10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

 (Mark One)

x QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

the quarterly period ended September 30, 2011 

OR

o TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from _____________to _____________

Commission file number 333-137174

TAMM OIL AND GAS CORP.

(Exact name of small business issuer as specified in its charter)

Nevada	20-3773508
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

Suite 1120, 833 4th  Ave  SW, Calgary, AB, Canada T2P 3T5

(Address of principal executive offices)

403-686-1000

(Issuer’s telephone number)

N/A

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

Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 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.    Yes x   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). Yes o No x

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

Larger accelerated filer ¨	Accelerated filer ¨
Non-accelerated filer ¨	Smaller reporting company x

Indicate by check mark whether registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ¨    No x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 92,582,523 shares outstanding as of November 2, 2011.

TAMM OIL AND GAS CORP.

TABLE OF CONTENTS

		Page
	Cautionary Statement Concerning Forward-Looking Statements	1
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements
	Condensed Consolidated Balance Sheets as of September 30, 2011 (unaudited) and March 31, 2011	2
	Condensed Consolidated Statements of Operations for the Three and Six Months Ended September 30, 2011 and 2010, and from October 10, 2005 (date of inception) through September 30, 2011 (unaudited)	3
	Condensed Consolidated Statement of Stockholders' Equity from April 1, 2011 through September 30, 2011 (unaudited)	4
	Condensed Consolidated Statements of Cash Flows for the Six Months Ended September 30, 2011 and 2010, and from October 10, 2005 (date of inception) through September 30, 2011 (unaudited)	5
	Notes to Condensed Consolidated Financial Statements (unaudited)	6
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	14
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	18
Item 4T.	Controls and Procedures	18
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	19
Item 2.	Recent Sales of Unregistered Securities and Use of Proceeds	19
Item 3.	Defaults Upon Senior Securities	19
Item 4.	Submission of Matters to a Vote of Security Holders	19
Item 5.	Other Information	19
Item 6.	Exhibits	20
Signatures		21

Cautionary Statement on Forward-Looking Statements.

The discussion in this Report on Form 10-Q, including the discussion in Item 2 of PART I, contains forward-looking statements that have been made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995.  Such forward-looking statements are based on current expectations, estimates and projections about the Company’s business, based on management’s current beliefs and assumptions made by management.  Words such as “expects”, “anticipates”, “intends”, believes”, “plans”, “seeks”, “estimates”, and similar expressions or variations of these words are intended to identify such forward-looking statements.  Additionally, statements that refer to the Company’s estimated or anticipated future results, sales or marketing strategies, new product development or performance or other non-historical facts are forward-looking and reflect the Company’s current perspective based on existing information.  These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict.  Therefore, actual results and outcomes may differ materially from what is expressed or forecasted in any such forward-looking statements.  Such risks and uncertainties include those set forth below in Item 1 as well as previous public filings with the Securities and Exchange Commission.  The discussion of the Company’s financial condition and results of operations included in Item 2 of PART I should also be read in conjunction with the financial statements and related notes included in Item 1 of PART I of this quarterly report.  These quarterly financial statements do not include all disclosures provided in the annual financial statements and should be read in conjunction with the “Risk Factors” and annual financial statements and notes thereto included in the Company's Form 10-K for the year ended March 31, 2011 as filed with the Commission on June 30, 2011.  The Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

1

TAMM OIL AND GAS CORP.
(An Exploration Stage Company)
CONDENSED CONSOLIDATED BALANCE SHEETS
	September 30,			March 31,
	2011			2011
	(unaudited)
ASSETS
Current assets:
Cash	$	3,569		$	3,150
Accounts receivable		9,881			8,737
Other current assets		10,809			809
Total current assets		24,259			12,696
Property, plant and equipment:
Oil sands properties, unevaluated		13,713,587			14,825,270
Furniture and equipment, net		121			184
Total property, plant and equipment		13,713,708			14,825,454
Other assets:
Receivable from affiliated entity		315,494			315,494
Total other assets		315,494			315,494
Total assets	$	14,053,461		$	15,153,644
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	600,987		$	546,476
Deposits		-			100,000
Advances from related party		57,103			70,799
Total current liabilities		658,090			717,275
Commitments and contingencies
Stockholders' equity:
Preferred stock; $0.001 par value; 1,000,000 shares authorized, none issued and outstanding		-			-
Common stock; $0.001 par value; 750,000,000 shares authorized, 92,582,524 and 80,780,000 shares issued and outstanding as of September 30, 2011 and March 31, 2011, respectively		92,583			80,780
Common stock to be issued		330,075			3,616,857
Additional paid in capital		83,288,291			79,863,311
(Deficit) accumulated during exploration stage		(70,307,151	)		(70,206,676	)
Accumulated other comprehensive (loss)		(8,427	)		1,082,097
Total stockholders' equity		13,395,371			14,436,369
Total liabilities and stockholders' equity	$	14,053,461		$	15,153,644
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements

2

TAMM OIL AND GAS CORP
(An Exploration Stage Company)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
													For the period
													October 10, 2005
													(date of inception)
	For the three months ended September 30,						For the six months ended September 30,						through September 30,
	2011			2010			2011			2010			2011
OPERATING EXPENSES:
Selling, general and administrative	$	32,363		$	52,689		$	99,098		$	103,849		$	2,569,372
Loss on impairment of oil and gas properties		-			-			-			-			64,193,028
Depreciation		26			25			52			49			1,039
Total operating expenses		32,389			52,714			99,150			103,898			66,763,439
Loss from operations		(32,389	)		(52,714	)		(99,150	)		(103,898	)		(66,763,439	)
OTHER INCOME (EXPENSE)
Foreign exchange (expense) gain		-			-			-			-			(115	)
Interest (expense)		(638	)		(14,854	)		(1,325	)		(29,985	)		(163,883	)
Loss on settlement of debt		-			-			-			-			(3,340,173	)
Loss on impairment of fixed assets		-			-			-			-			(37,032	)
Loss before provision for income taxes		(33,027	)		(67,568	)		(100,475	)		(133,883	)		(70,304,642	)
Provision for income taxes:
Current		-			-			-			-			2,509
Deferred		-			-			-			-			-
Total income taxes		-			-			-			-			2,509
NET LOSS	$	(33,027	)	$	(67,568	)	$	(100,475	)	$	(133,883	)	$	(70,307,151	)
Net (loss) per common share (basic and fully diluted)	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)
Weighted average number of common shares outstanding, basic and fully diluted		92,582,524			80,780,000			89,248,521			80,780,000
Comprehensive (loss) income:
Net (loss)	$	(33,027	)	$	(67,568	)	$	(100,475	)	$	(133,883	)	$	(70,307,151	)
Foreign currency translation (loss) gain		(1,166,614	)		457,571			(1,090,524	)		(178,097	)		(8,427	)
Comprehensive (loss) income:	$	(1,199,641	)	$	390,003		$	(1,190,999	)	$	(311,980	)	$	(70,315,578	)
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements

