10-Q 1 form10q.htm FORM 10-Q Blue Sky Petroleum Inc.: Form 10Q - Filed by newsfilecorp.com

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 10-Q

(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 30, 2013 or

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________________-- to __________________

Commission File Number 000-52010

BLUE SKY PETROLEUM INC.
(Exact name of registrant as specified in its charter)

Nevada N/A
(State or other jurisdiction of incorporation or organization) (IRS Employer Identification No.)
   
3702 South Virginia Street, Suite G12-401, Reno, Nevada 89502
(Address of principal executive offices) (Zip Code)

(202) 470-4608
(Registrant’s telephone number, including area code)

N/A
(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 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.
[X] YES [ ] NO

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
[X] YES [ ] NO

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a small reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer [ ]   Accelerated filer [ ]
Non-accelerated filer [ ] (Do not check if a smaller reporting company) Smaller reporting company [X]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act
[X] YES [ ] NO

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court.
[ ] YES [ ] NO

APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

102,220,000 common shares issued and outstanding as of June18, 2013.


Table of Contents

PART I - FINANCIAL INFORMATION 3
Item 1. Financial Statements 3
  Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 5
Item 3. Quantitative Disclosures About Market Risks 10
Item 4. Controls and Procedures 10
PART II - OTHER INFORMATION 10
Item 1. Legal Proceedings 10
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 10
Item 3. Defaults Upon Senior Securities 11
Item 4. Mine Safety Disclosures 11
Item 5. Other Information 11
Item 6. Exhibits 11
SIGNATURES 13

2


PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

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

3


BLUE SKY PETROLEUM INC.

(An Exploration Stage Company)

CONDENSED FINANCIAL STATEMENTS

April 30, 2013 and January 31, 2013
(Stated in US Dollars)
(Unaudited)

Condensed Balance Sheets F–1
Condensed Statements of Operations F–2
Condensed Statements of Cash Flows F–3
Notes to Condensed Financial Statements F–4

4



BLUE SKY PETROLEUM INC.
(An Exploration Stage Company)
CONDENSED BALANCE SHEETS
(Stated in US Dollars)

    April 30,     January 31,  
    2013     2013  
    (Unaudited)        
ASSETS    
             
CURRENT ASSETS            
   Cash $  14,759   $  39,309  
             
           TOTAL CURRENT ASSETS   14,759     39,309  
             
TOTAL ASSETS $  14,759   $  39,309  
             
             
LIABILITIES AND STOCKHOLDERS’ DEFICIT   
             
CURRENT LIABILITIES            
   Accounts payable and accrued liabilities $  19,839   $  17,715  
   Notes payable   86,468     86,468  
   Due to a related party   120     -  
             
TOTAL LIABILITIES   106,427     104,183  
             
             
             
STOCKHOLDERS’ DEFICIT            
Capital stock            
     Authorized 225,000,000 common shares, $0.001 par value,
     Issued and outstanding
          102,220,000 common shares (January 31, 2013 – 102,220,000)
 

102,220
   

102,220
 
Additional paid-in capital   352,240     352,240  
Deficit accumulated during the exploration stage   (546,128 )   (519,334 )
             
TOTAL STOCKHOLDERS’ DEFICIT   (91,668 )   (64,874 )
             
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT $  14,759   $  39,309  

The accompanying notes are an integral part of these condensed unaudited financial statements

F-1



BLUE SKY PETROLEUM INC.
(An Exploration Stage Company)
CONDENSED STATEMENTS OF OPERATIONS
(Stated in US Dollars)
(Unaudited)

                February 2,  
    Three months     Three months     2005  
    ended     ended     (Inception) to  
    April 30,     April 30,     April 30,  
    2013     2012     2013  
                   
Operating expenses                  
   Donated services $  -   $  -   $  4,500  
   Exploration expenses   -     -     75,000  
   Loss on sale of resource property   -     -     50,000  
   Management salaries   18,000     -     28,000  
   Professional fees   5,593     2,269     330,957  
   General and administrative   3,201     661     57,671  
                   
Net loss $  (26,794 ) $  (2,930 ) $  (546,128 )
                   
Basic and diluted loss per share $  (0.00 ) $  (0.00 )      
                   
Weighted average number of shares outstanding – basic and diluted   102,220,000     47,173,332      

