---

UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM 10-QSB

(Mark One)[X] QUARTERLY REPORT UNDER SECTION 13 OR
15(d) OF THE SECURITIES EXCHANGE ACT OF 1934For the quarterly period
ended October 31, 2006

OR

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
EXCHANGE ACTFor the transition period from _____________ to
_____________

Commission file number 000-52152

EXPLORTEX ENERGY
INC.(Exact name of small business issuer as specified in its
charter)

|Nevada                                           | 98-0489027                       
|------------------------------------------------ | ---------------------------------
|(State or other jurisdiction of incorporation or | (IRS Employer Identification No.)
|organization)                                    |                                  

Suite 2410, 650 West Georgia Street, PO Box
11524Vancouver, British Columbia, Canada, V6B 4N7(Address of
principal executive offices)

(604) 689-8336(Issuers telephone number)

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

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

State the number of shares outstanding of each of the issuers
classes of equity stock, as of the latest practicable date: 3,100,000 shares of
common stock issued and outstanding as of December 12, 2006.

Transitional Small Business Disclosure Format (Check one): Yes [
] No [X]

---

- 2 -

PART I  FINANCIAL INFORMATION

|Item 1. | Financial Statements
|------- | --------------------

The accompanying unaudited financial statements of Explortex
Energy Inc. (the Company) have been prepared in accordance with the
instruction from Form 10-QSB pursuant to the rules and regulations of the
Securities and Exchange Commission and, therefore, do not include all
information and notes normally provided in audited financial statements and
should be read in conjunction with the Companys audited financial statements
for the year ended April 30, 2006. In the opinion of management, the
accompanying statements contain all adjustments necessary to present fairly the
financial position of the Company as of October 31, 2006, and its results of
operations, stockholders equity, and its cash flows for the three and six month
periods ended October 31, 2006 and 2005. The results for these interim periods
are not necessarily indicative of the results for the entire year.

---

|EXPLORTEX ENERGY INC.            
|---------------------------------
|(An exploration stage enterprise)
|Balance Sheet                    
|(Unaudited)                      

|(Expressed in
      U.S. Dollars)                                                    |   |             |  
|------------------------------------------------------------------------------------ | - | ----------- | -
|                                                                                     |   | October 31, |  
|                                                                                     |   | 2006        |  
|ASSETS                                                                               |   |             |  
|Current assets                                                                       |   |             |  
|Cash and cash equivalents                                                            | $ | 16,502      |  
|Oil and gas
      property,unproven (Note 3)                                         |   | 42,067      |  
|Total assets                                                                         | $ | 58,569      |  
|                                                                                     |   |             |  
|LIABILITIES                                                                          |   |             |  
|Current liabilities                                                                  |   |             |  
|Accounts payable and accrued expenses                                                | $ | 10,407      |  
|STOCKHOLDERS EQUITY                                                                 |   |             |  
|Share capital                                                                        |   |             |  
|Common stock, $0.001 par value, 75,000,000 shares
      authorized, 3,100,000 issued |   |             |  
|and outstanding                                                                      |   | 3,100       |  
|Additional paid-in capital                                                           |   | 81,400      |  
|Deficit accumulated during the exploration stage                                     |   | (36,338     | )
|Total
      stockholders equity                                                     |   | 48,162      |  
|Total liabilities and stockholders equity                                           | $ | 58,569      |  

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

---

|EXPLORTEX ENERGY INC.                                                   
|------------------------------------------------------------------------
|(An exploration stage enterprise)                                       
|For the period from inception (March 25, 2004) to October
      31, 2006
|Statements of Stockholders Equity                                      
|(Unaudited)                                                             

|(Expressed in
      U.S. Dollars)   |  |              |  |   |         |  |   |             |  |   |               |   |   |         |  
|----------------------------------- |  | ------------ |  | - | ------- |  | - | ----------- |  | - | ------------- | - | - | ------- | -
|                                    |  |              |  |   |         |  |   |             |  |   | Deficit       |   |   |         |  
|                                    |  |              |  |   |         |  |   |             |  |   | accumulated   |   |   |         |  
|                                    |  |              |  |   |         |  |   | Additional  |  |   | during        |   |   | Total   |  
|                                    |  | Common Stock |  |   | paid-in |  |   | exploration |  |   | Stockholders |  
|                                    |  | Shares       |  |   | Amount  |  |   | capital     |  |   | stage         |   |   | equity  |  
|Balance,March 25, 2004 (inception)  |  | -            |  | $ | -       |  | $ | -           |  | $ | -             |   | $ | -       |  
|Net loss for the
      period       |  | -            |  |   | -       |  |   | -           |  |   | (2,000        | ) |   | (2,000  | )
|Balance,April 30, 2004              |  | -            |  |   | -       |  |   | -           |  |   | (2,000        | ) |   | (2,000  | )
|Stock issued at $0.001 per share in |  |              |  |   |         |  |   |             |  |   |               |   |   |         |  
|May 2004                            |  | 2,000,000    |  |   | 2,000   |  |   | -           |  |   | -             |   |   | 2,000   |  
|Net loss for the
      period       |  | -            |  |   | -       |  |   | -           |  |   | (269          | ) |   | (269    | )
|Balance,April 30, 2005              |  | 2,000,000    |  |   | 2,000   |  |   | -           |  |   | (2,269        | ) |   | (269    | )
|Stock issued at $0.075 per share in |  |              |  |   |         |  |   |             |  |   |               |   |   |         |  
|January 2006                        |  | 500,000      |  |   | 500     |  |   | 37,000      |  |   | -             |   |   | 37,500  |  
|Stock issued at $0.075 per share in |  |              |  |   |         |  |   |             |  |   |               |   |   |         |  
|April 2006                          |  | 500,000      |  |   | 500     |  |   | 37,000      |  |   | -             |   |   | 37,500  |  
|Net loss for the
      period       |  | -            |  |   | -       |  |   | -           |  |   | (5,220        | ) |   | (5,220  | )
|Balance,April 30, 2006              |  | 3,000,000    |  |   | 3,000   |  |   | 74,000      |  |   | (7,489        | ) |   | 69,511  |  
|Stock issued at $0.075 per share in |  |              |  |   |         |  |   |             |  |   |               |   |   |         |  
|May 2006                            |  | 100,000      |  |   | 100     |  |   | 7,400       |  |   | -             |   |   | 7,500   |  
|Net loss for the
      period       |  | -            |  |   | -       |  |   | -           |  |   | (28,849       | ) |   | (28,849 | )
|Balance,October 31, 2006            |  | 3,100,000    |  | $ | 3,100   |  | $ | 81,400      |  | $ | (36,338       | ) | $ | 48,162  |  

