION>
                                                              For the year          For the year            From inception
                                                                 ending                 ending          (January 31, 2007) to
                                                              December 31,           December 31,            December 31,
                                                                  2010                   2009                   2010
                                                              ------------           ------------           ------------
                                                                                                             (unaudited)
<S>                                                           <C>                    <C>                    <C>
Operating Activities
  Net income (loss)                                           $   (597,214)          $   (599,063)          $ (1,427,051)
  Recognition of an Impairment Loss
    (Mineral Claims)                                                    --                558,960                605,840
  Accretion Expense                                                235,000                     --                235,000
  Loss on converstion of debt                                      260,032                     --                260,032
  Foreign Currency income (loss)                                        --                     --                  2,803
  Imputed Interest                                                  21,299                  4,230                 25,529
  Changes to operating assets and liabilities:
    Accounts Receivable                                             21,156                (24,944)                (3,788)
    Accounts payable and accrued liability                        (325,099)               363,554                 37,824
                                                              ------------           ------------           ------------
           NET CASH USED IN OPERATING ACTIVITIES                  (384,826)               302,737               (263,811)
                                                              ------------           ------------           ------------

Investing Activities
  Purchase of mineral claim                                             --               (555,000)              (575,000)
                                                              ------------           ------------           ------------
           NET CASH USED IN INVESTING ACTIVITIES              $         --           $   (555,000)          $   (575,000)
                                                              ------------           ------------           ------------
Financing Activities
  Proceed from sale of stock                                       251,125                 (4,230)               420,334
  Related Party Loan                                                    --                     --                  4,157
  Loan Payable                                                     121,650                269,213                390,863
  Founders shares                                                   25,451
                                                              ------------           ------------           ------------
           NET CASH PROVIDED BY FINANCING ACTIVITIES          $    372,775           $    264,983           $    840,805
                                                              ------------           ------------           ------------

INCREASE (DECREASE) IN CASH                                        (12,051)                12,720                  1,994

Effect of exchange rate on cash                                         --                    630                     --

Cash at beginning of period                                         14,045                  1,326                     --
                                                               -                     ------------           ------------

CASH AT END OF PERIOD                                         $      1,994           $     14,046           $      1,994
                                                              ============           ============           ============
Cash Paid For:
  Interest                                                    $         --           $         --           $         --
                                                              ============           ============           ============
  Income Tax                                                  $         --           $         --           $         --
                                                              ============           ============           ============
</TABLE>


   The accompanying notes are an integral part of these financial statements.

                                       19
<PAGE>
                                AVRO ENERGY INC.
                         (An Exploration Stage Company)
                      Footnotes to the Financial Statements
                       From Inception to December 31, 2010
                             (Stated in US Dollars)


NOTE 1. NATURE OF OPERATIONS

DESCRIPTION OF BUSINESS AND HISTORY - Avro Energy, Inc. (hereinafter referred to
as the "Company")  was  incorporated  on January 31, 2007 by filing  Articles of
Incorporation  under the Nevada  Secretary  of State.  The Company was formed to
engage in the exploration of resource properties.

The Company is currently engaged in the acquisition, exploration and development
of oil and natural gas  properties in the United  States  ArkLaTex  region.  The
company seeks to develop low risk  opportunities by itself or with joint venture
partners in the oil and natural gas sectors.

GOING  CONCERN  - The  accompanying  financial  statements  have  been  prepared
assuming that the Company will continue as a going concern,  which  contemplates
the  realization  of assets and the  liquidation  of  liabilities  in the normal
course of business. However, the Company has accumulated a loss and is new. This
raises  substantial  doubt  about the  Company's  ability to continue as a going
concern.  The  financial  statements do not include any  adjustments  that might
result from this uncertainty.

As shown in the accompanying  financial  statements,  the Company has incurred a
accumulated  loss of $1,427,051 for the period from January 31, 2007 (inception)
to December  31,  2010 and has  generated  revenues  of  $214,092  over the same
period.  The  future of the  Company  is  dependent  upon its  ability to obtain
financing  and  upon  future  profitable  operations  from  the  development  of
acquisitions.  Management has plans to seek additional capital through a private
placement and public offering of its common stock.  The financial  statements do
not include any adjustments relating to the recoverability and classification of
recorded assets, or the amounts of and  classification of liabilities that might
be necessary in the event the Company cannot continue in existence.

EXPLORATION STAGE - The Company complies with Accounting  Codification  Standard
915-10 for its characterization of the Company as exploration stage.

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

RESOURCE   PROPERTIES  -  Company  follows  the  successful  efforts  method  of
accounting for its oil and gas  properties.  Unproved oil and gas properties are
periodically  assessed  and any  impairment  in value is charged to  exploration
expense. The costs of unproved properties, which are determined to be productive
are  transferred  to proved  resource  properties and amortized on an equivalent
unit-of-production   basis.  Exploratory  expenses,   including  geological  and
geophysical expenses and delay rentals for unevaluated resource properties,  are
charged  to expense  as  incurred.  Exploratory  drilling  costs are  charged as
expenses  until  it is  determined  that  the  company  has  proven  oil and gas
reserves.

BASIS  OF  PRESENTATION  -These  financial  statements  and  related  notes  are
presented in accordance with  accounting  principles  generally  accepted in the
United States, and are expressed in U.S. dollars.  The Company's fiscal year-end
is December 31.