3

TAMM OIL AND GAS CORP.
(An Exploration Stage Company)
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
FROM APRIL 1, 2011 THROUGH SEPTEMBER 30, 2011
(unaudited)
													(Deficit) Accumulated
	Common stock				Additional		Common Stock			Other Comprehensive			During  Exploration
	Shares		Amount		Paid in Capital		To be issued			Income (loss)			Stage			Total
Balance, March 31, 2011		80,780,000	$	80,780	$	79,863,311	$	3,616,858		$	1,082,097		$	(70,206,676	)	$	14,436,369
Common stock issued in settlement of debt		10,602,524		10,603		3,276,180		(3,286,783	)		-			-			-
Sale of common stock		1,200,000		1,200		148,800		-			-			-			150,000
Foreign currency translation gain		-		-		-		-			(1,090,524	)		-			(1,090,524	)
Net loss		-		-		-		-			-			(100,475	)		(100,475	)
Balance, September 30, 2011		92,582,524	$	92,583	$	83,288,291	$	330,075		$	(8,427	)	$	(70,307,151	)	$	13,395,371
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements

4

TAMM OIL AND GAS CORP.
(An Exploration Stage Company)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
							For the period
							October 10, 2005
	For the six months ended September 30,						(date of inception) through September 30,
	2011			2010			2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(100,475	)	$	(133,883	)	$	(70,307,151	)
Adjustments to reconcile net loss to net cash (used in) operating activities:
Depreciation		52			49			1,039
Impairment of property and equipment		-			-			37,032
Impairment of investments in stock and royalty agreements		-			-			64,193,028
Common stock to be issued in settlement of assumed debt		-			-			433,164
Loss on settlement of debt		-			-			3,340,173
Decrease (increase) in accounts receivable		(1,939	)		(1,727	)		(7,459	)
Decrease (increase) in prepaid expenses		(10,837	)		-			(10,582	)
(Decrease) increase in accounts payable		103,218			112,275			1,156,774
Net cash (used in) operating activities		(9,981	)		(23,286	)		(1,163,982	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of oil and gas properties		-			(29,456	)		(1,201,439	)
Decrease in receivables, affiliates		-			51,669			228,570
Purchase of investment		-			-			(576,252	)
Purchases of property and equipment		-			-			(38,223	)
Net cash provided by (used in) investing activities		-			22,213			(1,587,344	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of common stock		50,000			-			1,854,000
Proceeds from notes payable		-			-			1,307,295
Repayments of notes payable		(9,034	)		-			(535,023	)
Net cash provided by financing activities		40,966			-			2,626,272
Effect of currency rate change on cash		(30,566	)		72			128,623
Net (decrease) increase in cash and cash equivalents		419			(1,001	)		3,569
Cash and cash equivalents at beginning of period		3,150			8,573			-
Cash and cash equivalents at end of period	$	3,569		$	7,572		$	3,569
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for interest	$	-		$	-		$	-
Cash paid during the period for taxes	$	-		$	-		$	2,509
NONCASH INVESTING AND FINANCING ACTIVITIES:
Issuance of common stock for royalty agreements	$	-		$	-		$	10,200,000
Issuance of common stock for undeveloped property	$	-		$	-		$	11,390,000
Issuance of common stock in exchange for common stock of an unaffiliated entity	$	-		$	-		$	54,263,160
Issuance of common stock in exchange for acquisition of Union Energy, LLC.	$	-		$	-		$	800,000
Fair value of warrants issued in settlement of debt	$	-		$	-		$	1,486,931
Common stock to be issued in settlement of debt	$	-		$	-		$	3,616,857
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements

5

TAMM OIL AND GAS CORP.

(An Exploration Stage Company)

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2011

NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES

A summary of the significant accounting policies applied in the presentation of the accompanying unaudited condensed consolidated financial statements follows:

General

The interim condensed consolidated financial statements included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) as promulgated in Item 210 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) have been condensed or omitted pursuant to such SEC rules and regulations.

In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.  The results from operations for the three and six month periods ended September 30, 2011, are not necessarily indicative of the results that may be expected for the year ending March 31, 2012.  The unaudited consolidated condensed financial statements should be read in conjunction with the financial statements and footnotes thereto for the year ended March 31, 2011, included in the Company’s Form 10-K filed with the SEC on June 30, 2011.

Business and Basis of Presentation

TAMM Oil and Gas Corp., formerly Hola Communications, Inc. (the “Company”) was incorporated under the laws of the State of Nevada on October 10, 2005. The Company was formed to provide wireless broadband access. In October 2007, the Company decided to discontinue its efforts to develop its original business plan in the telecom industry and to re-direct its focus to the oil and gas Industry. In November 2007, the Company created a wholly owned Nevada subsidiary for the purpose of affecting a name change from Hola Communications, Inc. to TAMM Oil and Gas Corporation. To implement its current business plan, significant additional financing will be required and the Company will need to be successful in its efforts to identify, acquire and develop oil and gas reserves that are economically recoverable.

The Company is in the development (exploration) stage as defined by Accounting Standards Codification subtopic 915-10 Development Stage Entities (“ASC 915-10”) with its efforts principally devoted to developing oil and gas reserves. To date, the Company, has not generated sales revenues, has incurred expenses and has sustained losses.  Consequently, its operations are subject to all the risks inherent in the establishment of a new business enterprise.  For the period from inception through September 30, 2011, the Company has accumulated losses of $70,307,151.

The condensed consolidated financial statements include the accounts of the Company, including TAMM Oil and Gas Corp., its wholly-owned subsidiary, Union Energy, LLC (see below). All significant intercompany balances and transactions have been eliminated in consolidation.

Acquisition of Union Energy, LLC

On June 12, 2009, the Company acquired Union Energy LLC, a Colorado limited liability corporation, in exchange for 1,000,000 shares of the Company’s common stock valued at $.80 per share, the fair market value of the stock on that date, for a total investment of $800,000.  As part of the acquisition, the Company acquired a 100% working interest in 5,120 acres of oil sands leases in the Province of Alberta.   

6

TAMM OIL AND GAS CORP.

(An Exploration Stage Company)

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2011

The total consideration paid was $800,000 and the significant components of the transaction are as follows:

Assets acquired:
Undeveloped oil sands property lease	$	800,000
Liabilities assumed:		( -	)
Net:	$	800,000

During the year ended March 31, 2011, the acquired leases expired, therefore the Company recorded an impairment loss of $800,000 during the year ended March 31, 2011.

Revenue Recognition

Revenues from the sale of petroleum and natural gas are recorded when title passes from the Company to its petroleum and/or natural gas purchaser and collectability is reasonably assured. The Company will begin recording revenue once it is determined there are proved reserves and production commences

Estimates

The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures.  Accordingly, actual results could differ from those estimates.

Unconventional Oil Sands Properties

Acquisition, exploration and development of oil sands mining activities are capitalized when costs are recoverable and directly result in an identifiable future benefit, following the full cost method of accounting. Improvements that increase capacity or extend the useful lives of assets are capitalized. Maintenance and turnaround costs are expensed as incurred.

