|                                  |         |                                    |
|---------------------------------------|--------------|-----------------------------------------|
| Nevada                                |         | 20-4952339                              |
| (State or other jurisdiction of  |         | (IRS Employer Identification No.)  |
| incorporation or organization)   |    |                               |

|  Yes  [X] |   No  [_] |
|---------------------|--------------------------|

|   |  Large accelerated filer [_]      |  Accelerated Filer [_]         |
|--------|---------------------------------------------|-------------------------------------|
|   |                                        |                                |
|   |  Non-accelerated filer   [_] |  Smaller reporting company [X] |

| Yes  [_]  |   No  [X] |
|---------------------|--------------------------|

----

| Item 1.                           | Financial Statements (Unaudited)                                                            |
|-----------------------------------|---------------------------------------------------------------------------------------------|
|                              |                                                                                        |   |   | Page |
|                              |                                                                                        |   |   |
|                              | Balance Sheets – June 30, 2012 and December 31, 2011                                  |   | 1 |
|                              |                                                                                        |   |   |   |
|                              | Statements of Operations -                                                                  |   |   |
|                              |                                                                                        | Three and Six months ended June 30, 2012 and 2011 and |   |   |
|                              |                                                                                        | From December 11, 2007 (Inception) to June 30, 2012 |   | 2 |
|                              |                                                                                        |   |   |   |
|                              | Statements of Shareholders’ Deficit                                                   |   | 3 |
|                              |                                                                                        |   |   |   |
|                              | Statements of Cash Flows –                                                            |   |   |
|                              |                                                                                        | Six months ended June 30, 2012 and 2011 and |   |   |
|                              |                                                                                        | From December 11, 2007 (Inception) to June 30, 2012 |   | 4 |
|                              |                                                                                        |   |   |   |
|                              | Notes to the Condensed Financial Statements                                                 |   | 5 |
|                              |                                                                                        |   |   |   |
| Item 2.                           | Management’s Discussion and Analysis of Financial Condition and Results of Operations |   | 9 |
|                              |                                                                                        |   |   |   |
| Item 3.                           | Quantitative and Qualitative Disclosures About Market Risk                                  |   |   |
|                              | – Not Applicable                                                                      |   | 11 |
|                              |                                                                                        |   |   |   |
| Item 4.                           | Controls and Procedures                                                                     |   | 11 |
|                              |                                                                                        |   |   |   |
| PART II – OTHER INFORMATION |                                                                                        |   |
|                              |                                                                                        |   |   |   |
| Item 1.                           | Legal Proceedings                                                                           |   | 11 |
|                              |                                                                                        |   |   |   |
| Item 1A.                          | Risk Factors                                                                                |   | 11 |
|                              |                                                                                        |   |   |   |
| Item 2.                           | Unregistered Sales of Equity Securities and Use of Proceeds                                 |   | 12 |
|                              |                                                                                        |   |   |   |
| Item 3.                           | Defaults Upon Senior Securities                                                        |   | 12 |
|                              |                                                                                        |   |   |   |
| Item 4.                           | Mine Safety Disclosures                                                                     |   | 12 |
|                              |                                                                                        |   |   |   |
| Item 5.                           | Other Information                                                                           |   | 12 |
|                              |                                                                                        |   |   |   |
| Item 6.                           | Exhibits                                                                                    |   | 12 |
|                              |                                                                                        |   |   |   |
| SIGNATURES                        |                                                                                        | 13 |

