UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

|  |  |                                                                                        
|- |  | ---------------------------------------------------------------------------------------
| |  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: August 31, 2011

or

| |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- |  | ----------------------------------------------------------------------------------------

For the transition period from  to  
Commission
File Number: 000-52794

SENTRY PETROLEUM LTD.

(Exact name of registrant as specified
in its charter)



|Nevada                                                          |  | 20-4475552                           
|--------------------------------------------------------------- |  | -------------------------------------
|(State or other jurisdiction of  incorporation or organization) |  | (I.R.S. Employer  Identification No.)
|999 18th Street, Suite 3000, Denver  CO                         |  | 80202                                
|(Address of principal executive offices)                        |  | (Zip Code)                           



(866) 680-7649

(Registrant’s telephone number, including
area code)

Indicate
by check mark whether the registrant (1) has filed all reports required 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.ýYes   No

Indicate
by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the
preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).ýYes   No

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
definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company”
in Rule 12b-2 of the Exchange Act.

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

Indicate
by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  YesýNo

Indicate the number of shares outstanding
of each of the issuer’s classes of common stock, as of the latest practicable date:

|Class                           |  | Outstanding at October 13 , 2011
|------------------------------- |  | --------------------------------
|Common Stock, $0.0001 par value |  | 47,446,207                      









|                               | FORM 10-Q
        Sentry petroleum
        ltd.
        August 31, 2011
        TABLE OF CONTENTS | Page
|------------------------------ | ------------------------------------------------------------------------------------------------- | ----
|PART I – FINANCIAL INFORMATION
|Item 1.                        | Financial Statements.                                                                             | 2   
|Item 2.                        | Management’s Discussion and Analysis of Financial Condition and Results of Operations.            | 3   
|Item 3.                        | Quantitative and Qualitative Disclosures About Market Risk.                                       | 10  
|Item 4.                        | Controls and Procedures.                                                                          | 10  
|PART II – OTHER INFORMATION   
|Item 1.                        | Legal Proceedings.                                                                                | 12  
|Item 1A.                       | Risk Factors.                                                                                     | 12  
|Item 2.                        | Unregistered Sales of Equity Securities and Use of Proceeds.                                      | 12  
|Item 3.                        | Defaults Upon Senior Securities.                                                                  | 12  
|Item 4.                        | (Removed and Reserved).                                                                           | 12  
|Item 5.                        | Other Information.                                                                                | 12  
|Item 6.                        | Exhibits.                                                                                         | 12  
|                               |                                                                                                   |     
|                               | Signatures                                                                                        |     
|                               | Exhibits                                                                                          |     
|                               | Certifications                                                                                    |     







Sentry Petroleum Ltd.

(An Exploration Stage Company)

August 31, 2011

(Unaudited)



Index





Interim Consolidated Balance Sheets	F-2



Interim Consolidated Statements of Operations	F-3



Interim Consolidated Statements of Cash Flows	F-4



Notes to the Interim Consolidated Financial Statements	...F-5
to F-12







(Expressed in US dollars) (Unaudited)


|                                                 |                                                  |           |             |           |          
|------------------------------------------------ | ------------------------------------------------ | --------- | ----------- | --------- | ---------
|                                                 |                                                  |           |             | August 31 |          
|                                                 |                                                  |           |             | 2011      |          
|                                                 |                                                  |           |             | $         |          
|ASSETS                                           |                                                  |           |             |           |          
|                                                 |                                                  |           |             |           |          
|Current Assets                                   |                                                  |           |             |          
|                                                 | Cash                                             |           |             | 121,447   |          
|                                                 | Prepaid expenses                                 |           | 7,238       |           | -        
|                                                 | Goods and Services Tax Receivable                | 103,656   |             | 1,914    
|                                                 |                                                  |           |             |           |          
|Total Current Assets                             |                                                  | 232,341   |             | 689,015  
|                                                 |                                                  |           |             |           |          
|Property and Equipment                           |                                                  |           |             |          
|                                                 | Oil and gas on the basis of full cost accounting |           |             |          
|                                                 | Unproved properties (Note 4)                     | 1,540,579 |             | 435,508  
|                                                 | Property and Equipment (Note 4)                  | 2,791     |             | 923      
|                                                 |                                                  |           |             | 1,543,370 |          
|                                                 |                                                  |           |             |           |          
|Total Assets                                     |                                                  |           | 1,775,771   |           | 1,125,446
|                                                 |                                                  |           |             |           |          
|LIABILITIES AND STOCKHOLDERS' EQUITY             |                                                  |           |            
|                                                 |                                                  |           |             |           |          
|Current Liabilities                              |                                                  |           |             |          
|                                                 | Accounts Payable                                 |           | 39,832      |           | 103,163  
|                                                 | Accrued liabilities                              |           | 9,400       |           | -        
|                                                 |                                                  |           |             |           |          
|Total Liabilities                                |                                                  | 49,232    |             | 103,163  
|                                                 |                                                  |           |             |           |          
|Contingencies (Note 1)                           |                                                  |           |             |          
|Commitments (Note 8)                             |                                                  |           |             |          
|Stockholders' Equity/(Deficit)                   |                                                  |           |            
|                                                 |                                                  |           |             |           |          
|Common stock: (Note 6)                           |                                                  |           |             |          
|200,000,000 share authorized, $0.0001 par value, |                                                  |           |            
|47,446,207 shares issued and outstanding         | 4,745                                            |           | 4,683      
|                                                 | (46,825,601 outstanding as at February 28, 2011) |           |             |          
|Additional Paid in Capital                       |                                                  | 4,798,622 |             | 2,797,015
|Donated Capital                                  |                                                  | 50,000    |             | 50,000   
|Accumulated other comprehensive income           | 143,208                                          |           | 91,250     
|Deficit Accumulated During the Exploration Stage | (3,270,096)                                      |           | (1,920,665)
|                                                 |                                                  |           |             |           |          
|Total Stockholders' Equity                       |                                                  | 1,726,479 |             | 1,022,283
|                                                 |                                                  |           |             |           |          
|Total Liabilities and Stockholders' Equity       | 1,775,771                                        |           | 1,125,446  
|                                                 |                                                  |           |             |           |          



(The Accompanying Notes are an Integral Part of the Financial
Statements)







Sentry Petroleum Ltd.

(An Exploration Stage Company)

Interim Consolidated Statements of Operations

(Expressed in US dollars)

