UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-QSB/A

(Mark One)
x	QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2005
o	TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from o to o
Commission file number 000-30193 Nation Energy, Inc. (Exact name of small business issuer as specified in its charter) Wyoming (State or other jurisdiction of incorporation or organization) 59-2887569 (IRS Employer Identification No.) Suite 1100 - 609 West Hastings Street Vancouver, BC, Canada V6B 4W4 (Address of principal executive offices) (800) 400-3969 (Issuer's telephone number) not applicable (Former name, former address and former fiscal year, if changed since last report)

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the registrant filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court. Yes o No o

APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date:

16,020,000 common shares outstanding as of November 20, 2005

Transitional Small Business Disclosure Format (Check one): Yes o No x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes [

]

No [ X ]

Part I – FINANCIAL INFORMATION

Item 1. Financial Statements

Our financial statements are stated in United States Dollars (US$) and are prepared in accordance with United States Generally Accepted Accounting Principles.

It is the opinion of management that the interim financial statements for the quarter ended September 30, 2005 include all adjustments necessary in order to ensure that the financial statements are not misleading.

Nation Energy, Inc.
Balance Sheet
September 30, 2005
(Unaudited)

ASSETS

Current assets:
Cash	$ 39,172
Accounts receivable	164,299
Prepaid expenses	26,437
Total current assets	229,908

Unproven oil and gas properties - full cost method	1,263,687

	$ 1,493,595


LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Accounts payable	$ 5,999
Accounts payable and accrued expenses-related party	191,803
Loans payable - shareholder	645,117
Total current liabilities	842,919

Stockholders' equity:
Preferred stock, $.001 par value; 5,000,000
shares authorized; none outstanding	-
Common stock, $.001 par value; 50,000,000
shares authorized; 16,020,000 shares issued
and outstanding	16,020
Additional paid-in capital	6,868,380
Accumulated (deficit)	(6,213,481)
Accumulated comprehensive income:
Foreign currency translation	(20,243)
	650,676

	$ 1,493,595

Nation Energy, Inc.
Statements of Operations
(Unaudited)

	For the Three Month period ended		For the Six Month period ended
	For the Three Month period ended		For the Six Month period ended
	September 30, 2005	September 30, 2004	September 30, 2005	September 30, 2004

Revenues:	$ 187,353	$ 53,980	$ 201,784	$ 53,980

Direct Expenses:
Royalties	(22,941)	-	47,808	-
Operating expenses	(565)	-	(6,406)	-
	163,847	53,980	243,186	53,980

Costs and expenses:
General, selling and administrative	33,954	18,140	60,042	36,186
Total costs and expenses	33,954	18,140	60,042	36,186

Operating income	129,893	35,840	183,144	17,794

Other income (expense):
Interest expense	(24,820)	(22,137)	(49,275)	(43,188)
Interest income	242	9	327	18

Net income (loss)	105,315	13,712	134,196	(25,376)

Foreign currency transaction adjustments	(31,493)	292	(32,698)	156

Comprehensive income (loss)	$ 73,822	$ 14,004	$ 101,498	$ (25,220)

Per share information:

Weighted average number of common
shares outstanding - basic and diluted	16,020,000	16,020,000	16,020,000	16,020,000

Net income (loss) per common share - basic and diluted	$ 0.00	$ 0.00	$ 0.01	$ (0.00)

Nation Energy, Inc.
Statements of Cash Flows
(Unaudited)


	For the Six	For the Six
	Months Ended	Months Ended
	September 30, 2005	September 30, 2004

Cash flows from operating activities:
Net cash provided by (used in) operating activities	$ (131,199)	$ 4,442

Cash flows from investing activities:
Purchase of unproved oil and gas properties	336	(11,198)
Net cash provided by (used in) investing activities	336	(11,198)

Cash flows from financing activities:
Proceeds from loan payable - shareholder	203,932	-
Payments on loan payable - shareholder	(81,573)	-
Net cash provided by financing activities	122,359	-


Net (decrease) in cash	(8,504)	(6,756)

Beginning cash	47,676	18,410

Ending cash	$ 39,172	$ 11,654

Nation Energy, Inc.

Notes to Financial Statements

September 30, 2005

(Unaudited)

Note 1. Basis of Presentation

The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information. They do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation, have been included in the accompanying unaudited financial statements. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the full year. For further information, refer to the financial statements and notes thereto, included in the Company’s Form 10-KSB as of and for the two years ended March 31, 2005.

Certain prior year amounts have been reclassified for comparative purposes.

Note 2. Going Concern

The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplates continuation of the Company as a going concern. The Company has incurred losses since inception of $6,213,481 and is reliant on raising capital to initiate its business plan. The Company’s ability to continue as a going concern is contingent upon being able to secure financing and attain profitable operations.

The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the possible inability of the Company to continue as a going concern.

Note 3: Earnings Per Share

The Company calculates net income (loss) per share as required by Statement of Financial Accounting Standards (SFAS) 128, "Earnings per Share." Basic earnings (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares and dilutive common stock equivalents outstanding. During the periods presented, common stock equivalents were not considered, as their effect would be anti-dilutive.

Note 4. Unproved Oil and Gas Properties

The Company follows the full cost method of accounting for oil and gas operations whereby all costs associated with the exploration for and development of oil and gas reserves, whether productive or unproductive, are capitalized. Such expenditures include land acquisition costs, drilling, exploratory dry holes, geological and geophysical costs not associated with a specific unevaluated property, completion and costs of well equipment. Internal costs are capitalized only if they can be directly identified with acquisition, exploration, or development activities. As of September 30, 2005, the Company has not capitalized any internal costs.

Expenditures that are considered unlikely to be recovered are written off. On a quarterly basis the board of directors assesses whether or not there is an asset impairment. The current oil and gas exploration and development activities are considered to be in the pre-production stage.

The Company periodically reviews the carrying amount of the unproved oil and gas properties to determine whether current events or circumstances warrant adjustments to such carrying amounts. In the year ended March 31, 2003,

the Company recognized an impairment loss related to the abandonment of an initial test well. As September 30, 2005, management believes there has been no further impairment of the unproved oil and gas properties.