                                       20
<PAGE>
USE OF ESTIMATES - The  preparation of financial  statements in accordance  with
U.S.  generally  accepted  accounting  principles  requires  management  to make
estimates  and  assumptions  that  affect  the  reported  amounts  of assets and
liabilities at the date of the financial  statements and the reported amounts of
net revenue and expenses in the  reporting  period.  We  regularly  evaluate our
estimates  and  assumptions  related to the useful  life and  recoverability  of
long-lived  assets,  stock-based  compensation  and  deferred  income  tax asset
valuation  allowances.  We base our estimates and  assumptions on current facts,
historical experience and various other factors that we believe to be reasonable
under  the  circumstances,  the  results  of which  form the  basis  for  making
judgments about the carrying values of assets and liabilities and the accrual of
costs and expenses that are not readily apparent from other sources.  The actual
results  experienced  by  us  may  differ  materially  and  adversely  from  our
estimates.  To the extent there are material  differences  between our estimates
and the actual results, our future results of operations will be affected.

CASH AND CASH EQUIVALENTS - The Company considers all highly liquid  instruments
with  original  maturities  of three  months or less when  acquired,  to be cash
equivalents.  We  had  no  cash  equivalents  at  December  31,  2010  or  2009,
respectively.

INCOME TAXES - Potential benefits of income tax losses are not recognized in the
accounts until  realization is more likely than not. The Company has adopted ASC
740,  INCOME  TAXES,  as of its  inception.  Pursuant to ASC 740, the Company is
required to compute tax asset benefits for net operating losses carried forward.
The potential benefits of net operating losses have not been recognized in these
financial  statements  because the  Company  cannot be assured it is more likely
than not it will  utilize the net  operating  losses  carried  forward in future
years.

COMPREHENSIVE LOSS - ASC 220,  COMPREHENSIVE  INCOME,  establishes standards for
the  reporting  and  display of  comprehensive  loss and its  components  in the
financial  statements.  As at December 31,  2010,  the Company has no items that
represent  comprehensive  loss and,  therefore,  has not  included a schedule of
comprehensive loss in the financial statements.

LOSS PER COMMON SHARE - The Company  computes  net loss per share in  accordance
with ASC 260, EARNINGS PER SHARE, which requires  presentation of both basic and
diluted earnings per share (EPS) on the face of the income statement.  Basic EPS
is computed by dividing net loss available to common shareholders (numerator) by
the  weighted  average  number of shares  outstanding  (denominator)  during the
period.  Diluted  EPS  gives  effect to all  dilutive  potential  common  shares
outstanding  during the period using the treasury  stock method and  convertible
preferred stock using the  if-converted  method.  In computing  Diluted EPS, the
average stock price for the period is used in  determining  the number of shares
assumed to be purchased from the exercise of stock options or warrants.  Diluted
EPS excludes all dilutive potential shares if their effect is anti dilutive.

FAIR VALUE OF FINANCIAL INSTRUMENTS - ASC 820, "FAIR VALUE MEASUREMENTS" and ASC
825, FINANCIAL INSTRUMENTS, requires an entity to maximize the use of observable
inputs and minimize the use of unobservable inputs when measuring fair value. It
establishes a fair value hierarchy based on the level of independent,  objective
evidence  surrounding  the  inputs  used to  measure  fair  value.  A  financial
instrument's  categorization  within the fair value  hierarchy is based upon the
lowest  level of input that is  significant  to the fair value  measurement.  It
prioritizes the inputs into three levels that may be used to measure fair value:

LEVEL 1

Level 1 applies to assets or  liabilities  for which there are quoted  prices in
active markets for identical assets or liabilities.

LEVEL 2

Level 2 applies to assets or  liabilities  for which there are inputs other than
quoted  prices that are  observable  for the asset or  liability  such as quoted
prices for similar assets or liabilities  in active  markets;  quoted prices for

                                       21
<PAGE>
identical  assets  or  liabilities  in  markets  with  insufficient   volume  or
infrequent  transactions (less active markets);  or model-derived  valuations in
which significant  inputs are observable or can be derived  principally from, or
corroborated by, observable market data.

LEVEL 3

Level 3 applies to assets or liabilities for which there are unobservable inputs
to the valuation methodology that are significant to the measurement of the fair
value of the assets or liabilities.

The  Company's  financial  instruments  consist  principally  of cash,  accounts
payable,  and  amounts  due to  related  parties.  The fair value of our cash is
determined  based on "Level 1" inputs,  which consist of quoted prices in active
markets for identical  assets. We believe that the recorded values of all of our
other  financial  instruments  approximate  their current fair values because of
their nature and respective maturity dates or durations.

RECENTLY ADOPTED ACCOUNTING  PRONOUNCEMENTS - In April 2010, the FASB issued ASU
No.  2010-18  regarding  improving  comparability  by  eliminating  diversity in
practice  about the  treatment of  modifications  of loans  accounted for within
pools under Subtopic  310-30 - Receivable - Loans and Debt  Securities  Acquired
with  Deteriorated  Credit  Quality  ("Subtopic   310-30").   Furthermore,   the
amendments  clarify  guidance about  maintaining  the integrity of a pool as the
unit of accounting for acquired loans with credit deterioration. Loans accounted
for  individually  under Subtopic  310-30 continue to be subject to the troubled
debt    restructuring    accounting    provisions    within   Subtopic   310-40,
Receivables--Troubled  Debt Restructurings by Creditors.  The amendments in this
Update are effective for modifications of loans accounted for within pools under
Subtopic  310-30  occurring in the first  interim or annual  period ending on or
after July 15,  2010.  The  amendments  are to be applied  prospectively.  Early
adoption  is  permitted.  We are  currently  evaluating  the impact of this ASU;
however,  we do not expect the adoption of this ASU to have a material impact on
our financial statements.