----

|                                                            |   | June 30,    |       |   |         |   |
|-----------------------------------------------------------------|--------|-------------|------------|--------|--------------|--------|
|                                                            |   | 2012        |       |   | December 31, |   |
|                                                            |   | (Unaudited) |       |   | 2011         |   |
| ASSETS                                                          |   |        |       |   |         |   |
| Current assets:                                                 |   |        |       |   |         |   |
| Cash                                                            |   | $           | -          |   |         | $      | 1,581 |   |
| Other receivable                                                |   |        | 8,698      |   |         |   | 4,631 |   |
| Total current assets                                            |   |        | 8,698      |   |         |   | 6,212 |   |
|                                                            |   |        |       |   |         |   |   |   |
| Total assets                                                    |   | $           | 8,698      |   |         | $      | 6,212 |   |
|                                                            |   |        |       |   |         |   |   |   |
|                                                            |   |        |       |   |         |   |   |   |
| LIABILITIES AND SHAREHOLDERS' DEFICIT                           |   |        |       |   |         |   |   |   |
| Current liabilities:                                            |   |        |       |   |         |   |   |   |
| Accounts payable and accrued liabilities                        |   | $           | 385,511    |   |         | $      | 342,373 |   |
| Accounts payable - related party                                |   |        | 127,867    |   |         |   | 288,516 |   |
| Notes payable                                                   |   |        | 20,000     |   |         |   | 20,000 |   |
| Line of credit                                                  |   |        | 97,500     |   |         |   | 22,500 |   |
| Convertible notes payable, net                                  |   |        | 302,769    |   |         |   | 305,518 |   |
| Derivative liability                                            |   |        | 111,770    |   |         |   | 123,075 |   |
| Accrued interest                                                |   |        | 138,700    |   |         |   | 100,841 |   |
| Accrued interest - related party                                |   |        | -          |   |         |   | 192,596 |   |
| Total current liabilities                                       |   |        | 1,184,117  |   |         |   | 1,395,419 |   |
|                                                            |   |        |       |   |         |   |   |   |
| Long-term note payable                                          |   |        | -          |   |         |   | 3,500,000 |   |
| Total liabilities                                               |   |        | 1,184,117  |   |         |   | 4,895,419 |   |
|                                                            |   |        |       |   |         |   |   |   |
| Commitments and Contingencies                                   |   |        |       |   |         |   |   |   |
| Shareholders' deficit:                                          |   |        |       |   |         |   |   |   |
| Common stock par value $.005, 1,000,000,000 shares authorized,  |   |        |       |   |         |   |   |   |
| 205,620,453 and 79,562,497 issued and outstanding, respectively |   |        | 1,028,136  |   |         |   | 397,846 |   |
| Additional paid-in-capital                                      |   |        | 1,998,706  |   |         |   | (1,500,060 | ) |
| Deficit accumulated during the development stage                |   |        | (4,202,261 | )      |         |   | (3,786,993 | ) |
| Total shareholders' deficit                                     |   |        | (1,175,419 | )      |         |   | (4,889,207 | ) |
| Total liabilities and shareholders' deficit                     |   | $           | 8,698      |   |         | $      | 6,212 |   |

----

|                                    |   |               |        |   |               |   |       |             |   |   |             |   |   | December 11, 2007 |       |
|-----------------------------------------|--------|--------------------|-------------|--------|--------------------|--------|------------|------------------|--------|--------|------------------|--------|--------|-------------------|------------|
|                                    |   | Three Months Ended |        |   | Three Months Ended |   |       | Six Months Ended |   |   | Six Months Ended |   |   | (Inception) to    |       |
|                                    |   | June 30, 2012      |        |   | June 30, 2011      |   |       | June 30, 2012    |   |   | June 30, 2011    |   |   | June 30, 2012     |       |
|                                    |   |               |        |   |               |   |       |             |   |   |             |   |   |              |       |
| Operating expenses:                     |   |               |        |   |               |   |       |             |   |   |             |   |   |              |       |
| Professional fees                       |   | $                  | 27,201      |   |               | $      | 246,078    |             |   | $      | 94,049           |   |   | $                 | 251,778    |   |   | $ | 442,490 |   |
| Impairment of oil and gas properties    |   |               | -           |   |               |   | -          |             |   |   | -                |   |   |              | -          |   |   |   | 1,984,383 |   |
| General and administrative expenses     |   |               | 33,589      |   |               |   | 466,292    |             |   |   | 122,985          |   |   |              | 481,339    |   |   |   | 734,196 |   |
| Total operating expenses                |   |               | 60,790      |   |               |   | 712,370    |             |   |   | 217,034          |   |   |              | 733,117    |   |   |   | 3,161,069 |   |
|                                    |   |               |        |   |               |   |       |             |   |   |             |   |   |              |       |   |   |   |   |   |
| Other expense:                          |   |               |        |   |               |   |       |             |   |   |             |   |   |              |       |   |   |   |   |   |
| Loss on investment in Quad Energy       |   |               | -           |   |               |   | (475,000   | )                |   |   | -                |   |   |              | (475,000   | ) |   |   | (500,000 | ) |
| Interest expense                        |   |               | (114,924    | )      |               |   | (22,438    | )                |   |   | (175,796         | )      |   |              | (39,170    | ) |   |   | (326,158 | ) |
| Interest expense - related party        |   |               | -           |   |               |   | (53,702    | )                |   |   | (22,438          | )      |   |              | (79,158    | ) |   |   | (215,034 | ) |
| Total other expense                     |   |               | (114,924    | )      |               |   | (551,140   | )                |   |   | (198,234         | )      |   |              | (593,328   | ) |   |   | (1,041,192 | ) |
| Net Loss                                |   | $                  | (175,714    | )      |               | $      | (1,263,510 | )                |   | $      | (415,268         | )      |   | $                 | (1,326,445 | ) |   | $ | (4,202,261 | ) |
|                                    |   |               |        |   |               |   |       |             |   |   |             |   |   |              |       |   |   |   |   |   |
| Per share information:                  |   |               |        |   |               |   |       |             |   |   |             |   |   |              |       |   |   |   |   |   |
| Basic and diluted loss per common share |   | $                  | (0.001      | )      |               | $      | (0.016     | )                |   | $      | (0.003           | )      |   | $                 | (0.027     | ) |   |   |   |   |
|                                    |   |               |        |   |               |   |       |             |   |   |             |   |   |              |       |   |   |   |   |   |
| Weighted average shares outstanding     |   |               | 186,233,279 |   |               |   | 79,642,145 |             |   |   | 147,182,959      |   |   |              | 49,807,389 |   |   |   |   |   |