The accompanying notes are an integral part of these
financial statements

---

|EXPLORTEX ENERGY INC.            
|---------------------------------
|(An exploration stage enterprise)
|Statements of Operations         
|(Unaudited)                      

|(Expressed in
      U.S. Dollars)    |   |                |   |   |              |   |   |              |   |   |             |   |   |             |  
|------------------------------------ | - | -------------- | - | - | ------------ | - | - | ------------ | - | - | ----------- | - | - | ----------- | -
|                                     |   | Cumulative     |   |   |              |   |   |              |   |   |             |   |   |             |  
|                                     |   | March 25, 2004 |   |   | Three Months |   |   | Three Months |   |   | Six Months  |   |   | Six Months  |  
|                                     |   | (inception) to |   |   | Ended        |   |   | Ended        |   |   | Ended       |   |   | Ended       |  
|                                     |   | October 31,    |   |   | October 31,  |   |   | October 31,  |   |   | October 31, |   |   | October 31, |  
|                                     |   | 2006           |   |   | 2006         |   |   | 2005         |   |   | 2006        |   |   | 2005        |  
|                                     |   |                |   |   |              |   |   |              |   |   |             |   |   |             |  
|General and administrative expenses  |   |                |   |   |              |   |   |              |   |   |             |   |   |             |  
|Bank charges                         | $ | 518            |   | $ | 58           |   | $ | 18           |   | $ | 367         |   | $ | 36          |  
|Management fees                      |   | 1,500          |   |   | -            |   |   | -            |   |   | -           |   |   | -           |  
|Office expenses                      |   | 312            |   |   | 195          |   |   | -            |   |   | 312         |   |   | -           |  
|Professional fees                    |   | 28,850         |   |   | 7,870        |   |   | -            |   |   | 24,179      |   |   | -           |  
|Transfer
      agent and filing fees |   | 5,274          |   |   | 1,670        |   |   | -            |   |   | 4,107       |   |   | -           |  
|                                     |   |                |   |   |              |   |   |              |   |   |             |   |   |             |  
|Loss before interest income          | $ | (36,454        | ) | $ | (9,793       | ) | $ | (18          | ) | $ | (28,965     | ) | $ | (36         | )
|                                     |   |                |   |   |              |   |   |              |   |   |             |   |   |             |  
|Interest
      income                |   | 116            |   |   | -            |   |   | -            |   |   | 116         |   |   | -           |  
|                                     |   |                |   |   |              |   |   |              |   |   |             |   |   |             |  
|Net loss                             | $ | (36,338        | ) | $ | (9,793       | ) | $ | (18          | ) | $ | (28,849     | ) | $ | (36         | )
|                                     |   |                |   |   |              |   |   |              |   |   |             |   |   |             |  
|Basic and diluted loss per share     |   |                |   |   |              |   |   |              |   |   |             |   |   |             |  
|Net loss per share                   |   |                |   | $ | (0.00        | ) | $ | (0.00        | ) | $ | (0.01       | ) | $ | (0.00       | )
|                                     |   |                |   |   |              |   |   |              |   |   |             |   |   |             |  
|Weighted average number of           |   |                |   |   |              |   |   |              |   |   |             |   |   |             |  
|common
      shares outstanding      |   |                |   |   | 3,100,000    |   |   | 2,000,000    |   |   | 3,090,217   |   |   | 2,000,000   |  

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

---

|EXPLORTEX ENERGY INC.            
|---------------------------------
|(An exploration stage enterprise)
|Statements of Cash Flows         
|(Unaudited)                      