In March 2010, the FASB (Financial Accounting Standards Board) issued Accounting
Standards  Update 2010-11 (ASU 2010-11),  "Derivatives  and Hedging (Topic 815):
Scope Exception Related to Embedded Credit  Derivatives." The amendments in this
Update are  effective  for each  reporting  entity at the beginning of its first
fiscal quarter beginning after June 15, 2010. Early adoption is permitted at the
beginning of each entity's first fiscal quarter beginning after issuance of this
Update.  The  Company  does not expect the  provisions  of ASU 2010-11 to have a
material effect on the financial  position,  results of operations or cash flows
of the Company.

In February 2010, the FASB  Accounting  Standards  Update 2010-10 (ASU 2010-10),
"Consolidation  (Topic  810):  Amendments  for  Certain  Investment  Funds." The
amendments  in this  Update are  effective  as of the  beginning  of a reporting
entity's first annual period that begins after November 15, 2009 and for interim
periods within that first reporting period.  Early application is not permitted.
The  Company's  adoption  of  provisions  of ASU 2010-10 did not have a material
effect on the financial position, results of operations or cash flows.

In February 2010, the FASB issued ASU No. 2010-09  "Subsequent Events (ASC Topic
855) "Amendments to Certain  Recognition and Disclosure  Requirements" ("ASU No.
2010-09").  ASU No. 2010-09  requires an entity that is an SEC filer to evaluate
subsequent events through the date that the financial  statements are issued and
removes the  requirement for an SEC filer to disclose a date, in both issued and
revised financial  statements,  through which the filer had evaluated subsequent
events. The adoption did not have an impact on the Company's  financial position
and results of operations.

In January 2010,  the  Financial  Accounting  Standards  Board  ("FASB")  issued
Accounting  Standards Update ("ASU") No. 2010-06,  "Improving  Disclosures about
Fair Value  Measurements."  ASU No.  2010-06  amends FASB  Accounting  Standards
Codification  ("ASC")  820 and  clarifies  and  provides  additional  disclosure
requirements  related to recurring and non-recurring fair value measurements and
employers'  disclosures about  postretirement  benefit plan assets.  This ASU is
effective for interim and annual reporting  periods beginning after December 15,

                                       22
<PAGE>
2009.  The  adoption  of ASU  2010-06  did not  have a  material  impact  on the
Company's financial statements.

In January 2010, the FASB issued an amendment to ASC 505, Equity, where entities
that declare dividends to shareholders that may be paid in cash or shares at the
election of the  shareholders  are  considered  to be a share  issuance  that is
reflected  prospectively  in EPS, and is not accounted for as a stock  dividend.
This  standard is effective  for interim and annual  periods  ending on or after
December 15, 2009 and is to be applied on a retrospective basis. The adoption of
this  standard is not  expected to have a  significant  impact on the  Company's
financial statements.

In  January  2010,  the  FASB  issued  ASU  No.  2010-06  regarding  fair  value
measurements  and disclosures and improvement in the disclosure about fair value
measurements.  This ASU requires additional  disclosures  regarding  significant
transfers in and out of Levels 1 and 2 of fair value  measurements,  including a
description  of the  reasons  for the  transfers.  Further,  this  ASU  requires
additional  disclosures  for the  activity  in Level 3 fair value  measurements,
requiring  presentation of information about purchases,  sales,  issuances,  and
settlements  in the  reconciliation  for fair  value  measurements.  This ASU is
effective for fiscal years  beginning  after  December 15, 2010, and for interim
periods  within those fiscal years.  We are currently  evaluating  the impact of
this ASU; however,  we do not expect the adoption of this ASU to have a material
impact on our financial statements.

In October 2009, FASB issued an amendment to the accounting standards related to
the accounting for revenue in arrangements with multiple deliverables  including
how the arrangement  consideration  is allocated among delivered and undelivered
items of the arrangement. Among the amendments, this standard eliminated the use
of the residual method for allocating arrangement considerations and requires an
entity to allocate the overall  consideration  to each  deliverable  based on an
estimated selling price of each individual deliverable in the arrangement in the
absence  of having  vendor-specific  objective  evidence  or other  third  party
evidence of fair value of the  undelivered  items.  This  standard also provides
further  guidance  on how to  determine  a  separate  unit  of  accounting  in a
multiple-deliverable revenue arrangement and expands the disclosure requirements
about the judgments made in applying the estimated  selling price method and how
those  judgments  affect  the  timing  or amount of  revenue  recognition.  This
standard,  for which the Company is currently  assessing the impact, will become
effective on January 1, 2011.