Note 5. Related Party Transactions

During March 2002, the Company entered into a verbal agreement with a related party in which the related party will provide management services on a month-to-month basis. Total expenses recognized under this agreement for the three months ended September 30, 2005 and 2004 were $12,840 and $9,630, respectively. For the six months ended September 30, 2005 and 2004, these expenses were $25,680 and $19,260, respectively.

During the quarter ended September 2005, the Company obtained additional funds in the form of a loan from a shareholder in the amount of CDN $250,000 (US$203,932). The additional funds advanced were added to the existing loan under the same terms. During the quarter the Company repaid a portion of the loan in the amount of CDN $100,000 (US$ 81,573) resulting in a net increase in the loan payable of US$122,359.

The loan bears interest of 15% per annum, payable quarterly in arrears. The principle is payable upon demand.

Note 6. Settlement of Writ of Claim

During the quarter ended June 30, 2005, the Company was served with a writ of claim for CDN$207,591. The Company has recorded all but a disputed amount in accounts payable. The total recorded in accounts payable was CDN$172,488 or approximately US$116,087, using foreign exchange rates applicable at the trade date. During the quarter ended September 30, 2005, the Company settled the writ of claim for CDN$ 176,753 or approximately US$152,229, using a current rate of foreign exchange, and was released from further indebtedness.

Item 2. Management's Discussion and Analysis or Plan of Operation.

FORWARD-LOOKING STATEMENTS

This quarterly report contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks in the section entitled “Risk Factors”, that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

As used in this quarterly report, the terms “we”, “us”, “our”, “Nation” and “Nation Energy” mean Nation Energy, Inc., unless otherwise indicated.

All dollar amounts refer to US dollars unless otherwise indicated.

The following discussion should be read in conjunction with our financial statements and the related notes that appear elsewhere in this quarterly report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed below and elsewhere in this quarterly report, particularly in the section entitled “Risk Factors”.

Business of Nation Energy, Inc.

We are an oil and gas exploration stage company with interests in properties located in Alberta, Canada. Nation Energy is a Wyoming corporation with its business offices located at Suite 1100, 609 West Hastings Street, Vancouver, British Columbia V6B 4W4. Our telephone number is (800) 400-3969.

Corporate History

We were formed under the laws of the state of Florida on April 19, 1988 under the name Excalibur Contracting, Inc. and from that date until September 1998, we conducted no business and existed as a shell corporation. Since the restatement of our Articles of Incorporation on September 16, 1998, our main focus has been the procurement of mineral leasehold interests, primarily for oil and gas exploitation rights. We reincorporated as a Delaware corporation on February 2, 2000 and changed our name to Nation Energy, Inc. on February 15, 2000. Following the change in our focus, we commenced corporate strategic development and have explored potential oil and gas projects. On June 13, 2003 we merged from the State of Delaware with Nation Energy Inc., a corporation organized and existing under the laws of the State of Wyoming, which we incorporated for the purposes of the merger, pursuant to which we have changed our domicile to the State of Wyoming.

We held interests in 28 oil and gas leases located in the Great Trona Area prospect, located in and around Sweetwater County, Wyoming. These leases cover approximately 22,000 acres. Under the Joint Operating Agreement, Saurus Resources was the operator of oil and gas exploration on the property covered by these leases and has certain rights and duties as the operator. Our only material activities until recently had been related to our participation in exploration conducted under the Joint Operating Agreement with Saurus Resources. We advanced a total of approximately $2,167,000 under our agreement with Saurus Resources. Operational difficulties in developing the test wells are largely responsible for greater than anticipated operating costs. These difficulties include mineral precipitation in the well bore, which inhibits production. The wells drilled to date have been

perforated and hydraulically fractured; these traits make extraction of gas much more complicated and expensive than anticipated.

Because of the poor operating results under the Joint Operating Agreement, we began to explore other alternatives to this arrangement. On February 28, 2001 we entered into a Purchase and Sale Agreement with VRD, Inc., an affiliate of Saurus Resources, under which we agreed to sell to VRD, Inc. all of our interest in our oil and gas leases in the Greater Trona Area, all rights, title and interest in and to all of the personal property, fixtures and improvements belonging to the leases, and all of our rights under the Joint Operating Agreement with Saurus Resources. The rights that were to be sold included the right to participate in the drilling, completion, tie-in and production of wells within the contract area. In consideration for the sale, we were to receive from VRD, Inc. $2,165,780 in cash and we were to retain certain royalty interests.

We attempted to obtain the approval of our shareholders of the transactions contemplated in the Purchase and Sale Agreement with VRD, Inc. The details of this transaction and the reasons for the sale were described in detail in Our Consent Solicitation Statement on Schedule 14A, which was filed on April 26, 2001 and subsequently amended by a filing made June 28, 2001. We obtained clearance from the SEC to distribute the Schedule 14A to our shareholders on September 26, 2001. However, by the time of the SEC clearance, the Purchase and Sale Agreement had expired in accordance with its terms and VRD, Inc. was unwilling to proceed with the transaction.

We entered into a Quitclaim, Release and Assumption Agreement, dated December 6, 2001, with VRD, Inc. and Saurus Resources, pursuant to which we disposed of any and all interests that we held in the oil and gas leases located in the Greater Trona Area of Sweetwater County, Wyoming. We felt that this was in the best interests of our company given our potential liability under the oil and gas leases and the fact that it was unlikely that the properties in question had any realizable value. We wrote off the remaining value of the properties.

Due to our current operations and their location in Alberta, Canada, we registered as an extra-provincial company in the province of Alberta on June 3, 2003.

Our Current Business

On November 21, 2001 we entered into a farm-in agreement with Olympia Energy Inc. under which we agreed to share the development costs and revenues for a natural gas project in the Smoky area near Grande Prairie, Alberta, Canada. Under the terms of the farm-in agreement, we will fund 25% of the cost to drill and complete a 4,800 meter well in the Boltan prospect and will earn a 15% interest after payout in the Boltan prospect. Drilling costs for the Boltan prospect were estimated to be CDN$11,000,000. An initial well at 09-09-59-02-W6M was drilled to a total depth of 4830 meters in March of 2002 and has been logged. A completion program was attempted on the well, and the well flowed small amounts of gas and large amounts of salt water.

Olympia Energy, the operator of the well presented the partners, including Nation Energy, with a proposed program including further logging of the Leduc formation in the well and, if warranted, further production testing. The logging and testing program began in February 2003. Testing has shown the Leduc Formation to be non-productive, and the zone tested in the Leduc Formation has been plugged and abandoned.