|(Expressed in
      U.S. Dollars)                      |   |                |   |   |              |   |   |              |   |   |             |   |   |             |  
|------------------------------------------------------ | - | -------------- | - | - | ------------ | - | - | ------------ | - | - | ----------- | - | - | ----------- | -
|                                                       |   |                |   |   |              |   |   |              |   |   |             |   |   |             |  
|                                                       |   | Cumulative     |   |   |              |   |   |              |   |   |             |   |   |             |  
|                                                       |   | March 25, 2004 |   |   | Three Months |   |   | Three Months |   |   | Six Months  |   |   | Six Months  |  
|                                                       |   | (inception) to |   |   | Ended        |   |   | Ended        |   |   | Ended       |   |   | Ended       |  
|                                                       |   | October 31,    |   |   | October 31,  |   |   | October 31,  |   |   | October 31, |   |   | October 31, |  
|                                                       |   | 2006           |   |   | 2006         |   |   | 2005         |   |   | 2006        |   |   | 2005        |  
|                                                       |   |                |   |   |              |   |   |              |   |   |             |   |   |             |  
|Cash flows from (used in) operating
      activities   |   |                |   |   |              |   |   |              |   |   |             |   |   |             |  
|Net loss for the period                                | $ | (36,338        | ) | $ | (9,793       | ) | $ | (18          | ) | $ | (28,849     | ) | $ | (36         | )
|Changes in non-cash working capital
      items:       |   |                |   |   |              |   |   |              |   |   |             |   |   |             |  
|- accounts payable and accrued expenses                |   | 10,407         |   |   | 3,858        |   |   | -            |   |   | 9,057       |   |   | -           |  
|- prepaid                                              |   | -              |   |   | 5,509        |   |   | -            |   |   | -           |   |   | -           |  
|                                                       |   |                |   |   |              |   |   |              |   |   |             |   |   |             |  
|Net cash used in operating activities                  |   | (25,931        | ) |   | (426         | ) |   | (18          | ) |   | (19,792     | ) |   | (36         | )
|                                                       |   |                |   |   |              |   |   |              |   |   |             |   |   |             |  
|Cash flows used in investing
      activities          |   |                |   |   |              |   |   |              |   |   |             |   |   |             |  
|Oil and gas
      properties                           |   | (42,067        | ) |   | (12,044      | ) |   | -            |   |   | (42,067     | ) |   | -           |  
|                                                       |   |                |   |   |              |   |   |              |   |   |             |   |   |             |  
|Net cash used
      in investing activities            |   | (42,067        | ) |   | (12,044      | ) |   | -            |   |   | (42,067     | ) |   | -           |  
|                                                       |   |                |   |   |              |   |   |              |   |   |             |   |   |             |  
|Cash flows from financing activities                   |   |                |   |   |              |   |   |              |   |   |             |   |   |             |  
|Proceeds from issuance of common stock                 |   | 84,500         |   |   | -            |   |   | -            |   |   | 7,500       |   |   | -           |  
|                                                       |   |                |   |   |              |   |   |              |   |   |             |   |   |             |  
|Net cash from financing activities                     |   | 84,500         |   |   | -            |   |   | -            |   |   | 7,500       |   |   | -           |  
|                                                       |   |                |   |   |              |   |   |              |   |   |             |   |   |             |  
|Increase (decrease) in cash and cash
      equivalents |   | 16,502         |   |   | (12,470      | ) |   | (18          | ) |   | (54,359     | ) |   | (36         | )
|                                                       |   |                |   |   |              |   |   |              |   |   |             |   |   |             |  
|Cash and cash equivalents,beginning of period          |   | -              |   |   | 28,972       |   |   | 169          |   |   | 70,861      |   |   | 187         |  
|                                                       |   |                |   |   |              |   |   |              |   |   |             |   |   |             |  
|Cash and cash equivalents, end of period               | $ | 16,502         |   | $ | 16,502       |   | $ | 151          |   | $ | 16,502      |   | $ | 151         |  
|                                                       |   |                |   |   |              |   |   |              |   |   |             |   |   |             |  
|Supplemental cash flow information:                    |   |                |   |   |              |   |   |              |   |   |             |   |   |             |  
|Interest expenses paid                                 | $ | -              |   | $ | -            |   | $ | -            |   | $ | -           |   | $ | -           |  
|Income taxes paid                                      |   | -              |   |   | -            |   |   | -            |   |   | -           |   |   | -           |  

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

---

|EXPLORTEX ENERGY INC.            
|---------------------------------
|(An exploration stage enterprise)
|Notes to Financial Statements    
|October 31, 2006                 
|(Unaudited)                      
|(Expressed in
      U.S. Dollars)

|1. | Basis of Presentation
|-- | ---------------------

The accompanying unaudited interim
balance sheet, statements of operations, statements of shareholders equity and
cash flows reflected all adjustments, consisting of normal recurring adjustments
that are, in the opinion of management, necessary for a fair presentation of the
financial position of the Company, at October 31, 2006 and the results of
operations, shareholders equity and cash flows for the interim period ended
October 31, 2006. The accompanying unaudited financial statements have been
prepared in accordance with the instruction from Form 10-QSB pursuant to the
rules and regulations of the Securities and Exchange Commission and, therefore,
do not include all information and notes normally provided in audited financial
statements and should be read in conjunction with the Companys audited
financial statements for the fiscal year ended April 30, 2006. The result of
operations for the interim periods presented is not necessarily indicative of
the results to be expected for the full year.

The accompanying financial statements
have been prepared in conformity with generally accepted accounting principles
in the United States of America, which contemplates continuation of the Company
as a going concern. However, the Company has sustained substantial operating
losses in recent years resulting in a substantial accumulated deficit. As of
October 31, 2006, the Company had a total of $16,502 in cash and working capital
of $6,095. These factors raise substantial doubt about the Companys ability to
continue as a going concern. The ability of the Company to meet its commitments
as they become payable is dependent on the ability of the Company to obtain
necessary financing or achieving a profitable level of operations. To meet these
objectives, the Company plans to seek additional equity and expects to raise
funds through private or public equity investment in order to support existing
operations and expand the range and scope of its business. There is no assurance
that such additional funds will be available for the Company on acceptable
terms, if at all. Management believes that actions presently taken to revise the
Companys operating and financial requirements provide the opportunity for the
Company to continue as a going concern. The Companys ability to achieve these
objectives cannot be determined at this time. There are no assurances that the
Company will be successful in achieving these goals.

| | a) | Organization
| | -- | ------------

Explortex Energy Inc. (the Company)
was formed on March 25, 2004 under the laws of the State of Nevada. On November
9, 2005, the Company changed its name from Anacot Technologies to Explortex
Energy Inc.

The Company is in the business of
exploring for oil and gas. The Company has not yet determined whether its
properties contain resources that may be economically recoverable. The Company
therefore has not reached the operating stage and is considered to be an
exploration stage company.

The recoverability of resource
property costs is dependent upon the existence of economically recoverable
reserves, confirmation of the Companys interest in the underlying properties,
the ability of the Company to obtain necessary financing to complete the
exploration and upon future profitable production.

| | b) | Going Concern
| | -- | -------------

These financial statements have been
prepared in accordance with generally accepted accounting principles applicable
to a going concern, which contemplates the realization of assets and the
satisfaction of liabilities and commitments in the normal course of business.

---

|EXPLORTEX ENERGY INC.            
|---------------------------------
|(An exploration stage enterprise)
|Notes to Financial Statements    
|October 31, 2006                 
|(Unaudited)                      
|(Expressed in
      U.S. Dollars)

The Company has not generated any
revenue and requires additional funds to maintain its operations. Managements
plans in this regard is to participate in a one percent interest in the
Malcolm-Star well to ascertain whether the well posses commercial quantities of
natural gas. Management must raise additional capital to drill additional wells
and for general working capital.

These conditions raise substantial
doubt about the Companys ability to continue as a going concern. These
financial statements do not include any adjustments that might result from this
uncertainty.

