| Colorado                                                       | 84-1508638                                 |
|----------------------------------------------------------------|--------------------------------------------|
| (State or Other Jurisdiction of Incorporation or Organization) |  (I.R.S. Employer Identification No.) |
|                                                           |                                       |
|                                                           |                                       |
|  P.O. Box 141 Westminster, Colorado                       |  80036                                |
| (Address of Principal Executive Offices)                       |   (Zip Code)                     |

| LargeAccelerated Filer [] |   | AcceleratedFiler [] |   | Non-Accelerated Filer [] (Do not check if a smaller reporting company) |   | Smaller ReportingCompany [X] |
|---------------------------|--------|---------------------|--------|----------------------------------------------------------------------------------|--------|------------------------------|

----

|   | Part 1 - Financial Information                                                |      |   |
|--------|-------------------------------------------------------------------------------|-----------|--------|
|   |                                                                          |      |   |
|   | Item 1 - Financial Statements (Unaudited)                                     |   3  |   |
|   |                                                                          |      |   |
|   | Item 2 - Management’s Discussion and Analysis and Results of Operations |  9   |   |
|   |                                                                          |      |   |
|   | Item 3 - Quantitative and Qualitative Disclosures about Market Risk           |   12 |   |
|   |                                                                          |      |   |
|   | Item 4 - Controls and Procedures                                              |   13 |   |
|   |                                                                          |      |   |
|   | Part 2 - Other Information                                                    |      |   |
|   |                                                                          |      |   |
|   | Item 1 - Legal Proceedings                                                    |  13  |   |
|   |                                                                          |      |   |
|   | Item 2 - Sales of Unregistered Equity Securities and Use of Proceeds          |   13 |   |
|   |                                                                          |      |   |
|   | Item 3 - Defaults upon Senior Securities                                      |   13 |   |
|   |                                                                          |      |   |
|   | Item 4 - Submission of Matters to a Vote of Security Holders                  |   13 |   |
|   |                                                                          |      |   |
|   | Item 5 - Other Information                                                    |   13 |   |
|   |                                                                          |      |   |
|   | Item 6 - Exhibits                                                             |   14 |   |

----

|                                                                                      |   |         |        |   |     |   |
|-------------------------------------------------------------------------------------------|--------|--------------|-------------|--------|----------|--------|
|                                                                                      |   | December 31, |        |   | June 30, |   |
| ASSETS                                                                                    |   | 2007         |        |   | 2008     |   |
| Current assets                                                                            |   |         |        |   |     |   |
|     Cash and cash equivalents                                         |   | $            | 28,992      |   |     | $      | 123,649 |   |
|     Prepaid expenses                                                  |   |         | -           |   |     |   | 28,792 |   |
|     Revenue receivable                                                |   |         | 56,638      |   |     |   | 102,117 |   |
| Total current assets                                                                      |   |         | 85,630      |   |     |   | 254,558 |   |
|                                                                                      |   |         |        |   |     |   |   |   |
| Furniture and equipment, at cost net of accumulated                                       |   |         |        |   |     |   |   |   |
|     depreciation of $51,463(2007) and $73,573(2008)                   |   |         | 410,403     |   |     |   | 388,294 |   |
|                                                                                      |   |         |        |   |     |   |   |   |
|                                                                                      |   |         |        |   |     |   |   |   |
|                                                                                      |   |         |        |   |     |   |   |   |
|                                                                                      |   | $            | 496,033     |   |     | $      | 642,852 |   |
|                                                                                      |   |         |        |   |     |   |   |   |
| LIABILITIES AND STOCKHOLDERS' DEFICIT                                                     |   |         |        |   |     |   |   |   |
| Current liabilities                                                                       |   |         |        |   |     |   |   |   |
|     Accounts payable                                                  |   | $            | 182,093     |   |     | $      | 396,914 |   |
|     Accrued expenses                                                  |   |         | 51,705      |   |     |   | 58,638 |   |
|     Accrued payroll taxes                                             |   |         | 237,472     |   |     |   | 237,472 |   |
|     Notes payable & advances related parties                      |   |         | 492,125     |   |     |   | 492,125 |   |
|                                                                                      |   |         |        |   |     |   |   |   |
| Total current liabilities                                                                 |   |         | 963,395     |   |     |   | 1,185,149 |   |
|                                                                                      |   |         |        |   |     |   |   |   |
| Stockholders' deficit                                                                     |   |         |        |   |     |   |   |   |
|     Convertible Class A preferred stock; $10 face value,              |   |         |        |   |     |   |   |   |
|       1,000,000 shares authorized                           |   |         |        |   |     |   |   |   |
|       Series 1, 30,000 shares authorized, 0 (2007)          |   |         |        |   |     |   |   |   |
|       and 0 (2008) shares issued and outstanding            |   |         | -           |   |     |   | - |   |
|       Series 2, 25,000 shares authorized, 0 (2007)          |   |         |        |   |     |   |   |   |
|       and 0 (2008) shares issued and outstanding            |   |         | -           |   |     |   | - |   |
|     Common stock, no par value; 499,000,000 shares                    |   |         |        |   |     |   |   |   |
|       authorized, 417,155,754 (2007) and 481,155,754 (2008) |   |         | 13,201,003  |   |     |   | 13,517,403 |   |
|       shares issued and outstanding                         |   |         |        |   |     |   |   |   |
|     Accumulated deficit                                               |   |         | (13,664,450 | )      |     |   | (14,055,785 | ) |
|     Notes receivable from sale of stock                               |   |         | (3,915      | )      |     |   | (3,915 | ) |
|                                                                                      |   |         |        |   |     |   |   |   |
| Total stockholders' deficit                                                               |   |         | (467,362    | )      |     |   | (542,297 | ) |
|                                                                                      |   |         |        |   |     |   |   |   |
|                                                                                      |   |         |        |   |     |   |   |   |
|                                                                                      |   | $            | 496,033     |   |     | $      | 642,852 |   |