----

|                                     |   |         |        |   |       |   |      |            |   |   | Deficit Accumulated |   |   |             |       |
|------------------------------------------|--------|--------------|-------------|--------|------------|--------|-----------|-----------------|--------|--------|---------------------|--------|--------|------------------|------------|
|                                     |   |         |        |   |       |   |      | During          |   |   | Total               |   |
|                                     |   | Common Stock |        |   | Additional |   |      | Development     |   |   | Stockholders'       |   |
|                                     |   | Shares       |        |   | Amount     |   |      | Paid-in-Capital |   |   | Stage               |   |   | Equity (Deficit) |       |
|                                     |   |         |        |   |       |   |      |            |   |   |                |   |   |             |       |
|                                     |   |         |        |   |       |   |      |            |   |   |                |   |   |             |       |
| Balance at December 11, 2007 (Inception) |   |         | -           |   |       | $      | -         |            |   | $      | 1,984,383           |   |   | $                | -          |   |   | $ | 1,984,383 |   |
| Balance at December 31, 2010             |   |         | -           |   |       |   | -         |            |   |   | 1,984,383           |   |   |             | -          |   |   |   | 1,984,383 |   |
| Reverse Merger - February 23, 2011       |   |         | 69,818,386  |   |       |   | 349,092   |            |   |   | (3,876,668          | )      |   |             | -          |   |   |   | (3,527,576 | ) |
| Conversion of debentures                 |   |         | 8,660,111   |   |       |   | 43,334    |            |   |   | 37,459              |   |   |             | -          |   |   |   | 80,793 |   |
| Common stock issued for services         |   |         | 244,000     |   |       |   | 1,220     |            |   |   | 35,380              |   |   |             | -          |   |   |   | 36,600 |   |
| Common stock and warrants issued         |   |         | 840,000     |   |       |   | 4,200     |            |   |   | 46,200              |   |   |             | -          |   |   |   | 50,400 |   |
| Stock compensation expense               |   |         | -           |   |       |   | -         |            |   |   | 273,186             |   |   |             | -          |   |   |   | 273,186 |   |
| Net loss                                 |   |         | -           |   |       |   | -         |            |   |   | -                   |   |   |             | (3,786,993 | ) |   |   | (3,786,993 | ) |
| Balances at Decemebr 31, 2011            |   |         | 79,562,497  |   |       |   | 397,846   |            |   |   | (1,500,060          | )      |   |             | (3,786,993 | ) |   |   | (4,889,207 | ) |
| Conversion of debentures                 |   |         | 93,491,818  |   |       |   | 467,459   |            |   |   | 3,555,672           |   |   |             | -          |   |   |   | 4,023,131 |   |
| Stock compensation expense               |   |         | -           |   |       |   | -         |            |   |   | 30,389              |   |   |             | -          |   |   |   | 30,389 |   |
| Net loss                                 |   |         | -           |   |       |   | -         |            |   |   | -                   |   |   |             | (239,554   | ) |   |   | (239,554 | ) |
| Balances at March 31, 2012               |   |         | 173,054,315 |   |       | $      | 865,305   |            |   | $      | 2,086,001           |   |   | $                | (4,026,547 | ) |   | $ | (1,075,241 | ) |
| Conversion of debentures                 |   |         | 32,566,138  |   |       |   | 162,831   |            |   |   | (123,010            | )      |   |             | -          |   |   |   | 39,821 |   |
| Stock compensation expense               |   |         | -           |   |       |   | -         |            |   |   | 35,715              |   |   |             | -          |   |   |   | 35,715 |   |
| Net loss                                 |   |         | -           |   |       |   | -         |            |   |   | -                   |   |   |             | (175,714   | ) |   |   | (175,714 | ) |
| Balances at June 30, 2012                |   |         | 205,620,453 |   |       | $      | 1,028,136 |            |   | $      | 1,998,706           |   |   | $                | (4,202,261 | ) |   | $ | (1,175,419 | ) |