The Company has not generated any
material operating revenues to date.

|2. | Significant Accounting Policies
|-- | -------------------------------
|   |                                
|   | a)                             

Cash equivalents comprise certain
highly liquid instruments with a maturity of three months or less when
purchased. As at October 31, 2006, cash and cash equivalents consist of cash
only.

| | b) | Accounting Estimates
| | -- | --------------------

The preparation of the financial
statements in conformity with generally accepted accounting principles in the
United States of America requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates and
assumptions.

| | c) | Concentration of Credit Risk
| | -- | ----------------------------

The Company places its cash and cash
equivalents with high credit quality financial institutions. As of October 31,
2006 the Company had no balance in a bank beyond insured limits.

| | d) | Oil and Gas Properties
| | -- | ----------------------

The Company utilizes the full-cost
method of accounting for petroleum and natural gas properties. Under this
method, the Company capitalizes all costs associated with acquisition,
exploration and development of oil and natural gas reserves, including leasehold
acquisition costs, geological and geophysical expenditures, lease rentals on
undeveloped properties and costs of drilling of productive and non-productive
wells into the full cost pool on a country by country basis. As of October 31,
2006, the Company had no properties with proven reserves. When the Company
obtains proven oil and gas reserves, capitalized costs, including estimated
future costs to develop the reserves proved and estimated abandonment costs, net
of salvage, will be depleted on the units-of-production method using estimates
of proved reserves. The costs of unproved properties are not amortized until it
is determined whether or not proved reserves can be assigned to the properties.
Until such determination is made the Company assesses annually whether
impairment has occurred, and includes in the amortization base drilling
exploratory dry holes associated with unproved properties.

---

|EXPLORTEX ENERGY INC.            
|---------------------------------
|(An exploration stage enterprise)
|Notes to Financial Statements    
|October 31, 2006                 
|(Unaudited)                      
|(Expressed in
      U.S. Dollars)

The Company applies a ceiling test to
the capitalized cost in the full cost pool. The ceiling test limits such cost to
the estimated present value, using a ten percent discount rate, of the future
net revenue from proved reserves, based on current economic and operating
conditions. Specifically, the Company computes the ceiling test so that
capitalized cost, less accumulated depletion and related deferred income tax, do
not exceed an amount (the ceiling) equal to the sum of: (A) The present value of
estimated future net revenue computed by applying current prices of oil and gas
reserves (with consideration of price changes only to the extent provided by
contractual arrangements) to estimated future production of proved oil and gas
reserves as of the date of the latest balance sheet presented, less estimated
future expenditures (based on current cost) to be incurred in developing and
producing the proved reserves computed using a discount factor of ten percent
and assuming continuation of existing economic conditions; plus (B) the cost of
property not being amortized; plus (C) the lower of cost or estimated fair value
of unproven properties included in the costs being amortized; less (D) income
tax effects related to differences between the book and tax basis of the
property.

For unproven properties, the Company
excludes from capitalized costs subject to depletion, all costs directly
associated with the acquisition and evaluation of the unproved property until it
is determined whether or not proved reserves can be assigned to the property.
Until such a determination is made, the Company assesses the property at least
annually to ascertain whether impairment has occurred. In assessing impairment
the Company considers factors such as historical experience and other data such
as primary lease terms of the property, average holding periods of unproved
property, and geographic and geologic data. The Company adds the amount of
impairment assessed to the cost to be amortized subject to the ceiling test. As
of October 31, 2006, none of the Companys oil and gas properties were
considered impaired.

| | e) | Asset Retirement Obligations
| | -- | ----------------------------

The Company recognizes a liability for
future retirement obligations associated with the Companys oil and gas
properties. The estimated fair value of the asset retirement obligation is based
on the current cost escalated at an inflation rate and discounted at a credit
adjusted risk-free rate. This liability is capitalized as part of the cost of
the related asset and amortized over its useful life. The liability accretes
until the Company settles the obligation.

| | f) | Foreign Currency Transactions
| | -- | -----------------------------

The Company maintains its accounting
records in U.S. Dollars, as follows:

At the transaction date, each asset,
liability, revenue and expense is translated into U.S. dollars by the use of the
exchange rate in effect at that date. At the period end, monetary assets and
liabilities are remeasured by using the exchange rate in effect at that date.
The resulting foreign exchange gains and losses are included in operations and
have not been material to date.

| | g) | Fair Value of Financial Instruments
| | -- | -----------------------------------

The Companys financial instruments
consist of cash and cash equivalents and accounts payable and accrued expenses.
The carrying amounts of these financial instruments approximate fair value due
to the short-term nature of these items. Management is of the

---

|EXPLORTEX ENERGY INC.            
|---------------------------------
|(An exploration stage enterprise)
|Notes to Financial Statements    
|October 31, 2006                 
|(Unaudited)                      
|(Expressed in
      U.S. Dollars)

opinion that the Company is not
exposed to significant interest, currency or credit risks arising from these
financial instruments.

| | h) | Income Taxes
| | -- | ------------

The Company has adopted Statement of
Financial Accounting Standards (SFAS) No. 109, Accounting for Income Taxes,
which requires the Company to recognize deferred tax liabilities and assets for
the expected future tax consequences of events that have been recognized in the
Companys financial statements or tax returns using the liability method. Under
this method, deferred tax liabilities and assets are determined based on the
temporary differences between the financial statements and tax bases of assets
and liabilities using enacted tax rates in effect in the periods in which the
differences are expected to reverse.

| | i) | Comprehensive Income
| | -- | --------------------

The Company adopted SFAS No. 130,
Reporting Comprehensive Income which requires such things as the inclusion of
foreign currency translation adjustments to be reported separately in its
Statement of Stockholders Equity as part of other comprehensive income. The
Company had no other comprehensive income for the periods presented.

| | j) | Loss Per Share
| | -- | --------------

Loss per share is computed by dividing
the net loss attributable to common stockholders by the weighted average number
of common shares outstanding during the period. The Company has adopted SFAS No.
128, Earnings Per Share. Diluted loss per share is equivalent to basic loss
per share as there are no dilutive securities outstanding.

| | k) | Stock-based Compensation
| | -- | ------------------------

Prior to May 1, 2006, the Company
accounted for stock-based awards under the intrinsic value method, which
followed the recognition and measurement principles of APB Opinion No. 25,
Accounting for Stock Issued to Employees, and related Interpretations.
The intrinsic value method of accounting resulted in compensation expense for
stock options to the extent that the exercise prices were set below the fair
market price of the Company's stock at the date of grant.