(Unaudited)



|                                       |                                     |            |              |            |               |             |             |            |             |             | For the period     
|-------------------------------------- | ----------------------------------- | ---------- | ------------ | ---------- | ------------- | ----------- | ----------- | ---------- | ----------- | ----------- | -------------------
|                                       |                                     |            | Three months |            | Three  months |             | Six  months |            | Six  months |             | February 23, 2006  
|                                       |                                     |            | ended        |            | ended         |             | ended       |            | ended       |             | (Date of Inception)
|                                       |                                     |            | August 31    |            | August 31     |             | August 31   |            | August 31   |             | to August 31       
|                                       |                                     |            | 2011         |            | 2010          |             | 2011        |            | 2010        |             | 2011               
|                                       |                                     |            | $            |            | $             |             | $           |            | $           |             | $                  
|                                       |                                     |            |              |            |               |             |             |            |             |             |                    
|Revenue                                |                                     | -          |              | -          |               | -           |             | -          |             | -          
|                                       |                                     |            |              |            |               |             |             |            |             |             |                    
|Expenses                               |                                     |            |              |            |               |             |             |            |             |            
|                                       | Foreign exchange (gain) loss        |            | -            |            | 4,073         |             | 350         |            | 939         |             | 128,494            
|                                       | General and administrative          |            | 721,094      |            | 105,052       |             | 1,276,231   |            | 199,076     |             | 3,008,909          
|                                       | Professional fees                   |            | 3,134        |            | 2,853         |             | 27,389      |            | 13,514      |             | 116,686            
|                                       | Write-off of Oil and gas Properties |            | 6,553        |            | -             |             | 60,569      |            | -           |             | 63,475             
|                                       |                                     |            |              |            |               |             |             |            |             |             |                    
|Total Expenses                         |                                     | 770,781    |              | 111,978    |               | 1,364,539   |             | 213,529    |             | 3,317,564  
|                                       |                                     |            |              |            |               |             |             |            |             |             |                    
|Other Income                           |                                     |            |              |            |               |             |             |            |             |            
|                                       | Interest Income                     |            | 11,253       |            | 7             |             | 15,108      |            | 39          |             | 47,468             
|                                       |                                     |            |              |            |               |             |             |            |             |             |                    
|Net Income (Loss) for the Period       |                                     | (719,582)  |              | (111,971)  |               | (1,349,431) |             | (213,490)  |             | (3,270,096)
|                                       |                                     |            |              |            |               |             |             |            |             |             |                    
|Other Comprehensive income (loss)      |                                     |            |              |            |               |             |             |            |             |            
|                                       | Foreign currency translation        |            | 97,595       |            | 19,473        |             | 51,958      |            | (2,983)     |             | 143,208            
|                                       |                                     |            |              |            |               |             |             |            |             |             |                    
|Comprehensive income (loss)            |                                     | (621,933)  |              | (92,498)   |               | (1,297,473) |             | (216,473)  |             | (3,126,888)
|                                       |                                     |            |              |            |               |             |             |            |             |             |                    
|Net Loss Per Share - Basic and Diluted |                                     | (0.02)     |              | (0.00)     |               | (0.03)      |             | (0.00)     |             |            
|                                       |                                     |            |              |            |               |             |             |            |             |             |                    
|Weighted Average Shares Outstanding    |                                     | 47,442,294 |              | 46,325,600 |               | 47,269,323  |             | 46,325,600 |             |            





(The Accompanying Notes are an Integral Part of the Financial
Statements)









Sentry Petroleum Ltd.

(An Exploration Stage Company)

Interim Consolidated Statements of Cash Flows

(Expressed in US dollars)

(Unaudited)

|                                                                   |                                                            |                                          |           |            |             |             |           | From               
|------------------------------------------------------------------ | ---------------------------------------------------------- | ---------------------------------------- | --------- | ---------- | ----------- | ----------- | --------- | -------------------
|                                                                   |                                                            |                                          |           | Six months |             | Six months  |           | February 23, 2006  
|                                                                   |                                                            |                                          |           | ended      |             | ended       |           | (Date of Inception)
|                                                                   |                                                            |                                          |           | August 31  |             | August 31   |           | to August 31       
|                                                                   |                                                            |                                          |           | 2011       |             | 2010        |           | 2011               
|                                                                   |                                                            |                                          |           | $          |             | $           |           | $                  
|Cash Flows From (Used in) Operating Activities                     |                                                            |                                          |           |            |            
|                                                                   | Net Income (Loss) for the period                           | (1,349,431)                              |           | (213,490)  |             | (3,270,096)
|                                                                   |                                                            |                                          |           |            |             |             |           |                    
|                                                                   | Adjustments to reconcile net cash to operating activities: |                                          |           |            |             |            
|                                                                   |                                                            | Depreciation                             | 901       |            | 5,827       |             | 26,012   
|                                                                   |                                                            | Donated services                         | -         |            | -           |             | 50,000   
|                                                                   |                                                            | Stock based compensation                 | 821,670   |            | 164,184     |             | 1,857,087
|                                                                   |                                                            | Services paid for with stock             | 180,000   |            |             |             | 180,000  
|                                                                   |                                                            | Write off of exploration asset           | 60,569    |            | -           |             | 63,475   
|                                                                   |                                                            |                                          |           |            |             |             |           |                    
|                                                                   | Change in operating assets and liabilities:                |                                          |           |            |             |            
|                                                                   |                                                            | Goods and Services Tax receivable        | (101,742) |            | (491)       |             | (103,656)
|                                                                   |                                                            | Prepaid expenses                         | (7,238)   |            | -           |             | (7,238)  
|                                                                   |                                                            | Accounts payable and accrued liabilities | (53,931)  |            | (27,894)    |             | 49,232   
|                                                                   |                                                            | Due to related party                     | -         |            | 104         |             | -        
|                                                                   |                                                            |                                          |           |            |             |             |           |                    
|Net Cash From (Used in) Operating Activities                       | (449,202)                                                  |                                          | (71,760)  |            | (1,155,184)
|                                                                   |                                                            |                                          |           |            |             |             |           |                    
|Cash Flows Used In Investing Activities                            |                                                            |                                          |           |            |            
|                                                                   | Unproved properties                                        | (1,138,810)                              |           | (26,086)   |             | (1,577,224)
|                                                                   | Additions to furniture and equipment                       | (2,522                                   |           | -          |             | (28,55)    
|                                                                   |                                                            |                                          |           |            |             |             |           |                    
|Net Cash Used in Investing Activities                              | (1,1,41,332)                                               |                                          | (26,086)  |            | (1,605,779)
|                                                                   |                                                            |                                          |           |            |             |             |           |                    
|Cash Flows From Financing Activities                               |                                                            |                                          |           |            |            
|                                                                   | Proceeds from issuance of common shares                    | 1,000,000                                |           | -          |             | 2,766,281  
|                                                                   |                                                            |                                          |           |            |             |             |           |                    
|Net Cash From Financing Activities                                 | 1,000,000                                                  |                                          | -         |            | 2,766,281  
|                                                                   |                                                            |                                          |           |            |             |             |           |                    
|Increase (decrease) in Cash and Cash Equivalents                   | (590,534)                                                  |                                          | (97,846)  |            | 5,318      
|Effect of foreign currency translation on cash and cash equivalent | 24,880                                                     |                                          | (1,761)   |            | 116,129    
|                                                                   |                                                            |                                          |           |            |             |             |           |                    
|Cash -  Beginning of Period                                        | 687,101                                                    |                                          | 317,515   |            | -          
|                                                                   |                                                            |                                          |           |            |             |             |           |                    
|Cash - End of  the Period                                          | 121,447                                                    |                                          | 217,908   |            | 121,447    
|                                                                   |                                                            |                                          |           |            |             |             |           |                    
|Supplemental Disclosure                                            |                                                            |                                          |           |            |            
|                                                                   | Interest paid                                              |                                          | 16        |            | -           |             | 16       
|                                                                   | Income taxes paid                                          | -                                        |           | -          |             |            









Sentry Petroleum Ltd.
(An Exploration Stage Company)

Notes to the Interim  Consolidated Financial
Statements

August 31, 2011



1.Nature of Operations and Continuance of Business

Sentry Petroleum Ltd. (the “Company”) is an
Exploration Stage Company as defined by Statement of Financial Accounting Standard (“SFAS”) No. 7 “Accounting
and Reporting By Development Stage Enterprises”incorporated under the laws of the State of Nevada on February 23,
2006 as Summit Exploration Inc. On December 3, 2007 the Company changed its name from Summit Exploration Inc. to Sentry Petroleum
Ltd. The Company is engaged in the acquisition, exploration, and development of oil and gas properties.

