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UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM 10-QSB

[X]
     QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JANUARY 31,2008


Commission file Number:000-49870

BIG CAT ENERGY CORPORATION(Exact name of small business issuer as specified in its charter)

Nevada
     61-1500382(State or other jurisdiction of incorporation or organization)
     (I.R.S. Employer Identification Number)


201 W. LakewaySuite 1000Gillette, Wyoming 82718(Address of principal executive offices)

(307) 685-3122(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 [  ]

No State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date:30,041,000 common shares as of March 17, 2008.

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

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

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|         | BIG CAT ENERGY CORPORATION                                                                                            |     
|-------- | --------------------------------------------------------------------------------------------------------------------- | ----
|         |                                                                                                                       |     
|         | INDEX                                                                                                                 |     
|         |                                                                                                                       | Page
|PART 1.  | FINANCIAL INFORMATION                                                                                                 |     
|         |                                                                                                                       |     
|         | ITEM 1. FINANCIAL STATEMENTS                                                                                          |     
|         | Consolidated Balance Sheet as of January 31, 2008 (Unaudited)                                                         | 3   
|         |                                                                                                                       |     
|         | Consolidated Statements of Operations for the three months   ended January 31, 2008 and 2007, and for the period from |     
|         | June 19, 1997 (inception) through January 31, 2008 (Unaudited)                                                        | 4   
|         |                                                                                                                       |     
|         | Consolidated Statements of Cash Flows for the three monthsended January 31, 2008 and 2007, and for the period from    |     
|         | June 19, 1997 (inception) through January 31, 2008 (Unaudited)                                                        | 5   
|         |                                                                                                                       |     
|         | Notes to Unaudited Consolidated Financial Statements                                                                  | 6   
|         |                                                                                                                       |     
|         | ITEM 2. PLAN OF OPERATIONS                                                                                            | 15  
|         |                                                                                                                       |     
|         | ITEM 3. CONTROLS AND PROCEDURES                                                                                       | 22  
|         |                                                                                                                       |     
|PART II. | OTHER INFORMATION                                                                                                     | 23  
|         |                                                                                                                       |     
|         | ITEM 6. EXHIBITS                                                                                                      | 23  
|         |                                                                                                                       |     
|         | SIGNATURES                                                                                                            | 24  

















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PART I.

ITEM 1.    FINANCIAL STATEMENTS.

BIG CAT ENERGY CORPORATION(A Development Stage Company)Consolidated Balance SheetJanuary 31, 2008(Unaudited)

AssetsCurrent assets:Cash
     $
     27,045Marketable securities
     
     1,079,872Accounts receivable
     
     82,500Inventory, at cost
     
     20,118Inventory-installed
     
     7,544Prepaid expenses and other current assets
     
     28,557Total current assets
     
     1,245,636Equipment, net
     
     8,229Oil and Gas Properties-Unevaluated Properties
     
     1,638,689Other assets
     
     62,141Total Assets
     $
     2,954,695Liabilities and Shareholders EquityCurrent liabilities:Payables, accrued liabilities and other
     $
     103,693Minority interest
     
     649,265Shareholders equity:Common stock, $.0001 par value; 100,000,000 shares authorized,30,041,000 shares issued and outstanding
     
     3,004Additional paid-in capital
     
     7,807,351Deficit accumulated during development stage
     
     (5,608,618
     )Total shareholders equity
     
     2,201,737$
     2,954,695




See accompanying notes to consolidated financial statement.



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BIG CAT ENERGY CORPORATION(A Development Stage Company)Consolidated Statements of Operations(Unaudited)June 19,1997For the Three Months
     
     For the Nine Months
     
     (Inception)Ended
     
     Ended
     
     ThroughJanuary 31,
     
     January 31,
     
     January 31,2008
     
     2007
     
     2008
     
     2007
     
     2008Revenues
     $
     15,625
     $
     
     $
     17,500
     $
     
     $
     17,500Costs and expenses:Personnel costs
     
     687,432
     
     123,361
     
     1,958,407
     
     336,754
     
     4,378,127Professional fees
     
     91,169
     
     3,780
     
     197,235
     
     70,390
     
     450,789Other operating supplies
     
     2,350
     
     
     
     2,490
     
     
     
     2,490Other general and administrative
     
     64,629
     
     47,860
     
     194,596
     
     194,739
     
     473,717Depreciation
     
     490
     
     91
     
     1,469
     
     203
     
     2,020Total Expenses
     
     846,070
     
     175,092
     
     2,354,197
     
     602,086
     
     5,307,143LOSS BEFORE OTHER INCOME
     
     (830,445)
     
     (175,092
     )
     (2,336,697)
     
     (602,086)
     
     (5,289,643
     )OTHER INCOME (EXPENSE)Interest income
     
     15,017
     
     9,945
     
     44,290
     
     15,874
     
     80,290(Loss) on valuation from privateplacement
     
     
     
     
     
     (433,000)
     
     
     
     (433,000
     )LOSS BEFORE MINOROTY
     
     (815,428)
     
     (165,147)
     
     (2,725,407)
     
     (586,212)
     
     (5,642,353
     )INTERESTMinority Interest
     
     31,719
     
     
     
     33,735
     
     
     
     33,735NET LOSS
     $
     (783,709)
     $
     (165,147)
     $
     (2,691,672)
     $
     (586,212)
     $
     (5,608,618
     )BASIC AND DILUTIVE (LOSS) PERSHARE
     $
     (0.03)
     $
     (0.01)
     $
     (0.09)
     $
     (0.02)WEIGHTED AVERAGE NUMBER OFSHARES
     
     30,041,000
     
     27,826,712
     
     29,754,768
     
     26,729,813








See accompanying notes to consolidated financial statement.