----

|                                                     |   |             |      |   |             |   |       | December 11, 2007 |   |
|----------------------------------------------------------|--------|------------------|-----------|--------|------------------|--------|------------|-------------------|--------|
|                                                     |   | Six Months Ended |      |   | Six Months Ended |   |       | (Inception) to    |   |
|                                                     |   | June 30, 2012    |      |   | June 30, 2011    |   |       | June 30, 2012     |   |
|                                                     |   |             |      |   |             |   |       |              |   |
| Cash flows used in operating activities:                 |   |             |      |   |             |   |       |              |   |
| Net Loss                                                 |   | $                | (415,268  | )      |             | $      | (1,326,445 | )                 |   | $ | (4,202,261 | ) |
| Adjustments to reconcile net loss to net cash            |   |             |      |   |             |   |       |              |   |   |   |   |
| provided by (used in) operating activities:              |   |             |      |   |             |   |       |              |   |   |   |   |
| Debt discount amortization                               |   |             | 124,933   |   |             |   | -          |              |   |   | 258,277 |   |
| Loss on investment in Quad Energy                        |   |             | -         |   |             |   | 475,000    |              |   |   | 500,000 |   |
| Impairment of oil and gas properties                     |   |             | -         |   |             |   | -          |              |   |   | 1,984,383 |   |
| Stock issued for services                                |   |             | -         |   |             |   | 9,600      |              |   |   | 36,600 |   |
| Stock compensation                                       |   |             | 66,104    |   |             |   | 83,021     |              |   |   | 339,290 |   |
| Changes in assets and liabilities:                       |   |             |      |   |             |   |       |              |   |   |   |   |
| Other receivable                                         |   |             | (4,067    | )      |             |   | (3,639     | )                 |   |   | (8,698 | ) |
| Accounts payable                                         |   |             | 44,674    |   |             |   | 416,640    |              |   |   | 40,513 |   |
| Accounts payable - related party                         |   |             | (12,185   | )      |             |   | -          |              |   |   | 276,331 |   |
| Accrued interest                                         |   |             | 104,228   |   |             |   | 104,221    |              |   |   | 205,069 |   |
| Accrued interest - related party                         |   |             | -         |   |             |   | 53,702     |              |   |   | 192,596 |   |
| Net cash used in operating activities                    |   |             | (91,581   | )      |             |   | (187,900   | )                 |   |   | (377,900 | ) |
|                                                     |   |             |      |   |             |   |       |              |   |   |   |   |
| Cash flows from financing activities:                    |   |             |      |   |             |   |       |              |   |   |   |   |
| Proceeds from issuance of short term notes               |   |             | -         |   |             |   | 20,000     |              |   |   | 20,000 |   |
| Proceeds from line of credit                             |   |             | 75,000    |   |             |   | -          |              |   |   | 97,500 |   |
| Proceeds from convertible promissory notes               |   |             | 15,000    |   |             |   | 117,500    |              |   |   | 210,000 |   |
| Proceeds from issuance of common stock and warrants      |   |             | -         |   |             |   | 50,400     |              |   |   | 50,400 |   |
| Net cash provided by financing activities                |   |             | 90,000    |   |             |   | 187,900    |              |   |   | 377,900 |   |
|                                                     |   |             |      |   |             |   |       |              |   |   |   |   |
| Net decrease in cash and cash equivalents                |   |             | (1,581    | )      |             |   | -          |              |   |   | - |   |
| Cash and cash equivalents at the beginning of the period |   |             | 1,581     |   |             |   | -          |              |   |   | - |   |
| Cash and cash equivalents at the end of the period       |   | $                | -         |   |             | $      | -          |              |   | $ | - |   |
|                                                     |   |             |      |   |             |   |       |              |   |   |   |   |
| Supplemental disclosure of cash flow information:        |   |             |      |   |             |   |       |              |   |   |   |   |
| Cash paid for interest expense                           |   | $                | -         |   |             | $      | -          |              |   | $ | - |   |
| Cash paid for income taxes                               |   | $                | -         |   |             | $      | -          |              |   | $ | - |   |
|                                                     |   |             |      |   |             |   |       |              |   |   |   |   |
| Non-cash activities:                                     |   |             |      |   |             |   |       |              |   |   |   |   |
| Debt and interest converted to equity                    |   | $                | 4,062,952 |   |             | $      | -          |              |   | $ | 4,143,745 |   |
|                                                     |   |             |      |   |             |   |       |              |   |   |   |   |