The Company has no revenues and has not generated any
cash flows from operations to fund its acquisition, exploration and development activities. The Company intends to rely upon the
issuance of equity securities to finance its oil and gas property acquisitions and exploration and development on acquired properties,
however there can be no assurance it will be successful in raising the funds necessary, or that a self-supporting level of operations
will ever be achieved. The likely outcome of these future events is indeterminable. As at August 31, 2011, the Company has accumulated
losses since inception of $3,270,096. These factors raise substantial doubt about its ability to continue as a going concern. The
financial statements do not include any adjustment to reflect the possible future effect on the recoverability and classification
of the assets or the amounts and classification of liabilities that may result from the outcome of this uncertainty.

On April 15, 2008, the Company incorporated a subsidiary
company, Sentry Petroleum (Australia) Pty. Ltd. in order to facilitate exploration activities in Australia.

2.Summary of Significant Accounting Policies

a.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 US dollars. The Company’s fiscal year-end is February 28. While the information presented in the accompanying
interim financial statements is unaudited, it includes all adjustments which are in the opinion
of management, necessary to present fairly the financial position, results of operations and cash flows for the interim period
presented in accordance with accounting principles generally accepted in the United States of America. All adjustments are of a
normal recurring nature.

Although these interim financial statements follow the same
accounting policies and methods of their application as the Company’s February 28, 2011 annual financial statements, they
do not include all information and footnotes required by generally accepted accounting principles for complete financial statements.
Accordingly, it is suggested that these interim financial statements be read in conjunction with the Company’s February 28,
2011 annual financial statements.

b.Use of Estimates

The preparation of financial statements in conformity with U.S.
generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The
Company regularly evaluates estimates and assumptions related to donated services and deferred income tax asset valuation allowances.
The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes
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 the Company may differ materially and adversely from the Company’s estimates. To the extent there are material
differences between the estimates and the actual results, future results of operations will be affected.











Sentry Petroleum Ltd.
(An Exploration Stage Company)

Notes to the Interim  Consolidated Financial
Statements

August 31, 2011





2.Summary
of Significant Accounting Policies (continued)

c.Comprehensive Loss



In accordance with Financial Accounting Standards Board
(“FASB”) Accounting Standards Code (“ASC”) topic 220 “Comprehensive Income”(formerlyFAS130), comprehensive income consists of net income and other gains and losses affecting stockholder's equity that
are excluded from net income, such as unrealized gains and losses on investments available for sale, foreign currency translation
gains and losses and minimum pension liability. For the period ending August 31, 2011, the Company’s other comprehensive
income represented foreign currency translation adjustments.

d.Cash and Cash Equivalents

The Company considers all highly liquid instruments
with maturity of three months or less at the time of issuance to be cash equivalents. As at August 31, 2011, the Company has $
Nil ($Nil in 2010) in cash equivalents. As at August 31, 2011, $14,123 was deposited in accounts that were federally insured ($49,904
in February 28, 2011).

e.Oil and Gas Property

The Company follows the full cost method of accounting
for oil and gas operations whereby all costs associated with the acquisition, exploration and development of oil and gas properties
will be capitalized in cost centers on a country-by-country basis.  These capitalized amounts include the costs of unproved
properties, internal costs directly related to acquisitions, development and exploration activities, asset retirement costs and
capitalized interest. They include geological and geophysical studies, and costs of drilling both productive and non-productive
wells.

Amortization will be calculated for producing properties
by using the unit-of-production method based on proved reserves before royalties, as determined by management of the Company or
independent consultants.  Unproved reserves are exempt from amortization and are subject to annual assessment as noted below.
Sales of oil and gas properties will be accounted for as adjustments of capitalized costs, without any gain or loss recognized,
unless such adjustments significantly alter the relationship between capitalized costs and proved reserves of oil and gas attributable
to a cost center.  Costs of abandoned oil and gas properties will be accounted for as adjustments of capitalized cost and
written off to expense.

A ceiling test will be applied to each cost center
by comparing the net capitalized costs to the present value of the estimated future net revenue from production of proved reserves,
based on commodity prices in effect as at the Company’s year-end and based on current operating costs, discounted by 10%,
less the effects of future costs to develop and produce the proved reserves, plus the lower of costs or estimated fair value of
unproved properties net of impairment, and less the effects of income taxes.  Any excess capitalized costs are written off
to operations.

Unproved properties will be assessed for impairment
on an annual basis by applying factors that rely on historical experience. In general, the Company may write-off any unproved property
under one or more of the following conditions:

i) 	there are no firm plans for
further drilling on the unproved property;

ii)	 negative results were obtained
from studies of unproved property;

ii) 	negative results were obtained
from studies conducted in the vicinity of the unproved property; or

iv)	the remaining term of the
unproved property does not allow sufficient time for further studies or drilling.

f.Asset Retirement Obligations

The Company will recognize a liability for future asset
retirement obligations associated with oil and gas properties.  The estimated fair value of the asset retirement obligation
will be based on current cost escalated at an inflation rate and discounted at a credit adjusted risk-free rate.  This liability
will be capitalized as part of the cost of the related asset and amortized over its useful life.  The liability will accrete
until the Company settles the obligation.  As of August 31, 2011, the Company did not have any asset retirement obligations.









Sentry Petroleum Ltd.
(An Exploration Stage Company)

Notes to the Interim  Consolidated Financial
Statements

August 31, 2011







2.Summary of Significant
Accounting Policies (continued)

g.Fair Value Measurements

Effective January 1, 2008, the Company adopted ASC
topic 820 “Fair Value Measurements and Disclosures”, for all financial instruments and non-financial instruments
accounted for at fair value on a recurring basis. ASC 820 establishes a single definition of fair value and a framework for measuring
fair value, sets out a fair value hierarchy to be used to classify the source of information used in fair value measurement and
expands disclosures about fair value measurements required under other accounting pronouncements. It does not change existing guidance
as to whether or not an instrument is carried at fair value.

The Company defines fair value as the price that would
be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at
fair value, the Company considers the principal or most advantageous market in which the Company would transact and the market-based
risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer
restrictions and credit risk.  The Company has adopted ASC 825, “Financial Instruments”,which allows
companies to choose to measure eligible financial instruments and certain other items at fair value that are not required to be
measured at fair value.The Company has not elected the fair value option for any eligible financial instruments.

h.Financial Instruments and Risk

Financial instruments, which include cash, accounts
payable, accrued liabilities and amounts due to a related party were estimated to approximate their carrying values due to the
immediate or short-term maturity of these financial instruments. The Company’s wholly owned subsidiary’s operations
are in Australia, which may result in exposure to market risks from changes in currency rates. The Company does not use derivative
instruments to reduce its exposure to foreign currency risk.

i.	Foreign Currency Translation

The Company's functional currency is US dollars. Foreign
currency balances are translated into US dollars as follows:

Monetary assets and liabilities are translated at the
period-end exchange rate. Non-monetary assets are translated at the rate of exchange in effect at their acquisition, unless such
assets are carried at market or nominal value, in which case they are translated at the period-end exchange rate. Revenue and expense
items are translated at the average exchange rate for the period. Foreign exchange gains and losses arising from foreign currency
transactions are included in the determination of net income for the respective periods.