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BIG CAT ENERGY CORPORATION(A Development Stage Company)Consolidated Statements of Cash Flows(Unaudited)June 19, 1997(inception)For the Nine months ended
     
     ThroughJanuary 31,
     
     January 31,2008
     
     2007
     
     2008Cash Flows From Operating Activities:Net Loss
     $
     (2,691,672
     )     $
     (586,212
     )    $
     (5,608,618
     )Adjustments to reconcile net loss to net cash used byoperating activities:Depletion, depreciation and amortization
     
     1,469
     
     203
     
     2,019Minority interest
     
     (33,735
     )
     
     
     (33,735
     )Stock based compensation
     
     1,388,000
     
     
     
     3,228,000Contributed services and other
     
     
     
     
     
     10,425Loss on valuation from private placement
     
     433,000
     
     
     
     433,000Changes in operating assets and liabilities:Inventory
     
     (20,728
     )
     (3,731
     )
     (27,662
     )Prepaid and other
     
     (27,803
     )
     (754
     )
     (28,557
     )Payables
     
     93,922
     
     7,698
     
     103,693Accounts receivable
     
     (82,500
     )
     
     
     (82,500
     )Net cash used inoperating activities
     $
     (940,047
     )$
     (582,796
     )$
     (2,003,935
     )Cash flows from investing activities:Undeveloped oil and gas properties-purchases
     
     (133,547
     )
     (1,449,003
     )
     (1,927,778
     )Refund of deposit
     
     80,856
     
     
     
     80,856Undeveloped oil and gas properties-sales
     
     208,233
     
     
     
     208,233Equipment purchases
     
     
     
     (4,075
     )
     (10,248
     )Investment in marketable securities-purchases
     
     (801,508
     )
     
     
     (2,614,926
     )Investment in marketable securities-sales
     
     825,018
     
     
     
     1,535,054Other assets
     
     (13,914
     )
     (24,237
     )
     (38,151
     )Net cash used ininvesting activities
     
     165,138
     
     (1,477,315
     )
     (2,766,960
     )Cash flows from financing activities:Proceeds from related party advances
     
     750,000
     
     3,541,500
     
     4,797,901Repayment of related party advances
     
     
     
     (22,582
     )
     (22,543
     )Proceeds from the sale of common stock
     
     
     
     
     
     51,618Payments for offering costs
     
     (790
     )
     (21,752
     )
     (29,036
     )Net cash provided byfinancing activities
     
     749,210
     
     3,497,166
     
     4,797,940Net Increase (Decrease) in cash andcash equivalents
     
     (25,699
     )
     1,437,055
     
     27,045Cash and cash equivalents:Beginning of period
     
     52,744
     
     325,018
     
     0End of period
     $
     27,045
     $
     1,762,073
     $
     27,045Noncash investing and financing transactions:Forgiveness of debt by related party, accounted for asCapital contributed
     
     
     $
     22,582
     $
     22,582Stock issued to related party for ARID technology
     
     
     
     
     $
     23,990Increase in Minority Interest from loss on private
     $
     433,000
     
     
     $
     433,000placementSee accompanying notes to consolidated financial statement.


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BIG CAT ENERGY CORPORATION(A Development Stage Company)Notes to Consolidated Financial Statements(Unaudited)



Note 1: Organization and Nature of OperationsDescription of Operations

Big Cat Energy Corporation and its subsidiary (Big Cat or the Company), a Nevada corporation, owns the exclusive rights to a technology known as the Aquifer Recharge Injection Device (ARID) which allows Coal Bed Methane (CBM) operators to re-inject water produced from productive coal seams. The ARID tool uses the existing well bore to move water from the producing coal seam to depleted aquifers of similar water quality. With the ARID tool and process in use, the production well will not require the discharge of any produced water, or the use of a separate re-injection well for any of the produced water. The produced water never leaves the well bore as it is redirected into different aquifer zones. These aquifers are identified from the geophysical logs.

Big Cat is also an independent energy company engaged in the exploration, exploitation, development, acquisition and production of natural gas and crude oil in the western United States. On May 1, 2007, Big Cat formed a subsidiary, Sterling Oil & Gas Company (Sterling). Big Cat transferred its unevaluated oil and gas properties, consisting of various mineral leases and related costs, in return for 10 million shares of Sterling common stock.

Effective in early December 2007, Big Cat Energy completed an Information Statement to its shareholders, informing them of the Board of Directors decision to spin off its wholly owned subsidiary, Sterling Oil and Gas Company, into a public entity. In conjunction with the spin off of Sterling, the Board of Directors declared a dividend of the 10,000,000 shares of Sterling that Big Cat owned to Big Cat shareholders proportionately to their Big Cat ownership. The effect of these transactions will transfer the Undeveloped Properties currently consolidated with Big Cat Energy Corporation, with a book value of $1,638,689 at January 31, 2008, to Sterling and then for Sterling to be spun-off into an independent company.

The Company is in the development stage in accordance with Statement of Financial Accounting Standards (SFAS) No. 7. The Company has been in the development stage since inception and has yet to enter revenue-producing operations to date. Activities since its inception have primarily involved organization, development of the Company and more recently, its ARID initiative and the acquisition of certain undeveloped acreage.

Note 2: Liquidity

Going Concern

As of January 31, 2008, the Company had working capital of approximately $1,141,943 and stockholders equity of $2,201,737. The Company realized minimal revenues and has incurred significant losses from operations and used significant cash flow to fund operations for the periods presented in this Quarterly Report. Historically, Big Cat has relied upon outside investor funds to maintain its operations and develop its business. Big Cats plan for continuation anticipates continued funding from investors. This funding would be used for operations, for working capital, as well as business expansion during the

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BIG CAT ENERGY CORPORATION(A Development Stage Company)Notes to Consolidated Financial Statements(Unaudited)



upcoming fiscal year. The Company can provide no assurance that additional investor funds will be available on terms acceptable to the Company. These conditions raise substantial doubt about Big Cats ability to continue operations as a going concern.