The accompanying notes are an integral part of these condensed unaudited financial statements

F-2



BLUE SKY PETROLEUM INC.
(An Exploration Stage Company)
CONDENSED STATEMENTS OF CASH FLOWS
(Stated in US Dollars)
(Unaudited)

                February 2,  
    Three months     Three months     2005  
    ended     ended     (Inception) to  
    April 30,     April 30,     April 30,  
    2013     2012     2013  
                   
Operating Activities                  
   Net loss $  (26,794 $ (2,930 $ (546,128 )
   Adjustments to reconcile net loss to net cash used by operating activities:            
         Donated capital   -     -     4,500  
         Expenses paid by Company shareholder   120     160     9,310  
         Loss on sale of resource property   -     -     50,000  
Changes in working capital:                  
         Accounts payable and accrued liabilities   2,124     (26,546 )   19,839  
                   
Net cash used in operating activities   (24,550 )   (29,316 )   (462,479 )
                   
Investing Activities                  
   Acquisition of resource property +   -     -     (50,000 )
                   
Net cash used in investing activities   -     -     (50,000 )
                   
Financing Activities                  
   Proceeds from notes payable   -     -     97,278  
   Repayment on notes payable   -     -     (20,000 )
   Proceeds from the issuance of capital stock   -     -     280,000  
   Proceeds from stock subscriptions payable   -     -     169,960  
                   
Net cash provided by financing activities   -     -     527,238  
                   
Net Changes in Cash   (24,550 )   (29,316 )   14,759  
                   
Cash at Beginning of Period   39,309     66,341     -  
                   
Cash at End of Period $  14,759   $ 37,025   $ 14,759  
                   
Supplemental Disclosures of Cash Flow Information                  
                   
Cash Paid For:                  
     Interest $  -   $ -   $ -  
     Income taxes $  -   $  -   $ -  
                   
Non-Cash Financing Activities:                  
     Common stock issued for subscriptions payable $  -   $  70,000   $ 169,960  

The accompanying notes are an integral part of these condensed unaudited financial statements

F-3



BLUE SKY PETROLEUM INC.
(An Exploration Stage Company)
NOTES TO THE FINANCIAL STATEMNENTS
April 30, 2013 and January 31, 2013
(Stated in US Dollars)
(Unaudited)

1. NATURE OF BUSINESS

The Company was incorporated in the State of Nevada on February 2, 2005. The Company was previously in the business of developing fuel cell products in China. During fiscal 2008, the Company suspended the development of their fuel cell products due to the inability to raise sufficient additional financing. Management is currently focusing on identifying, evaluating and negotiating new business opportunities. Effective July 31, 2012, the Company through a merger with a wholly-owned subsidiary changed its name from Intervia Inc. to Blue Sky Petroleum Inc. (the “Company”).

The Company is considered to be an exploration stage company and has not generated any revenues from operations. The Company’s shares were de-listed from the OTC-BB subsequent to filing the Form 10-Q for the period ended October 31, 2008. The Company has not been in compliance with the filing requirements of the Securities Exchange Commission (“SEC”). The Company is currently in the process of completing all the required filings with the SEC to enable the Company to reinstate its shares for trading on the OTC-BB. The Company will obtain additional funding by borrowing funds from its director and officer, or by private placement of common stock. There can be no assurance that the Company will be successful in its efforts to raise additional financing or if financing is available, that it will be on terms that are acceptable to the Company.

2. GOING CONCERN

The Company’s unaduited interim financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations.

Management’s plan to support the Company in its operations and to maintain its business strategy is to raise funds through public offerings and to rely on officers and directors to perform essential functions with minimal compensation. If the Company does not raise all of the money it needs from public offerings, it will have to find alternative sources, such as a second public offering, a private placement of securities, or loans from its officers, directors or others. If the Company requires additional cash and is unable to raise it, it will either have to suspend operations until the cash is raised, or cease business entirely.