Oil sands properties are assessed, at minimum annually, or as economic events dictate, for potential impairment. Impairment is assessed by comparing the estimated net undiscounted future cash flows to the carrying value of the asset. If required, the impairment recorded is the amount by which the carrying value of the asset exceeds its fair value.

Capitalized costs are depleted and depreciated on the unit-of-production method based on the estimated gross proved reserves once determined by the independent petroleum engineers. Depletion and depreciation is calculated using the capitalized costs, including estimated asset retirement costs, plus the estimated future costs to be incurred in developing proved reserves, net of estimated salvage value.

Costs of acquiring and evaluating unproved properties and major development projects are excluded from the depletion and depreciation calculation if and until it is determined whether or not proved reserves can be assigned to such properties. Costs of unproved properties and major development projects are transferred to depletable costs based on the percentage of reserves assigned to each project over the expected total reserves when the project was initiated. These costs are assessed periodically to ascertain whether impairment has occurred.

7

TAMM OIL AND GAS CORP.

(An Exploration Stage Company)

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2011

Depletion and Amortization of Oil and Gas Properties

The Company follows the full cost method of accounting for oil and gas properties.  Under this method, all direct costs and certain indirect costs associated with acquisition of properties and successful as well as unsuccessful exploration and development activities are capitalized. Depreciation, depletion, and amortization of capitalized oil and gas properties and estimated future development costs, excluding unproved properties, are based on the unit-of-production method based on proved reserves.  

The Company periodically evaluates the carrying value of long-lived assets, including unproved properties, to be held and used in accordance with Accounting Standards Codification subtopic 360-10, Property, Plant and Equipment (“ASC 360-10”). ASC 360-10 requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amounts. In that event, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the long-lived assets. Loss on long-lived assets to be disposed of is determined in a similar manner, except that fair market values are reduced for the cost of disposal.

Foreign Currency Translation

The Company translates the foreign currency financial statements into US Dollars using the year or reporting period end or average exchange rates in accordance with the requirements of Accounting Standards Codification subtopic 830-10, Foreign Currency Matters (“ASC 830-10”). Assets and liabilities of these subsidiaries were translated at exchange rates as of the balance sheet date. Revenues and expenses are translated at average rates in effect for the periods presented. The cumulative translation adjustment is included in the accumulated other comprehensive gain (loss) within shareholders’ equity (deficit). Foreign currency transaction gains and losses arising from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the consolidated results of operations.

Functional Currency

The functional currency of the Companies is the Canadian dollar and the financial statements are reported as US dollar.  When a transaction is executed in a foreign currency, it is re-measured into Canadian dollars based on appropriate rates of exchange in effect at the time of the transaction.  At each balance sheet date, recorded balances that are denominated in a currency other than the functional currency of the Companies are adjusted to reflect the current exchange rate.  The resulting foreign currency transactions gains (losses) are included in general and administrative expenses in the accompanying consolidated statements of operations.

Comprehensive Income (Loss)

The Company adopted Accounting Standards Codification subtopic 220-10, Comprehensive Income (“ASC 220-10”) which establishes standards for the reporting and displaying of comprehensive income and its components. Comprehensive income is defined as the change in equity of a business during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. ASC 220-10 requires other comprehensive income (loss) to include foreign currency translation adjustments and unrealized gains and losses on available for sale securities.

8

TAMM OIL AND GAS CORP.

(An Exploration Stage Company)

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2011

 Net Income (Loss) per Share

The Company computes earnings per share under Accounting Standards Codification subtopic 260-10, Earnings Per Share (“ASC 260-10”). Net earnings (losses) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock and dilutive common stock equivalents outstanding during the period. Dilutive common stock equivalents consist of shares issuable upon the exercise of the Company's outstanding warrants (calculated using the treasury stock method). During the three and six months ended September 30, 2011 and 2010, outstanding warrants were not considered because the exercise prices exceeded the weighted average common stock price of the Company for the period because they would be anti-dilutive, thereby decreasing the net loss per common share.

Reclassifications

Certain amounts reported in the Company’s financial statements for the prior periods may have been reclassified to conform to the current period presentation.

Reliance on Key Personnel and Consultants

The Company has no full-time employees and no part-time employees.  There are approximately 3 consultants performing various specialized services.  The Company is heavily dependent on the continued active participation of these current executive officers, employees and key consultants. The loss of any of the senior management or key consultants could significantly and negatively impact the business until adequate replacements can be identified and put in place.

Recent Accounting Pronouncements

There were various  updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to a have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

 NOTE 2 – GOING CONCERN MATTERS

The accompanying unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the accompanying unaudited condensed consolidated financial statements for the six months and inception to date periods ended September 30, 2011, the Company has incurred losses of $100,475 and $70,307,151, respectively.  In addition, as of September 30, 2011, the Company had a working capital deficit of $633,831, and no revenue generating operations. These factors, among others, indicate that the Company may be unable to continue as a going concern.

The Company's existence is dependent upon management's ability to generate business opportunities, evaluate existing properties and surrounding lands, and initiate commercial production to develop profitable operations which will resolve its liquidity problems. The accompanying consolidated financial statements do not include any adjustments that may result should the Company be unable to continue as a going concern.

The Company is attempting to obtain financing for its operations. There can be no assurance that the Company will be successful in its effort to secure additional equity financing. If operations and cash flows continue to improve through these efforts, management believes that the Company can continue to successfully maintain operations. However, no assurance can be given that management's actions will result in profitable operations or the resolution of its liquidity problems.

9

TAMM OIL AND GAS CORP.

(An Exploration Stage Company)

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2011

NOTE 3 – RECEIVABLE FROM AN AFFILIATED ENTITY

In connection with the October 2007 Letter of Intent to acquire all of the issued and outstanding shares of 1132559 Alberta Ltd. (“Alberta”), the Company purchased advances due to shareholders of Alberta, directly from the shareholders for $548,500 (during the year ended March 31, 2011, there were repayments of $88,905). The amount is recorded as receivable from an affiliated entity, as Alberta and TAMM have officers and/or directors in common. These advances were purchased for their face amounts, and they have no terms of repayment. As of September 30, 2011 and March 31 2011 the balance outstanding was $315,494.

NOTE 4 – OIL SANDS PROPERTIES

Union Energy, LLC

On June 12, 2009, the Company acquired Union Energy, LLC, a Colorado limited liability corporation, the sole asset of which was a 100% working interest in 5,120 acres of Oil Sands leases in the Province of Alberta in exchange for 1,000,000 shares of the Company’s common stock valued at $.80 per share, the fair market value on the date of acquisition, for a total investment of $800,000.

During the year ended March 31, 2011, the Company recorded an impairment loss of $800,000.

Peace River

The Company holdings include 14 sections of petroleum and natural gas (“P&NG”) leases in the Peace River region of northern Alberta that have a carrying value of $372,721.  In addition the Company leases 21 sections of oil sands leases in the Peace River region held at $718,903 adjacent to the above-mentioned sections.

Sawn Lake

The Company has a royalty agreement applicable to 32 sections of oil sands leases. The subject royalties are 2% of gross revenue prior to any expenses from oil sand production.  The value of these rights is recorded at $945,068, net of impairment adjustment of $2,929,868, as discussed below.