Big Cats ability to continue as a going concern is dependent upon raising capital through debt or equity financing and ultimately by increasing revenue and achieving profitable operations. The Company can offer no assurance that it will be successful in its efforts to raise additional proceeds or achieve profitable operations. The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities in the normal course of business

Note 3: Basis of Presentation and Significant Accounting Policies

Basis of Presentation

The consolidated financial statements include the accounts of the Company and its subsidiary, Sterling Oil & Gas Company. All significant inter-company balances and transactions have been eliminated. The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information. Accordingly, they do not include all of the information and footnotes required by U. S. generally accepted accounting principles for complete financial statements. In the opinion of management, the consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the Companys results for the periods presented. These consolidated financial statements should be read in conjunction with the Companys Annual Report on Form 10-KSB for the fiscal year ended April 30, 2007. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the full year.

Use of Estimates in the Preparation of Financial Statements

The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of oil and gas reserves, assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on historical experience and on various other assumptions it believes to be reasonable under the circumstances. Although actual results may differ from these estimates under different assumptions or conditions, the Company believes that its estimates are reasonable.

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, amounts held in banks and highly liquid investments purchased with an original maturity of three months or less. The Company may have cash in banks in excess of federally insured amounts.



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BIG CAT ENERGY CORPORATION(A Development Stage Company)Notes to Consolidated Financial Statements(Unaudited)



Short-Term Investments

The Company has purchased unsecured commercial paper (floating rate demand notes) of Ford Motor Credit Company, which are classified as Marketable Securities. These securities are stated at fair value based on quoted market prices. The income earned on these investments is included in interest income in the accompanying financial statements.

Concentrations of Credit Risk

The Companys cash equivalents and short-term investments are exposed to concentrations of credit risk. The Company manages and controls this risk by investing these funds with major financial institutions.

Inventory

Inventory consists of pipe and tubular goods for the Companys ARID systems, and is stated at the lower of cost or market using the average cost valuation method.

Furniture and Equipment

Furniture and equipment is stated at cost. Depreciation is provided on furniture, fixtures and equipment using the straight-line method over an estimated service life of three to seven years.The cost of normal maintenance and repairs is charged to operating expenses as incurred. Material expenditures which increase the life of an asset are capitalized and depreciated over the estimated remaining useful life of the asset.

Oil and Gas Properties

The Company follows the full cost method of accounting whereby all costs related to the acquisition and development of oil and gas properties are capitalized into a single cost center (full cost pool). Such costs include lease acquisition costs, geological and geophysical expenses, overhead directly related to exploration and development activities and costs of drilling both productive and non-productive wells. Proceeds from property sales are generally credited to the full cost pool without gain or loss recognition unless such a sale would significantly alter the relationship between capitalized costs and the proved reserves attributable to these costs. A significant alteration would typically involve a sale of 25% or more of the proved reserves related to a single full cost pool.

Depletion of exploration and development costs and depreciation of production equipment is computed using the units of production method based upon estimated proved oil and gas reserves. The costs of unevaluated properties are withheld from the depletion base until such time as they are either developed or abandoned. The unevaluated properties are reviewed quarterly for impairment. Total well costs are transferred to the depletable pool even when multiple targeted zones have not been fully evaluated. For depletion and depreciation purposes, relative volumes of oil and gas production and reserves are converted at the energy equivalent rate of six thousand cubic feet of natural gas to one barrel of crude oil.



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BIG CAT ENERGY CORPORATION(A Development Stage Company)Notes to Consolidated Financial Statements(Unaudited)



Under the full cost method of accounting, capitalized oil and gas property costs less accumulated depletion and net of deferred income taxes (full cost pool) may not exceed an amount equal to the presentvalue, discounted at 10%, of estimated future net revenues from proved oil and gas reserves less the future cash outflows associated with the asset retirement obligations that have been accrued in the balance sheet plus the cost, or estimated fair value, if lower of unproved properties and the costs of any properties not being amortized, if any. Should the full cost pool exceed this ceiling, impairment is recognized. The present value of estimated future net revenues is computed by applying current oil and gas prices to estimated future production of proved oil and gas reserves as of period end, less estimated future expenditures to be incurred in developing and producing the proved reserves assuming the continuation of existing economic conditions. However, subsequent commodity price increases may be utilized to calculate the ceiling value.

Asset Retirement Obligations

The Company follows the provisions of SFAS No. 143,Accounting for Asset Retirement Obligations. The estimated fair value of the future costs associated with dismantlement, abandonment and restoration of oil and gas properties is recorded when incurred, generally upon acquisition or completion of a well. The net estimated costs are discounted to present values using a risk adjusted rate over the estimated economic life of the oil and gas properties. Such costs are capitalized as part of the related asset. The asset is depleted on the units-of-production method on a field-by-field basis. The associated liability is classified in other long-term liabilities in the accompanying balance sheets. The liability is periodically adjusted to reflect (1) new liabilities incurred, (2) liabilities settled during the period, (3) accretion expense, and (4) revisions to estimated future cash flow requirements. The accretion expense is recorded as a component of depreciation, depletion and amortization expense in the accompanying statements of operations. As of January 31, 2008, the Companys ARO obligation is not significant, as wells are drilled a liability will be established.

Off-Balance Sheet Arrangements

From time-to-time, we enter into off-balance sheet arrangements and transactionsthat can give rise to off-balance sheet obligations. As of January 31, 2008, the off-balance sheet arrangements and transactions that we have entered intoinclude operating lease agreements. The Company does not believe that these arrangements are reasonably likely to materially affect its liquidity or availability of, or requirements for, capital resources.

Income Taxes

Effective May 1, 2007, we adopted the provisions of FASB Interpretation No.48, Accounting for Uncertainty in Income Taxes -- An Interpretation of FASB Statement No. 109, or FIN 48. FIN 48 provides detailed guidance for the financial statement recognition, measurement and disclosure of uncertain tax positions recognized in the financial statements in accordance with SFAS No.109. Tax positions must meet a "more-likely-than-not" recognition threshold at the effective date to be recognized upon the adoption of FIN 48 and in subsequent periods. Upon the adoption of FIN 48, we had no unrecognized tax benefits. During the nine months ended January 31, 2008, we recognized no adjustments for uncertain tax benefits. The tax returns have not been filed for 1997-2005; therefore all years from inception are still open for examination by the federal government.