As of May 1, 2006, the Company adopted
SFAS No. 123(R) using the modified prospective method, which requires
measurement of compensation cost for all stock-based awards at fair value on the
date of grant and recognition of compensation over the service period for awards
expected to vest. The fair value of stock options is determined using the
Black-Scholes valuation model, which is consistent with the Company's valuation
techniques previously utilized for options in footnote disclosures required
under SFAS No. 123, Accounting for Stock Based Compensation, as amended
by SFAS No. 148, Accounting for Stock Based Compensation Transition and
Disclosure.

Since the Company did not issue stock
options to employees during the three and six months ended October 31, 2006 or
2005, there is no effect on net loss or earnings per share had the Company
applied the fair value recognition provisions of SFAS No. 123(R) to stock-based
employee compensation. When the Company issues shares of common stock to
employees and others, the shares of common stock are valued based on the market
price at the date the shares of common stock are approved for issuance.

---

|EXPLORTEX ENERGY INC.            
|---------------------------------
|(An exploration stage enterprise)
|Notes to Financial Statements    
|October 31, 2006                 
|(Unaudited)                      
|(Expressed in
      U.S. Dollars)

| | l) | New Accounting Pronouncements
| | -- | -----------------------------

In July 2006, the Financial Accounting
Standards Board (FASB) issued FASB Interpretation (FIN) No. 48, Accounting
for Uncertainty in Income Taxes-an interpretation of FASB Statement No.
109. This Interpretation provides guidance for recognizing and measuring
uncertain tax positions, as defined in Statement of Financial Accounting
Standards (SFAS) No. 109, Accounting for Income Taxes.FIN No. 48
prescribes a threshold condition that a tax position must meet for any of the
benefit of an uncertain tax position to be recognized in the financial
statements. Guidance is also provided regarding derecognition, classification
and disclosure of uncertain tax positions. FIN No. 48 is effective for fiscal
years beginning after December 15, 2006. The Company does not expect that this
Interpretation will have a material impact on their financial position, results
of operations or cash flows.

|3. | Oil and Gas Property, Unproven
|-- | ------------------------------

In December 2005, the Company entered
into a participation agreement with PB Energy USA Ltd. (PB), for the right to
participate up to a 25% working interest in twenty-four wells by paying 33% of
the leasing, drilling, completing and pipeline costs. The wells will target the
Barnett Shale formation and will be located generally in the Dallas-Fort Worth
area of North Texas.

In May 2006, the Company elected to
participate in a 1% working interest in an exploration well in the Barnett
Shale, which represented 1.33% of the estimated leasing, drilling, completing
and pipeline costs. During the current quarter, the operator voluntarily
relinquished one-fifth of its 25% carried interest in the well due to cost
overruns. The Company now has a 1.07% working interest in the well.

During the quarter ended July 31, 2006,
the Company advanced $35,532 to the operator of the well for its share of the
costs. During the quarter ended October 31, 2006, the Company advanced a further
$6,535 due to cost overruns. At October 31, 2006, $42,067 of the advances has
been spent on drilling, gathering and tie-in activities. The total costs
incurred and excluded from amortization for the Companys oil and gas properties
are summarized as follows:

| |                                   |   | Drilling and |  |   |        | 
| | --------------------------------- | - | ------------ |  | - | ------ | 
| |                                   |   | Gathering    |  |   | Total  | 
| | Malcolm-Star, Barnett Shale       |   |              |  |   |        | 
| |                                   |   |              |  |   |        | 
| | Six months ended October 31, 2006 | $ | 42,067       |  | $ | 42,067 | 
| |                                   |   |              |  |   |        | 
| | Total oil and gas properties      | $ | 42,067       |  | $ | 42,067 | 

As of October 31, 2006, the Companys
oil and gas properties are considered unproven. Based on the status of the
Companys exploration activities, management has determined that no impairment
has occurred.

|4. | Related Party Transactions
|-- | --------------------------

The Companys sole officer and director
acquired 2,000,000 shares of the Companys common stock at a price of $0.001 per
share for gross proceeds of $2,000 during the year ended April 30, 2005.

---

|EXPLORTEX ENERGY INC.            
|---------------------------------
|(An exploration stage enterprise)
|Notes to Financial Statements    
|October 31, 2006                 
|(Unaudited)                      
|(Expressed in
      U.S. Dollars)

|5. | Income Taxes
|-- | ------------

As at October 31, 2006, the Company has
estimated tax losses carryforward for tax purposes of $36,300 which begin to
expire in 2021. This amount may be applied against future federal taxable
income. The Company evaluates its valuation allowance requirements on an annual
basis based on projected future operations. When circumstances change and this
causes a change in managements judgement about the realizability of deferred
tax assets, the impact of the change on the valuation allowance is generally
reflected in current income.

The tax effects of temporary
differences that give rise to the Companys deferred tax asset are as follows:

| | Six months ended
      October 31, |   | 2006   |   |   | 2005 |  
| | ---------------------------------- | - | ------ | - | - | ---- | -
| | Loss carry forwards                | $ | 9,809  |   | $ | 18   |  
| | Valuation
      allowance          |   | (9,809 | ) |   | (18  | )
| |                                    | $ | -      |   | $ | -    |  

|6. | Comparative Amounts
|-- | -------------------

Certain of the comparative amounts have
been reclassified to conform to the current periods presentation.