During the year ended March 31, 2010, the Company management performed an evaluation of its royalty agreement for purposes of determining the implied fair value of the assets at March 31, 2010. The test indicated that the recorded remaining book value of its royalty agreement exceeded its fair value for the year ended March 31, 2010.  As a result, upon completion of the assessment, management recorded a non-cash impairment charge of $2,929,868, net of tax, or $0.04 per share during the year ended March 31, 2010 to reduce the carrying value of the royalty agreement to $945,068. Considerable management judgment is necessary to estimate the fair value.  Accordingly, actual results could vary significantly from management’s estimates.

Alberta Crown

On September 24, 2009, the Company acquired a 100% working interest in 1,280 acres of oil sands leases with a 2% gross overriding royalty retained by the seller in exchange for 2,428,000 shares of the Company’s common stock. The value of these rights is recorded at $1,626,760.  In addition, the Company acquired 100% working interest in 6,400 acres of petroleum and natural gas leases with a 2% gross overriding royalty retained by the seller in exchange for 14,572,000 shares of the Company’s common stock. These rights are recorded at $9,763,240.

10

TAMM OIL AND GAS CORP.

(An Exploration Stage Company)

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2011

Farm Out Agreement

On March 15, 2011 the Company reached an agreement for a conventional industry farm in on the Manning properties with Cougar Oil and Gas Canada, Inc. (“Cougar”); a Company under common control.

Under the terms of the agreement – Cougar has two work commitments to earn working interest in the Manning properties.  The first work commitment of $2.5 million Cdn for the first year to perform certain activities consisting of drilling, seismic, coring and geologic reviews – including 3d party engineering reports -  to support an application to convert the P&NG leases to oil sands leases. After the first earning program, Cougar will earn 30% of the overall working interest and be designated operator on the Manning Project. The second work commitment of $6.5 million Cdn for the subsequent 24 months consisting of drilling, seismic, coring, and geologic reviews and updates to the various reports. Post the second earning program, Cougar will earn an additional 20% working interest.

NOTE 5 – CAPITAL STOCK

Preferred Stock

The Company has authorized the issuance of 1,000,000 shares of preferred stock, with a par value of $.001 per share. The Company’s Board of Directors has broad discretion to create one or more series of preferred stock and to determine the rights, preferences, and privileges of any such series.

Common stock

The Company initially authorized the issuance of 50,000,000 shares of common stock, par value $.001. On November 13, 2007, the Company declared a 15:1 forward split, and concurrently increased its authorized shares to 750,000,000 shares of common stock, par value $.001 per share. All share amounts have been restated as if the split had occurred October 10, 2005.

As of September 30, 2011 and March 31, 2011, there were 92,582,524 and 80,780,000 shares of common stock issued and outstanding.

During the six months ended September 30, 2011, the Company issued an aggregate of 10,602,524 shares of its common stock in settlement of outstanding notes and other obligations previously recorded as to be issued at March 31, 2011.

NOTE 6 – OPTIONS AND WARRANTS

Warrants

The following table summarizes the changes in warrants outstanding and related prices for the shares of the Company’s common stock issued to shareholders at September 30, 2011:

Exercise Price		Number Outstanding	Warrants Outstanding Weighted Average Remaining Contractual Life (years)	Weighted Average Exercise  price		Number Exercisable	Warrants  Exercisable Weighted Average Exercise Price
$	0.25	1,200,000	2.65	$	0.25	1,200,000	$	0.25
$	0.30	5,833,643	2.48	$	0.30	5,833,643	$	0.30
		7,033,643	2.51			7,033,643	$	0.29

11

TAMM OIL AND GAS CORP.

(An Exploration Stage Company)

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2011

Transactions involving the Company’s warrant issuance are summarized as follows:

	Stock Warrants
			Weighted
			Exercise
	Shares		Price
Outstanding at March 31, 2010		—	$	—
Granted		5,833,643		0.30
Canceled		—		—
Expired		—		—
Exercised		—		—
Outstanding at March 31, 2011		5,833,643		0.30
Granted		1,200,000		0.25
Canceled		—		—
Expired		—		—
Exercised		—		—
Outstanding at September 30, 2011		7,033,643		0.29

In connection with the sale of common stock, the Company issued warrants to purchase 1,200,000 of the Company's common stock at $0.25 per share expiring three years from the date of issuance.

Options

As of September 30, 2011 and March 31, 2011, the Company had no outstanding options.

NOTE 7 - CONTINGENCIES

Operating leases

The Company is provided operating facilities from an affiliated entity at no cost.

Consulting agreements

The Company has consulting agreements with outside contractors, certain of whom are also Company stockholders. The Agreements are generally month to month.

Litigation

From time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business. We are currently not aware of any such legal proceedings that we believe will have, individually or in the aggregate, a material adverse affect on our business, financial condition or operating results.

NOTE 8 – RELATED PARTY TRANSACTIONS

The Company leases office space under an operating lease for its corporate use at $3,000 per month on a month to month basis from an entity with common senior management.

12

TAMM OIL AND GAS CORP.

(An Exploration Stage Company)

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2011

Farm Out Agreement

On March 15, 2011 the Company reached an agreement for a conventional industry farm in on the Manning properties with Cougar Oil and Gas Canada, Inc. (“Cougar”); a Company under common control.

Under the terms of the agreement – Cougar has two work commitments to earn working interest in the Manning properties.  The first work commitment of $2.5 million Cdn for the first year to perform certain activities consisting of drilling, seismic, coring and geologic reviews – including 3d party engineering reports -  to support an application to convert the P&NG leases to oil sands leases. After the first earning program, Cougar will earn 30% of the overall working interest and be designated operator on the Manning Project. The second work commitment of $6.5 million Cdn for the subsequent 24 months consisting of drilling, seismic, coring, and geologic reviews and updates to the various reports. Post the second earning program, Cougar will earn an additional 20% working interest.

During the six months ended September 30, 2011, the Company paid back $9,215 in advances from related parties.  Total advances at September 30, 2011 amount to $57,103. 

During the year ended March 31, 2011, the Company agreed to issue 1,770,511 shares of its common stock to reimburse a related party for legal expenses and other costs incurred on the Company's behalf totally $265,577.  The Common stock was issued during the six months ended September 30, 2011.

13

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

TAMM Oil and Gas Corp. is referred to hereinafter as “we”, “our”, or “us”.

Overview

We are a petroleum exploration company in the development stage that seeks to identify, acquire and develop working interests in Canada based oil sands prospects. Oil sands properties are characterized by deposits of bitumen, a form of viscous (relatively high resistance to flow) crude oil. We have generated no revenues since our inception and from our inception, we have not been profitable. We have financed our operations to date through equity placements to accredited investors and borrowings from related parties.

Uncertainties and Trends

Our revenues are dependent in the future, upon the following factors:

· price volatility in worldwide oil prices, which is affected by: (a) interest rates; (b)currency exchange rates (c) inflation or deflation; (d) speculation and (e) production levels;

· global and regional supply and demand for oil;

· political and economic conditions;

· changes in the regulatory environment, which may lead to increased costs of doing business;

· our ability to raise adequate working capital;

· success of our development and exploration;

· level of our competition;

· our ability to attract and maintain key management and employees; and

· our ability to efficiently explore, develop and produce sufficient quantities of marketable natural gas or oil in a highly competitive and speculative environment while maintaining quality and controlling costs.