The ability of the Company to continue is a going concern and is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations. The accompanying unaudited interim financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

F-4



BLUE SKY PETROLEUM INC.
(An Exploration Stage Company)
NOTES TO THE FINANCIAL STATEMNENTS
April 30, 2013 and January 31, 2013
(Stated in US Dollars)
(Unaudited)

3. BASIS OF PRESENTATION

Unaudited Interim Financial Statements

The accompanying unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and the rules and regulations of the Securities and Exchange Commission. They do not include all information and footnotes required by United States generally accepted accounting principles for complete financial statements. However, except as disclosed herein, there has been no material changes in the information disclosed in the notes to the financial statements for the year ended January 31, 2013 included in the Company’s Form 10-K filed with the Securities and Exchange Commission. The unaudited interim financial statements should be read in conjunction with those financial statements included in the Form 10-K. In the opinion of Management, all adjustments considered necessary for a fair presentation, consisting solely of normal recurring adjustments, have been made. Operating results for the three months ended April 30, 2013 are not necessarily indicative of the results that may be expected for the year ending January 31, 2014.

Management has evaluated events occurring between the end of the fiscal quarter, April 30, 2013, to the date when the financial statements were issued

4. RELATED PARTY TRANSACTIONS

During the period ended April 30, 2013, the Company paid management salaries of $18,000 (2012 - $nil) to a director of the Company.

As at April 30, 2013, the Company is indebted to a Director of the Company in the amount of $120 for operating expenses paid on the Company’s behalf (January 31, 2013 - $nil). The amount is unsecured, bears no interest, and due on demand.

5. NOTES PAYABLE

As of January 31, 2012, the Company is indebted to a non-related party in the amount of $106,308. During the year ended January 31, 2013, the Company had $160 in expenses paid on its behalf and the Company made cash payments of $20,000, leaving a balance due of $86,468 as of January 31 and April 30, 2013. The amount owing is unsecured, bears no interest, and due on demand. Subsequent to April 30, 2013, the Company entered into a debt settlement and a share subscription agreement for the issuance of 286,667 shares of common stock at a deemed price of $0.30 per share to settle the above debt in the amount of $86,000 (Note7).

F-5



BLUE SKY PETROLEUM INC.
(An Exploration Stage Company)
NOTES TO THE FINANCIAL STATEMNENTS
April 30, 2013 and January 31, 2013
(Stated in US Dollars)
(Unaudited)

6. COMMON STOCK

On July 31, 2012, the Company effected a three (3) new for one (1) old forward stock split of authorized and issued and outstanding shares of common stock. The effect of the three-for-one stock split has been applied retroactively to reflect the change.

The Company is authorized to issue 225,000,000 (pre stock-split – 75,000,000) shares of its $0.001 (pre stock-split –$0.001) par value common stock. At April 30, 2013 and January 31, 2013, the Company had 102,220,000 (pre stock-split – 70,740,000) and 102,220,000 (pre stock-split – 70,740,000) shares issued and outstanding respectively.

At April 30, 2013 and January 31, 2013 the Company had no issued or outstanding stock options or warrants.

At January 31, 2012, the Company had received $70,000 in advance for the issuance of 420,000 (post stock-split –140,000) shares of common stock at a price of $0.1667 (pre stock-split – $0.50) per share. On February 10, 2012, these shares of common stock were issued in full satisfaction of the stock subscription payable.

On December 27, 2012, the Company received $110,000 for the issuance of 55,000,000 (post stock-split) shares of common stock at a price of $0.002 (post stock-split) per share.

7. SUBSEQUENT EVENTS

Effective May 21, 2013, the Company entered into a debt settlement and a share subscription agreement with Patrick Laferriere, the Company’s former officer and director, for the issuance of 286,667 shares of common stock at a deemed price of $0.30 per share to settle debt owed to Mr. Laferriere in the amount of $86,000 (Note 5).

The Company has evaluated subsequent events from April 30, 2013, through the date of this report, and determined there are no additional items to disclose.

F-6



Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

FORWARD-LOOKING STATEMENTS

This quarterly report contains forward-looking statements. 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 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.

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

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

Unless otherwise specified in this quarterly report, all dollar amounts are expressed in United States dollars and all references to “common stock” refer to shares of our common stock.

As used in this quarterly report, the terms “we”, “us”, “our” and “our company” mean Blue Sky Petroleum Inc., unless otherwise indicated. We have no subsidiaries.

Corporate Overview

The address of our principal executive office is 3702 South Virginia Street, Suite G12-401, Reno, NV 89502. Our telephone number is (202) 470-4608.

Effective August 7, 2012 we changed the name of our company to “Blue Sky Petroleum Inc.”, by way of a merger with our wholly-owned subsidiary Blue Sky Petroleum Inc., which was created solely for the name change.