In March 2003 Nation participated in a testing program in wellbore 09-09-59-02-W6M on the shallower Gething Formation and the Gething successfully produced natural gas on flow test. The Operator shut-in the well for spring break-up. The Operator returned to wellbore 09-09-59-02-W6M in July 2003 and in August 2003 tested an additional zone within the Dunvegan Formation up hole from the Gething Formation and the Dunvegan was able to produce gas on flow test. The well was shut-in and left standing pending tie-in and installation of production facilities.

In April 2003, we participated, as to our 15% interest, in the purchase of additional petroleum and natural gas rights underlying five sections in the Bolton area. Nation and its partners commenced a reentry program in 08-09-59-02-W6M wellbore designed to test a potential gas bearing zone in the Cardium Formation in August 2003. The program was completed in late August 2003 and the Cardium zone as tested is not deemed commercially productive. In October 2003, Nation and its partners reentered wellbore 08-09-59-02-W6M to test a second zone of

interest within the Cardium Formation for natural gas and did not obtain any commercially productive results. No further work is planned with respect to the Cardium zones as tested.

In January and February 2004, we participated, as to our 25% before payout working interest, in a 4.5 mile pipeline installation program designed to connect 09-09-59-02-W6M to market pipeline infrastructure in order to enable production from the Gething and Dunvegan gas bearing zones encountered by the wellbore. Concurrent with the pipeline installation program the 09-09-59-02-W6M wellbore was reentered to facilitate tubing installation and production optimization. During these operations the Dunvegan Formation was unable to sustain production upon independent testing due to complications resulting from downhole assembly issues and liquid loading; tubing was set to the Gething gas bearing zone. The Gething zone was expected to produce at an initial rate of 750 thousand cubic feet per day with first production scheduled for June 2004. Accrete Energy Inc. assumed Olympia Energy’s interests and became operator of the Bolton Property in place of Olympia Energy.

The 09-09-59-02-W6M well was turned to sales June 2004 and produced approximately 35.4 million cubic feet of gas in its first month of production (an average of 1,178 thousand cubic feet of gas per day) from the Gething exceeding original expectations; our share of production before royalties is 25%. In December 2004 the well produced approximately 28.9 million cubic feet of gas (an average rate of 934 thousand cubic feet per day). Since January 2005 the Boltan 09-09-59-02 W6M has produced on a restricted and interrupted basis due to facilities constraints.

On January 10, 2005 we entered into a farm-in agreement with Netco Energy Inc. as to certain interests in two sections at Boltan. Under the terms of the agreement, Netco Energy Inc. will earn 60% of our 15% working interest by paying for 100% of costs related to our interests in the drilling and development of Accrete Energy Inc. operated exploratory well Boltan 14-10-59-2W6, a location offsetting the Boltan 09-09-59-02-W6M wellbore. Gross drilling and casing costs were projected at CDN$2,000,000. Netco Energy Inc. will earn a 9% interest, after payout, in the test well and well spacing unit and one additional section of land. Our interests in the two sections of land and Boltan 14-10-59-2W6 wellbore after payout will be 6%.

The Boltan 14-10-59-2W6 well has been drilled and successfully completed as a natural gas well. The Boltan 14-10-59-2W6 well commenced production with first sales in June 2005 and has produced natural gas on an interrupted basis due to the same facilities constraints affecting production from the Boltan 09-09-59-02-W6M well. During the first production month, the Boltan 14-10-59-2W6 well produced natural gas a total of eight full days at an average rate of 3.3 million cubic feet per day.

To enable uninterrupted production at Boltan the operator recommends installing a Compression Facility with sufficient capacity to accommodate additional production at Boltan should more wells be developed. The estimated total cost of the Compression Facility is CDN$2,166,200 or US$1,865,645 with costs of the Compression Facility to be shared proportionately by participants at Boltan. We have consented to participating in the costs of construction for Compression Facility and our net share of the estimated total Compression Facility cost is $164,631 CDN or US$141,789. Compression Facility construction is underway in October 2005 and the Compression Facility is expected to be fully functional and operational prior to December 2005.

Our primary objective over the 12 months ending September 30, 2006, will be to continue to participate in the farm-in agreement relating to the Boltan prospect. We intend to participate in and develop further wells on the Boltan prospect if warranted. Prior to the revenues obtained from Boltan 09-09-59-02 W6M wellbore production we have not received any operating revenues from the date of our formation on April 18, 1988. We anticipate that we have enough cash to meet our expenses and capital commitments during the next twelve months, as described under Liquidity and Capital Resources below.

Results of Operations

Three Months Ended September 30, 2005 Compared to Three Months Ended September 30, 2004

We generated net income of $105,315 for the three months ended September 30, 2005 compared to net income of $13,712 for the three months ended September 30, 2004. The net income per common share for the three months

ended September 30, 2005 was $nil, compared to net income per common share of $nil for the three months ended September 30, 2004. Net income increased in the quarter ended September 30, 2005 from the comparable quarter in 2004 as revenues, after direct expenses, improved with the more consistent levels of gas production in 2005 - more than compensating for the increase in general, selling and administrative expenses.

Revenues totaled $187,353 for the three months ended September 30, 2005 versus $53,980 for the three months ended September 30, 2004. The increase in revenues reflected more consistent flows of natural gas in fiscal 2005 compared with fiscal 2004 when gas was being produced on an interrupted basis.

Royalties expense was $22,941 in the second quarter of fiscal 2005 compared to $nil in the second quarter of fiscal 2004. Higher royalties expense in fiscal 2005 reflected the higher levels of production compared to the 2004 period when gas first started to flow.

General, selling and administrative expenses increased to $33,954 in the three months ended September 30, 2005 versus $18,140 in the three months ended September 30, 2004. The increase of $15,814 in these expenses reflected the greater level of production and business activity in 2005 versus 2004. Legal fees increased by $4,976 relating to the settlement of the writ of claim in September 2005, auditing and accounting fees increased by $4,000 reflecting the increase in business activity, conference fees increased by $5,448 with the heightened activity and administration charges rose by $1,110 as the administration services contract was renegotiated.

