8-K

UNITED STATES SECURITIES AND

EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) November 30, 2006

NATION ENERGY INC.

(Exact name of registrant as specified in its charter)

Wyoming

(State or other jurisdiction of incorporation)

000-30193

(Commission File Number)

59-2887569

(IRS Employer Identification No.)

Suite 1100 - 609 West Hastings Street, Vancouver, British Columbia, Canada V6B 4W4

(Address of principal executive offices and Zip Code)

800.400.3969

Registrant's telephone number, including area code

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 1.01. Entry into a Material Definitive Agreement.

On November 30, 2006, the Registrant announced that it has entered into a letter of intent with Netco Energy Inc. whereby Netco Energy Inc. may earn 60% of the Registrant's interest in the new 1-16-59-2W6 test well and the land – Section 16, TWP 59, Rge 2 W6M – on which the well is located, all in the Bolton area of Alberta.

Under the terms of the agreement, Netco Energy Inc. will earn 60% of the Registrant's 15% interest by funding the Registrant’s share of related drilling and development costs, estimated to be approximately $714,225. Netco Energy Inc. will earn a 9% interest, after payout, in the test well. In addition, the Registrant has agreed to dedicate 100% of its share of production revenues from any and all existing wells in which it currently has an interest anywhere in the Bolton area of Alberta, including the test well and the section of land where the test well is located, net of royalty

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lease operating expenses, and administrative expenses, current and future, to Netco Energy Inc. until such time that Netco Energy Inc. recoups 100% of its capital associated with the test well.

Item 9.01. Financial Statements and Exhibits.

10.1	Agreement dated November 29, 2006 with Netco Energy Inc.
99.1	News Release issued by the Registrant on November 30, 2006.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

NATION ENERGY INC.

By: /s/ John R. Hislop

John R. Hislop

President, Chief Executive Officer, Secretary,

Chief Financial Officer, and Director

Date: December 5, 2006

EX-10

Nation Energy Inc.

1100, 609 West Hastings St.

Vancouver, BC

V6B 4W4

November 29, 2006

Netco Energy Inc.

1100, 609 West Hastings St.

Vancouver, BC

V6B 4W4

Attention: Mr. Gordon Nielsen, President

Re:	Farmin Agreement
	Section 16; Twp 59, Rge 2 W6M
	Boltan Area, Alberta

Dear Sirs:

Nation Energy Inc. (“Nation”) proposes to enter into a farmin agreement with Netco Energy Inc. or a subsidiary or affiliate of Netco Energy Inc. to be designated ("Netco") whereby Netco will earn 60% of Nation’s 15% working interest (“Nation’s Interest”) in a test well and Section 16; Twp 59, Rge 2 W6M (the “Boltan Section”) located in the Boltan area of Alberta.

The terms of the farmin would be substantially as follows, subject to the negotiation and execution of a formal agreement and regulatory approval:

• Netco will bear 100 % of Nation’s 15% share of the capital costs relating to the drilling and development of the 1-16-59-2-W6M test well (the “Test Well”) located on the Boltan Section.

• Netco will advance to Nation 100 % of Nation’s 15% share of the capital costs relating to the drilling and development of the Test Well to enable Nation to comply with cash calls and invoiced joint interest billings relating to drilling and development operations at the Test Well.

• Netco will earn 100% of Nation’s Interest before payout and 60% of Nation’s Interest after payout (15% before payout and 9% after payout interest on 8/8ths basis) in the Test Well and the Boltan Section.

• Nation will dedicate 100% of Nation’s share of production revenues from any and all existing wells in which Nation has an interest anywhere in the Boltan area of Alberta, including the Boltan Section, net of royalty lease operating expenses, and administrative expenses, current and future, to Netco until such time that Netco recoups 100% of any and all capital and lease operating expenses associated with the Test Well.

If these terms are acceptable to Netco, please execute the enclosed copy of this letter and return the same to us. Upon our receipt, we will instruct our attorneys to begin the process of drafting a formal agreement incorporating these terms and such other terms as are commercially reasonable for a transaction of this nature. We agree that this letter of intent will be binding on both parties, subject to regulatory approval.

Notwithstanding the foregoing, nothing in this binding letter of intent will prevent Nation from assigning any or all of its interests in the Boltan Area to its wholly owned subsidiary, 963639 Alberta Ltd., so long as 963639 Alberta Ltd. agrees to be bound by the terms of this letter of intent.

Sincerely,

NATION ENERGY INC.
By:	/s/ John R. Hislop
	John Hislop President

Agreed to and accepted this 29th day of November, 2006 by:

NETCO ENERGY INC.

By:/s/ Gordon Nielsen

Gordon Nielsen, President

CW969385.2

EX-99

NATION ENERGY INC.

11^th Floor, 609 West Hastings Street

Vancouver, BC V6B 4W4

Telephone: (800) 400-3969

Facsimile: (604) 688-4712

Nation Energy Inc. Farms-out Interest at Boltan

VANCOUVER, November 30, 2006 – Nation Energy Inc. (“Nation”) (OTCBB: NEGY) announces that it has entered into a letter of intent with Netco Energy Inc. (“Netco”) whereby Netco may earn 60% of Nation’s interest in the new 1-16-59-2W6 test well (the “Test Well”) and the land – Section 16, TWP 59, Rge 2 W6M – on which the well is located, all in the Boltan area of Alberta. The proposed transaction is not arms length and closing of this transaction is subject to execution of a formal agreement and Netco obtaining TSX Venture Exchange approval on the transaction.

The letter of intent provides that Netco will earn 60% of Nation’s 15% interest in the Test Well and the section of land where the Test Well is located by funding Nation’s share of related drilling and development costs, estimated to be approximately $714,225. Netco will earn a 15% before payout (and 9% after payout) interest in the Test Well. In addition, Nation has agreed to dedicate 100% of its share of production revenues from any and all existing wells in which it currently has an interest anywhere in the Bolton area of Alberta, including the Test Well and the section of land where the Test Well is located, net of royalty lease operating expenses, and administrative expenses, current and future, to Netco until such time that Netco recoups 100% of its capital associated with the Test Well.

Nation Energy Inc. is an exploration stage company focused on exploring potential oil and gas projects.

Notice Regarding Forward Looking Statements

This news release contains "forward-looking statements", as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements include, among other things, entering into a formal agreement with Netco, obtaining TSX-V approval and future drilling and funding of the Test Well.

Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with oil and gas exploration; changes in reserve estimates if any; the potential productivity of our properties; changes in the operating costs and changes in economic conditions and conditions in oil and gas exploration. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-KSB for the 2005 fiscal year, our quarterly reports on Form 10-QSB and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

For more information, contact:

John R. Hislop

(800) 400-3969

Nation Energy, Inc.

Suite 1100 - 609 West Hastings Street

Vancouver BC CANADA V6B 4W4