----

|                                               |   | Three MonthsEnding June 30,2007 |        |   | Three MonthsEnding June 30,2008 |   |        | Six MonthsEnding June 30,2007 |   |   | Six MonthsEnding June 30,2008 |   |
|----------------------------------------------------|--------|---------------------------------|-------------|--------|---------------------------------|--------|-------------|-------------------------------|--------|--------|-------------------------------|--------|
| Revenues                                           |   |                            |        |   |                            |   |        |                          |   |   |                          |   |
|    Oil & gas revenue            |   | $                               | 108,864     |   |                            | $      | 243,917     |                          |   | $      | 112,797                       |   |   | $ | 437,128 |   |
|    Other income                     |   |                            | -           |   |                            |   | -           |                          |   |   | -                             |   |   |   | - |   |
|                                               |   |                            |        |   |                            |   |        |                          |   |   |                          |   |   |   |   |   |
| Total revenues                                     |   |                            | 108,864     |   |                            |   | 243,917     |                          |   |   | 112,797                       |   |   |   | 437,128 |   |
|                                               |   |                            |        |   |                            |   |        |                          |   |   |                          |   |   |   |   |   |
| Operating expenses                                 |   |                            |        |   |                            |   |        |                          |   |   |                          |   |   |   |   |   |
|    Oil & gas operating expenses |   |                            | 133,568     |   |                            |   | 241,013     |                          |   |   | 138,268                       |   |   |   | 445,002 |   |
|    Depreciation                     |   |                            | 9,680       |   |                            |   | 11,055      |                          |   |   | 9,915                         |   |   |   | 22,110 |   |
|    Rent                             |   |                            | 518         |   |                            |   | 792         |                          |   |   | 1,143                         |   |   |   | 1,747 |   |
|    Other operating expenses         |   |                            | 127,876     |   |                            |   | 140,713     |                          |   |   | 187,161                       |   |   |   | 336,009 |   |
|                                               |   |                            |        |   |                            |   |        |                          |   |   |                          |   |   |   |   |   |
| Total operating expenses                           |   |                            | 271,642     |   |                            |   | 393,573     |                          |   |   | 336,487                       |   |   |   | 804,868 |   |
|                                               |   |                            |        |   |                            |   |        |                          |   |   |                          |   |   |   |   |   |
| Net loss from operations                           |   |                            | (162,778    | )      |                            |   | (149,656    | )                             |   |   | (223,690                      | )      |   |   | (367,740 | ) |
|                                               |   |                            |        |   |                            |   |        |                          |   |   |                          |   |   |   |   |   |
| Other income (expense):                            |   |                            |        |   |                            |   |        |                          |   |   |                          |   |   |   |   |   |
|     Extinguishment of debt     |   |                            | -           |   |                            |   | -           |                          |   |   | 7,530                         |   |   |   | - |   |
|     Interest expense           |   |                            | (11,798     | )      |                            |   | (11,798     | )                             |   |   | (22,623                       | )      |   |   | (23,595 | ) |
|                                               |   |                            |        |   |                            |   |        |                          |   |   |                          |   |   |   |   |   |
| Total other income (expense)                       |   |                            | (11,798     | )      |                            |   | (11,798     | )                             |   |   | (15,093                       | )      |   |   | (23,595 | ) |
|                                               |   |                            |        |   |                            |   |        |                          |   |   |                          |   |   |   |   |   |
|                                               |   |                            |        |   |                            |   |        |                          |   |   |                          |   |   |   |   |   |
| Net income (loss)                                  |   | $                               | (174,576    | )      |                            | $      | (161,454    | )                             |   | $      | (238,783                      | )      |   | $ | (391,335 | ) |
|                                               |   |                            |        |   |                            |   |        |                          |   |   |                          |   |   |   |   |   |
| Basic and diluted loss per share                   |   |                            | *           |   |                            |   | *           |                          |   |   | *                             |   |   |   | * |   |
|                                               |   |                            |        |   |                            |   |        |                          |   |   |                          |   |   |   |   |   |
|                                               |   |                            |        |   |                            |   |        |                          |   |   |                          |   |   |   |   |   |
| Weighted average common shares outstanding         |   |                            | 359,000,000 |   |                            |   | 465,000,000 |                          |   |   | 350,000,000                   |   |   |   | 453,000,000 |   |
|                                               |   |                            |        |   |                            |   |        |                          |   |   |                          |   |   |   |   |   |
| * Less than $.01 per share                         |   |                            |        |   |                            |   |        |                          |   |   |                          |   |   |   |   |   |
|                                               |   |                            |        |   |                            |   |        |                          |   |   |                          |   |   |   |   |   |