We recognize interest and penalties related to uncertain tax positions in income tax expense. No interest and penalties related to uncertain tax positions were accrued at January 31, 2008.

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BIG CAT ENERGY CORPORATION(A Development Stage Company)Notes to Consolidated Financial Statements(Unaudited)



Risks and Uncertainties

Historically, oil and gas prices have experienced significant fluctuations and have been particularly volatile in recent years. Price fluctuations can result from variations in weather, levels of regional or national production and demand, availability of transportation capacity to other regions of the country and various other factors. Increases or decreases in prices received could have a significant impact on future results.

Fair Value of Financial Instruments

The Companys financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable and long-term debt. The carrying amounts of such financial instruments approximate fair value due to their short maturities or floating rate structure.

Stock-Based Compensation

The Company accounts for stock-based compensation arrangements in accordance with Statement of Financial Accounting Standards (SFAS No. 123),Accounting for Stock-Based Compensation, which permits entities to recognize as expense over the vesting period, the fair value of all stock-based awards on the date of grant. The Company recorded expense of stock-based compensation during the quarter ended January 31, 2008, totaling $468,000. For the nine months ended January 31, 2008, the company has recorded stock-based compensation of $1,388,000. As of January 31, 2007, the Company did not report pro forma disclosures in the accompanying financial statements as the Company did not have an employee stock option plan.

Research and Development Expenditures

Costs related to the research, design, and development of products are charged to research and development expenses as incurred. As of January 31, 2008 and 2007, no material research and development expenses were recorded.

Net Loss Per Share

Basic net loss per share is computed using the weighted average number of common shares outstanding during the period. Contingently issuable shares are included in the computation of basic net income (loss) per share when the related conditions are satisfied. Diluted net income (loss) per share is computed using the weighted average number of common shares and potentially dilutive securities outstanding during the period. Potentially dilutive securities are excluded from the computation if their effect is anti-dilutive.

As of January 31, 2008 the Company had 30,041,000 shares of common stock outstanding and options to purchase 1,605,000 shares issued that would be potentially dilutive. The options outstanding were excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive. At January 31, 2008, there was no variance between basic and diluted loss per share as there were no potentially dilutive common shares outstanding.

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BIG CAT ENERGY CORPORATION(A Development Stage Company)Notes to Consolidated Financial Statements(Unaudited)



Other Comprehensive Income

The Company does not have any items of other comprehensive income for the quarters ended January 31, 2008 and 2007. Therefore, total comprehensive income (loss) is the same as net income (loss) for these periods.

Revenue Recognition

The company leases its ARID tool and process to its customers. Revenue is recognized equally over the term of lease. When the lease is executed the company records deferred revenue Other Current Liability for those amounts paid for lease commitments for the next 12 months and a Long Term Obligation for those amounts in excess of 12 months. At January 31, 2008, the Company has recorded $72,500 as Other Current Liabilities for deferred revenue and $0 for Long Term Obligations.

Recently Issued Accounting Standards

In February 2007, the FASB issued SFAS No. 159,The Fair Value Option for Financial Assets and Financial Liabilities(SFAS 159). SFAS 159 provides the option to report certain financial assets and liabilities at fair value, with the intent to mitigate volatility in financial reporting that can occur when related assets and liabilities are recorded on different bases. SFAS 159 also amends SFAS No. 115,Accounting for Certain Investments in Debt and Equity Securities, by providing the option to record unrealized gains and losses on held-for-sale and held-to-maturity securities currently. The implementation of FAS 159 is not expected to have a material impact on our results of operations or financial position.

In December 2007, the FASB issued SFAS 141 (revised 2007),Business Combinations("SFAS 141(R)"), which establishes principles and requirements for how an acquirer recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in an acquiree, including the recognition and measurement of goodwill acquired in a business combination. SFAS 141(R) is effective for our fiscal year commencing May 1, 2009. Earlier adoption is prohibited. We are currently evaluating the impact of adopting SFAS 141(R) on our results of operations and financial condition.

In December 2007, the FASB issued SFAS No. 160,Noncontrolling Interests in Consolidated Financial Statements - an amendment of ARB No. 51. SFAS 160 amends ARB 51 to establish accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. It clarifies that a noncontrolling interest in a subsidiary, which is sometimes referred to as minority interest, is an ownership interest in the consolidated entity that should be reported as equity in the consolidated financial statements. Among other requirements, this statement requires consolidated net income to be reported at amounts that include the amounts attributable to both the parent and the noncontrolling interest. It also requires disclosure, on the face of the consolidated income statement, of the amounts of consolidated net income attributable to the parent and to the noncontrolling interest.SFAS 160 is effective for our fiscal year commencing May 1, 2009, including interim periods within that fiscal year. Earlier adoption is prohibited. We are currently evaluating the impact of adopting SFAS 160 on our results of operations and financial condition.

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BIG CAT ENERGY CORPORATION(A Development Stage Company)Notes to Consolidated Financial Statements(Unaudited)



Note 4: Oil and Gas Property Acquisitions

Costs directly associated with the acquisition, exploration and development of unevaluated properties are excluded from the full cost amortization pool, until they are evaluated. The Company acquired various unproven oil and gas leases in Montana and Wyoming during the year ended April 30, 2007. All of theses oil and gas leases have been transferred to the Companys subsidiary, Sterling Oil & Gas Company.

During the nine months ended January 31, 2008, the Company sold one oil and gas leasehold interest consisting of 184 net mineral acres. The Company received gross proceeds of $22,968, and retained a two percent overriding royalty interest on the transferred leasehold interest. During the nine months ended January 31, 2008, the Company purchased 50 net mineral acres for $8,610. The proceeds from the sale and the cost of the leasehold interest were applied to the carrying value of the assets on the companys books.