In October  2009,  the FASB  issued an  amendment  to the  accounting  standards
related to certain revenue  arrangements  that include software  elements.  This
standard clarifies the existing  accounting guidance such that tangible products
that contain both software and non-software components that function together to
deliver the product's essential functionality,  shall be excluded from the scope
of the software revenue recognition accounting standards.  Accordingly, sales of
these products may fall within the scope of other revenue recognition  standards
or may now be within the scope of this standard and may require an allocation of
the  arrangement  consideration  for  each  element  of  the  arrangement.  This
standard,  for which the Company is currently  assessing the impact, will become
effective on January 1, 2011.

On September  30, 2009,  the Company  adopted  changes  issued by the  Financial
Accounting Standards Board (FASB) to the authoritative  hierarchy of GAAP. These
changes establish the FASB Accounting Standards  Codification  (Codification) as
the source of authoritative  accounting  principles recognized by the FASB to be
applied by nongovernmental  entities in the preparation of financial  statements
in conformity with GAAP. Rules and  interpretive  releases of the Securities and
Exchange  Commission  (SEC) under authority of federal  securities laws are also
sources of authoritative GAAP for SEC registrants. The FASB will no longer issue
new  standards  in the form of  Statements,  FASB Staff  Positions,  or Emerging
Issues Task Force Abstracts;  instead the FASB will issue  Accounting  Standards
Updates.  Accounting  Standards  Updates will not be  authoritative in their own
right as they will only serve to update the Codification.  These changes and the
Codification  itself do not  change  GAAP.  Other  than the  manner in which new
accounting  guidance is referenced,  the adoption of these changes had no impact
on the Company's financial statements.

                                       23
<PAGE>
In August 2009, FASB issued an amendment to the accounting  standards related to
the measurement of liabilities that are recognized or disclosed at fair value on
a recurring basis. This standard clarifies how a company should measure the fair
value  of  liabilities  and  that  restrictions  preventing  the  transfer  of a
liability should not be considered as a factor in the measurement of liabilities
within the scope of this standard. This standard is effective for the Company on
October 1, 2009. The adoption of this  amendment did not have a material  effect
on the Company's financial statements.

In June 2009,  the FASB  issued  guidance  now  codified  as FASB ASC Topic 105,
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES,  as the single source of authoritative
accounting  principles  recognized by the FASB to be applied by  nongovernmental
entities in the  preparation  of financial  statements in  conformity  with U.S.
GAAP,  aside from those issued by the SEC. ASC 105 does not change  current U.S.
GAAP, but is intended to simplify user access to all authoritative  U.S. GAAP by
providing  all  authoritative  literature  related to a particular  topic in one
place.  The adoption of ASC 105 did not have a material  impact on the Company's
consolidated   financial  statements,   but  did  eliminate  all  references  to
pre-codification standards.

In May 2009, FASB issued ASC 855,  SUBSEQUENT EVENTS,  which establishes general
standards  of for the  evaluation,  recognition  and  disclosure  of events  and
transactions  that occur after the balance  sheet  date.  Although  there is new
terminology,  the  standard  is  based  on the same  principles  as  those  that
currently exist in the auditing  standards.  The standard,  which includes a new
required disclosure of the date through which an entity has evaluated subsequent
events,  is effective for interim or annual  periods ending after June 15, 2009.
The  adoption  of ASC  855-10 did not have a  material  effect on the  Company's
financial statements.

The  Company  has  implemented  all new  accounting  pronouncements  that are in
effect.  These  pronouncements did not have any material impact on the financial
statements  unless  otherwise  disclosed,  and the Company does not believe that
there are any other new  accounting  pronouncements  that have been  issued that
might have a material impact on its financial position or results of operation

NOTE 3. OIL AND GAS PROPERTIES

The oil and gas  Properties  that the company has have had all costs  related to
the  properties  expensed  in  accordance  with  Generally  Accepted  Accounting
Principles for the industry. Currently the Company does not have proven reserves
confirmed with a geological study and will only be able to capitalize properties
once reserves have been proven. The company performed an impairment  analysis at
the end of 2009 and determines that the properties were not economically viable,
at that point the company impaired the properties.

HOSS HOLMES LEASE

On August 26,  2009,  Avro entered into an agreement to acquire for $100,000 the
Hoss Holmes Lease located near Hosston,  Louisiana, from Fredco LLC, a Louisiana
private oil and gas operator. The company closed the acquisition of the property
on September 30, 2009.

On  February  23, 2010 the  company  divested a non core  assets  being the Hoss
Holmes, near Hosston Louisiana for $60,000.  The sale of the resulted in an gain
on sale of $60,000 recorded as other income.

HERRINGS LEASE

On August 10,  2009,  Avro  Energy,  Inc.  entered  into an agreement to acquire
various oil leases near Hosston,  Louisiana,  from S.A.M.,  a Louisiana  private
partnership, and private oil and gas operator. Under the terms of the agreement,
the  Company  has agreed to pay a total of ten  dollars  ($10) plus a  one-fifth
royalty  interest in exchange for the  exclusive  grant,  lease,  and let of the
following oil and gas leases:

One,  Two,  Three  and Four  (1-4)  inclusive,  Block  One (1) Town of  Hosston,
together  with all  abandoned  alleyways  and  streets  insofar as it covers and
affects the surface of the earth and the base of the Nacatosh Formation together
with wells being Herring No. 1, Serial No 184124,  and Herring No. 2, Serial No.
184735.