The following discussion and analysis should be read in conjunction with our Financial Statements and notes thereto.

(a)    Liquidity and capital resources – September 30, 2011 and March 31, 2011

(a) (1) Continuing working capital deficit

Our working capital deficit has limited our ability to expand our operations and pursue our business plan. The following table sets forth our continuing working capital at September 30, 2011 and March 31, 2011.

	September 30, 2011			March 31, 2011
Current Assets	$	24,259		$	12,696
Current Liabilities		658,090			717,275
Working Capital (Deficit)	$	(633,831	)	$	(704,579	)

Our current assets increased by $11,563 from $12,696 as of March 31, 2011 to $24,259 at September 30, 2011.  The increase was primarily from a retainer payment for professional services.

Our working capital deficit decreased by $70,748 to a $633,831 as of September 30, 2011, from $704,579 at March 31, 2011. Accounts payable and accrued expenses increased from $546,476 as of March 31, 2011 to $600,987 as of September 30, 2011 from operations.

14

Related party advances decreased to $57,103 as of September 30, 2011 from $70,799 as of March 31, 2011 due to Company reimbursements for prior advances.

We continue to focus on conserving cash, setting priorities for our most important obligations and seeking other means to pay or defer any obligations as necessary.

(a) (2)     Property and equipment

During  six months ended September 30, 2011, there were no material changes to our property and equipment.

	September 30, 2011		March 31, 2011
Office equipment	$	121	$	184
Fixed assets net	$	121	$	184

(a) (3) Capital commitments

We do not have any long term debt, capital lease obligations, operating or purchase obligations at September 30, 2011.

(a) (4) Derivative liability – Not applicable.

 (a) (5) Equity

Stockholders’ equity decreased to $13,395,371 as of September 30, 2011, from $14,436,369 as of March 31, 2011. The primary reason for the increase was proceeds of $150,000 from the sale of our common stock, $1,090,524 foreign currency translation loss, net with our incurred net loss of $100,475.

(a) (6) Off-balance sheet arrangements.

NONE

(a) (7) Results of operations.

Three month summary:

The following sets forth certain information regarding our results of operations for the three months ended September 30, 2011 and 2010:

Three months ended September 30,	2011			2010
General and administrative	$	32,363		$	52,689
Operating (loss)		(32,389	)		(52,714	)
Other income (loss)		(638	)		(14,854	)
Net (loss)		(33,027	)		(67,568	)
Net (loss) per share - basic and diluted		(0.00)			(0.00	)
Weighted average shares - basic and diluted		92,582,523			80,780,000

Our operations have resulted in significant losses and negative cash flow as we have invested in our property lease interests.

15

Exploration & development.  Exploration and mine development costs was $0 during the three months ended September 30,  2011 and 2010.

General and administrative expenses. Our general and administrative expenses decreased by $20,326, or 38.6%, to $32,363 during three months ended September 30, 2011 from 52,689 during same period last year. We attribute the decrease in our general and administrative expenses to professional and legal fees.  

Depreciation.  Depreciation was $26 for the three months ended September 30, 2011, $25 for the same period last year.

Net loss. Our net loss for the three months ended September 30, 2011 was $33,027 compared to $67,568 for the three months ended September 30, 2010, resulting in a basic per-share loss of $0.00  for both periods based on weighted average shares outstanding.

Six month summary:

The following sets forth certain information regarding our results of operations for the Six months ended September 30, 2011 and 2010:

Six months ended September 30,	2011			2010
General and administrative	$	99,098		$	103,849
Operating (loss)		(99,150	)		(103,898	)
Other income (loss)		(1,325	)		(29,985	)
Net (loss)		(100,475	)		(133,883	)
Net (loss) per share - basic and diluted		(0.00)			(0.00	)
Weighted average shares - basic and diluted		89,248,521			80,780,000

Our operations have resulted in significant losses and negative cash flow as we have invested in our property lease interests.

Exploration & development.  Exploration and mine development costs was $0 during the six months ended September 30,  2011 and 2010.

General and administrative expenses. Our general and administrative expenses decreased by $4,751, or 4.6%, to $99,098 during six months ended September 30, 2011 from 103,849 during same period last year. We attribute the decrease in our general and administrative expenses to professional and legal fees.  

Depreciation.  Depreciation was $52 for the six months ended September 30, 2011, $49 for the same period last year.

Net loss. Our net loss for the six months ended September 30, 2011 was $100,475 compared to $133,883 for the six months ended September 30, 2010, resulting in a basic per-share loss of $0.00  for both periods based on weighted average shares outstanding.

16

Since inception we have not generated any revenues, therefore our general, administrative and other costs have exceeded the resources we have generated through operations. As described above in “Liquidity and Capital Resources,” we have been dependent on debt/equity financing, to meet our working capital obligations and to finance our continuing operating losses. Our current lack of production further complicates our ability to raise cash from these sources. There can be no assurance that we will be able to continue to finance our operating losses in such a manner. We have, however, been able to raise additional funds in the past and we believe that we will be able to do so in the future.

(a) (8) Cash flow

We have been able to meet our working capital obligations and cover our net loss through the collection of our receivable from related party, net of repayments of related party notes and sale of common stock. Net cash flows provided by our financing activities totaled $40,966 for the six months ended September 30, 2011 and compared to $Nil provided for the same period in 2010. Cash increased to $3,569 as of September 30, 2011 from $3,150 at March 31, 2011.

Net cash flows for the six months ended September 30:	2011			2010
Net (loss)	$	(100,475	)	$	(133,883	)
Net cash flows (used in) operating activities		(9,981	)		(23,286	)
Net cash flows provided by investing activities		-			22,213
Net cash flows provided by financing activities		40,966			-
Effect of currency change on cash		(30,566	)		72
Net increase (decrease) increase  in cash		419			(1,001	)
Cash beginning of year		3,150			8,573
Cash end of period		3,569			7,572

We have used our equity to raise cash necessary to acquire property leases, expenses, and for payment of services. Our ability to continue to use our equity for those purposes is dependent on the price and trading volume of our common stock, both of which are volatile, and our ability to comply with federal and applicable state securities laws.

Although we have been successful in obtaining funds to date, there can be no assurance that we will be able to continue to be successful in doing so. Our ability to finance our operations will, in the end, be dependent on our ability to generate cash flow from operations, of which there can be no assurance.

 By adjusting our operations and development to the level of capitalization, we believe we have sufficient capital resources to meet projected cash flow deficits.  However, if during that period or thereafter, we are not successful in generating sufficient liquidity from operations or in raising sufficient capital resources, on terms acceptable to us, this could have a material adverse effect on our business, results of operations liquidity and financial condition.