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|                     |   |                                                                     |   |                                                                                                                |   | Ending                                                                                    |   | Stated   |   | Default  |   |    |   | Effective |
|--------------------------|--------|--------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------|--------|----------|--------|----------|--------|---------|--------|-----------|
|                     |   | Principal                                                                |   | Debt                                                                                                                |   | Balance                                                                                   |   | Interest |   | Interest |   | Current |   | Interest  |
| Date of Issuance         |   | @ 6/30/12                                                                |   | Discount                                                                                                            |   | @ 6/30/12                                                                                 |   | Rate     |   | Rate     |   | Rate    |   | Rate      |
| 11/17/2008               |   |          50,000             |   |                    - |   |            50,000                  |   | 6.0%     |   | 18.0%    |   | 18.0%   | (1)    |      | 72.55% |
| 1/29/2009                |   |          50,000             |   |                    - |   |            50,000                  |   | 6.0%     |   | 18.0%    |   | 18.0%   | (1)    |      | 88.00% |
| 1/12/2011                |   |            15,950 |   |                    - |   |              15,950      |   | 8.0%     |   | 22.0%    |   | 8.0%    | (1)    |      | 88.67% |
| 2/23/2011                |   |           63,750       |   |                    - |   |             63,750            |   | 8.0%     |   | 22.0%    |   | 8.0%    | (1)    |      | 88.67% |
| 4/17/2011                |   |           52,500       |   |                    - |   |             52,500            |   | 8.0%     |   | 22.0%    |   | 8.0%    | (1)    |      | 103.82% |
| 5/15/2011                |   |           63,750       |   |                    - |   |             63,750            |   | 8.0%     |   | 22.0%    |   | 8.0%    | (1)    |      | 103.82% |
| 3/28/2012                |   |           15,000       |   |               8,181                           |   |               6,819 |   | 8.0%     |   |     |   | 8.0%    |   |      | 89.82% |
| Total                    |   |         310,950                  |   |               8,181                           |   |          302,769                             |   |     |   |     |   |    |   |      |   |
| (1) Currently in default |   |                                                                     |   |                                                                                                                |   |                                                                                      |   |     |   |     |   |    |   |      |   |
|                     |   |                                                                     |   |                                                                                                                |   |                                                                                      |   |     |   |     |   |    |   |      |   |

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Exhibit 31.1

Exhibit 32.1

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|   | By:    | /s/ Abram Janz                                 |
|--------|--------|------------------------------------------------|
|   |   | Abram Janz,Chief Executive Officer   |
|   |   |                                           |
|   |   |                                           |
|   | By:    | /s/ Abram Janz                                 |
|   |   | Abram Janz,Chief Accounting Officer            |

----