The functional currency of the wholly owned subsidiary
is Australian dollars. The assets and liabilities arising from these operations are translated at current exchange rates and related
revenues and expenses at the exchange rates in effect at the time the revenue or expense is incurred. Resulting translation adjustments,
if material, are accumulated as a separate component of accumulated other comprehensive income in the statement of stockholders'
deficit while foreign currency transaction gains and losses are included in operations.

j.Basic and Diluted Net Income (Loss) per Share

Basic net income (loss) per share is computed by dividing
net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period.
 Diluted net income (loss) per share on the potential exercise of the equity-based financial instruments is not presented
where anti-dilutive.

k.Income Taxes

The Company accounts for income taxes under an asset
and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences
of events that have been recognized in the Company's financial statements or tax returns. In estimating future tax consequences,
all expected future events other than enactment of changes in the tax laws or rates are considered.

Due to the uncertainty regarding the Company's future
profitability, the future tax benefits of its losses have been fully allowed for and no net tax benefit has been recorded in the
financial statements during the periods presented.







Sentry Petroleum Ltd.
(An Exploration Stage Company)

Notes to the Interim  Consolidated Financial
Statements

August 31, 2011







2.Summary of Significant
Accounting Policies (continued)

l.Stock-based Compensation

On the Company’s inception
of February 23, 2006, the Company adopted the fair value recognition provisions ofASC topic 718 “Stock Compensation”
(formerly FAS 123(R)under which the Company records stock-based compensation expense for warrants and
stock options granted to employees, directors and officers using the fair value method. Under this method, stock-based compensation
is recorded over the vesting period of the warrant and option based on the fair value of the warrant and option as the grant date.
The fair value of each warrant and option granted is estimated using the Black-Scholes option pricing model that takes into account
on the grant date, the exercise price, expected life of the warrant and/or option, the price of the underlying security, the expected
volatility, expected dividends on the underlying security, and the risk-free interest rate. Transactions in which goods or services
are received from non-employees in exchange for the issuance of equity instruments are accounted for based on the fair value of
the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable.

Stock based compensation is recorded with a corresponding
increase to additional paid-in capital. Consideration received on the exercise of warrants and options, together with the amount
previously credited to additional-paid in capital, is recognized as an increase in common stock.

m.Equipment

Equipment is initially recorded at cost and amortized
to operations over its estimated useful life at the following amortization rates and methods:

|Computer  equipment and software | 55%  straight line per annum
|-------------------------------- | ----------------------------
|Furniture  and fixtures          | 20%  straight line per annum

Equipment is written down to its net realizable value
if it is determined that its carrying value exceeds the estimated future benefits to the Company.

n.Revenue Recognition

The Company recognizes revenue when a contract is in
place, minerals are delivered to the purchaser and collectability is reasonably assured.

o.Consolidation

The consolidated financial statements include the accounts
of the Company and its subsidiary, Sentry Petroleum (Australia) Pty. Ltd. All significant inter-company balances and transactions
have been eliminated.

p.Recent Accounting Pronouncements

The Company adopts new pronouncements relating to generally
accepted accounting principles applicable to the Company as they are issued, which may be in advance of their effective date.  Management
does not believe that any recently issued but not yet effective accounting standards; if currently adopted would have a material
effect on the accompanying financial statements.

1. Unproved properties

The Company’s oil and gas properties are located
in Australia and its interests in these properties are maintained pursuant to the terms of Authority to Prospect (“ATP”)
granted by the Department of Mines and Energy in Queensland. The Petroleum and Gas (Production and Safety) Act 2004 provides
the framework for accessing land to explore and develop petroleum and coal seam gas resources in Queensland. The granting process
involves a commitment to a work program that must be carried out within specific time periods. See Note 7 Commitments.

Sentry Petroleum Ltd.
(An Exploration Stage Company) Notes to the Interim  Consolidated Financial
Statements August 31, 2011    3.	Unproved properties – (continued) During the year ended February 28, 2009, the Company
acquired 100% working interest in the following tenures in Queensland Australia for cash consideration revealed below: ATP 862,
ATP 864, ATP 865, ATP 866, and EPC 1758. A 7% gross overriding royalty was given to the original tenure holder. Period Ended August 31, 2011
    Year Ended February 28, 2011Acquisition
    Exploration
    Total
    
    Acquisition
    Exploration
    TotalCosts
    Costs
    Costs
    
    Costs
    Costs
    Costs$
    $
    $
    
    $
    $
    $ATP 862
    10,568
    1,196,750
    1,207,318
    
    10,626
    129,452
    140,078ATP 864
    10,568
    94,401
    104,969
    
    10,626
    34,652
    45,278ATP 865
    7,713
    172,808
    180,521
    
    7,713
    153,494
    161,207ATP 866
    10,568
    37,203
    47,771
    
    10,626
    25,724
    36,350EPC 1758
    60,569
    (60,569)
    -
    
    52,595
    -
    52,59599,986
    1,440,593
    1,540,579
    
    92,186
    343,321
    435,508  EPC 1758 was surrendered during the period ending May
31, 2011 and all capitalized costs were written off. 4.Equipment Period ended August 31, 2011
    
    Year ended February 28, 2011Accumulated
    Net  Book
    
    
    Accumulated
    Net  BookCost
    Amortization
    Value
    
    Cost
    Amortization
    Value$
    $
    $
    
    $
    $
    $Computer  equipment
    12,691
    (10,081)
    2,610
    
    9,923
    (9,306)
    617Furniture  and fixtures
    1,246
    (1,065)
    181
    
    1,246
    (940)
    306Seismic software
    15,150
    (15,150)
    -
    
    15,150
    (15,150)
    -Total
    29,087
    (26,238)
    2,791
    
    26,319
    (25,396)
    923  Common stock On February 23, 2006, the Company issued 2 common shares
to the President of the Company for cash proceeds of $1. On March 8, 2006, the Company issued 10,000,000 common
shares at $.01 per common share to the President of the Company for cash proceeds of $100,000. In addition, the Company cancelled
the 2 common shares issued to the President of the Company. On November 17, 2006, the Company issued 6,325,600
common shares at $.05 per common share for cash proceeds of $316,280. On November 2, 2007, the Company issued 30,000,000
common shares at $.025 per common share for cash proceeds of $750,000     Sentry Petroleum Ltd.
(An Exploration Stage Company) Notes to the Interim  Consolidated Financial
Statements August 31, 2011    5. 	Common stock (Continued) Effective November 26, 2007, the Company authorized
a 2 for 1 share split. These financial statements give retroactive application to this event. On December 3, 2007, the Company increased its authorized
share capital to 100,000,000, common shares of $.0001 par value. On February 5, 2010, the Company increased
its authorized share capital to 200,000,000, common shares of $.0001 par value. On November 4, 2010 the Company issued
416,667 units consisting of one common share and one common share purchase warrant pursuant to a Private Placement for total consideration
of $500,000. The warrants are exercisable for a period of 24 months at a price of $1.50 during the first 12 months and $1.75 thereafter. On December 16, 2010 the Company Issued
83,334 shares of common stock at $1.20 per share for cash proceeds of $100,000 On April 14, 2011 the Company issued
227,273 shares of common stock at $2.20 per share for cash proceeds of $500,000. On April 20, 2011 a shareholder exercised
333,333 warrants at a price of $1.50 per share and the Company issued 333,333 common shares for proceeds of $500,000. On June 7, 2011 the Company issued
60,000 shares to a consultant for investor relations services. The compensation was booked at the fair value of the shares and
was determined to be $180,600, which represents the market value of the shares which approximates the value of the services performed.
The compensation is reflected in General and Administrative expenses on the Income Statement. 6.Stock options and warrants Since 2009, the following management options have been awarded
to our Board of Directors and management team. WeightedAverageNumber of
    