Our registered independent certified public accountants have stated in their report dated June 29, 2011, that we have incurred operating losses in the last two years, and that we are dependent upon management’s ability to develop profitable operations and raise additional capital.  These factors among others may raise substantial doubt about our ability to continue as a going concern.

17

Off-Balance Sheet Arrangements

We have no significant 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.

Critical Accounting Policies

The preparation of condensed consolidated financial statements in conformity with generally accepted accounting principles requires our management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

Going Concern

During the period October 10, 2005 (inception) to September 30, 2011, we generated no revenue and we had an accumulated deficit of $70,307,151.  We will need significant financing to implement our business plan. Our condensed consolidated financial statements have been prepared assuming that we will continue as a going concern.

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

Item 3. - Quantitative and Qualitative Disclosures about Market Risk.

The Company is a smaller reporting company as defined by Rule 12b-2 under the Exchange Act and is not required to provide the information required under this item.

Item 4T.  CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that material information required to be disclosed in our periodic reports filed under the Securities Exchange Act of 1934, as amended, or 1934 Act, is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms and to ensure that such information is accumulated and communicated to our management, including our chief executive officer/chief financial officer (principal financial officer) as appropriate, to allow timely decisions regarding required disclosure. During the quarter ended September 30, 2011 we carried out an evaluation, under the supervision and with the participation of our management, including the principal executive officer and the principal financial officer (principal financial officer), of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rule 13(a)-15(e) under the 1934 Act. Based on this evaluation, because of the Company’s limited resources and limited number of employees, management concluded that our disclosure controls and procedures were ineffective as of September 30, 2011.

18

 Limitations on Effectiveness of Controls and Procedures

Our management, including our Chief Executive Officer and Chief Financial Officer (principal financial officer), does not expect that our disclosure controls and procedures or our internal controls will prevent all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include, but are not limited to, the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the control. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

Internal Controls over Financial Reporting

During the quarter ended September 30, 2011, there have been no changes in our internal control over financial reporting that have materially affected or are reasonably likely to materially affect our internal controls over financial reporting.

PART II - OTHER INFORMATION

Item 1 - Legal Proceedings

From time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business.  However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business.  We are currently not aware of any such legal proceedings that we believe will have, individually or in the aggregate, a material adverse affect on our business, financial condition or operating results.

Item 2 - Recent Sales of Unregistered Securities and Use of Proceeds

None.

Item 3 - Defaults on Senior Securities

None.

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

None.

Item 5 - Other Information

None.  

19

 Item 6 Exhibits

The following exhibits, required by Item 601 of Regulation S-K, are being filed as part of this quarterly report, or are incorporated by reference where indicated:

Exhibit No.	Description
31.1*	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for William S. Tighe (Principal Executive Officer and Principal Financial Officer) dated November 2, 2011.
32.1*	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for William S. Tighe  (Principal Executive Officer and Principal Financial Officer) dated November 2, 2011.
101.INS	XBRL Instance
101.SCH	XBRL Schema
101.CAL	XBRL Calculation
101.DEF	XBRL Definition
101.LAB	XBRL Label
101.PRE	XBRL Presentation

* filed herewith

20

SIGNATURES

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

	TAMM OIL AND GAS CORP.
Date:  November 2, 2011	By:	/s/ William S. Tighe
		Name:  William S. Tighe Title:    Principal Executive Officer/Principal Financial Officer

21

EX-31.1

Exhibit 31.1 Section 302 Certification

CERTIFICATION

I, William S. Tighe, certify that:

1.	I have reviewed this Quarterly  Report on Form 10-Q for the period ended September 30, 2011 of Tamm Oil and Gas Corp. ;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
	(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
	(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 Date: November 2, 2011

By:	/s/ William S. Tighe
William S. Tighe Principal Executive Officer/Principal Financial Officer

EX-32.1

Exhibit 32.1 Section 906 Certification

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION

906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Tamm Oil and Gas Corp. (the “Company”) on Form 10-Q for the period ended September 30, 2011 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, William S. Tighe, Principal Executive Officer/Principal Financial Officer, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

        (1)              The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

        (2)              The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Date: November 2, 2011

By:	/s/ William S. Tighe
Principal Executive Officer/Principal Financial Officer

This certification accompanies this Report pursuant to §906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the registrant for the purposes of §18 of the Securities Exchange Act of 1934, as amended. This certification shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended. This certification shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of this Report), irrespective of any general incorporation language contained in such filing.

A signed original of this written statement required by §906 has been provided to the registrant and will be retained by the registrant and furnished to the Securities and Exchange Commission or its staff upon request.

TAMM OIL AND GAS
By:	/s/ William S. Tighe
William S. Tighe Chief Executive Officer/Chairman of the Board Date: November 2, 2011

Pursuant the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of Tamm Oil and Gas Corp. and in the capacities and on the dates indicated.

By:	/s/ William S. Tighe
William S. Tighe, Chief Executive Officer/Chairman of the Board

XML

BALANCE SHEET PARENTHETICAL (USD $)	Sep. 30, 2011	Mar. 31, 2011
Preferred stock par value	$ 0.001	$ 0.001
Preferred stock shares authorized	1,000,000	1,000,000
Preferred stock shares issued
Preferred stock shares outstanding
Common stock par value	$ 0.001	$ 0.001
Common stock shares authorized	750,000,000	750,000,000
Common stock shares issued	92,582,524	80,780,000
Common stock shares outstanding	92,582,524	80,780,000

XML

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		6 Months Ended		72 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011
OPERATING EXPENSES:
Selling, general and administrative	$ 32,363	$ 52,689	$ 99,098	$ 103,849	$ 2,569,372
Loss on impairment of oil and gas properties					64,193,028
Depreciation	26	25	52	49	1,039
Total operating expenses	32,389	52,714	99,150	103,898	66,763,439
Loss from operations	(32,389)	(52,714)	(99,150)	(103,898)	(66,763,439)
OTHER INCOME (EXPENSE)
Foreign exchange (expense) gain					(115)
Interest (expense)	(638)	(14,854)	(1,325)	(29,985)	(163,883)
Loss on settlement of debt					(3,340,173)
Loss on impairment of fixed assets					(37,032)
Loss before provision for income taxes	(33,027)	(67,568)	(100,475)	(133,883)	(70,304,642)
Provision for income taxes:
Current					2,509
Deferred
Total income taxes					2,509
NET LOSS	$ (33,027)	$ (67,568)	$ (100,475)	$ (133,883)	$ (70,307,151)
Net (loss) per common share (basic and fully diluted)
Weighted average number of common shares outstanding, basic	92,582,524	80,780,000	89,248,521	80,780,000
Weighted average number of common shares outstanding, fully diluted	92,582,524	80,780,000	89,248,521	80,780,000

XML

Document and Entity Information	3 Months Ended
	Sep. 30, 2011	Nov. 02, 2011
Document and Entity Information
Entity Registrant Name	TAMM OIL & GAS CORP.
Document Type	10-Q
Document Period End Date	Sep. 30, 2011
Amendment Flag	false
Entity Central Index Key	0001374845
Current Fiscal Year End Date	--03-31
Entity Common Stock, Shares Outstanding		92,582,523
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2

XML

Capital Stock

3 Months Ended

Sep. 30, 2011

Equity

Stockholders' Equity Note Disclosure [Text Block]

NOTE 5 – CAPITAL STOCK

Preferred Stock

The Company has authorized the issuance of 1,000,000 shares of preferred stock, with a par value of $.001 per share. The Company’s Board of Directors has broad discretion to create one or more series of preferred stock and to determine the rights, preferences, and privileges of any such series.