                                       24
<PAGE>
MUSLOW LEASE

On September 9, 2009,  Avro Energy,  Inc.  entered into an agreement and acquire
four oil and gas leases in Caddo Parish,  Louisiana,  from a private oil and gas
operator for $70,000.  The first three leases are the Muslow A, B, and C Leases,
which in total  comprise  of 8 wells  and  equipment,  of which 2 are  currently
producing.  The fourth  lease is the Caddo Levee Board Lease,  comprising  of 13
wells and equipment, of which 4 are currently producing.

ARKANSAS LEASE

On October 24,  2009 Avro  Energy,  Inc.  signed a letter  agreement  to acquire
eleven  producible deep oil wells north of Hosston,  Louisiana,  and in Southern
Arkansas.  Seven of these  wells are in  production.  The deepest of these wells
produce from the Smackover  formation at 7800 feet. Four other wells are capable
of production  after work over operation has been completed.  Also included with
the agreement are three disposal wells.

The terms of this  agreement  allowed the Company to pay $385,000,  over a seven
month period,  with the first payment of $50,000 paid on November 24, 2009.  The
terms of the agreement allow Avro to receive  production  starting from November
1, 2009.  On June 30, 2010 the last  payment to complete  the  purchase for this
property was made.

NOTE 4. LOANS PAYABLE

The loans are payable to a shareholder who owns 264,000 (approximately 1.037% of
issued and  outstanding)  shares.  The loans are unsecured,  are payable in five
years from August 13 and  September  3, 2009 and bear  interest at 3% per annum.
Imputed  interest  in the amount of $21,299 is included  in  additional  paid in
capital due to below market interest rate.

On  September  13,  2010,  the company  entered  agreements  to convert  various
outstanding loans into restricted shares of the Company.  The total amount owing
to its  creditors  was  $390,048,  and each agreed to the issuance of restricted
shares of the Company to settle this outstanding debt. As a result,  the Company
agreed to issue a total of 13,001,600 shares in settlement of this debt, or at a
price of $0.03 per share.  The total fair value of the shares was $650,080 based
on the closing price resulting in a loss of settlement of debt of $260,032.

NOTE 5. INCOME TAXES

Deferred income taxes may arise from temporary differences resulting from income
and  expense  items  reported  for  financial  accounting  and tax  purposes  in
different  periods.  Deferred  taxes are  classified as current or  non-current,
depending on the  classification of assets and liabilities to which they relate.
Deferred  taxes arising from  temporary  differences  that are not related to an
asset or liability  are  classified as current or  non-current  depending on the
periods in which the temporary  differences are expected to reverse. The company
does not have any uncertain tax positions.

The Company currently has net operating loss carryforwards aggregating $900,630,
which expire  through  2029.  The deferred tax asset of $315,220  related to the
carryforwards has been fully reserved.

The Company has deferred income tax assets,  which have been fully reserved,  as
follows as of December 31, 2010 and 2009:

                                                   2010              2009
                                                ----------        ----------
Deferred tax assets                             $  315,220        $  281,222
Valuation allowance for deferred tax assets       (315,220)         (281,222)
                                                ----------        ----------

Net deferred tax assets                         $       --        $       --
                                                ==========        ==========

                                       25
<PAGE>
NOTE 6. COMMON STOCK

On January 31, 2007 (inception),  the Company issued 25,000,000 founders' shares
for $86,250.

On September 1, 2007, the Company issued 264,000 shares for $66,000.

On October 1, 2007, the Company issued 186,560 shares for $46,640.

On May 31, 2010, the Company issued 1,000,000 Units at a price of $0.25 per Unit
for total  proceeds of $250,000.  Each Unit issued  consisted of one  restricted
common share and one half share purchase  warrant.  Two half warrants entitles a
Subscriber to acquire one  restricted  common share at a purchase price of $0.50
per Share for a period of 18 months from the date of issue.  There relative fair
market value of the warrants is $4,851.

On July 8, 2010 the  company  issued  1,125,000  restricted  shares at par for a
total proceeds of $1,125.

On  September  13,  2010,  the company  entered  agreements  to convert  various
outstanding loans into restricted shares of the Company.  The total amount owing
to its  creditors  was  $390,048,  and each agreed to the issuance of restricted
shares of the Company to settle this outstanding debt. As a result,  the Company
agreed to issue a total of 13,001,600 shares in settlement of this debt, or at a
price of $0.03 per share.  The total fair value of the shares was $650,080 based
on the closing price resulting in a loss of settlement of debt of $260,032.

NOTE 7. RELATED PARTY TRANSACTIONS

As of December 31, 2010 the company owed Mike P. Kurtanjek,  company  president,
the amount of $4,157. The loan had no interest and no fixed repayment date.

NOTE 9. IMPAIRMENT LOSS

The  company's  accumulated  impairment  loss as per  the  income  statement  is
$616,388  from January 31, 2007  (inception)  through  December  31, 2010.  This
consists of all expenses  related to the company's oil and gas properties  which
have been expensed in accordance with Generally Accepted  Accounting  Principles
for the industry.  The company  performed an  impairment  analysis at the end of
2009 and determines that the properties were not  economically  viable,  at that
point the company impaired the properties.