Six Month Period Ended September 30, 2005 Compared to Six Month Period Ended September 30, 2004

We generated net income of $134,196 for the six months ended September 30, 2005, compared to a net loss of $25,376 for the six months ended September 30, 2004. The net income per common share for the six months ended September 30, 2005 was $0.01, compared to $nil per common share for the six months ended September 30, 2004. Net income for the six months ended September 30, 2005 improved over the loss in the same period a year earlier as 2005 revenues benefited from significantly greater volumes of gas production, offsetting higher general, selling and administration expenses related to greater activity levels.

For the six months ended September 30, 2005, revenues totaled $201,784 compared to $53,980 in the six months ended September 30, 2004. The 2004 period reflected initial volumes of gas as the well was turned to sales in June 2004. The 2005 period benefited more months of production and more consistent levels of production.

We realized a one-time recovery of Crown royalties in the fiscal second quarter of 2005. There were no royalty charges in the fiscal second quarter of 2004 as we had only just commenced production.

We incurred operating expenses in respect of our production activities totaling $6,406 in the six months ended September 30, 2005 compared to $nil in the six months ended September 30, 2004. This reflected the start of production in fiscal 2005 and the limited production in fiscal 2004.

General, selling and administrative expenses was $60,042 in the six months ended September 30, 2005 versus $36,186 in the six months ended September 30, 2004. This increase of $23,856 was a reflection of the increased levels of production and business activity in fiscal 2005 compared with fiscal 2004. Legal fees increased by $5,318 relating to the settlement of the writ of claim in September 2005, consulting fees rose by $5,978 with the production of additional evaluation and reserve reports, auditing and accounting fees increased by $3,000 reflecting the increase in business activity, conference fees increased by $5,448 with the heightened activity and administration charges rose by $4,320 as the administration services contract was renegotiated.

During the quarter ended June 30, 2005, the Company was served with a writ of claim for CDN$207,591. The total recorded in accounts payable was CDN$172,488 or approximately US$116,087, using foreign exchange rates applicable at the trade date. During the current quarter, the Company settled the writ of claim for CDN$ 176,753 or approximately US$152,229, using a current rate of foreign exchange, and was released from further indebtedness.

Investment

As at September 30, 2005, we have invested a total of $3,634,589 under the farm-in agreement with Accrete Energy Inc. towards the drilling and development costs of the initial well at the Bolton prospect. However, given the results that we had received on the Bolton prospect to date, we recorded a $2,370,902 impairment on the Bolton prospect during the fiscal year ended March 31, 2003.

Liquidity and Capital Resources

These financial statements have been prepared on the basis of a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Our company has suffered recurring losses since inception and has only generated profitable operations for the first time in the fiscal first quarter ended June 30, 2005.

We are currently relying on our existing cash reserves to fund our continuing operating expenses and to fund the identification and evaluation of further oil and gas properties. As of September 30, 2005 and September 30, 2004, our cash and cash equivalent balances were $39,172 and $11,654, respectively.

On August 1, 2003 we entered into a bridge loan agreement with a related party. The August 1, 2003 loan bears interest at 15% per annum and is payable quarterly. Any principal amount outstanding under the August 1, 2003 loan is payable upon demand. On January 16, 2004 we entered into a bridge loan agreement with a related party. The January 16, 2004 loan bears interest at 15% per annum and is payable quarterly. Any principal amount outstanding under the January 16, 2004 loan is payable upon demand. As at the date of this quarterly report we have borrowed an aggregate of $645,117 under the August 1, 2003 loan and the January 16, 2004 loan, which amount remains outstanding under the terms of these loans.

Given our cash balance, we anticipate that we will require additional financing in order to fund our obligations and ongoing participation in the Boltan prospect under the farm-in agreement.

On January 27, 2005, we entered into an agreement with a related party, Netco Energy Inc. (“Netco”) whereby Netco may earn 60% of Nation’s interest in two sections of land in the Boltan area of Alberta. Under the terms of the agreement, Netco will earn 60% of Nation’s 15% working interest by paying for 100% of costs related to Nation’s interests in the drilling and development of exploratory well Boltan 14-10-59-2W6; a 3500 meter test well operated by Accrete Energy Inc. Netco will earn a 9% interest, after payout, in the test well and well spacing unit and one additional section of land.

Our material commitments for capital expenditures are limited to the farm-in agreement with Accrete Energy for the development of the Boltan prospect.

We have limited operating history. We can only estimate the future needs for capital based on the current status of our operations, our current plans and current economic condition. Due to the uncertainties regarding our future activities, we are unable to predict precisely what amount will be used for any particular purpose, other than the funds which we will be required to expend under the farm-in agreement.

Plan of Operation

Our primary objectives over the 12 months ending September 30, 2006, will be to continue to participate in the farm-in agreement with Accrete Energy Inc. in regards to the development and exploitation of natural gas at the Bolton prospect and continue to investigate other potential oil and gas property acquisitions.

Cash Requirements

Over the next twelve months we intend to use funds to continue our participation in the Bolton prospect and to investigate further acquisitions, as follows:

Estimated Funding Required During the Next Twelve Months

General and Administrative			$120,000

Operations
	Farm-in contributions	400,000

Working Capital		50,000

Total		$570,000

We have suffered recurring losses from operations. We generated our first profits in fiscal 2005. The continuation of our company as a going concern is dependent upon our company attaining and maintaining profitable operations and raising additional capital. Management's plan in this regard is to raise additional capital through a debt and / or equity offering. The financial statements do not include any adjustment relating to the recovery and classification of recorded asset amounts or the amount and classification of liabilities that might be necessary should our company discontinue operations.

Due to the uncertainty of our ability to meet our current operating expenses and the capital expenses noted above, in their report on the annual financial statements for the year ended March 31, 2005, our independent auditors included an explanatory paragraph regarding concerns about our ability to continue as a going concern. Our financial statements contain additional note disclosures describing the circumstances that lead to this disclosure by our independent auditors.

There is substantial doubt about our ability to continue as a going concern as the continuation of our business is dependent upon obtaining further financing, a successful program of acquisition and exploration, and, finally, achieving a profitable level of operations. The issuance of additional equity securities by us could result in a significant dilution in the equity interests of our current stockholders. Obtaining commercial loans, assuming those loans would be available, will increase our liabilities and future cash commitments.

