Annual report pursuant to Section 13 and 15(d)

STATEMENTS OF OPERATIONS

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STATEMENTS OF OPERATIONS (USD $)
12 Months Ended
Oct. 31, 2011
Oct. 31, 2010
Revenue    
Natural gas and oil revenue $ 1,133,766 $ 362,471
Cost of revenue    
Natural gas and oil operating costs 297,656 152,479
Depletion 370,199 121,136
Total cost of revenue 667,855 273,615
Gross profit (loss) 465,911 88,856
Expenses    
Accounting and audit 32,433 27,547
Insurance 8,749 7,014
Advertising and promotions 40,920 559
Bank charges and exchange loss 55,052 26,832
Stock Based Compensation 179,789 161,366
Consulting 262,134 168,512
Depreciation 425 1,021
Fees and Dues 36,454 26,567
Interest expense from loan payable 223,673 167,322
Investor relation 29,153 1,943
Legal and professional 58,015 23,015
Office and miscellaneous 5,181 1,213
Rent 14,620 15,404
Telephone 3,047 2,917
Taxes 5,977 5,745
Training 268 0
Travel 48,247 4,340
Write down of oil and gas property 0 1
Total operating expenses 1,004,137 641,318
Net (loss) for the year $ (538,226) $ (552,462)
Basic and diluted (loss) per share $ (0.04) $ (0.04)
Weighted average number of common shares outstanding - Basic and diluted 14,176,503 12,325,675