Effective December 31, 2007, Sterling entered into a Purchase and Sale Agreement with Cedar Resources Corporation of Gillette, Wyoming. Pursuant to the agreement, the Company sold and Cedar Resources purchased 50% of the companys right title and interest in certain oil and gas leases and appurtenant rights and records for $185,264. Pursuant to the agreement, the parties entered into a Joint Operating Agreement for the properties. The proceeds from the sale were applied to the carrying value of the assets on the companys books.

Note 5: Shareholders Equity

Private Offerings

Effective in early December 2007, Big Cat Energy completed an Information Statement to its shareholders, informing them of the Board of Directors decision to spin off its wholly owned subsidiary, Sterling Oil and Gas Company, into a public entity. In conjunction with the spin off of Sterling, the Board of Directors declared a dividend of the 10,000,000 shares of Sterling that Big Cat owned to Big Cat shareholders proportionately to their Big Cat ownership. The effect of these transactions will transfer the Undeveloped Properties and Sterling working capital currently consolidated with Big Cat Energy Corporation, with a book value of $1,638,689 and $313,966 respectively at January 31, 2008, to Sterling and then for Sterling to be spun-off into an independent company.

During the nine months ended January 31, 2008 the Company completed the private placement of 500,000 restricted shares of its common stock to an accredited investor. The company received proceeds of $500,000 from the private placement. The private offering was made in reliance on an exemption from registration of a trade in the United States under Section 4(2) of Regulation D of the United States Securities Act of 1933, as amended. The Company relied upon exemptions from registration believed by it to be available under federal and state securities laws in connection with the offering. Following the above sale, the Companys common stock increased to 30,041, 000 shares issued and outstanding.

During the nine months ended January 31, 2008, the company sold a minority interest in Sterling through a private placement of 5,000,000 units of Sterling. Each unit consists of one (1) share of Sterling common stock at $.05 per share and one (1) warrant for half (1/2) a share of Sterling common stock at

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BIG CAT ENERGY CORPORATION(A Development Stage Company)Notes to Consolidated Financial Statements(Unaudited)



$.25 per share. The company received cash of $250,000, recorded offering cost of $790. The Purchase Agreement for the units commits the company to file a registration for the Sterling shares within 180 days of the date of the Purchase Agreement. The SB-2 was filed December 12, 2007 and will become effective February 11, 2008.

Due to the risk associated with Sterling, the offering price of the private placement was below book value of Sterling. As a result of the Sterling private placement, the company has recorded a loss for the prorated portion of the book value of the Unevaluated Properties that was less than the Minority Interest that was invested. The loss recorded was $433,000 and was recorded in the nine months ended January 31, 2008.

During the nine months ended January 31, 2007, the Company sold 4,065,000 restricted shares of its common stock for proceeds of $2,032,500, or $0.50 per share. The private offering was made in reliance on an exemption from registration of a trade in the United States under Section 4(2) of Regulation D of the United States Securities Act of 1933, as amended. The Company relied upon exemptions from registration believed by it to be available under federal and state securities laws in connection with the offering. All sales were conducted through the Companys officers and directors. Following the above sales, the Companys common stock increased to 27,529, 000 shares issued and outstanding.

Note 6: Stock Option Plan

The Company has adopted the 2007 Nonqualified Stock Option Plan (the Plan), as amended. The Company has reserved 5,000,000 shares of common stock for the plan. On April 27, 2007 options to purchase 1,550,000 shares were granted to the directors and officers of the Company at $0.50 per share, which was below the fair market value on that date. On December 5, 2007 and January 2, 2008, the company granted options of 5,000 and 50,000 shares respectively to two employees of the company at $.50 and $.75 per share respectively. These employees are not officers of the company. The options have a term of five years and have limits on exercising over a one-year term. On December 5, 2007 the Board of Directors authorized options to purchase 1,555,000 shares to its officers and directors. These options will not be granted until April 30, 2008 at which time the exercise price and vesting period for these options will be set.

The Company uses the Black-Scholes option-pricing model to estimate the fair value of the options at the grant and vesting date. The Company granted 55,000 options to purchase common stock during the three months ended January 31, 2008. The fair values of options granted and vested were calculated using the following weighted-average assumptions:

Three MonthsEndedJanuary 31,2008Expected dividend yield
     Expected price volatility
     150%Risk free interest rate
     3.28%Expected term of options (in years)
     5 years




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BIG CAT ENERGY CORPORATION(A Development Stage Company)Notes to Consolidated Financial Statements(Unaudited)A summary of option activity under the Plan as of January 31, 2008 and changes during the years then ended is presented below:WeightedWeighted
     
     AverageAverage
     
     Remaining
     
     AggregateNumber
     
     Exercise
     
     Contractual
     
     Intrinsicof Shares
     
     Price
     
     Term
     
     ValueOptions outstanding  December 1,2007
     1,550,000
     $
     .50
     
     
     $
     2.64Granted during period
     5,000
     
     .50
     
     5
     
     1.58Exercised during period
     
     
     
     
     Forfeited during period
     
     
     
     
     
     
     Expired during period
     
     
     
     
     
     
     Options outstanding December 31,2007
     1,555,000
     
     .50
     
     5
     $
     2.64Granted during period
     50,000
     
     .75
     
     5
     
     1.27Exercised during periodForfeited during periodExpired during periodOptions outstanding January 31, 2008
     1,605,000
     
     .51Exercisable at January 31, 2008
     655,000
     
     
     
     
     $
     2.64


The weighted average grant date fair value of options granted during the three months ended January 31, 2008 was $3.01 per share. The weighted average remaining contractual term is five years for all options outstanding.

The options are fully vested when issued, however, the agreement only allows for a certain number of options to be exercised each year through April 30, 2009. Due to the limitations on exercising the options, and the fact that they would expire if the employee resigns or is terminated for cause, the Company has treated the option as if they vest over a three-year period. The Company expects to recognize approximately $4,933,000 in stock compensation expense ratably over the next two years. There have been no options exercised under the terms of the Plan.













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ITEM 2.     PLAN OF OPERATIONS.