    ExerciseOptions
    
    PriceOutstanding at February 28, 2009
    925,000
    $
    1.04Granted
    1,325,000
    
    0.25Cancelled
    (100,000)
    
    1.04Outstanding at February 28, 2010
    2,150,000
    $
    0.55Granted
    400,000
    
    1.30Granted
    1,100,000
    
    3.01Outstanding at February 28, 2011
    3,650,000
    $
    1.38Outstanding at August 31, 2011
    3,650,000
    $
    1.38   The stock options outstanding February 28, 2009 vested over
3 years, with one-third vesting each year. For the stock options granted in 2010 and 2011, two-thirds vest after 2 years and one-third
vest after 3 years or when the Company books initial 3P reserves      Sentry Petroleum Ltd.
(An Exploration Stage Company) Notes to the Interim  Consolidated Financial
Statements August 31, 2011   6. 	Stock options and warrants (Continued) A recap of the terms of the stock options as at August 31,
2011 is as follows: Year
        awarded
    Number
    Exercise price
    Currently
        Exercisable
    Fair   Value
    Expiry Date2009
    825,000
    $1.04
    550,000
    $653,407
    February 20142010
    1,325,000
    $0.25
    -
    $255,107
    February 20152010
    400,000
    $1.30
    -
    $461,871
    November 20152011
    1,100,000
    $3.01
    -
    $2,528,999
    February 2016  The fair value for stock options
was estimated using the Black-Scholes option pricing model assuming no expected dividends and the following weighted average assumptions: 2010 Options
    
    2011 OptionsExpected volatility
    112.86%
    
    Expected volatility
    111.21%Risk-free interest rate
    2.30%
    
    Risk-free interest rate
    2.39%Expected life of options
    3 years
    
    Expected life of options
    4.5 yearsFair value
    $0.188 - $0.201
    
    Fair value
    $2.247. - $2.404  During the six month period ended August
31, 2011, the Company recognized $821,070 in stock-based compensation expense ($164,184 in 2010). As at August 31, 2011, there were
$2,042,898 of unrecognized compensation costs related to non-vested stock options. Commitments Under the oil and gas tenures
described in Note 3 and in the assignment agreements with the original grantor, the Company is committed to the following work
programs in order to maintain its interest in those tenures. Tenure
    