There are no assurances that we will be able to obtain further funds required for our continued operations. We are pursuing various financing alternatives to meet our immediate and long-term financial requirements. There can be no assurance that additional financing will be available to us when needed or, if available, that it can be obtained on commercially reasonable terms. If we are not able to obtain additional financing on a timely basis, we will be unable to conduct our operations as planned, and we will not be able to meet our other obligations as they become due. In such event, we will be forced to scale down or perhaps even cease our operations.

Product Research and Development

We do not anticipate that we will expend any significant monies on research over the next twelve months. We anticipate expenses for the development of the Bolton prospect as set out above under our “Plan of Operations”.

Employees

Over the twelve months ending September 30, 2006, we do not anticipate an increase in the number of employees that we may retain. We currently have no employees other than our director and officer.

New Accounting Pronouncements

In December 2003, the Financial Accounting Standards Board (“FASB”) issued FASB Interpretation Number 46-R Consolidation of Variable Interest Entities (“FIN 46-R”) FIN 46-R, which modifies certain provisions and effective dates of FIN 46, sets forth the criteria to be used in determining whether an investment is a variable interest entity that should be consolidated. These provisions are based on the general premise that if a company controls another entity through interests other than voting interests, that company should consolidate the controlled entity. We believe that currently, it does not have any material arrangements that meet the definition of a variable interest

entity, which would require consolidation.

In November 2004, the FASB issued SFAS 151, “Inventory Costs.” SFAS 151 amends the accounting for abnormal amounts of idle facility expense, freight, handling costs, and wasted material (spoilage) under the guidance in ARB 43, Chapter 4, “Inventory Pricing.” Paragraph 5 of ARB 43, Chapter 4, previously stated that “...under some circumstances, items such as idle facility expense, excessive spoilage, double freight, and rehandling costs may be so abnormal as to require treatment as current period charges....” This Statement requires that those items be recognized as current-period charges regardless of whether they meet the criterion of “so abnormal.” In addition, this Statement requires that allocation of fixed production overheads to the costs of conversion be based on the normal capacity of the production facilities. This statement is effective for inventory costs incurred during fiscal years beginning after June 15, 2005. Management does not expect adoption of SFAS 151 to have a material impact on our company’s financial statements.

In December 2004, the FASB issued SFAS 152, “Accounting for Real Estate Time-Sharing Transactions.” The FASB issued this Statement as a result of the guidance provided in AICPA Statement of Position (SOP) 04-2, “Accounting for Real Estate Time-Sharing Transactions.” SOP 04-2 applies to all real estate time-sharing transactions. Among other items, the SOP provides guidance on the recording of credit losses and the treatment of selling costs, but does not change the revenue recognition guidance in SFAS 66, “Accounting for Sales of Real Estate,” for real estate time-sharing transactions. SFAS 152 amends Statement 66 to reference the guidance provided in SOP 04-2. SFAS 152 also amends SFAS 67, “Accounting for Costs and Initial Rental Operations of Real Estate Projects”, to state that SOP 04-2 provides the relevant guidance on accounting for incidental operations and costs related to the sale of real estate time-sharing transactions. SFAS 152 is effective for years beginning after June 15, 2005, with restatements of previously issued financial statements prohibited. Management does not expect adoption of SFAS 152 to have a material impact on our company’s financial statements.

In December 2004, the FASB issued SFAS 153, “Exchanges of Nonmonetary Assets,” an amendment to Opinion No. 29, “Accounting for Nonmonetary Transactions.” Statement 153 eliminates certain differences in the guidance in Opinion No. 29 as compared to the guidance contained in standards issued by the International Accounting Standards Board. The amendment to Opinion No. 29 eliminates the fair value exception for nonmonetary exchanges of similar productive assets and replaces it with a general exception for exchanges of nonmonetary assets that do not have commercial substance. Such an exchange has commercial substance if the future cash flows of the entity are expected to change significantly as a result of the exchange. SFAS 153 is effective for nonmonetary asset exchanges occurring in periods beginning after June 15, 2005. Earlier application is permitted for nonmonetary asset exchanges occurring in periods beginning after December 16, 2004. Management does not expect adoption of SFAS 153 to have a material impact on our company’s financial statements.

In December 2004, the FASB issued SFAS 123(R), “Share-Based Payment.” SFAS 123(R) amends SFAS 123, “Accounting for Stock-Based Compensation,” and APB Opinion 25, “Accounting for Stock Issued to Employees.” SFAS 123(R) requires that the cost of share-based payment transactions (including those with employees and non-employees) be recognized in the financial statements. SFAS 123(R) applies to all share-based payment transactions in which an entity acquires goods or services by issuing (or offering to issue) its shares, share options, or other equity instruments (except for those held by an Employee Stock Option Plan (“ESOP”) or by incurring liabilities (1) in amounts based (even in part) on the price of the entity’s shares or other equity instruments, or (2) that require (or may require) settlement by the issuance of an entity’s shares or other equity instruments. This statement is effective (1) for public companies qualifying as SEC small business issuers, as of the first interim period or fiscal year beginning after December 15, 2005, or (2) for all other public companies, as of the first interim period or fiscal year beginning after June 15, 2005, or (3) for all nonpublic entities, as of the first fiscal year beginning after December 15, 2005. Management is currently assessing the effect of SFAS No. 123(R) on our company’s financial statements.

Application of Critical Accounting Policies

Estimates

The preparation of our financial statements in conformity with accounting principles generally accepted in the United States of America requires our management to make estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. Actual results could differ from those estimates.

Fair Value of Financial Instruments

Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of September 30, 2005. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values. These financial instruments include cash, accounts payable, and accounts payable – related party. Fair values were assumed to approximate carrying values for these financial instruments because they are short term in nature and their carrying amounts approximate fair values or they are payable on demand.

Unproved Oil and Gas Properties

We follow the full cost method of accounting for oil and gas operations whereby all costs associated with the exploration for and development of oil and gas reserves, whether productive or unproductive, are capitalized. Such expenditures include land acquisition costs, drilling, exploratory dry holes, geological and geophysical costs not associated with a specific unevaluated property, completion and costs of well equipment. Internal costs are capitalized only if they can be directly identified with acquisition, exploration, or development activities. As of September 30, 2005, we have not capitalized any internal costs.

Expenditures that are considered unlikely to be recovered are written off. On a quarterly basis our board of directors assesses whether or not there is an asset impairment. The current oil and gas exploration and development activities are considered to be in the pre-production stage.