Forward-Looking Statements

This Quarterly Report includes certain statements that may be deemed to be forward-looking statements that reflect our current views with respect to future events and financial performance. All statements include in this Quarterly Report, other than statements of historical facts, address matters that we reasonably expect, believe or anticipate will or may occur in the future. Forward-looking statements may relate to, among other things:

our future financial position, including working capital and anticipated cash flow;the risks of the oil and gas industry, such as operational risks in exploring for, developingand producing crude oil and natural gas;market demand;risks and uncertainties involving geology of oil and gas deposits;the uncertainty of reserve estimates and reserves life;the uncertainty of estimates and projections relating to production, costs and expenses;potential delays or changes in plans with respect to exploration or development projects orcapital expenditures;fluctuations in oil and gas prices;health, safety and environmental risks;uncertainties as to the availability and cost of financing; andthe possibility that government policies or laws may change or governmental approvalsmay be delayed or withheld.

Other sections of this Quarterly Report may include additional factors that could adversely affect our business and financial performance. Moreover, we operate in a very competitive and rapidly changing environment. New risk factors emerge from time to time and it is not possible for our management to predict all risk factors, nor can we assess the impact of all factors on our business or to the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

Our forward looking statements contained in this Quarterly Report are made as of the respective dates set forth in this Quarterly Report. Such forward-looking statements are based on the beliefs, expectations and opinions of management as of the date the statements are made. We do not intend to update these forward-looking statements, except as required by law. For the reasons set forth above, investors should not place undue reliance on forward-looking statements.

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Plan of Operations

The plan of operations discussed below in this Quarterly Report, reflects the operations of our current business which is to lease or sell the ARID tool and process to oil and gas companies.

We continue to refine the ARID to improve the field use of the ARID tool and process. During the nine months ended January 31, 2008, we have successfully installed 6 ARID tools in coal bed method (CBM) gas well bore in the Powder River Basin of Wyoming. Currently, we have nine ARID tools operating in CBM gas well bores in the Powder River Basin of Wyoming. We have generated minimal operating revenue in the three months ended January 31, 2008 from the most current ARID tool installations.

Our management and employees continue to work with the Wyoming Department of Environmental Quality (DEQ) for the permitting of the ARID tool and process. We believe that significant progress has been made with the Wyoming DEQ for the permitting of the ARID in Wyoming. As of the date of this Quarterly Report, the Wyoming DEQ has issued 15 permits for the ARID tool and process. We currently have 6 permits submitted to the DEQ for approval.

We are continuing to develop another production tool for coal bed methane operations. This new product is a multi-completion tool and process, which upon successful development will allow operators of coal bed methane wells to produce multiple seams of coal from a single well bore. We have completed filing our patent applications for this technology.

We are evaluating use of the ARID tool in the mining industry. We have received numerous inquiries regarding adapting the ARID for handling water in the mining industry. We are in the initial stages of evaluation of this opportunity.

We have completed our application for the trademark ARID with the United States Patent and Trademark Office. In approximately six months we should receive an examination report from the United States Patent and Trademark Office regarding the trademark application.

We are continuing our efforts to market the ARID tool and process to oil and gas operators. We currently have several potential pilot programs for the use of the ARID tool and process with oil and gas operators in the Powder River Basin of Wyoming. During the nine months ended January 31, 2008, the Company announced a major oil company will be field testing the ARID Tool and Process to determine the effectiveness in managing the water produced from two of their coalbed methane (CBM) fields in the Powder River Basin of Wyoming. These projects are comprised ofseven wells in the central part of the basin and four wells in the northern part of the basin. Big Cat anticipates that the results of these two projects will highlight the value of the ARID system in CBM water management.

During the nine months ended January 31, 2008 the Company completed the private placement of 500,000 restricted shares of its common stock to an accredited investor. The company received proceeds of $500,000 from the private placement. The private offering was made in reliance on an exemption from registration of a trade in the United States under Section 4(2) of Regulation D of the United States Securities Act of 1933, as amended. The Company relied upon exemptions from registration believed by it to be available under federal and state securities laws in connection with the offering. Following the above sale, the Companys common stock increased to 30,041, 000 shares issued and outstanding.

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On May 1, 2007 we formed a Nevada subsidiary corporation, Sterling Oil & Gas Company (Sterling). In return for 10,000,000 shares of Sterling, we transferred all of our oil and gas leasehold interests.

During the nine months ended January 31, 2008, the company sold a minority interest in Sterling through a private placement of 5,000,000 units of Sterling. Each unit consists of one (1) share of Sterling common stock at $.05 per share and one (1) warrant for half (1/2) a share of Sterling common stock at $.25 per share. The company received cash of $250,000, recorded offering cost of $790. The Purchase Agreement for the units commits the company to file a registration for the Sterling shares within 180 days of the date of the Purchase Agreement. The SB-2 was filed December 12, 2007 and will become effective February 11, 2008.

Due to the risk associated with Sterling, the offering price of the private placement was below book value of Sterling. As a result of the Sterling private placement, the company has recorded a loss for the prorated portion of the book value of the Unevaluated Properties that was less than the Minority Interest that was invested. The loss recorded was $433,000 and was recorded in the period ended July 31, 2007.

Effective December 31, 2007, Sterling entered into a Purchase and Sale Agreement with Cedar Resources Corporation of Gillette, Wyoming. Pursuant to the agreement, the Company sold and Cedar Resources purchased 50% of the companys right title and interest in certain oil and gas leases and appurtenant rights and records for $185,264. Pursuant to the agreement, the parties entered into a Joint Operating Agreement for the properties.

Sterling has also retained the services of American Oil and Gas Corporation to assist the company with obtaining potential oil and gas ventures in the Rocky Mountain area. American Oil and Gas will perform initial analysis of potential projects and recommend to the company those projects that should be evaluated further by management.