Also effective August 7, 2012, we effected a forward split of our authorized and issued and outstanding shares of common stock on a 3 new for 1 old basis and, consequently, our authorized capital increased from 75,000,000 to 225,000,000 and correspondingly, our issued and outstanding shares of common stock increased from 15,740,000 to 47,220,000 shares of common stock, all with a par value of $0.001.

Effective September 19, 2012, our stock symbol changed from “ITVA” to “BSKY” to better reflect the new name of our company. The symbol change became effective with the Over-the-Counter Bulletin Board at the opening of trading on September 19, 2012. Our CUSIP number is 09605G 104.

5


Corporate History

We were incorporated in the State of Nevada on February 2, 2005. Our original business plan was to develop fuel cell technology and produce fuel cells in China for indoor forklifts, scooters, and underwater equipment (e.g. shallow underwater sightseeing submarines) that require a small size, longevity of use and silent operation. During fiscal 2008 we suspended the development of our products and business plan until we were able to raise sufficient additional financing.

Since the suspension of our original business plan, our management had been analyzing various alternatives available to our company to ensure our survival and to preserve our shareholder’s investment in our common shares.

On July 15, 2010, we entered into an option agreement to purchase a 100% undivided right, title interest in the Proteus Property located near Cobalt, Ontario, an area known historically for the mining of silver ore. As a result of the option agreement for the Proteus Property, we became a mineral exploration company and had planned to implement an exploration program for the Proteus Property commencing in the summer of 2012.

We have been unsuccessful in raising additional capital for this exploration project and therefore do not have sufficient funds to make the required option payments. Effective August 13, 2012, we entered into an assignment agreement among Timber Wolf Gold Inc., a Nevada corporation and Gino Chitaroni, wherein we have assigned all of our rights, title and interest in and to the option agreement for the Proteus Property to Timber Wolf, with no further obligations to our company.

Our Current Business

During our last two fiscal years, we have been a company with no operations.

On July 15, 2010, we entered into an option agreement to purchase a 100% undivided right, title and interest in the Proteus property located near Cobalt, Ontario, an area known historically for the mining of silver ore. The Proteus Property consists of three mineral claims comprised of nine units covering approximately 360 acres located in the Larder Lake Mining Division in Ontario, Canada. In order to acquire the Proteus Property pursuant to the agreement, were to make the cash payments and incur amounts on exploration and development.

We have been unsuccessful in raising additional capital for this exploration project and therefore do not have sufficient funds to make the required option payments. Consequently, effective August 13, 2012, we entered into an assignment agreement among Timber Wolf Gold Inc., a Nevada corporation and Gino Chitaroni, wherein we have assigned all of our rights, title and interest in and to the option agreement for the Proteus Property to Timber Wolf, with no further obligations to our company.

We continue to look for properties and opportunities. However, at this time we have not yet been successful in finding a transaction that warranted pursuing.

Effective May 21, 2013, our company entered into a debt settlement and subscription agreement with Patrick Laferriere, our company’s former officer and director, for the issuance of 286,667 shares of common stock at a deemed price of $0.30 per share to settle debt owed to Mr. Laferriere in the amount of $86,000.

Research and Development

We do not currently have a formal research and development effort. We did not spend any funds on research and development during the last two fiscal years.

Purchase of Significant Equipment

We do not intend to purchase any significant equipment over the twelve months ending April 30, 2014.

6


Employees

Currently, we do not have any employees. Additionally, we have not entered into any consulting or employment agreements with our president, chief executive officer, treasurer, secretary or chief financial officer. Our directors, executive officers and certain contracted individuals play an important role in the running of our company. We do not expect any material changes in the number of employees over the next 12 month period. We do and will continue to outsource contract employment as needed.

We engage contractors from time to time to consult with us on specific corporate affairs or to perform specific tasks in connection with our exploration programs.

Plan of Operation

You should read the following discussion of our financial condition and results of operations together with our reviewed but unaudited financial statements and the notes to those reviewed but unaudited financial statements included elsewhere in this filing prepared in accordance with accounting principles generally accepted in the United States. This discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those anticipated in these forward-looking statements.