---

- 13 -

|Item 2. | Managements Discussion and Analysis or Plan
      of Operation.
|------- | ----------------------------------------------------------------

FORWARD LOOKING STATEMENTS

This Quarterly Report may contain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 that involve
risks and uncertainties. In particular such forward-looking statements may be
found in this section. The following discussion and analysis of the financial
condition and results of operations should be read in conjunction with the
financial statements and related notes included elsewhere in this Quarterly
Report. Words or phrases such as hope, expect, intend, plan or similar
expressions are generally intended to identify forward-looking statements. Those
statements involve risks and uncertainties that could cause actual results to
differ materially from the results discussed herein. The principal risks and
uncertainties that may affect our actual performance and results of operations
include the following: general economic conditions; exploration successes, the
acquisition of oil and gas assets, continued availability of capital and
financing; adverse weather; governmental regulations; changes in governmental
and public policy; changes in economic conditions specific to our business;
competition; availability of equipment and qualified personnel and unexpected
operational difficulties. Other risks and uncertainties may also affect the
outcome of our actual performance and results of operations. You are cautioned
not to place undue reliance on the forward-looking statements made in this
Managements Discussion and Analysis or Plan of Operations.

Overview

We are a natural resource exploration stage company engaged in
the participation in the drilling of oil and gas properties in the United
States.

On December 1, 2005, we entered into a non-exclusive
participation agreement (the PB Energy Participation Agreement) with PB Energy
USA Ltd. (PB Energy). PB Energy has the right to participate in certain wells
to be drilled by Star of Texas Energy Services, Inc. (Star of Texas Energy
Services). Star of Texas Energy Services has arranged with land owners and
leaseholders for the rights to drill exploration wells targeting the Barnett
Shale formation in North Texas and has proposed to drill, as operator, one
exploration well a month for twenty-four months. As operator, Star of Texas
Energy Services retains a 25% working interest in each well that is to be
drilled by it as operator. These rights are defined in the participation
agreement to be entered into for each individual well drilled by Star of Texas
Energy Services. Star of Texas Energy Services has the right to assign part or
all of its 25% working interest to third parties.

The PB Energy Participation Agreement gives us the right, but
not the obligation, to participate up to a maximum 25% working interest, subject
to availability, in each exploration well to be drilled by Star of Texas Energy
Services. In order to purchase each 1% working interest in a well, we are
required to pay a project payment of approximately $35,000 per 1% working
participation interest. This amount is based on an estimated gross cost for the
horizontal drilling and completion attempt per well of $2,700,000 and the
requirement under the individual well participation agreement that the 75%
working interest participants are obligated to pay 100% of the actual drilling
and completion costs. In aggregate, we have the option to acquire up to a 25%
working interest in each well by paying up to 33.33% of all costs and expenses
incurred for the joint account under the operating agreement respecting the
drilling and completion of each well.

In May 2006, we elected to participate in our first exploration
well with Star of Texas Energy Services pursuant to the PB Energy Participation
Agreement. To date, we have made cash call payments of $42,067 for a 1% working
interest in the Malcolm-Star #1H natural gas horizontal well (Malcolm-Star).
Based on our 1% working interest, we are obliged to pay for 1.333% of the costs
for drilling and completion of the well, but will only be entitled to receive a
1% revenue interest in the well. Due to cost overruns in the current period, the
operator voluntarily relinquished one-fifth of their 25% carried interest. As a
result, the Company is now entitled to a 1.07% working interest in the
Malcolm-Star well.

---

- 14 -

The Malcolm-Star prospect consists of 211.8 acres in Wise
County, Texas, a core gas area of the Barnett Shale play of North Texas. Star of
Texas Energy Services has access to seismic geological data which shows the area
to be favorable for the drilling of a horizontal well. Star of Texas Energy
Services commenced drilling the Malcolm-Star well on May 22, 2006. The well was
drilled to a depth of 10,500 feet to test the Barnett Shale formation, which was
approximately 2,000 feet farther than expected. The estimated cost of our
proportionate share of the drilling and completion of this well was $35,532,
which we advanced to Star of Texas Energy Services during the current period
ended July 31, 2006. During the quarter ended October 31, 2006, we advanced a
further $6,535 due to cost overruns related to twining of a hole due to lost
equipment. At October 31, 2006, Star of Texas Energy Services had expended
approximately $42,067 of the advance for the drilling, completion and tie-in of
the well. The well is awaiting a frac once equipment is available. We believe
the results of the Malcolm-Star well will be available in the winter of 2007. We
plan to continue to participate in future exploration wells, subject to our
achieving additional financing and subject to our determination to proceed based
on the results of the Malcolm-Star well. There is no assurance that the
Malcolm-Star well will be successful in discovering commercial quantities of gas
from which production can be obtained. Gas pipeline infrastructure is
approximately one mile from the well.

PLAN OF OPERATIONS

Our plan of operations for the next twelve months is to
complete the following objectives within the time periods specified, subject to
our obtaining the funding necessary for continued exploration:

1. We are participating in a 1.07% working interest in the
Malcolm-Star well in the Barnett Shale.  We have advanced $42,067 to the
operator of the well which is estimated to cover our 1.07% working interest in
the costs to lease, drill, complete and tie-in the well. The total cost of the
well was estimated at $2,665,000 but has since risen to approximately $3,500,000
due to the twining of the hole as a result of lost equipment. The drilling of
the Malcolm-Star well was completed in early September 2006 and tied-in in
October 2006. The well is awaiting a frac and we expect the results in the
winter of 2007.

2. If warranted by the results of the Malcolm-Star well, but
not conditional, we intend to participate in working interests in further
Barnett Shale exploration wells as proposed under the PB Energy Participation
Agreement. We would likely proceed with a further 1% working interest in a
Barnett Shale well as evaluated by Star of Texas Energy Services, subject to us
having sufficient financing. We expect the costs of the 1% working interest in
the well to be approximately $35,000. We anticipate that we will have to raise
additional funding in order to participation in new exploration wells. If we
obtain the necessary financing, we anticipate that we could participate in a
second well to be drilled during the winter of 2006/2007 and would take
approximately fifteen weeks to complete.