    Commitment
    
    Commitmentin US $
    
    PeriodRemainingATP 862
    
    5,544,000
    
    1 yearsATP 864
    
    5,275,000
    
    1 yearsATP 865
    
    3,958,000
    
    1 yearsATP 866
    
    4,721,000
    
    1 years    Item 2.	Management's Discussion and Analysis of Financial Condition
and Results of Operation Forward-Looking Statements This Form 10-Q includes certain statements that
may be deemed to be "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934. All statements in this Form 10-Q, other than statements of historical
facts, that address activities, events or developments that we expect, believe or anticipate will or may occur in the future, including
operating costs, future capital expenditures (including the amount and nature thereof), and other such matters are forward-looking
statements. The words “believe,” “expect,” “anticipate,” “intend,” “estimate,”
“may,” “should,” “could,” “will,” “plan,” “future,” “continue,”
and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters
identify forward-looking statements. These forward-looking statements are based largely on our expectations or forecasts of future
events, can be affected by inaccurate assumptions, and are subject to various business risks and known and unknown uncertainties,
a number of which are beyond our control.  Therefore, actual results could differ materially from the forward-looking
statements contained in this document, and readers are cautioned not to place undue reliance on such forward-looking statements.  We
undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future
events or otherwise.  A wide variety of factors could cause or contribute to such differences and could adversely impact
revenues, profitability, cash flows and capital needs.  There can be no assurance that the forward-looking statements
contained in this document will, in fact, transpire or prove to be accurate. Important factors that
may cause the actual results to differ materially from the forward-looking statements, projections or other expectations include,
but are not limited to, the following: ·ability to secure adequate financing on a timely basis; ·ability to complete our planned work program, which is a condition of maintaining
our permits in good standing; ·if we do not complete our planned work program on a timely basis, we may
be required to relinquish our permits; ·changes in our business strategy; ·the timing of exploration expenditures; ·access and availability of materials, equipment, supplies, labor and supervision,
power and water; ·results of current and future exploration activities; ·accidents and labor disputes; ·disappointing results from our exploration or development efforts; ·decline in demand for our common stock; ·changes in general market conditions; ·investor perception of our industry or our prospects; ·technological changes in the oil and gas exploration industry, including
technological innovations by competitors or in competing technologies; ·the proximity of natural gas production to natural gas pipelines; ·the availability of pipeline capacity; ·the demand for oil and natural gas by utilities and other end users; ·the availability of alternate fuel sources; ·the effect of inclement weather; ·changes in oil and gas exploration, processing and overhead costs; ·unexpected changes in business and economic conditions; ·changes in interest rates and currency exchange rates; ·commodity price fluctuations, including changes in the worldwide price for
oil and gas; ·government regulation of oil and natural gas marketing; ·government regulation of natural gas sold or transported in interstate commerce; ·acquisition opportunities or lack of opportunities; ·changes in laws or regulations; ·risk factors listed from time to time in our reports filed with the Securities
and Exchange Commission and ·local and community impacts and issues. The forgoing list is not an exhaustive list of
the factors that may affect any of our forward-looking statements. These and other factors should be considered carefully and readers
should not place undue reliance on our forward-looking statements. Although we believe that the expectations reflected
in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.
 You should not place undue reliance on these forward-looking statements, which speak only as of the date of this report.
 Except as required by law, we do not undertake to update or revise any of the forward-looking statements to conform these
statements to actual results, whether as a result of new information, future events or otherwise. As used in this report, “Sentry Petroleum,”
the “Company,” “we,” “us,” or “our” refer to Sentry Petroleum Ltd., unless otherwise
indicated. Overview We were incorporated
in Nevada on February 23, 2006 and are a Denver, Colorado-based oil and gas exploration stage company.We are considered
an exploration stage company because we are involved in the examination and investigation of land that we believe may contain hydrocarbon
reserves. Our current focus is on the exploration of properties
for which we acquired four exploration permits (Authority to Prospect 862, 864, 865, and 866) to exclusively
engage in exploration for oil and gas in central Queensland, Australia. ATP 862, 864, 865, and 866 each have a maximum term of
12 years, but can be terminated earlier for failure to carry out exploration work programs on theproperties underlying
these permits within certain time constraints. Our obligations on the four ATPs include obtaining additional seismic data and drilling
of wells on each of the permits prior to February 2012. The total estimated cost to complete our obligations by February 28, 2012
is approximately $13 million (see Footnotes to financial statements for further detail on our exploration obligations). We currently
have insufficient funding to complete the required obligations to maintain our permits. We have commenced our exploration program on ATP
862, 864, 865, and 866. We hold a 100% working interest in ATP 862, 864, 865, and 866, subject to a 7% gross overriding royalty
payable to the original tenure holder.In the aggregate, our permits encompass approximately 6.9 million net acres. On March 14, 2011, we awarded an option to Sino
American Oil Company (“Sino”) for consideration of $25,000, which gave Sino the right to earn a 70% interest in ATP
865 and 866 by drilling one conventional well to a depth of 1,660 meters and to shoot 100 line Km of seismic. On June 27, 2011,
we reached a mutual agreement with Sino American Oil Company to terminate this option agreement. The termination relieves both
parties from any further rights or obligations awarded in the option and Sino is entitled to return of the $25,000 consideration
Sino paid to us upon execution of the option agreement in March 2011. The properties underlying our permits are without
known reserves and the proposed plan of exploration detailed below is exploratory in nature. There is
no assurance that we will discover commercial quantities of hydrocarbons. In addition, even if hydrocarbons are discovered, the
costs of development may render any hydrocarbons found to be not commercially viable. If we do not find hydrocarbon reserves or
are unable to develop reserves, either because we do not have sufficient capital or the costs of extraction are uneconomical, we
will have to cease operations. As part of our regular business activities,
we routinely review and assess interests in exploration or productionpropertiesin Australia and Austral Asia for our possible acquisition. We seek additional properties or permits that we believe have
the potential to add shareholder value. There can be no assurance that we will be successful in acquiring additional property interests
or permits. In order to acquire any additional exploration or productionproperties, we will
need to secure additional financing. We require significant additional funding to
complete the work program we committed to when acquiring our current exploration properties. We anticipate raising additional financing
through the sale of equity securities to finance these exploration obligations, although there can be no assurance that such funding
will be available. In the absence of sufficient financing to finance our exploration activity required to carry out our proposed
exploration programs, we will not be able to pursue our exploration program or to maintain our permits in good standing.  If
we do not execute on our proposed exploration programs, we may be required to relinquish our interests in our permits and will
be forced to cease operations. Additionally, there can be no assurance that
if we are successful in securing funding that we will be successful in discovering commercial quantities of hydrocarbons, or that
we will have access to funds to develop a successful discovery without significant dilution or cost to our stockholders. Our business plan is limited in its scope and
we intend to derive all of our revenue from a discovery of commercial quantities of hydrocarbons. Specifically, discovering sufficient
quantities of hydrocarbons to warrant their profitable development. We have no other business plans and if we are unsuccessful
in discovering commercial quantities of hydrocarbons our business will fail. During the three months ended May 31, 2011, we
completed the final preparation for our drilling program. We completed contracts with the landowners, finalized the design and
budgeting for each well and secured service contracts with the necessary drilling and testing companies. On June 15, 2011, we commended
drilling on the initial wellin ATP 862, the Talundilly_CSG1. We completed drilling of this initial
well on June 24, 2011, after reaching target depth (TD) of 436 meters. A total of 15.26 meters of coal and carbonaceous shale cores
were collected and forwarded for gas desorption testing. Net coal thickness collected was 12.7 meters. Due to certain anomalous
data from what we believe could have been errors made during the testing process, we are not in a position based on the data received
to determine the commerciality of the coal and carbonaceous shale deposit surrounding Talundilly_CSG1. An additional six to eight
wells will need to be drilled to obtain more data in order to make any conclusive determination as to the results from the desorption
analysis. [what is the anticipated cost and timing?]Drilling of an additional six to eight wells will require significant
additional funding to complete. During the three months ended August 31, 2011,
we completed the drilling of the Albilbah_CSG1 well in permit ATP 862 in Queensland Australia. The well reached a total depth of
1,555 feet and 472 feet of core were cut. 35 feet of gaseous coal and carbonaceous rock were sealed in 20 canisters for desorption
measurement. In addition, the lower Winton Sandstones were found to contain free gas and 20 feet of these cores were also placed
in canisters to measure the gas emitted from the cores. Evidence of gas in the canisters prompted the re-evaluation of the original
Albilbah-1 (drilled by a previous operator) well logs to investigate the possibility of gas being present in the pore space of
the LWSS. Sentry’s log analysis concluded that gas is present in a net 115 feet of the 250 feet interval. Further drilling
and testing is required in order to make any determination as to whether the amount of gas present can be economically produced
and no assurance can be provided that the amount of gas found to exist will be capable of being economically produced. With the completion of our current drilling campaign,
we are currently finalizing the laboratory analysis and completion by end of October 2011. Our forward going strategy from that
point will be based on our conclusions from this analysis. We will engage independent consultants to review and audit our findings.
If our findings support certification of reserves, we will engage consultants to commence the certification process. We anticipate
that the testing, analysis, and certification of our results will cost $100,000. We have sufficient funds to complete the laboratory
analysis and independent review of our finding, however will require additional funding for any future exploration or appraisal
work.   Plan of Operation Our plan of operations for the next twelve months
is to continue our work obligations on ATP 862, 864, 865, and 866 in the Adavale basin in Queensland Australia and to continue
our assessment of various onshore exploration permits in Australia and Asia. To further explore the delineated coal and carbonaceous
shale deposit in ATP 862 and 864, we plan to drill eight to ten wells by March of 2012,assuming we are able to secure sufficient
financing. This program will quantitatively measure original gas in place using canister desorption and core logging methods and
we will commence flow testing of one or two of the wells. In addition to exploration of the coal and carbonaceous shale deposit
we intend to drill two well to flow test the Winton Sandstone interval intercepted during drilling of Albilbah_CSG1 and we intend
to acquire additional seismic data. We expect that in total these activities would cost$10 million. We do not have sufficient
funds to complete such activities, however will require additional funding for any future exploration or appraisal work. In ATP 865 and 866, we plan to undertake a seismic
program to advance our prospects during the next 6 monthsassuming we are able to secure sufficient financing. We further
plan to drill one conventional well, the Ravenscourt, to test the Etonvale Formation at a depth of approximately 1,700 meters (5,580
feet) downdip from the Rosebank-1 well and will be targeting a thicker carbonate section. We expect that such activities would
cost $3.5 million.We do not have sufficient funds to complete such activities, however will require additional funding
for any future exploration or appraisal work. Our work program includes acquisition of seismic
data and drilling of additional wells. The time to complete the acquisition of seismic data and drilling of wells depends on, among
other things, the availability of personnel and equipment in Queensland. The associated costs will be determined by the depth of
the wells and the amount of seismic data to be acquired. In addition to our current permits, we are continuously
investigating additional opportunities in Queensland and other parts of South-East Asia. We do not have sufficient funds to carry out our
plan of operations for the next twelve months. We rely principally on the issuance of common shares by private placements to raise
funds to finance our business. There is no assurance that market conditions will continue to permit us to raise funds when required.
If possible, we will issue more common shares at prices we determine, possibly resulting in dilution of the value of common shares. With our ATP 862, 864, 865, and 866, we are obliged
to complete proposed work programs to maintain our interests in good standing. As of August 31, 2011 our committed expenditures
over the next year total $19.5 million. However, the completion of the work program is determined for each permit individually
and there is no cumulative analysis on work completed. The following table details the capital expenditure
required by February 28, 2012 for us to maintain good standing on our four permits: ATP 862
    ATP 864
    ATP 865
    ATP 866Deep Upholes
    