Common stock

The Company initially authorized the issuance of 50,000,000 shares of common stock, par value $.001. On November 13, 2007, the Company declared a 15:1 forward split, and concurrently increased its authorized shares to 750,000,000 shares of common stock, par value $.001 per share. All share amounts have been restated as if the split had occurred October 10, 2005.

As of September 30, 2011 and March 31, 2011, there were 92,582,524 and 80,780,000 shares of common stock issued and outstanding.

During the six months ended September 30, 2011, the Company issued an aggregate of 10,602,524 shares of its common stock in settlement of outstanding notes and other obligations previously recorded as to be issued at March 31, 2011.

XML

Significant Accounting Policies

3 Months Ended

Sep. 30, 2011

Accounting Policies

Significant Accounting Policies [Text Block]

NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES

A summary of the significant accounting policies applied in the presentation of the accompanying unaudited condensed consolidated financial statements follows:

General

The interim condensed consolidated financial statements included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) as promulgated in Item 210 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) have been condensed or omitted pursuant to such SEC rules and regulations.

In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.  The results from operations for the three and six month periods ended September 30, 2011, are not necessarily indicative of the results that may be expected for the year ending March 31, 2012.  The unaudited consolidated condensed financial statements should be read in conjunction with the financial statements and footnotes thereto for the year ended March 31, 2011, included in the Company’s Form 10-K filed with the SEC on June 30, 2011.

Business and Basis of Presentation

TAMM Oil and Gas Corp., formerly Hola Communications, Inc. (the “Company”) was incorporated under the laws of the State of Nevada on October 10, 2005. The Company was formed to provide wireless broadband access. In October 2007, the Company decided to discontinue its efforts to develop its original business plan in the telecom industry and to re-direct its focus to the oil and gas Industry. In November 2007, the Company created a wholly owned Nevada subsidiary for the purpose of affecting a name change from Hola Communications, Inc. to TAMM Oil and Gas Corporation. To implement its current business plan, significant additional financing will be required and the Company will need to be successful in its efforts to identify, acquire and develop oil and gas reserves that are economically recoverable.

The Company is in the development (exploration) stage as defined by Accounting Standards Codification subtopic 915-10 Development Stage Entities (“ASC 915-10”) with its efforts principally devoted to developing oil and gas reserves. To date, the Company, has not generated sales revenues, has incurred expenses and has sustained losses.  Consequently, its operations are subject to all the risks inherent in the establishment of a new business enterprise.  For the period from inception through September 30, 2011, the Company has accumulated losses of $70,307,151.

The condensed consolidated financial statements include the accounts of the Company, including TAMM Oil and Gas Corp., its wholly-owned subsidiary, Union Energy, LLC (see below). All significant intercompany balances and transactions have been eliminated in consolidation.

Acquisition of Union Energy, LLC

On June 12, 2009, the Company acquired Union Energy LLC, a Colorado limited liability corporation, in exchange for 1,000,000 shares of the Company’s common stock valued at $.80 per share, the fair market value of the stock on that date, for a total investment of $800,000.  As part of the acquisition, the Company acquired a 100% working interest in 5,120 acres of oil sands leases in the Province of Alberta.   

The total consideration paid was $800,000 and the significant components of the transaction are as follows:

Assets acquired:
Undeveloped oil sands property lease	$	800,000
Liabilities assumed:		( -	)
Net:	$	800,000

During the year ended March 31, 2011, the acquired leases expired, therefore the Company recorded an impairment loss of $800,000 during the year ended March 31, 2011.

Revenue Recognition

Revenues from the sale of petroleum and natural gas are recorded when title passes from the Company to its petroleum and/or natural gas purchaser and collectability is reasonably assured. The Company will begin recording revenue once it is determined there are proved reserves and production commences

Estimates

The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures.  Accordingly, actual results could differ from those estimates.

Unconventional Oil Sands Properties

Acquisition, exploration and development of oil sands mining activities are capitalized when costs are recoverable and directly result in an identifiable future benefit, following the full cost method of accounting. Improvements that increase capacity or extend the useful lives of assets are capitalized. Maintenance and turnaround costs are expensed as incurred.

Oil sands properties are assessed, at minimum annually, or as economic events dictate, for potential impairment. Impairment is assessed by comparing the estimated net undiscounted future cash flows to the carrying value of the asset. If required, the impairment recorded is the amount by which the carrying value of the asset exceeds its fair value.

Capitalized costs are depleted and depreciated on the unit-of-production method based on the estimated gross proved reserves once determined by the independent petroleum engineers. Depletion and depreciation is calculated using the capitalized costs, including estimated asset retirement costs, plus the estimated future costs to be incurred in developing proved reserves, net of estimated salvage value.

Costs of acquiring and evaluating unproved properties and major development projects are excluded from the depletion and depreciation calculation if and until it is determined whether or not proved reserves can be assigned to such properties. Costs of unproved properties and major development projects are transferred to depletable costs based on the percentage of reserves assigned to each project over the expected total reserves when the project was initiated. These costs are assessed periodically to ascertain whether impairment has occurred.

Depletion and Amortization of Oil and Gas Properties

The Company follows the full cost method of accounting for oil and gas properties.  Under this method, all direct costs and certain indirect costs associated with acquisition of properties and successful as well as unsuccessful exploration and development activities are capitalized. Depreciation, depletion, and amortization of capitalized oil and gas properties and estimated future development costs, excluding unproved properties, are based on the unit-of-production method based on proved reserves.  

The Company periodically evaluates the carrying value of long-lived assets, including unproved properties, to be held and used in accordance with Accounting Standards Codification subtopic 360-10, Property, Plant and Equipment (“ASC 360-10”). ASC 360-10 requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amounts. In that event, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the long-lived assets. Loss on long-lived assets to be disposed of is determined in a similar manner, except that fair market values are reduced for the cost of disposal.

Foreign Currency Translation

The Company translates the foreign currency financial statements into US Dollars using the year or reporting period end or average exchange rates in accordance with the requirements of Accounting Standards Codification subtopic 830-10, Foreign Currency Matters (“ASC 830-10”). Assets and liabilities of these subsidiaries were translated at exchange rates as of the balance sheet date. Revenues and expenses are translated at average rates in effect for the periods presented. The cumulative translation adjustment is included in the accumulated other comprehensive gain (loss) within shareholders’ equity (deficit). Foreign currency transaction gains and losses arising from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the consolidated results of operations.

Functional Currency

The functional currency of the Companies is the Canadian dollar and the financial statements are reported as US dollar.  When a transaction is executed in a foreign currency, it is re-measured into Canadian dollars based on appropriate rates of exchange in effect at the time of the transaction.  At each balance sheet date, recorded balances that are denominated in a currency other than the functional currency of the Companies are adjusted to reflect the current exchange rate.  The resulting foreign currency transactions gains (losses) are included in general and administrative expenses in the accompanying consolidated statements of operations.