Anticipated Cash Requirements

Based on our net loss of $26,794 incurred during the three month period ended April 30, 2013, our monthly burn rate is approximately $8,931. We estimate our operating expenses and working capital requirements for the twelve month period beginning May 1, 2013 to be as follows:

Estimated Expenses for the Twelve Month Period Beginning May 1, 2013:

Estimated Expenses For the Twelve Month Period ending April 30, 2014      
Management salaries $  80,000  
Professional fees $  20,000  
General and administrative $  10,000  
Total $  $110,000  

At present, our cash requirements for the next 12 months outweigh the funds available to maintain or develop our properties. Of the $110,000 that we require for the next 12 months, we had $14,859 in cash as of April 30, 2013, and a working capital deficit of $91,668. Until we complete another transaction, acquisition or business combination, our cash requirements will be in regards to maintaining our corporate existence, and ensuring compliance with our SEC continuous disclosure obligations, including our financial reporting requirements. In addition, we will require additional capital in order to investigate and conclude any future transaction, acquisition or business combination. In order to improve our liquidity, we plan pursue additional equity financing from private investors or possibly a registered public offering. We do not currently have any definitive arrangements in place for the completion of any further private placement financings and there is no assurance that we will be successful in completing any further private placement financings. If we are unable to achieve the necessary additional financing, then we plan to reduce the amounts that we spend on our business activities and administrative expenses in order to be within the amount of capital resources that are available to us.

7


Results of Operations

Three months ended April 30, 2013 compared to three months ended April 30, 2012.

    Three     Three  
    months     months  
    ended     ended  
    April 30,     April 30,  
    2013     2012  
Revenue $  Nil   $  Nil  
Operating Expenses $  26,794   $  2,930  
Net Income (Loss) $  (26,794 ) $  (2,930 )

Expenses

Our operating expenses for the three month periods ended April 30, 2013 and April 30, 2012 are outlined in the table below:

    Three     Three  
    months     months  
    ended     ended  
    April 30,     April 30,  
    2013     2012  
Management salaries $  18,000   $  Nil  
Professional fees $  5,593   $  2,269  
General and administrative $  3,201   $  661  

Operating expenses for the three months ended April 30, 2013 increased by 814.47% as compared to the comparative period in April 30, 2012 primarily as a result of increases in management salaries, professional fees and general and administrative expenses.

Revenue

We have not had any revenues from operations since inception (February 2, 2005). We do not anticipate that we will earn any revenues from operations unless and until we acquire and operate a profitable business. This might never happen and we can offer no assurance that even if we acquire a business that we will ever be profitable.

Liquidity and Capital Resources

Working Capital

    As at     As at     Percentage  
    April 30,     January 31,     Increase/  
    2013     2013     (Decrease)  
Current Assets $  14,759   $  39,309     (62.45)%  
Current Liabilities $  106,427   $  104,183     2.15%  
Working Capital (deficiency) $  (91,668 ) $  (64,874 )   41.30%  

8


Cash Flows

    Three Months     Three Months  
    Ended     Ended  
    April 30,     April 30,  
    2013     2012  
Net cash (used in) operating activities $  (24,550 ) $  (29,316 )
Net cash provided by financing activities $  Nil   $  Nil  
Net cash (used in) investing activities $  Nil   $  (Nil)  
Net increase (decrease) in cash $  (24,550 ) $  (29,316 )

Our net cash used by operating activities for the three months ended April 30, 2013 was $24,550 compared with $29,316 for the three months ended April 30, 2012. Our management believes that we will need additional funding in order to meet our operating expenses.

We have suffered recurring losses from operations. The continuation of our company is dependent upon our company attaining and maintaining profitable operations and raising additional capital as needed.

Future Financings

We will require additional funds to implement our growth strategy in our new business. These funds may be raised through equity financing, debt financing, or other sources, which may result in further dilution in the equity ownership of our shares.

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 the additional financing on a timely basis should it be required, or generate significant material revenues from operations, we will not be able to meet our other obligations as they become due and we will be forced to scale down or perhaps even cease our operations.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to stockholders.

Critical Accounting Policies

The discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with the accounting principles generally accepted in the United States of America. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. These estimates and assumptions are affected by management’s application of accounting policies. We believe that understanding the basis and nature of the estimates and assumptions involved with the following aspects of our financial statements is critical to an understanding of our financial statements.