    $305,000
    $305,000
    $-
    $-Seismic Reprocessing
    
    406,000
    137,000
    142,000
    142,000Shooting of Seismic
    
    2,035,000
    2,035,000
    1,017,000
    1,017,000Drilling of Petroleum wells
    
    2,797,000
    2,797,000
    2,797,000
    3,560,000$5,543,000
    $5,274,000
    $3,956,000
    $4,719,000  We do not have sufficient capital to satisfy the
required future exploration expenditures needed to maintain our four ATP permits in good standing and we will rely principally
on the issuance of common stock to raise funds to finance the expenditures that we expect to incur. Failure to raise the required
funds to complete our commitments will result in the failure to meet our obligations and the relinquishment of one or more of our
permits. We have relied principally on the issuance of our common stock in private placements to raise funds to support our business,
but there can be no assurance that we will be successful in raising additional funds through the issuance of additional equity.
We have planned and budgeted for the required work and at the date of this report have sufficient time to complete most of the
required work prior to February 28, 2012 provided that we are able to obtain sufficient financing on a timely basis. We do not expect any significant purchases of plant
and equipment or any increase in the number of employees in the near future. We anticipate incurring expenses of approximately
$19 million over the next 12 months for our exploration program. There can be no guarantee that we will be able to secure the necessary
financing and equipment to undertake the work program within the anticipated time frame. If we are unsuccessful in securing sufficient
financing and equipment we may be subject to relinquishment of any one or all of our existing permits. Results of Operations for the Three and Six Months Ended August
31, 2011 and 2010 Revenues We have not generated any revenues from
operations since our inception. Expenses We reported total expenses in the amount
of $770,781 for the three months ended August 31, 2011, compared to total expenses of $111,978 for the three months ended August
31, 2010.  Our total expenses were significantly higher for the three months ended August 31, 2011, as compared to the
three months ended August 31, 2010. For the six month period ended August 31, 2011 we reported total expenses of $1,364,539 compared
to $213,529 for same period last year. The substantial increase in costs for the six and three month periods are mostly related
to increased cost of deferred compensation from additional options awarded, from increased shareholder communication expenditures,
write down of exploration assets associated with our surrender of EPC 1758 and from increased travel related to financing activities.
EPC 1758 was surrendered during the period ending May 31, 2011 and all capitalized costs were at that time written off. We incurred general and administrative
expenses of $721,094 for the three months ended August 31, 2011, compared to $105,052 for the three months ended August 31, 2010. For
the six month period ended August 31, 2011, we reported 1,276,231 compared to $199,076 for the same period in 2010. The increase
in our general and administrative expenses for both the three and six month periods are primarily attributable to the increased
cost of deferred compensation from additional options awarded, increased investor communication expenses and travel related expenses.
For the three months ended August 31, 2011, we incurred deferred compensation of $410,535, compared to $88,045 for the three months
ended August 31, 2010. For the six month period ended August 31, 2011, we reported deferred compensation expenses of $821,070 compared
to $164,183 for the six month period of 2010. During the three months ended August 31, 2011, we also incurred shareholder communication
expenses of $246,217, compared to $859 for the same period in 2010. For the six month period ended August 31, 2011, we incurred
shareholder communication expenses of $339,838 compared to $ 1,765 for the same period in 2010. The increase was caused by increased
frequency of communication with a substantial greater number of shareholders and from issuing 60,000 shares to a consultant for
investor relation services. For the three months ended August 31, 2011, we further incurred $37,762 related to travel and funding
activities as compared $2,638 for the three months ended August 31, 2010. For the six months ended August 31, 2011, we incurred
$64,492 for these activities compared to $2,638 for the six months ended August 31, 2010. Professional fees for the three months
ended August 31, 2011 did not change significantly from the professional fees reported for the same period in the prior year. We
incurred professional fees of $3,134 for the three months ended May 31, 2011, compared to $2,853 for the three months ended August
31, 2010. For the six month periods ended August 31, 2011 and 2010 we incurred professional fees of $27,389 and 13,514, respectively.
The increase in professional fees for the six month period is attributable to an increase in our exploration activity and specifically
to contract negotiations with land owners and with service providers for our drilling program. We anticipate that we will incur
increased professional fees as we continue our work programs and exploration activity. We recorded no gain or loss on foreign
exchange for the three months ended August 31, 2011, compared to a loss of $4,073 for the same period in the prior year. For the
six month period ended August 31, 2011, we reported a foreign exchange loss of $350 compared to $939 for the same period in 2010.
The loss on foreign exchange was realized during the six months ended August 31, 2011 as a result of fluctuation in the US dollar
as compared to the Australian dollars During the three months ended August 31,
2011, we expensed $6,553 in write down of exploration assets due to our surrender of EPC 1758 during the reporting period. For
the six month period ended August 31, 2011, we expensed $60,569. We did not incur any write down of exploration assets during the
three or six months ended August 31, 2011. Other Income We reported other income of $11,253
for the three months ended August 31, 2011 and other income of $7 for the three months ended August 31, 2010. For the six
month periods ending August 31, 2011 and August 31, 2010, we reported other income of $15,108 and $39, respectively. Other income
was attributable to interest received on bank deposits and increased do to additional funds held in Australian Dollar at a higher
interest rate than U.S. rates. Net Loss We had net loss of $719,582 for the three
months ended August 31, 2011, as compared to net loss of $111,971 for the three months ended August 31, 2011. We had net loss of
$1,349,431 for the six months ended August 31, 2011, as compared to net loss of $213,490 for the six months ended August 31, 2011. The
increase in our net loss was attributable to increased expenses described above. Basic and Diluted Loss per Share As a result of the above, the basic and diluted
loss per common share was $0.02 and $0.00 for the three months ended August 31, 2011 and 2010, respectively. Basic and diluted
loss per common share was $0.03 and $0.00 for the six months ended August 31, 2011 and 2010, respectively. Liquidity and Capital Resources As of August31, 2011, we had total current assets of $232,341 (February 2011: $689,015), which included cash of $121,447, prepaid expenses
of $7,238, and sales taxes receivable of $103,686. As of August 31, 2011, we had total current liabilities in the amount of $49,232
(February 2011: $103,163). As a result, we had working capital of $183,109 as of August
31, 2011 (February 2011: $585,852). We anticipate that we will not generate
any revenue during the next twelve months. In 2008, the proposal to the local government for permitsATP 862, 864, 865 and 866 of an exploration program with a total estimated commitment of approximately $19.5 million to be completed
by February 28, 2012 was approved. As of the date of this report, we have expended approximately $1,600,000 in exploration expenditures
in executing on the proposal to the local government forpermitsATP 862, 864, 865 and 866 and
we are obligated to complete the $19.5 million in exploration expenditures by February 28, 2012 in order to maintain our permits
in good standing. If we do not complete our work obligations, there is a risk that we will lose our rights to continue operations
on our permits. In order for us to complete our work obligations we will have to raise additional funds. There can be no assurance
that we will be able to raise sufficient funds to complete our obligations. In addition to these expenditures anticipated
to be incurred in connection with our proposed exploration programs, we anticipate spending approximately $60,000 in ongoing general
and administrative expenses for the next twelve months.   The general and administrative expenses for the year will consist
primarily of professional fees for the audit and legal work relating to our regulatory filings throughout the year, as well as
general office expenses. Our current cash on hand is insufficient
to be able to make our planned exploration expenditures and to pay for our general administrative expenses over the next twelve
months.  We must obtain additional financing in order to continue our plan of operations for the next twelve months.
We do not have any lending arrangements in place with banking institutions and believe that debt financing will not be an alternative
for funding our exploration programs as we have limited tangible assets to secure any debt financing. We anticipate that additional
funding will be in the form of equity financing from the sale of our common stock.  We are currently seeking additional