We periodically review the carrying amount of our unproved oil and gas properties to determine whether current events or circumstances warrant adjustments to such carrying amounts. In the year ended March 31, 2003, we recognized an impairment loss related to the abandonment of an initial test well. As of September 30, 2005, management believes there has been no further impairment of our unproved oil and gas properties.

RISK FACTORS

Much of the information included in this quarterly report includes or is based upon estimates, projections or other “forward looking statements”. Such forward looking statements include any projections or estimates made by us and our management in connection with our business operations. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgement regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein.

Such estimates, projections or other “forward looking statements” involve various risks and uncertainties as outlined below. We caution the reader that important factors in some cases have affected and, in the future, could materially affect actual results and cause actual results to differ materially from the results expressed in any such estimates, projections or other “forward looking statements”.

Our shares of common stock are considered speculative while we proceed with our commitments in connection with the Boltan project or while we continue our search for a new business opportunity. Prospective investors should consider carefully the risk factors set out below.

Because of the early stage of development and the nature of our business, our securities are considered highly speculative.

Our securities must be considered highly speculative, generally because of the nature of our business and the early stage of its development. We are engaged in the business of exploring and, if warranted, developing commercial reserves of oil and gas. Our properties are in the exploration, development and preproduction stages and are without proven reserves of oil and gas. Accordingly, we have realized limited revenues and profits from our operations to date and there is little likelihood that we will realize material profits in the short term. Any profitability in the future from our business will be dependent upon locating and developing economic reserves of oil and gas, which itself is subject to numerous risk factors as set forth herein.

A portion of our interest in our properties may be lost if we are unable to obtain significant additional financing.

Our ability to continue exploration and, if warranted, development of our properties will be dependent upon our ability to raise significant additional financing. If we are unable to obtain such financing, a portion of our interest in our properties may be lost to exploration partners or our properties may be lost entirely. We have limited financial resources and limited cash flow from operations and we are dependent for funds on our ability to sell our common shares and or our other marketable securities. There can be no assurance that we will be able to obtain financing on that basis in light of factors such as the market demand for our securities, the state of financial markets generally and other relevant factors. The method of financing employed by us to date results in increased dilution to the existing shareholders each time a financing conducted.

There can be no assurance that additional funding will be available to us for exploration and development of our projects or to fulfill our obligations under any applicable agreements. Although historically we have announced additional financings to proceed with the development of some of our previous properties, there can be no assurance that we will be able to obtain adequate financing in the future or that the terms of such financing will be favorable. Failure to obtain such additional financing could result in delay or indefinite postponement of further exploration and development of our projects with the possible loss of such properties.

We will require substantial funds to enable us to determine whether our properties contain commercial oil and gas deposits and whether they should be brought into production, and if we cannot raise the necessary funds we may never be able to realize the potential of our properties.

Our decision as to whether our properties contain commercial oil and gas deposits and should be brought into production will require substantial funds and depend upon the results of exploration programs and feasibility studies and the recommendations of duly qualified engineers, geologists, or both. This decision will involve consideration and evaluation of several significant factors including but not limited to: (1) costs of bringing a property into production, including exploration and development work, preparation of production feasibility studies, and construction of production facilities; (2) availability and costs of financing; (3) ongoing costs of production; (4) market prices for the oil and gas to be produced; (5) environmental compliance regulations and restraints; and (6) political climate, governmental regulation and control.

We have obtained title reports, but these reports do not guarantee title against all possible claims. Our properties may be subject to prior unregistered agreements, native land claims or transfers which have not been recorded or detected, resulting in a possible claim against any future revenues generated by such properties.

We have obtained title reports with respect to our oil and gas properties and believe our interests are valid and enforceable; however, these reports do not guarantee title against all possible claims. The properties may be subject to prior unregistered agreements, native land claims or transfers which have not been recorded or detected through title research. Additionally, the land upon which we hold oil and gas leases may not have been surveyed; therefore, the precise area and location of such interests may be subject to challenge.

Our accounts are subject to currency fluctuations which may materially affect our financial position and results.

We maintain our accounts in US and Canadian currencies and are therefore subject to currency fluctuations and such fluctuations may materially affect our financial position and results. We do not engage in currency hedging activities.

We may not be able to manage the significant strains that future growth may place on our administration infrastructure, systems and controls.

In the event our properties commence production, we could experience rapid growth in revenues, personnel, complexity of administration and in other areas. There can be no assurance that we will be able to manage the significant strains that future growth may place on our administrative infrastructure, systems, and controls. If we are unable to manage future growth effectively, our business, operating results and financial condition may be materially adversely affected.

The loss of John Hislop would have an adverse impact on future development and could impair our ability to succeed.

We are dependent on our ability to hire and retain highly skilled and qualified personnel. We face competition for qualified personnel from numerous industry sources, and there can be no assurance that we will be able to attract and retain qualified personnel on acceptable terms. We do not have key man insurance on any of our directors. The loss of service of any of our key personnel could have a material adverse effect on our operations or financial condition.

We are dependent upon Accrete Energy Inc.’s expertise in the area of oil and gas exploration.

Under the farm-in agreement, Olympia Energy Inc. and now Accrete Energy Inc, as successor, will act as operator for the purposes of carrying out the work necessary at Boltan and we are therefore dependent upon Accrete Energy Inc.’s expertise in the area of oil and gas exploration.

Our management currently engages in other oil and gas businesses and, as a result, conflicts could arise.

In addition to their interest in our company, our management currently engages, and intends to engage in the future, in the oil and gas business independently of our company. As a result, conflicts of interest between us and management of our company might arise.

Trading of our stock may be restricted by the SEC’s penny stock regulations which may limit a stockholder’s ability to buy and sell our stock.

Our shares of common stock are subject to rules promulgated by the Securities and Exchange Commission relating to “penny stocks,” which apply to companies whose shares are not traded on a national stock exchange or on the NASDAQ system, trade at less than $5.00 per share, or who do not meet certain other financial requirements specified by the Securities and Exchange Commission. These rules require brokers who sell “penny stocks” to persons other than established customers and “accredited investors” to complete certain documentation, make suitability inquiries of investors, and provide investors with certain information concerning the risks of trading in such penny stocks. These rules may discourage or restrict the ability of brokers to sell our shares of common stock and may affect the secondary market for our shares of common stock. These rules could also hamper our ability to raise funds in the primary market for our shares of common stock.