Effective in early December 2007, Big Cat Energy completed an Information Statement to its shareholders, informing them of the Board of Directors decision to spin off its wholly owned subsidiary, Sterling Oil and Gas Company, into a public entity. In conjunction with the spin off of Sterling, the Board of Directors declared a dividend of the 10,000,000 shares of Sterling that Big Cat owned to Big Cat shareholders proportionately to their Big Cat ownership. The effect of these transactions will transfer the Undeveloped Properties currently consolidated with Big Cat Energy Corporation, with a book value of $1,638,689 at January 31, 2008, to Sterling and then for Sterling to be spun-off into an independent company.

Limited Operating History; Need for Additional Capital

The report from the companys independent registered public accounting firm which accompanies our audited financial statements as of April 30, 2007 states that our company has no established revenues and has incurred net losses since inception. In the view of our auditors, these factors raised substantial doubt about our ability to continue as a going concern.

There is no historical financial information about our current operations upon which to base an evaluation of our performance. We are in development stage operations and have not generated any revenues from current operations. Our key to remaining in business is selling or leasing the ARID to

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customers. We cannot guarantee we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources, the possibility that there is a lack of a sales market for our products, and possible cost overruns due to price and cost increases in services and products.

If we cannot generate sufficient revenues to continue operations, or find additional capital, we will suspend or cease operations. We have no assurance that future financing will be available on acceptable terms. If financing is not available on satisfactory terms, we may be unable to continue, develop or expand our operations. Equity financing could result in additional dilution to existing shareholders.

Results of Operations

Three Months Ended January 31, 2008 Compared to Three Months Ended January 31, 2007

We reported a net loss for the three months ended January 31, 2008 of $783,709 compared with a net loss of $165,147 for the same period in 2007. $468,000 of the 2008 loss is attributable to non-cash consideration related to the issuance of stock options to management.

We recorded personnel costs of $687,432 during the three month period ended January 31, 2008, as compared to $123,361 during the same period in 2007. We recorded stock based compensation charge of $468,000 for the three month period ended January 31, 2008, compared with no charge for the same period in 2007.

We incurred professional fees of $91,169 during the three month period ended January 31, 2008, as compared to $3,780 during the same period 2007.

Our other general and administrative costs were $64,629 during the three month period ended January 31, 2008, as compared to $47,860 during the same period in 2007.

Effective December 31, 2007, Sterling entered into a Purchase and Sale Agreement with Cedar Resources Corporation of Gillette, Wyoming. Pursuant to the agreement, the Company sold and Cedar Resources purchased 50% of the companys right title and interest in certain oil and gas leases and appurtenant rights and records for $185,264. Pursuant to the agreement, the parties entered into a Joint Operating Agreement for the properties. The proceeds from the sale were applied to the carrying value of the assets on the companys books.

Nine Months Ended January 31, 2008 Compared to Nine months ended January 31, 2007

We reported a net loss for the nine months ended January 31, 2008 of $2,691,672 compared with a net loss of $586,212 for the same period in 2007. $1,821,000 of the 2008 loss is attributable to non-cash consideration related to the issuance of stock options to management ($1,388,000) and the loss on sale of a minority interest in Sterling ($433,000).

We recorded personnel costs of $1,958,407 during the nine month period ended January 31, 2008, as compared to $336,754 during the same period in 2007, which included stock based compensation charge of $1,388,000 for the nine month period ended January 31, 2008, compared with no charge for the same period in 2007.



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We incurred professional fees of $197,235 during the nine month period ended January 31, 2008, as compared to $70,390 during the same period 2007. The increase in professional fees was due to an increase in accounting and legal fees related to the spin off of Sterling.

Our other general and administrative costs were $194,596 during the nine month period ended January 31, 2008, as compared to $194,739 during the same period in 2007. The major components of other general and administrative costs are insurance and marketing expenses.

Due to the risk associated with Sterling, the offering price of the private placement, see note 5, was below book value of Sterling. As a result of the Sterling private placement, the company has recorded a loss for the prorated portion of the book value of the Unevaluated Properties that was less than the Minority Interest that was invested. The loss recorded was $433,000 and was recorded in the nine months ended January 31, 2008.

During the nine months ended January 31, 2008 the company acquired oil and gas property for $8,610, as compared to acquisitions of $350,951 during the same period in 2007. During the nine month period ended January 31, 2008 we sold one oil and gas leasehold interest with a cost of $17,200 and received gross proceeds of $23,968, there were no dispositions of any oil and gas leasehold interests during the same period in 2007.

Liquidity and Capital Resources

As of January 31, 2008, we had working capital of approximately $1,141,943, and it is uncertain as to whether this amount will be sufficient to fund operations for the next year. Therefore, we may seek additional sources of capital for the coming year.

During the nine months ended January 31, 2008, the Company completed the private placement of 500,000 restricted shares of its common stock to an accredited investor. The company received proceeds of $500,000 from the private placement. The private offering was made in reliance on an exemption from registration of a trade in the United States under Section 4(2) of Regulation D of the United States Securities Act of 1933, as amended. The Company relied upon exemptions from registration believed by it to be available under federal and state securities laws in connection with the offering. Following the above sale, the Companys common stock increased to 30,041, 000 shares issued and outstanding.

During the nine months ended January 31, 2007, we completed a private placement of securities and raised gross proceeds of $2,032,500. The net proceeds received by us were $2,021,342. We sold a total of 4,065,000 shares of common stock to fifty-five (55) investors at price of $0.50 per share. We issued the foregoing 4,065,000 shares of common stock as restricted securities pursuant to the exemptions from registration contained in Regulation S of the Securities Act of 1933 and section 4(2) of the Securities Act of 1933. Shares sold pursuant to Regulation S were sold to non U.S. persons outside the United States of America. Shares sold pursuant to section 4(2) of the Securities Act of 1933 were sold to persons who receive the same information that can be found in a Form SB-2 registration statement and were deemed sophisticated investors in that they understood our business and were able to read and understand financial statements.