NOTE 12. ASSET RETIREMENT OBLIGATION

The  Company  accounts  for asset  retirement  obligations  as  required  by the
Financial Accounting Standards Board ("FASB") Accounting Standards  Codification
("ASC")  410--Asset  Retirement  and  Environmental  Obligations.   Under  these
standards,  the fair value of a liability for an asset retirement  obligation is
recognized  in the period in which it is  incurred if a  reasonable  estimate of
fair value can be made. If a reasonable estimate of fair value cannot be made in
the period  the asset  retirement  obligation  is  incurred,  the  liability  is
recognized  when a reasonable  estimate of fair value can be made. If a tangible
long-lived  asset with an existing asset  retirement  obligation is acquired,  a
liability for that  obligation  shall be  recognized at the asset's  acquisition
date as if that obligation were incurred on that date. In addition,  a liability
for the fair value of a conditional  asset retirement  obligation is recorded if
the fair value of the liability can be reasonably estimated.

The company therefore has incurred an accretion expense of $235,000 for the year
ending  December 31, 2010 for the net present value cost of plugging all its oil
wells upon the ending of the useful life of the wells.

NOTE 13. SUBSEQUENT EVENTS

There were no  subsequent  events  through  April 15,  2010 that  would  warrant
further disclosures.

                                       26
<PAGE>
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON FINANCIAL DISCLOSURE

None.

ITEM 9A. CONTROLS AND PROCEDURES.

DISCLOSURE CONTROLS AND PROCEDURES

We maintain disclosure controls and procedures, as defined in Rule 13a-15(e)
promulgated under the Securities Exchange Act of 1934 (the "Exchange Act"), that
are designed to ensure that information required to be disclosed by us in the
reports that we file or submit under the Exchange Act is recorded, processed,
summarized and reported within the time periods specified in the Securities and
Exchange Commission's rules and forms and that such information is accumulated
and communicated to our management, including our Chief Executive Officer and
Chief Financial Officer, as appropriate to allow timely decisions regarding
required disclosure.

We carried out an evaluation, under the supervision and with the participation
of our management, including our Chief Executive Officer and Chief Financial
Officer, of the effectiveness of the design and operation of our disclosure
controls and procedures as of December 31, 2010. Based on the evaluation of
these disclosure controls and procedures, and in light of the material
weaknesses found in our internal controls over financial reporting, our Chief
Executive Officer and Chief Financial Officer concluded that our disclosure
controls and procedures were not effective.

MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

Management is responsible for establishing and maintaining adequate internal
control over financial reporting, as defined in Exchange Act Rule 13a-15(f). The
Company's internal control over financial reporting is a process designed to
provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance
with accounting principles generally accepted in the United States of America.

Because of its inherent limitations, internal control over financial reporting
may not prevent or detect misstatements. Also, projections of any evaluation of
effectiveness to future periods are subject to the risk that controls may become
inadequate because of changes in conditions, or that the degree of compliance
with the policies or procedures may deteriorate.

Under the supervision and with the participation of management, including the
Chief Executive Officer and Chief Financial Officer, the Company conducted an
evaluation of the effectiveness of the Company's internal control over financial
reporting as of December 31, 2010 using the criteria established in "INTERNAL
CONTROL - INTEGRATED FRAMEWORK" issued by the Committee of Sponsoring
Organizations of the Treadway Commission ("COSO").

A material weakness is a deficiency, or combination of deficiencies, in internal
control over financial reporting, such that there is a reasonable possibility
that a material misstatement of the Company's annual or interim financial
statements will not be prevented or detected on a timely basis. In its
assessment of the effectiveness of internal control over financial reporting as
of December 31, 2010, the Company determined that there were control
deficiencies that constituted material weaknesses, as described below.

     1)   WE DO NOT HAVE AN AUDIT COMMITTEE - While not being legally obligated
          to have an audit committee, it is the management's view that such a
          committee, including a financial expert member, is an utmost important
          entity level control over the Company's financial statement. Currently
          the Board of Directors acts in the capacity of the Audit Committee,

                                       27
<PAGE>
          and does not include a member that is considered to be independent of
          management to provide the necessary oversight over management's
          activities.

     2)   WE DID NOT MAINTAIN APPROPRIATE CASH CONTROLS - As of December 31,
          2010, the Company has not maintained sufficient internal controls over
          financial reporting for the cash process, including failure to
          segregate cash handling and accounting functions, and did not require
          dual signature on the Company's bank accounts. Alternatively, the
          effects of poor cash controls were mitigated by the fact that the
          Company had limited transactions in their bank accounts.

     3)   WE DID NOT IMPLEMENT APPROPRIATE INFORMATION TECHNOLOGY CONTROLS - As
          at December 31, 2010, the Company retains copies of all financial data
          and material agreements; however there is no formal procedure or
          evidence of normal backup of the Company's data or off-site storage of
          the data in the event of theft, misplacement, or loss due to
          unmitigated factors.

Management is evaluating plans on a cost benefit basis to remedy the above
weaknesses and we continue the process to complete a thorough review of our
internal controls as part of our preparation for compliance with the
requirements of Section 404 of the Sarbanes-Oxley Act of 2002. Section 404
requires our management to report on, and our external auditors to attest to,
the effectiveness of our internal control structure and procedures for financial
reporting. As a non-accelerated filer under Rule 12b-2 of the Exchange Act, our
first report under Section 404 as a smaller reporting company will be contained
in our Form 10-K for the year ended December 31, 2010.