----

|                                                                         |   | Common Stock Shares |        |   | Amount |   |       | Accumulated Deficit |   |   | Notes Receivable from sale of stock |   |   | Total  |   |
|------------------------------------------------------------------------------|--------|---------------------|-------------|--------|--------|--------|------------|---------------------|--------|--------|-------------------------------------|--------|--------|--------|--------|
| Balance at December 31, 2007                                                 |   |                | 417,155,754 |   |   | $      | 13,201,003 |                |   | $      | (13,664,450                         | )      |   | $      | (3,915 | ) |   | $ | (467,362 | ) |
|     Issuance of common stock to directors                |   |                |        |   |   |   |       |                |   |   |                                |   |   |   |   |   |   |   |   |   |
|         and consultants for services |   |                | 64,000,000  |   |   |   | 316,400    |                |   |   |                                |   |   |   |   |   |   |   | 316,400 |   |
|      Net loss                                       |   |                |        |   |   |   |       |                |   |   | (391,335                            | )      |   |   |   |   |   |   | (391,335 | ) |
| Balance at June 30, 2007                                                     |   |                | 481,155,754 |   |   | $      | 13,517,403 |                |   | $      | (14,055,785                         | )      |   | $      | (3,915 | ) |   | $ | (542,297 | ) |

----

|                                                                                                                |   |   |     |   |   |   |
|---------------------------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
|                                                                                                                |   |   |     |   |   |   |
|                                                                                                                |   |   |     |   |   |   |
|                                                                                                                |   |   |     |   |   |   |
|                                                                                                                |   | 2007   |     |   | 2008   |   |
|                                                                                                                |   |   |     |   |   |   |
| Cash flows from operating activities:                                                                               |   |   |     |   |   |   |
|     Net (loss) income                                                                           |   | $      | (238,784 | )      |   | $      | (391,335 | ) |
|     Adjustments to reconcile net loss to net                                                    |   |   |     |   |   |   |   |   |
|       cash used in operating activities:                                              |   |   |     |   |   |   |   |   |
|           Depreciation and amortization                           |   |   | 9,915    |   |   |   | 22,110 |   |
|           Stock  and options issued for services and    |   |   |     |   |   |   |   |   |
|             interest on notes                           |   |   | 181,375  |   |   |   | 316,400 |   |
|          Changes in assets and liabilities:                            |   |   |     |   |   |   |   |   |
|             Accounts receivable                         |   |   | (43,154  | )      |   |   | (45,479 | ) |
|             Prepaid expenses                            |   |   | (43,184  | )      |   |   | (28,792 | ) |
|             Accounts payable                            |   |   | 163,468  |   |   |   | 214,819 |   |
|             Accrued expenses                            |   |   | 22,624   |   |   |   | 6,934 |   |
| Total adjustments                                                                                                   |   |   | 291,044  |   |   |   | 485,992 |   |
|                                                                                                                |   |   |     |   |   |   |   |   |
|                                                                                                                |   |   |     |   |   |   |   |   |
| Net cash provided (used) in operating activities                                                                    |   |   | 52,260   |   |   |   | 94,657 |   |
|                                                                                                                |   |   |     |   |   |   |   |   |
| Cash flows from investing activities:                                                                               |   |   |     |   |   |   |   |   |
|      Purchase of property and equipment                                                    |   |   | (108,864 | )      |   |   | - |   |
|                                                                                                                |   |   |     |   |   |   |   |   |
| Net cash used in investing activities                                                                               |   |   | (108,864 | )      |   |   | - |   |
|                                                                                                                |   |   |     |   |   |   |   |   |
| Cash flows from financing activities:                                                                               |   |   |     |   |   |   |   |   |
|      Reciept of advances - related parties                                                 |   |   | 102,751  |   |   |   | - |   |
|      Payment of advances - related parties                                                 |   |   | -        |   |   |   | - |   |
|                                                                                                                |   |   |     |   |   |   |   |   |
| Net cash provided by financing activities                                                                           |   |   | 102,751  |   |   |   | - |   |
|                                                                                                                |   |   |     |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                                                                |   |   | 46,147   |   |   |   | 94,657 |   |
| Cash and cash equivalents at beginning of period                                                                    |   |   | 9,626    |   |   |   | 28,992 |   |
|                                                                                                                |   |   |     |   |   |   |   |   |
| Cash and cash equivalents at end of period                                                                          |   | $      | 55,773   |   |   | $      | 123,649 |   |