Since our shares are thinly traded, and trading on the OTC Bulletin Board may be sporadic because it is not an exchange, stockholders may have difficulty reselling their shares.

Our shares of common stock are currently publicly traded on the OTC Bulletin Board service of the National Association of Securities Dealers, Inc. The trading price of our shares of common stock has been subject to wide fluctuations. Trading prices of our shares of common stock may fluctuate in response to a number of factors, many of which will be beyond our control. The stock market has generally experienced extreme price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of companies with no current business operation. There can be no assurance that trading prices and price earnings ratios previously experienced by our shares of common stock will be matched or maintained. These broad market and industry factors may adversely affect the market price of our shares of common stock, regardless of our operating performance.

In the past, following periods of volatility in the market price of a company's securities, securities class-action litigation has often been instituted. Such litigation, if instituted, could result in substantial costs for us and a diversion of management's attention and resources.

Our By-laws contain provisions indemnifying our officers and directors against all costs, charges and expenses incurred by them.

Our by-laws contain provisions with respect to the indemnification of our officers and directors against all expenses

(including, without limitation, attorneys' fees, judgments, fines, settlements, and other amounts actually and reasonably incurred in connection with any proceeding arising by reason of the fact that the person is one of our officers or directors) incurred by an officer or director in defending any such proceeding to the maximum extent permitted by Wyoming law.

Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of our company under Wyoming law or otherwise, we have been advised that the opinion of the Securities and Exchange Commission is that such indemnification is against public policy as expressed in the Securities Act of 1933 and is, therefore, unenforceable.

Investors’ interests in our company will be diluted and investors may suffer dilution in their net book value per share if we issue additional shares or raise funds through the sale of equity securities.

Our constating documents authorize the issuance of 50,000,000 shares of common stock, each with a par value of $0.001. In the event that we are required to issue any additional shares or enter into private placements to raise financing through the sale of equity securities, investors' interests in our company will be diluted and investors may suffer dilution in their net book value per share depending on the price at which such securities are sold. If we issue any such additional shares, such issuances also will cause a reduction in the proportionate ownership and voting power of all other shareholders. Furthermore, any such issuance may result in a change in our control.

Our by-laws do not contain anti-takeover provisions which could result in a change of our management and directors if there is a take-over of our company.

We do not currently have a shareholder rights plan or any anti-takeover provisions in our By-laws. Without any anti-takeover provisions, there is no deterrent for a take-over of our company, which may result in a change in our management and directors.

Risks Relating to the Industry

As our properties are in the exploration and development stage there can be no assurance that we will establish commercial discoveries on our properties.

Exploration for economic reserves of oil and gas is subject to a number of risk factors. While the rewards to an investor can be substantial if an economically viable discovery is made, few of the properties that are explored are ultimately developed into producing oil and/or gas wells. Our properties are in the exploration, development and preproduction stages and are without proven reserves of oil and gas. We have realized limited production of gas to date but have yet to establish proven reserves. There can be no assurance that we will establish further commercial discoveries on any of our properties.

The potential profitability of oil and gas ventures depends upon factors beyond the control of our company.

The potential profitability of oil and gas properties is dependent upon many factors beyond our control. For instance, world prices and markets for oil and gas are unpredictable, highly volatile, potentially subject to governmental fixing, pegging, controls, or any combination of these and other factors, and respond to changes in domestic, international, political, social, and economic environments. Additionally, due to worldwide economic uncertainty, the availability and cost of funds for production and other expenses have become increasingly difficult, if not impossible, to project. These changes and events may materially affect our financial performance.

Adverse weather conditions can also hinder drilling operations. A productive well may become uneconomic in the event water or other deleterious substances are encountered which impair or prevent the production of oil and/or gas from the well. In addition, production from any well may be unmarketable if it is impregnated with water or other deleterious substances. The marketability of oil and gas which may be acquired or discovered will be affected by numerous factors beyond our control. These factors include the proximity and capacity of oil and gas pipelines and processing equipment, market fluctuations of prices, taxes, royalties, land tenure, allowable production and environmental protection. The extent of these factors cannot be accurately predicted but the combination of these

factors may result in our company not receiving an adequate return on invested capital.

The oil and gas industry is highly competitive and there is no assurance that we will be successful in acquiring desirable oil and gas leases.

The oil and gas industry is intensely competitive. We compete with numerous individuals and companies, including many major oil and gas companies, which have substantially greater technical, financial and operational resources and staffs. Accordingly, there is a high degree of competition for desirable oil and gas leases, suitable properties for drilling operations and necessary drilling equipment, as well as for access to funds. There can be no assurance that the necessary funds can be raised or that any projected work will be completed.

The marketability of natural resources will be affected by numerous factors beyond our control which may result in us not receiving an adequate return on invested capital to be profitable or viable.

The marketability of natural resources which may be acquired or discovered by us will be affected by numerous factors beyond our control.

These factors include market fluctuations in oil and gas pricing and demand, the proximity and capacity of natural resource markets and processing equipment, governmental regulations, land tenure, land use, regulation concerning the importing and exporting of oil and gas and environmental protection regulations. The exact effect of these factors cannot be accurately predicted, but the combination of these factors may result in us not receiving an adequate return on invested capital to be profitable or viable.

Oil and gas operations are subject to comprehensive regulation which may cause substantial delays or require capital outlays in excess of those anticipated causing an adverse effect on our company.

Oil and gas operations are subject to federal, provincial, and local laws relating to the protection of the environment, including laws regulating removal of natural resources from the ground and the discharge of materials into the environment. Oil and gas operations are also subject to federal, state, and local laws and regulations which seek to maintain health and safety standards by regulating the design and use of drilling methods and equipment. Various permits from government bodies are required for drilling operations to be conducted; no assurance can be given that such permits will be received. No assurance can be given that environmental standards imposed by federal, provincial, or local authorities will not be changed or that any such changes would not have material adverse effects on our activities. Moreover, compliance with such laws may cause substantial delays or require capital outlays in excess of those anticipated, thus causing an adverse effect on us. Additionally, we may be subject to liability for pollution or other environmental damages which it may elect not to insure against due to prohibitive premium costs and other reasons.

Exploration and production activities are subject to certain environmental regulations which may prevent or delay the commencement or continuance of our operations.