3. We anticipate spending approximately $1,500 in ongoing
general and administrative expenses per month for the next twelve months, for a
total anticipated expenditure of $18,000 over the next twelve months. The
general and administrative expenses will consist primarily of professional fees
for the audit and legal work relating to our regulatory filings throughout the
year, as well as transfer agent fees and general office expenses.

As at October 31, 2006, we had cash reserves of $16,502 and
working capital of $6,095. We anticipate that our cash and working capital will
be sufficient to enable us to pay for our participation obligations for the
Malcolm-Star well and to pay for the costs of our general and administrative
expenses for the next six months. However, our ability to participate in further
exploration wells will be subject to us obtaining additional financing as these
expenditures will exceed our cash and working capital reserves.

During the twelve month period, we may or may not generate any
revenue dependent on the success of our 1.07% working interest in the
Malcolm-Star well. Accordingly, we will be required to obtain additional
financing in order to continue our plan of operations. We believe that debt
financing will

---

- 15 -

likely not be an alternative for funding additional exploration
wells as we do not have 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. However, we do not have any financing arranged and
we cannot provide investors with any assurance that we will be able to raise
sufficient funding from the sale of our common stock to fund participation in
additional exploration wells. In the absence of such financing, we will not be
able to continue exploration and our business plan will fail. Even if we are
successful in obtaining equity financing to fund additional exploration wells,
there is no assurance that we will obtain the funding necessary to pursue any
further exploration following the completion of the Malcolm-Star well. If we do
not continue to obtain additional financing, we will not be able to continue
with our exploration plan.

RESULTS OF OPERATIONS

Revenues

We have had no operating revenues since our inception on March
25, 2004 through to the six months ended October 31, 2006. We anticipate that we
will not generate any revenues unless our participation in the Malcolm-Star well
is successful and production of natural gas is achieved.

General and Administrative Expenses

Our general and administrative expenses for three and six
months ended October 31, 2006 and 2005 are summarized below:

Three Months
      Ended October 31, 2006
    Three Months
      Ended October 31, 2005
    Six Months Ended
      October 31, 2006
    Six Months Ended
      October 31, 2005General and administrative expensesBank Charges
    $ 58
    $ 18
    $ 367
    $ 36Office expenses
    195
    -
    312
    -Professional Fees
    7,870
    -
    24,179
    -Transfer agent and filing Fees
    1,670
    -
    4,107
    -Total general and administrative expenses
    $ 9,793
    $ 18
    $ 28,965
    $ 36


Professional fees incurred during the six months ended October
31, 2006 related to the completion of our financing in May 2006, the filing of
our SB-2 registration statement with the Securities and Exchange Commission and
expenses associated with being a reporting company under the Securities Exchange
Act of 1934. We did not incur any professional fees during 2005 as we were not
actively raising capital during this period.

Transfer agent and filing fees represented amounts paid to keep
our corporation in good standing with State regulators and with the
establishment of our transfer agent.

LIQUIDITY AND CAPITAL RESOURCES

---

- 16 -

We had cash of $16,502 and working capital of $6,095 at October
31, 2006, compared to cash of $70,861 and working capital of $69,511 at April
30, 2006.

Plan of Operations

We estimate that our total expenditures over the next twelve
months will be approximately $23,000, as outlined above under the heading Plan
of Operations. We anticipate that our cash and working capital will be
sufficient to enable us to participate in the Malcolm-Star exploration well and
to pay for the costs of our general and administrative expenses for the next six
months. However, our ability to participate in further exploration wells will be
subject to us obtaining adequate financing as these expenditures will exceed our
cash reserves. We anticipate that our cash and working capital will be
sufficient to enable us to sustain our operations for the next twelve months,
provided that we do not participate in any additional exploration wells during
this period. If we determine to proceed with participation in any additional
exploration wells during this period, then we will require additional financing.

Cash Used in Operating Activities

Cash used in operating activities was $19,792 for the six
months ended October 31, 2006, compared with cash used in operating activities
of $36 for the six months ended October 31, 2005. The increase in cash used in
operating activities reflects the increase in the net loss from $36 in 2005 to
$28,849 in 2006. We anticipate that cash used in operating activities will
increase during the next year, as discussed under Plan of Operations.

Cash Used in Investing Activities

Cash used in investing activities was $42,067 for the six
months ended October 31, 2006, compared with no cash used in investing
activities for the six months ended October 31, 2005. The increase in cash used
in investing activities is a result of the drilling, completion and tie-in costs
of the Malcolm Star well during the period. Although we have not been advised of
any future cash calls for the Malcolm Star well, cost overruns could occur and
the Company would be committed to fund 1.33% of any such additional costs.

Cash from Financing Activities

We have funded our business to date primarily from sales of our
common stock. From our inception, on March 25, 2004, to October 31, 2006, we
have raised a total of $84,500 from private offerings of our securities. Gross
proceeds from the sale of shares of our common stock during the six months ended
October 31, 2006 totaled $7,500, compared to no such proceeds the six months
ended October 31, 2005.

There are no assurances that we will be able to achieve further
sales of our common stock or any other form of additional financing. If we are
unable to achieve the financing necessary to continue our plan of operations,
then we will not be able to continue our exploration of additional wells and our
venture will fail.

Going Concern

We have not attained profitable operations and are dependent
upon obtaining financing to pursue any extensive exploration activities. For
these reasons our auditors stated in their report that they have substantial
doubt we will be able to continue as a going concern.

Future Financings

---

- 17 -

We anticipate continuing to rely on equity sales of our common
shares in order to continue to fund our business operations. Issuances of
additional shares will result in dilution to our existing shareholders. There is
no assurance that we will achieve any additional sales of our equity securities
or arrange for debt or other financing to fund our planned exploration
activities.

Off-Balance Sheet Arrangements

We have no significant off-balance sheet arrangements that have
or are reasonably likely to have a current or future effect on our financial
condition, changes in financial condition, revenues or expenses, results of
operations, liquidity, capital expenditures or capital resources that is
material to stockholders.