|                                                                                                                |   |   |     |   |   |   |   |   |
| Supplemental disclosure of cash flow information:                                                                   |   |   |     |   |   |   |   |   |
|                                                                                                                |   |   | 2007     |   |   |   | 2008 |   |
|     Interest paid during the period                                                             |   | $      | -        |   |   | $      | 17,500 |   |
|     Income taxes paid during the period                                                         |   | $      | -        |   |   | $      | - |   |
|                                                                                                                |   |   |     |   |   |   |   |   |
| Supplemental disclosure of non-cash investing and financing activities:                                             |   |   |     |   |   |   |   |   |
|      During the six months ended June 30, 2007 wages to officers and directors and fees to |   |   |     |   |   |   |   |   |
|         consultants of $181,375 were paid by the issuance of common stock   |   |   |     |   |   |   |   |   |
|      During the six months ended June 30, 2008 wages to officers and directors and fees to |   |   |     |   |   |   |   |   |
|         consultants of $316,400 were paid by the issuance of common stock   |   |   |     |   |   |   |   |   |

----

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | 2007    |   |   |    | 2008    |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|---------|---------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |    |   |   |    |    |   |
|           Advances – Donald Prosser                                                                                                                                                                                                                                                                                                                                                                |   | $      | 200,000 |   |   | $  | 200,000 |   |
|           Advances – Donald Prosser                                                                                                                                                                                                                                                                                                                                                                |   |   | 24,290  |   |   |    | 24,290  |   |
|           Advances – Charles Gamber                                                                                                                                                                                                                                                                                                                                                                |   |   | 4,966   |   |   |    | 4,966   |   |
|           Advances – William Stewart                                                                                                                                                                                                                                                                                                                                                               |   |   | 20,219  |   |   |    | 20,219  |   |
|           Advances – William Stewart                                                                                                                                                                                                                                                                                                                                                               |   |   | 75,000  |   |   |    | 75,000  |   |
|           Advances – Charles Davis                                                                                                                                                                                                                                                                                                                                                                 |   |   | 125,000 |   |   |    | 125,000 |   |
|           Advances – Charles Davis                                                                                                                                                                                                                                                                                                                                                                 |   |   | 40,000  |   |   |    | 40,000  |   |
|           Advances – John Herzog                                                            |   |   | 2,650   |   |   |    | 2,650   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |    |   |   |    |    |   |
| Balances                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $      | 492,125 |   |   | $       | 492,125 |   |

----

----

----

----

----

----

|  Exhibit Number | Description                                                                                                                                            |
|----------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|
|                 |                                                                                                                                                   |
| 31.1                 | Certification of CEO pursuant to Rule 13a-14(a)  or 15d-14(a) of the Exchange Act pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
| 31.2                 | Certification of CFO pursuant to Rule 13a-14(a)  or 15d-14(a) of the Exchange Act pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
| 32.1                 | Certification of CEO pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                          |
| 32.2                 | Certification of CFRO pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                         |

----

| By:    | /s/ Charles L. Gamber, CEO                         |
|-----------------------|----------------------------------------------------|
|                  | Charles L. Gamber, Principal Executive Officer     |
|                  | Dated: January 19, 2011                            |
|                  |                                               |
|                  |                                               |
| By:    | /s/ John Herzog, Interim CFO                       |
|                  | John Herzog,                                       |
|                  | Interim Principal Financial and Accounting Officer |
|                  | Dated: January 19, 2011                            |

----

----