This annual report does not include an attestation report of the company's
independent registered public accounting firm regarding internal control over
financial reporting. Management's report was not subject to attestation by the
company's registered public accounting firm pursuant to temporary rules of the
Securities and Exchange Commission that permit the company to provide only
management's report.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

There has been no change in our internal control over financial reporting
identified in connection with our evaluation we conducted of the effectiveness
of our internal control over financial reporting as of December 31, 2010, that
occurred during our fourth fiscal quarter that has materially affected, or is
reasonably likely to materially affect, our internal control over financial
reporting.

This annual report does not include an attestation report of the Company's
registered public accounting firm regarding internal control over financial
reporting. Managements report was not subject to attestation by the Company's
registered public accounting firm pursuant to temporary rules of the SEC that
permit the Company to provide only management's report in this annual report.

CHANGES IN INTERNAL CONTROLS OVER FINANCIAL REPORTING

There was no change in our internal controls over financial reporting that
occurred during the period covered by this report, which has materially
affected, or is reasonably likely to materially affect, our internal controls
over financial reporting.

                                       28
<PAGE>
                                    PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CONTROL PERSONS

The names, ages and titles of our executive officers and director are as
follows:

Name and Address of Executive
Officer and/or Director         Age               Position
-----------------------         ---               --------
Mike P. Kurtanjek               59      President, Chief Executive Officer and
                                        Director

Donny Fitzgerald                47      Secretary and Director

Michael Heenan                  58      Director

Mike P. Kurtanjek, has been self-employed with Grosvenor Capital Limited since
1995. Prior to that time, he was employed by Credit Lyonnais, James Capel & Co.
and Prudential Assurance Company as a Fund Manager and Investment Banker. Mr.
Kurtanjek was the manager of the Natural Resources Group of The British Sulphur
Corporation where he managed several Work Bank sponsored projects focused on oil
and gas in several North African and Middle Eastern countries.

Mr. Donny Fitzgerald has worked in the Oil and Gas business as Manager of
Fitzgerald Enterprises over the last 6 years. His expertise is in oil field
supply and production within this industry.

Michael Heenan, is an independent businessman involved in the oil and gas
industry in Canada.

Neither Mr. Kurtanjek nor Mr. Heenan nor Mr. Fitzgerald is related to any of our
other directors or officers.

TERM OF OFFICE

Our director is appointed to hold office until the next annual meeting of our
stockholders or until his successor is elected and qualified, or until he
resigns or is removed in accordance with the provisions of the State of Nevada
Statutes. Our officer is appointed by our Board of Directors and holds office
until removed by the Board.

SIGNIFICANT EMPLOYEES

We have no significant employees other than our officer and/or directors who
collectively devote approximately 20 hours per week to company matters.

Our officers and directors have not been the subject of any order, judgment, or
decree of any court of competent jurisdiction, or any regulatory agency
permanently or temporarily enjoining, barring, suspending or otherwise limited
him from acting as an investment advisor, underwriter, broker or dealer in the
securities industry, or as an affiliated person, director or employee of an
investment company, bank, savings and loan association, or insurance company or
from engaging in or continuing any conduct or practice in connection with any
such activity or in connection with the purchase or sale of any securities.

Our officers and directors have not been convicted in any criminal proceeding
(excluding traffic violations) nor is he subject of any currently pending
criminal proceeding.

                                       29
<PAGE>
We conduct our business through agreements with consultants and arms-length
third parties. We pay our consulting geologist the usual and customary rates
received by geologists performing similar consulting services.

CODE OF ETHICS

Our board of directors adopted our code of ethical conduct that applies to all
of our employees and directors, including our principal executive officer,
principal financial officer, principal accounting officer or controller, and
persons performing similar functions.

We believe the adoption of our Code of Ethical Conduct is consistent with the
requirements of the Sarbanes-Oxley Act of 2002.

Our Code of Ethical Conduct is designed to deter wrongdoing and to promote:

     *    Honest and ethical conduct, including the ethical handling of actual
          or apparent conflicts of interest between personal and professional
          relationships;
     *    Full, fair, accurate, timely and understandable disclosure in reports
          and documents that we file or submit to the Securities & Exchange
          Commission and in other public communications made by us;
     *    Compliance with applicable governmental laws, rules and regulations;
     *    The prompt internal reporting to an appropriate person or persons
          identified in the code of violations of our Code of Ethical Conduct;
          and
     *    Accountability for adherence to the Code.

ITEM 11. EXECUTIVE COMPENSATION

MANAGEMENT COMPENSATION

The table below summarizes all compensation awarded to, earned by, or paid to
our executive officers by any person for all services rendered in all capacities
to us for the past three years ending December 31, 2010:

<TABLE>
<CAPTION>
                                            Annual Compensation                Long Term Compensation
                                    ----------------------------------   ---------------------------------
                                                                         Restricted
                                                          Other Annual      Stock     Options/*    LTIP        All Other
Name           Title        Year    Salary($)   Bonus     Compensation     Awarded    SARs (#)   payouts($)   Compensation
----           -----        ----    ---------   -----     ------------     -------    --------   ----------   ------------
<S>          <C>            <C>        <C>        <C>          <C>           <C>         <C>         <C>           <C>
Mike P.      President,     2008     $    0     $  0         $  0           $  0        $  0        $  0          $  0
Kurtanjek    CEO, CFO       2009     $    0     $  0         $  0           $  0        $  0        $  0          $  0
             and Director   2010     $    0     $  0         $  0           $  0        $  0        $  0          $  0

