Overview

During the third quarter, the company was in a start up mode. Principals of the Company changed and Shane Broesky was appointed as the new President, and CEO.

The previous board was retired and Shane Broesky was appointed as the sole director.

The Company arranged private funding for $195,000.00CDN to enter the start up activity period.

The Company acquired working interests in oil and gas leases in South Central, Alberta.

The leases acquired include, Bigoray A and B and Barrhead C and D. Two of the wells went into production in late August and the first revenue cheques arrived in September.

The Company is very pleased with the initial performance indicators and plans to expand its' interests in these Alberta locations over the next few months.

The Company is also planning to offer directorships to a select group of petroleum engineers and administrators. These individuals have vast expertise in the technical and financial aspects of the petroleum industry.

The Company has appointed Seale and Beers, CPAs as the replacement auditors. The previous auditor M Moore had resigned.

Liquidity and Capital Resources

At September 30, 2009, the Company had a working capital deficit of $203,524, compared to working capital of $4,827 at December 31, 2008. At September 30, 2009, the total assets of the Company were $195,480, consisting of cash and oil and gas properties compared to total assets in the amount of $4,827 at December 31, 2008, consisting of cash. This increase in assets was due to the acquisition of oil and gas properties located in Alberta, Canada.

At September 30, 2009 the total current liabilities of the Company increased to $204,030 from $nil at December 31, 2008. This increase in current liabilities was due to loans from financing activities, accounts payable and accrued interest.

The Company had a negative cash flow of $12,321 from operating activities for the nine months ended September 30, 2009 ($21,062 - 2008), a decrease in cash outflow of approximately 71%.

Cash inflow from financing activities was $202,974 for the nine months ended September 30, 2009 ($nil - 2008) of which $8,000 was attributable to the renunciation of a related party loan by a former shareholder, director and officer of the Company.

Cash flow from investing activities was $194,974 for the nine months ended September 30, 2009 ($nil - 2008)

Results of Operations

Revenues

Operating revenues for the three (3) months ended September 30, 2009 were $571 compared to $nil for the three (3) months ended September 30, 2008. The increase in revenues was due from the acquisition of oil and gas properties located in Alberta, Canada.

Expenses and Comprehensive loss from operations

For the three (3) months ended September 30, 2009 operating expenses were $11,379 compared to $21,062 for the three (3) months ended September 30, 2008. This decrease of $9,683 was due to a decrease in general and administrative expenses. Operating expenses during the quarter ended September 30, 2009 consisted of professional fees of $6,491 and administrative expenses of $4,889. This compares with expenses during the three (3) months ended September 30, 2008, consisting of administrative expenses of $21,062.

The Company recognized a loss of $130 on foreign exchange for the quarter ended September 30, 2009, compared to no loss or gain on foreign exchange during the quarter from the prior year.

The Company posted a comprehensive loss of $13,369 for the quarter ended September 30, 2009, compared to a comprehensive loss of $2,113 for the same period from the previous year. From inception (March 27, 2007) to September 30, 2009, the Company incurred a total comprehensive loss of $49,150. The principle components of losses were professional fees of $6,491, administrative expenses of $40,670, interest expense of $2,430 and foreign exchange loss of $130.

For the nine (9) months ended September 30, 2009, operating expenses were $19,387 compared to $21,062 for the nine (9) months ended September 30, 2008. This decrease of $1,675 was due to a decrease in administrative expenses. Operating expenses during the nine (9) months ended September 30, 2009 consisted solely of professional fees and administrative expenses. This compares with operating expenses during the nine (9) months ended September 30, 2008, consisting of $21,062 of administrative expenses.

The Company recognized a loss of $130 on foreign exchange for the nine (9) months ended September 30, 2009, compared to no loss or gain during the same period from the previous year.

The Company posted a comprehensive loss of $21,377 for the nine (9) months ended September 30, 2009, compared to a comprehensive loss of $21,062 for the same period from the previous year. The increase in the comprehensive loss was due to interest expense and a foreign exchange loss.

We believe our market risk exposures arise primarily from exposures to fluctuations in interest rates and exchange rates. We presently only transact business in Canadian and United States Dollars. We believe that the exchange rate risk surrounding our future transactions will not materially or adversely affect our future earnings. We do not use derivative financial instruments to manage risks or for speculative or trading purposes.

Subsequent Events

Off-Balance Sheet Arrangements

We have not entered into any off-balance sheet arrangements that have or are likely to have a current or future effect on our financial condition, changes of financial condition, revenues, expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.