funding in the form of equity financing from the sale of our common stock, but cannot provide any assurance that we will be able
to raise sufficient funding from the sale of our common stock to fund our proposed exploration programs that is a requirement in
order to maintain our permits in good standing. During the six months ended August 31, 2011, we raised $1,000,000 through private
equity offerings and entered into an agreement that provided for future financing through the issuance of 400,000 common shares
for $1.0 million upon our ability to confirm average gas content of coal of not less than 2.5 cubic meters per ton dry ash free
and; for Carbonaceous Shale - not less than average 0.5 cubic meters per ton for shale with total organic content greater than
8 weight percent.  This agreement also provides for the issuance of 535,714 shares for $1.5 million upon an initial 3P reserve
certification.  There is no assurance that these conditions will be satisfied in order to enable us to closing on these financing
commitments. We are considering entering into a joint
venture arrangement to finance the exploration activity required to carry out our proposed exploration programs on the properties
underlying our permits.  We are seeking to locate a joint venture participant, but can provide no assurance that we will
be successful.  In the event that we enter into a joint venture arrangement, we would likely have to assign a percentage
of our property interests to the joint venture participant. If we are unable to raise additional capital
in the immediate future, we will experience liquidity problems and management expects that we will need to curtail operations,
liquidate assets, seek additional capital on less favorable terms and/or pursue other remedial measures. In the absence of sufficient
financing to finance our exploration activity required to carry out our proposed exploration programs, we will not be able to pursue
our exploration program and maintain our permits in good standing.  If we do not execute on our proposed exploration
programs, we may be required to relinquish our interests in our permits and will be forced to cease operations. Cash Used in Operating Activities Cash flows used in operating activities
for the six months ended August 31, 2011 were $449,202, as compared to cash flows used in operating activities of $71,760 for the
six months ended August 31, 2010.  Our net loss of $1,349,431 for the six months ended August 31, 2011 was the primary
reason for our negative operating cash flow, as compared to our net loss of $213,490 for the six months ended August 31, 2010.
Our reporting negative operating cash flows for the six months ended August 31, 2011 was offset by stock-based compensation of
$821,670, services paid for with stock of $180,000, and write off of exploration assets of $60,569 for the reporting period. Cash Used in Investing Activities For the six months ended August 31, 2011,
we used $1,141,332 in investing activities, as compared to $26,086 for the six months ended August 31, 2010.  For the
six months ended August 31, 2011, we invested $1,138,810 in unproven properties, as compared to the six months ended August 31,
2010, in which we invested of $26,086 in unproven properties. Cash from Financing Activities As we have had no revenues since inception,
we have financed our operations primarily by using existing capital reserves and through private placements of our common stock.  For
the six months ended August 31, 2011, we generated $1,000,000 from the issuance of common shares, as compared to no cash flows
provided by financing activities for the six months ended August 31, 2010. Off-balance sheet arrangements We do not have any off-balance sheet arrangements. Going Concern We have incurred net losses for the period
from inception on February 23, 2006 to August 31, 2011 of $3,270,096 and have no source of revenue.  The continuity of
our future operations is dependent on our ability to obtain financing from issuance of equity securities.  These conditions
raise substantial doubt about our ability to continue as a going concern. Recent accounting pronouncements There have been
no recent accounting pronouncements since the filing of our Annual Report on Form 10-K, filed onAugust 31,
2011, that have a material impact on the Company's financial presentation and disclosure. Critical Accounting Policies Our condensed unaudited consolidated financial
statements have been prepared in conformity with GAAP. For a full discussion of our accounting policies as required by GAAP, please
refer to our Annual Report on Form 10-K for the year ended February 28, 2011. We consider certain accounting policies to be critical
to an understanding of our condensed consolidated financial statements because their application requires significant judgment
and reliance on estimations of matters that are inherently uncertain. The specific risks related to these critical accounting policies
are unchanged at the date of this report and are described in detail in our Annual Report on Form 10-K. Item 3. Quantitative and Qualitative Disclosures About Market
Risk. Not Applicable. Item 4. Controls and Procedures. Evaluation of Disclosure Controls and Procedures Disclosure controls
and procedures are designed to ensure that information required to be disclosed in the reports filed or submitted under the Exchange
Act is recorded, processed, summarized and reported, within the time period specified in the SEC's rules and forms. Disclosure
controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be
disclosed in the reports filed under the Exchange Act is accumulated and communicated to management, including the Chief Executive
Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. As of the end of
the period covered by this report, the Company carried out an evaluation, under the supervision and with the participation of the
Company's management, including the Company's Chief Executive Officer and former Chief Financial Officer, of the effectiveness
of the design and operation of the Company's disclosure controls and procedures. Based upon and as of the date of that evaluation,
the Chief Executive Officer and Chief Financial Officer concluded as ofMay 31, 2011 that the
Company's disclosure controls and procedures are effective. Limitations on the Effectiveness of Internal Controls Our management does not expect that our disclosure
controls and procedures or our internal control over financial reporting will necessarily prevent all fraud and material error.
Our disclosure controls and procedures are designed to provide reasonable assurance of achieving our objectives and our Chief Executive
Officer and former Chief Financial Officer concluded that our disclosure controls and procedures are effective at that reasonable
assurance level. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits
of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation
of controls can provide absolute assurance that all control issues and instances of fraud, if any, within our Company have been
detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns
can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons,
by collusion of two or more people, or by management override of the internal control. The design of any system of controls also
is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design
will succeed in achieving its stated goals under all potential future conditions. Over time, control may become inadequate because
of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate.   Changes in Internal Control over Financial Reporting There were no changes
in our internal control over financial reporting during the quarter endedAugust 31, 2011that
have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.   PART II -OTHER INFORMATION Item 1.	Legal Proceedings None. Item 1A.	Risk Factors (Not Applicable). Item 2.	Unregistered Sales of Equity Securities and Use
of Proceeds None. Item 3.	Defaults Upon Senior Securities None. Item 4.(Removed
and Reserved). Not applicable. Item 5.	Other Information None. Item 6.	Exhibits See the Exhibit Index included as
the last part of this report (following the signature page), which is incorporated herein by reference.   SIGNATURES Pursuant to the requirements 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. SENTRY PETROLEUM LTD. (Registrant) Dated: October, 13 2011
    By:
    RAJ RAJESWARANPresident and Chief Executive OfficerDated: October 13 2011
    By:
    PAUL BOLDYChief Financial Officer     SENTRY PETROLEUM LTD. (the “Registrant”) (Commission File No. 000-52794) Exhibit Index to Quarterly Report on Form 10-Q for the Quarter Ended August 31, 2011  Exhibit
        Number
    Description31.1
    Certification of Chief Executive Officer pursuant
        to Exchange Act Rule 13a-14(a) or Rule 15d- 14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.31.2
    Certification of Chief Financial Officer pursuant
        to Exchange Act Rule 13a-14(a) or Rule 15d- 14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.32.1
    Certification of Chief Executive Officer and
        Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley
        Act of 2002.   101.INS *
    XBRL Instance Document101.SCH *
    XBRL Taxonomy Extension Schema Document101.CAL *
    XBRL Taxonomy Extension Calculation Linkbase Document1.01 LAB *
    XBRL Extension Labels Linkbase Document101.PRE *
    XBRL Taxonomy Extension Presentation Linkbase Document101.DEF *
    XBRL Taxonomy Extension Definition Linkbase Document  *In accordance with SEC rules, this interactive data file is deemed “furnished”
and not “filed” for purposes of Sections 11 or 12 of the Securities Act of 1933 and Section 18 of the Securities and
Exchange Act of 1934, and otherwise is not subject to liability under those sections or acts.