Investment in Oil and Gas Properties

We utilize the full cost method to account for our investment
in oil and gas properties. Accordingly, all costs associated with acquisition
and exploration of oil and gas reserves, including such costs as leasehold
acquisition costs, interest costs relating to unproved properties, geological
expenditures and direct internal costs are capitalized into the full cost pool.
As of October 31, 2006, we had no proven oil and gas properties. When we obtain
proven oil and gas reserves, capitalized costs, including estimated future costs
to develop the reserves and estimated abandonment costs, net of salvage, will be
depleted on the units-of-production method using estimates of proved reserves.
Investments in unproved properties and major development projects including
capitalized interest, if any, are not amortized until proved reserves associated
with the projects can be determined. If the future exploration of unproved
properties is determined uneconomical, the amounts of such properties are added
to the capitalized cost to be amortized.

The capitalized costs included in the full cost pool are
subject to a ceiling test, which limits such costs to the aggregate of the
estimated present value, using an estimated discount rate, of the future net
revenues from proved reserves, based on current economic and operating
conditions and the estimated value of unproven properties.

|Item 8A. | Controls and Procedures.
|-------- | ------------------------

As required by Rule 13a-15 under the Exchange Act, we carried
out an evaluation of the effectiveness of the design and operation of our
disclosure controls and procedures as of October 31, 2006, being the end of the
period covered by this quarterly report. This evaluation was carried out under
the supervision and with the participation of our Chief Executive Officer and
Chief Financial Officer, Mr. Chris Cooper. Based upon that evaluation, our Chief
Executive Officer and Chief Financial Officer concluded that our disclosure
controls and procedures are effective in timely alerting management to material
information relating to us required to be included in our periodic SEC filings
as at the end of the period covered by this report. There have been no changes
in our internal controls or in other factors that could significantly affect
internal controls subsequent to the date we carried out our evaluation.

Disclosure controls and procedures are controls and other
procedures that are designed to ensure that information required to be disclosed
in our reports filed or submitted under the Exchange Act is recorded, processed,
summarized and reported, within the time periods specified in the SECs rules
and forms. Disclosure controls and procedures include, without limitation,
controls and procedures designed to ensure that information required to be
disclosed in our reports filed under the Exchange Act is accumulated and
communicated to management, including our Chief Executive Officer and our Chief
Financial Officer, to allow timely decisions regarding required disclosure.

During our most recently completed fiscal quarter ended October
31, 2006 there were no changes in our internal control over financial reporting
that have materially affected, or are reasonably likely to affect, our internal
control over financial reporting.

---

- 18 -

The term internal control over financial reporting is defined
as a process designed by, or under the supervision of, our principal executive
and principal financial officers, or persons performing similar functions, and
effected by our board of directors, management and other personnel, to provide
reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with
generally accepted accounting principles and includes those policies and
procedures that:

|(a) | Pertain to the maintenance of records that in reasonable
      detail accurately and fairly reflect the transactions and dispositions of
      our assets;                                                                                                                                                                                              
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                         
|(b) | Provide reasonable assurance that transactions are
      recorded as necessary to permit preparation of financial statements in
      accordance with generally accepted accounting principles, and that
      receipts and expenditures of our company are being made only in accordance
      with authorizations of our management and directors; and
|    |                                                                                                                                                                                                                                                                                                                                                         
|(c) | Provide reasonable assurance regarding prevention or
      timely detection of unauthorized acquisition, use or disposition of our
      assets that could have a material effect on the financial
    statements.                                                                                                                                      

PART II  Other Information

|Item 1. | Legal Proceedings.
|------- | ------------------

We are not party to any legal proceedings.

|Item 2. | Unregistered Sales of Equity Securities and
      Use of Proceeds.
|------- | ------------------------------------------------------------------

None.

|Item 3. | Default upon Senior Securities.
|------- | -------------------------------

None.

|Item 4. | Submission of Matters to a Vote of Security
      Holders.
|------- | ----------------------------------------------------------

No matters were submitted to our security holders for a vote
during the first and second quarter of our fiscal year ending April 30, 2007.

|Item 5. | Other Information.
|------- | ------------------

None.

|Item 6. | Exhibits.
|------- | ---------

|Exhibit |                                                                                                                                 
|------- | --------------------------------------------------------------------------------------------------------------------------------
|Number  | Description of Exhibit                                                                                                          
|3.1(1)  | Articles of Incorporation                                                                                                       
|3.2(1)  | By-Laws                                                                                                                         
|3.3(1)  | Certificate of Amendment, as
      filed with the Nevada Secretary of State                                                     
|10.1(1) | Participation Agreement between Explortex
      Energy Inc. and PB Energy USA Ltd. dated December 1, 2005                       
|10.2(1) | Participation Agreement between
      Explortex Energy Inc. and Star of Texas Energy Services, Inc. dated
      December 1, 2005

---

- 19 -

|Exhibit |                                                                                                                                                                                                                                      
|------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Number  | Description of Exhibit                                                                                                                                                                                                               
|31.1(2) | Certification
      of Chief Executive Officer and Chief Financial Officer pursuant to Rule
      13a-14(b) of the Exchange Act.                                                                                                     
|32.1(2) | Certification of Chief
      Executive Officer and Chief Financial Officer pursuant Rule 13a-14(b) of
      the Exchange Act and 18 U.S.C. Section 1350, as adopted pursuant to Section
      906 of the Sarbanes- Oxley Act of 2002.

|(1) | Filed as an exhibit to our registration statement on
      Form SB-2 filed with the Commission on July 10, 2006.
|--- | ----------------------------------------------------------------------------------------------------------------
|    |                                                                                                                 
|(2) | Filed as an exhibit to this Form
  10-QSB                                                                       

SIGNATURES

In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

EXPLORTEX ENEGRY INC.

|Signature        |  | Title                                                     | Date             
|---------------- |  | --------------------------------------------------------- | -----------------
|                 |  | President, Chief Executive Officer, Chief
      Financial |                  
|                 |  | Officer and Director (Principal Executive
      Officer   | December 12, 2006
|/s/ Chris Cooper |  | and Principal Accounting Officer)                         |                  
|Chris Cooper     |  |                                                           |                  

---