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During the nine months ended January 31, 2008, the company sold a minority interest in Sterling through a private placement of 5,000,000 units of Sterling. Each unit consists of one (1) share of Sterling common stock at $.05 per share and one (1) warrant for half (1/2) a share of Sterling common stock at $.25 per share. Sterling received cash of $250,000, recorded offering cost of $790. The Purchase Agreement for the units commits the company to file a registration for the Sterling shares within 180 daysof the date of the Purchase Agreement. The SB-2 was filed December 12, 2007 and will become effective February 11, 2008.

Effective December 31, 2007, Sterling entered into a Purchase and Sale Agreement with Cedar Resources Corporation of Gillette, Wyoming. Pursuant to the agreement, the Company sold and Cedar Resources purchased 50% of the companys right title and interest in certain oil and gas leases and appurtenant rights and records for $185,264. Pursuant to the agreement, the parties entered into a Joint Operating Agreement for the properties. The proceeds from the sale were applied to the carrying value of the assets on the companys books

Financial Instruments and Other Information

As of January 31, 2008 we had cash, marketable securities, accounts payable and accrued liabilities, which are each carried at approximate fair value due to the short maturity date of those instruments. Unless otherwise noted, it is managements opinion that the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments.

Critical Accounting Polices and Estimates

Recently Issued Accounting Pronouncements:

In February 2007, the FASB issued SFAS No. 159,The Fair Value Option for Financial Assets and Financial Liabilities(SFAS 159). SFAS 159 provides the option to report certain financial assets and liabilities at fair value, with the intent to mitigate volatility in financial reporting that can occur when related assets and liabilities are recorded on different bases. SFAS 159 also amends SFAS No. 115,Accounting for Certain Investments in Debt and Equity Securities, by providing the option to record unrealized gains and losses on held-for-sale and held-to-maturity securities currently. The implementation of FAS 159 is not expected to have a material impact on our results of operations or financial position.

In December 2007, the FASB issued SFAS 141 (revised 2007),Business Combinations("SFAS 141(R)"), which establishes principles and requirements for how an acquirer recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in an acquiree, including the recognition and measurement of goodwill acquired in a business combination. SFAS 141(R) is effective for our fiscal year commencing May 1, 2009. Earlier adoption is prohibited. We are currently evaluating the impact of adopting SFAS 141(R) on our results of operations and financial condition.







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In December 2007, the FASB issued SFAS No. 160,Noncontrolling Interests in Consolidated Financial Statements - an amendment of ARB No. 51. SFAS 160 amends ARB 51 to establish accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. It clarifies that a noncontrolling interest in a subsidiary, which is sometimes referred to as minority interest, is an ownership interest in the consolidated entity that should be reported as equity in the consolidated financial statements. Among other requirements, this statement requires consolidated net income to be reported at amounts that include the amounts attributable to both the parent and the noncontrolling interest. It also requires disclosure, on the face of the consolidated income statement, of the amounts of consolidated net income attributable to the parent and to the noncontrolling interest.SFAS 160 is effective for our fiscal year commencing May 1, 2009, including interim periods within that fiscal year. Earlier adoption is prohibited. We are currently evaluating the impact of adopting SFAS 160 on our results of operations and financial condition.



From time-to-time, we enter into off-balance sheet arrangements and transactionsthat can give rise to off-balance sheet obligations. As of January 31, 2008, the off-balance sheet arrangements and transactions that we have entered intoinclude operating lease agreements. The Company does not believe that these arrangements are reasonably likely to materially affect its liquidity or availability of, or requirements for, capital resources.

ITEM 3. CONTROLS AND PROCEDURES.

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed by us in the reports we file or submit under the Exchange Act are recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commissions rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports that we file under the Exchange Act are accumulated and communicated to our management, including our principal executive and financial officers, as appropriate to allow timely decisions regarding required disclosure.

Evaluation of Disclosure Controls and Procedures

(a)      The Company has carried out an evaluation, under the supervision and with the participation of its management, including its Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Companys disclosure controls and procedures pursuant to the Exchange Act Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended. Based solely on the material weakness described below, the Companys Chief Executive Officer and Chief Financial Officer concluded that as of August 19, 2007, the Companys disclosure controls and procedures were not effective as of that date.

Due to the lack of adequate accounting personnel, the Company was unable to timely assemble and compile the information needed to close its accounts and prepare its April 30, 2007 audited financial statements for inclusion in the Companys April 30, 2007 Annual Report on SEC Form 10-KSB. Although the company has hired additional personnel to assist with the closing of its books and preparation of the 10Q, additional measures will be required to correct this material weakness

(b)      Other than described in the preceding paragraph, there were no change in the Companys internal controls, which are included within disclosure controls or procedures, during its most recently completed fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Companys internal controls.

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Significant Deficiencies in Disclosure Controls and Procedures or Internal Controls

We will implement the following additional measures to address the identified material weakness:

Delay in closing the Companys accounts. We will take steps to address this material weakness based on the Companys delay in closing its books. To correct this material weakness, checklists will be developed delineating tasks, preparation responsibilities, and review responsibilities targeting specific completion dates. The checklist will provide evidentiary support of work performed and reviewed. Specific checklists will be developed for non-quarter end months, quarter end months, and the annual close.Lack of adequate accounting staff. The company is aware of its staffing needs and will take steps to address its understaffed Finance and accounting team to correct this material weakness. Subsequent to the date of this report, the Company will take corrective action.

PART II. OTHER INFORMATION

ITEM 6.      EXHIBITS.

Exhibits
     Document Description31.1
     Section 302 Certification of Principal Executive Officer.31.2
     Section 302 Certification of Principal Financial Officer.32.1
     Section 906 Certification of Chief Executive Officer.32.2
     Section 906 Certification of Chief Financial Officer.






















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SIGNATURES

In accordance with Section 13 or 15(d) of the Securities and Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on this 14th day of March, 2008.

BIG CAT ENERGY CORPORATIONBY:   TIMOTHY BARRITTTimothy Barritt, President and PrincipalExecutive OfficerBY:   RICHARD G. STIFELRichard G. Stifel, Principal Accounting Officerand Principal Financial Officer































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