The accompanying interim financial statements have been prepared by our company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows at April 30, 2013, and for all periods presented herein, have been made.

9


Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these unaudited condensed interim financial statements be read in conjunction with the financial statements and notes thereto included in our company's January 31, 2013 audited financial statements. The results of operations for the period ended April 30, 2013 and 2012 are not necessarily indicative of the operating results for the full year.

Item 3. Quantitative Disclosures About Market Risks

As a “smaller reporting company”, we are not required to provide the information required by this Item.

Item 4. Controls and Procedures

Management’s Report on Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports filed under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, and that such information is accumulated and communicated to our management, including our president and chief financial officer (our principal executive officer, principal financial officer and principle accounting officer) to allow for timely decisions regarding required disclosure.

As of the end of our quarter covered by this report, we carried out an evaluation, under the supervision and with the participation of our president and chief financial officer (our principal executive officer, principal financial officer and principle accounting officer), of the effectiveness of the design and operation of our disclosure controls and procedures. Based on the foregoing, our president and chief financial officer (our principal executive officer, principal financial officer and principle accounting officer) concluded that our disclosure controls and procedures were not effective in providing reasonable assurance in the reliability of our reports as of the end of the period covered by this quarterly report.

Changes in Internal Control over Financial Reporting

During the period covered by this report there were no changes in our internal control over financial reporting that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

We know of no material, existing 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

Effective May 21, 2013, our company issued an aggregate of 286,667 shares of common stock to at a deemed price of approximately $0.30 per share pursuant to the debt settlement and subscription agreement with Patrick Laferriere, our company’s former officer and director.

The securities were issued to one non-US persons, in offshore transactions relying on Regulation S of the Securities Act of 1933.

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Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

Item 6. Exhibits

Exhibit Description
Number  
(3)

Articles of Incorporation and Bylaws

3.1

Articles of Incorporation (incorporated by reference to our Registration Statement on Form SB-2 filed on May 8, 2006)

3.2

Bylaws (incorporated by reference to our Registration Statement on Form SB-2 filed on May 8, 2006)

3.3

Amended and Restated Bylaws (incorporated by reference to our Current Report on Form 8-K filed on February 12, 2009)

3.4

Articles of Merger (incorporated by reference to our Current Report on Form 8-K filed on August 9, 2012)

3.5

Certificate of Change (incorporated by reference to our Current Report on Form 8-K filed on August 9, 2012)

(10)

Material Contracts

10.1

Option Agreement dated July 15, 2010 (incorporated by reference to our Annual Report on Form 10-K filed on December 16, 2010)

10.2

Amending Agreement between our company and Gino Chitaroni dated July 16, 2012 (incorporated by reference to our Current Report on Form 8-K filed on July 18, 2012)

10.3

Assignment Agreement between our company, Timber Wolf Gold Inc. and Gino Chitaroni dated August 13, 2012 (incorporated by reference to our Current Report on Form 8-K filed on August 20, 2012)

10.4

Subscription Agreement and Debt Settlement between or company and Patrick Laferriere effective May 21, 2013 (incorporated by reference to our Current Report on Form 8-K filed on May 24, 2013)

(14)

Code of Ethics

14.1

Code of Ethics (incorporated by reference to our Annual Report on Form 10-KSB filed on May 9, 2008)

(31)

Rule 13a-14(a) / 15d-14(a) Certifications

31.1*

Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of the Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer

(32)

Section 1350 Certifications

32.1*

Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of the Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer

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Exhibit Description
Number  
   
101** Interactive Data File
101.INS XBRL Instance Document
101.SCH XBRL Taxonomy Extension Schema Document
101.CAL XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF XBRL Taxonomy Extension Definition Linkbase Document
101.LAB XBRL Taxonomy Extension Label Linkbase Document
101.PRE XBRL Taxonomy Extension Presentation Linkbase Document

*

Filed herewith.

   
**

Furnished herewith. Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of any registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, and otherwise are not subject to liability under those sections.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

  BLUE SKY PETROLEUM INC.
  (Registrant)
   
   
Dated: June 19, 2013 /s/ Michael J. Johnson
  Michael J. Johnson
  President, Chief Executive Officer, Chief Financial
  Officer, Secretary, Treasurer and Director
  (Principal Executive Officer, Principal Financial Officer
  and Principal Accounting Officer)

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