Michael      Director       2008     $    0     $  0         $  0           $  0        $  0        $  0          $  0
Heenan                      2009     $    0     $  0         $  0           $  0        $  0        $  0          $  0
                            2010     $    0     $  0         $  0           $  0        $  0        $  0          $  0

Marilyn      Past           2007     $    0     $  0         $  0           $  0        $  0        $  0          $  0
Woodruff     Director &     2008     $    0     $  0         $  0           $  0        $  0        $  0          $  0
             Secretary

Donny        Secretary      2008     $    0     $  0         $  0           $  0        $  0        $  0          $  0
Fitzgerald   and Director   2009     $5,000     $  0         $  0           $  0        $  0        $  0          $  0
                            2010     $    0     $  0         $  0           $  0        $  0        $  0          $  0
</TABLE>

                                       30
<PAGE>
There are no current employment agreements between the company and its
officer/director.

There are no annuity, pension or retirement benefits proposed to be paid to the
officer or director or employees in the event of retirement at normal retirement
date pursuant to any presently existing plan provided or contributed to by the
company or any of its subsidiaries, if any.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

The following table sets forth certain information concerning the number of
shares of our common stock owned beneficially as of April 15, 2011 by: (i) each
person (including any group) known to us to own more than five percent (5%) of
any class of our voting securities, (ii) our director, and or (iii) our officer.
Unless otherwise indicated, the stockholder listed possesses sole voting and
investment power with respect to the shares shown.

<TABLE>
<CAPTION>
                                                                       Amount and Nature     Percentage of
                                                                         of Beneficial          Common
Title of Class       Name and Address of Beneficial Owner                  Ownership           Stock(1)
--------------       ------------------------------------                  ---------           --------
<S>                  <C>                                                   <C>                   <C>
Common Stock         Mike P. Kurtanjek                                     4,800,000             11.8%
                     9 Church Lane, West Sussex, England, RH103PT

Common Stock         Michael Heenan                                          100,000              0.2%
                     213 E Arkansas Ave
                     Vivian, LA 71082, USA

Common Stock         Donny Fitzgerald                                              0                0%
                     213 E Arkansas Ave
                     Vivian, LA 71082, USA

Common Stock         Officer and/or director as a Group                    4,900,000              12 %

HOLDERS OF MORE THAN 5% OF OUR COMMON STOCK
</TABLE>

----------
(1)  A beneficial owner of a security includes any person who, directly or
     indirectly, through any contract, arrangement, understanding, relationship,
     or otherwise has or shares: (i) voting power, which includes the power to
     vote, or to direct the voting of shares; and (ii) investment power, which
     includes the power to dispose or direct the disposition of shares. Certain
     shares may be deemed to be beneficially owned by more than one person (if,
     for example, persons share the power to vote or the power to dispose of the
     shares). In addition, shares are deemed to be beneficially owned by a
     person if the person has the right to acquire the shares (for example, upon
     exercise of an option) within 60 days of the date as of which the
     information is provided. In computing the percentage ownership of any
     person, the amount of shares outstanding is deemed to include the amount of
     shares beneficially owned by such person (and only such person) by reason
     of these acquisition rights. As a result, the percentage of outstanding
     shares of any person as shown in this table does not necessarily reflect
     the person's actual ownership or voting power with respect to the number of
     shares of common stock actually outstanding on April 15, 2011.

                                       31
<PAGE>
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

None of our directors, or officers, any proposed nominee for election as a
director, any person who beneficially owns, directly or indirectly, shares
carrying more than 10% of the voting rights attached to all of our outstanding
shares, any promoter, or any relative or spouse of any of the foregoing persons
has any material interest, direct or indirect, in any transaction since our
incorporation or in any presently proposed transaction which, in either case,
has or will materially affect us other then the transactions described below.

The company has borrowed $4,157 from Mr. Mike P. Kurtanjek, our President and as
of December 31, 2009 the loan has not been paid back. The loan has a 0% interest
with no fixed payment date.

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

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

For the year ended December 31, 2009, the total fees charged to the company for
audit services, including quarterly reviews, were $10,175.

For the year ended December 31, 2010, there were $14,600 in fees charged to the
company for audit services, audit-related services and tax services.

                                       32
<PAGE>
                                     PART IV

ITEM 15. EXHIBITS

Exhibit
Number                     Description
------                     -----------
3(i)       Articles of Incorporation* 3(ii) Bylaws*

31.1       Sec. 302 Certification of Chief Executive Officer

31.2       Sec. 302 Certification of Chief Financial Officer

32.1       Sec. 906 Certification of Chief Executive Officer

32.2       Sec. 906 Certification of Chief Financial Officer

                                   SIGNATURES

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

April 15, 2011                         Avro Energy Inc.


                                       By: /s/ Mike P. Kurtanjek
                                           -------------------------------------
                                           Mike P. Kurtanjek,
                                           President and Chief Executive Officer

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

April 15, 2011                          Avro Energy Inc.


                                        By: /s/ Mike P. Kurtanjek
                                            ------------------------------------
                                            Mike P. Kurtanjek,
                                            President, Treasurer and Chief
                                            Financial Officer (Principal
                                            Executive Officer and Principal
                                            Accounting Officer)

                                       33