In general, our exploration and production activities are subject to certain federal, provincial and local laws and regulations relating to environmental quality and pollution control. Such laws and regulations increase the costs of these activities and may prevent or delay the commencement or continuance of a given operation. Compliance with these laws and regulations has not had a material effect on our operations or financial condition to date. Specifically, we are subject to legislation regarding emissions into the environment, water discharges and storage and disposition of hazardous wastes. In addition, legislation has been enacted which requires well and facility sites to be abandoned and reclaimed to the satisfaction of state authorities. However, such laws and regulations are frequently changed and we are unable to predict the ultimate cost of compliance. Generally, environmental requirements do not appear to affect us any differently or to any greater or lesser extent than other companies in the industry.

We believe that our operations comply, in all material respects, with all applicable environmental regulations.

Our operating partners maintain insurance coverage customary to the industry; however, it is not fully insured

against all environmental risks.

Exploratory drilling involves many risks and we may become liable for pollution or other liabilities which may have an adverse effect on our financial position.

Drilling operations generally involve a high degree of risk. Hazards such as unusual or unexpected geological formations, power outages, labor disruptions, blow-outs, sour gas leakage, fire, inability to obtain suitable or adequate machinery, equipment or labour, and other risks are involved. We may become subject to liability for pollution or hazards against which it cannot adequately insure or which it may elect not to insure. Incurring any such liability may have a material adverse effect on our financial position and operations.

Any change to government regulation/administrative practices may have a negative impact on our ability to operate and our profitability.

There is no assurance that the laws, regulations, policies or current administrative practices of any government body, organization or regulatory agency will not be changed, applied or interpreted in a manner which will fundamentally alter the ability of our company to carry on our business.

The actions, policies or regulations, or changes thereto, of any government body or regulatory agency, or other special interest groups, may have a detrimental effect on our company. Any or all of these situations may have a negative impact on our ability to operate and/or become profitable.

Item 3. Controls and Procedures

As required by Rule 13a-15 under the Securities Exchange Act of 1934, as of the end of the period covered by the quarterly report, being September 30, 2005, we have carried out an evaluation of the effectiveness of the design and operation of our company's disclosure controls and procedures. This evaluation was carried out under the supervision and with the participation of our company's management, including our company's president and our company's chief financial officer. Based upon that evaluation, our company's president and our company's chief financial officer concluded that our company's disclosure controls and procedures are effective as at the end of the period covered by this report. There have been no changes in our internal controls over financial reporting that occurred during our most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect our internal controls over financial reporting.

Disclosure controls and procedures and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time period 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 in our reports filed under the Securities Exchange Act of 1934 is accumulated and communicated to management including our president and secretary as appropriate, to allow timely decisions regarding required disclosure.

Part II - OTHER INFORMATION

Item 1. Legal Proceedings.

We know of no material, active or pending legal proceedings against our company, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which any of our directors, officers or affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest.

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

None.

Item 3. Defaults Upon Senior Securities.

None.

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

None.

Item 5. Other Information.

Committees of the Board

We do not have a standing audit, nominating or compensation committee at the present time. Our company did not hold any formal board meetings during the quarter ended September 30, 2005. All the proceedings of the board were conducted by resolutions consented to in writing by all of our directors and filed with the minutes of the proceedings of the directors. Such resolutions consented to in writing by the directors entitled to vote on that resolution are, according to the Wyoming General Corporate Law and our by-laws, as valid and effective as if they had been at a meeting of the directors duly called and held.

Item 6. Exhibits.

Financial Statements Filed as a Part of the Quarterly Report

Our unaudited interim financial statements include:

Balance Sheet

Statements of Operations

Statements of Cash Flows

Notes to the Financial Statements

Exhibits Required by Item 601 of Regulation S-B

(3)

Articles of Incorporation/Bylaws

3.1 Certificate of Incorporation (incorporated by reference from our Registration Statement on Form 10-SB filed with the Securities and Exchange Commission on March 31, 2000)

3.2 Certificate of Amendment of Certificate of Incorporation (incorporated by reference from our Registration Statement on Form 10-SB filed with the Securities and Exchange Commission on March 31, 2000)

3.3 Bylaws (incorporated by reference from our Registration Statement on Form 10-SB filed with the Securities and Exchange Commission on March 31, 2000)

3.4 Certificate of Merger (Delaware) effective June 12, 2003 (incorporated by reference from our Annual Report on Form 10-KSB filed with the Securities and Exchange Commission on June 30, 2003)

3.5 Certificate of Merger (Wyoming) effective June 13, 2003 (incorporated by reference from our Annual Report on Form 10-KSB filed with the Securities and Exchange Commission on June 30, 2003)

(10)

Material Contracts

10.1 1999 Stock Option Plan (incorporated by reference from our Registration Statement on Form 10-SB filed with the Securities and Exchange Commission on March 31, 2000)

10.2 Farm-in Agreement with Olympia Energy Inc., dated November 21, 2001 (incorporated by reference from our Quarterly Report on Form 10-QSB filed with the Securities and Exchange Commission on February 14, 2002)

10.3 Management Agreement with D. Sharpe Management Ltd., July 1, 2002 (incorporated by reference from our Quarterly Report on Form 10-QSB filed with the Securities and Exchange Commission on August 14, 2002)

10.4 Agreement with Netco Energy Inc. dated January 10, 2005 (incorporated by reference from our Current Report on Form 8-K filed with the Securities and Exchange Commission on January 28, 2005)

(14)

Code of Ethics

14.1 Code of Business Conduct and Ethics (incorporated by reference from our Annual Report on Form 10-KSB filed with the Securities and Exchange Commission on July 15, 2004)

(31)	Section 302 Certifications
31.1*	Section 302 Certification under Sarbanes-Oxley Act of 2002
(32)	Section 906 Certifications
32.1*	Section 906 Certification under Sarbanes-Oxley Act of 2002

*Filed herewith

SIGNATURES

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

NATION ENERGY, INC.

By: “John R Hislop”

John Hislop, President, Chief Executive Officer, Chairman of the Board,

Chief Financial/Director

(Principal Executive Officer and Principal Financial and Accounting Officer)

Date: August 29, 2006

Dated: August 29^th, 2006

		/s/ John R Hislop

		John Hislop
		President, Chief Executive Officer, Chairman of the Board and Chief Financial Officer
		Nation Energy Inc.