Comprehensive Income (Loss)

The Company adopted Accounting Standards Codification subtopic 220-10, Comprehensive Income (“ASC 220-10”) which establishes standards for the reporting and displaying of comprehensive income and its components. Comprehensive income is defined as the change in equity of a business during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. ASC 220-10 requires other comprehensive income (loss) to include foreign currency translation adjustments and unrealized gains and losses on available for sale securities.

 Net Income (Loss) per Share

The Company computes earnings per share under Accounting Standards Codification subtopic 260-10, Earnings Per Share (“ASC 260-10”). Net earnings (losses) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock and dilutive common stock equivalents outstanding during the period. Dilutive common stock equivalents consist of shares issuable upon the exercise of the Company's outstanding warrants (calculated using the treasury stock method). During the three and six months ended September 30, 2011 and 2010, outstanding warrants were not considered because the exercise prices exceeded the weighted average common stock price of the Company for the period because they would be anti-dilutive, thereby decreasing the net loss per common share.

Reclassifications

Certain amounts reported in the Company’s financial statements for the prior periods may have been reclassified to conform to the current period presentation.

Reliance on Key Personnel and Consultants

The Company has no full-time employees and no part-time employees.  There are approximately 3 consultants performing various specialized services.  The Company is heavily dependent on the continued active participation of these current executive officers, employees and key consultants. The loss of any of the senior management or key consultants could significantly and negatively impact the business until adequate replacements can be identified and put in place.

Recent Accounting Pronouncements

There were various  updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to a have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

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Contingencies

3 Months Ended

Sep. 30, 2011

Commitment and Contingencies

Commitments and Contingencies Disclosure [Text Block]

NOTE 7 - CONTINGENCIES

Operating leases

The Company is provided operating facilities from an affiliated entity at no cost.

Consulting agreements

The Company has consulting agreements with outside contractors, certain of whom are also Company stockholders. The Agreements are generally month to month.

Litigation

From time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business. We are currently not aware of any such legal proceedings that we believe will have, individually or in the aggregate, a material adverse affect on our business, financial condition or operating results.

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Related Party Transactions

3 Months Ended

Sep. 30, 2011

Related Party Disclosures

Related Party Transactions Disclosure [Text Block]

NOTE 8 – RELATED PARTY TRANSACTIONS

The Company leases office space under an operating lease for its corporate use at $3,000 per month on a month to month basis from an entity with common senior management.

Farm Out Agreement

On March 15, 2011 the Company reached an agreement for a conventional industry farm in on the Manning properties with Cougar Oil and Gas Canada, Inc. (“Cougar”); a Company under common control.

Under the terms of the agreement – Cougar has two work commitments to earn working interest in the Manning properties.  The first work commitment of $2.5 million Cdn for the first year to perform certain activities consisting of drilling, seismic, coring and geologic reviews – including 3d party engineering reports -  to support an application to convert the P&NG leases to oil sands leases. After the first earning program, Cougar will earn 30% of the overall working interest and be designated operator on the Manning Project. The second work commitment of $6.5 million Cdn for the subsequent 24 months consisting of drilling, seismic, coring, and geologic reviews and updates to the various reports. Post the second earning program, Cougar will earn an additional 20% working interest.

During the September months ended September 30, 2011, the Company paid back $9,215 in advances from related parties.  Total advances at September 30, 2011 amount to $57,103. 

During the year ended March 31, 2011, the Company agreed to issue 1,770,511 shares of its common stock to reimburse a related party for legal expenses and other costs incurred on the Company's behalf totally $265,577.  The Common stock was issued during the six months ended September 30, 2011.

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Options and Warrants

3 Months Ended

Sep. 30, 2011

Investments, All Other Investments

Financial Instruments Disclosure [Text Block]

NOTE 6 – OPTIONS AND WARRANTS

Warrants

The following table summarizes the changes in warrants outstanding and related prices for the shares of the Company’s common stock issued to shareholders at September 30, 2011:

Exercise Price		Number Outstanding	Warrants Outstanding Weighted Average Remaining Contractual Life (years)	Weighted Average Exercise  price		Number Exercisable	Warrants  Exercisable Weighted Average Exercise Price
$	0.25	1,200,000	2.65	$	0.25	1,200,000	$	0.25
$	0.30	5,833,643	2.48	$	0.30	5,833,643	$	0.30
		7,033,643	2.51			7,033,643	$	0.29

Transactions involving the Company’s warrant issuance are summarized as follows:

	Stock Warrants
			Weighted
			Exercise
	Shares		Price
Outstanding at March 31, 2010		—	$	—
Granted		5,833,643		0.30
Canceled		—		—
Expired		—		—
Exercised		—		—
Outstanding at March 31, 2011		5,833,643		0.30
Granted		1,200,000		0.25
Canceled		—		—
Expired		—		—
Exercised		—		—
Outstanding at September 30, 2011		7,033,643		0.29

In connection with the sale of common stock, the Company issued warrants to purchase 1,200,000 of the Company's common stock at $0.25 per share expiring three years from the date of issuance.

Options

As of September 30, 2011 and March 31, 2011, the Company had no outstanding options.

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CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT) (USD $)	Total	Common Stock	Additional Paid in Capital	Common Stock To be Issued	Other Comprehensive Income (loss)	Deficit Accumulated During the Development Stage
Balance at Mar. 31, 2011	$ 14,436,369	$ 80,780	$ 79,863,311	$ 3,616,858	$ 1,082,097	$ (70,206,676)
Balance - shares at Mar. 31, 2011	80,780,000	80,780,000
Common stock issued in settlement of debt		10,603	3,276,180	(3,286,783)
Common stock issued in settlement of debt - shares	10,602,524	10,602,524
Sale of common stock	150,000	1,200	148,800
Sale of common stock - shares	1,200,000	1,200,000
Foreign currency translation (loss) gain	(1,090,524)				(1,090,524)
Net loss	(100,475)					(100,475)
Balance at Sep. 30, 2011	$ 13,395,371	$ 92,583	$ 83,288,291	$ 330,075	$ (8,427)	$ (70,307,151)
Balance - shares at Sep. 30, 2011	92,582,524	92,582,524

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Going Concern Matters

3 Months Ended

Sep. 30, 2011

Organization, Consolidation and Presentation of Financial Statements

Going Concern Note

 NOTE 2 – GOING CONCERN MATTERS

The accompanying unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the accompanying unaudited condensed consolidated financial statements for the six months and inception to date periods ended September 30, 2011, the Company has incurred losses of $100,475 and $70,307,151, respectively.  In addition, as of September 30, 2011, the Company had a working capital deficit of $633,831, and no revenue generating operations. These factors, among others, indicate that the Company may be unable to continue as a going concern.

The Company's existence is dependent upon management's ability to generate business opportunities, evaluate existing properties and surrounding lands, and initiate commercial production to develop profitable operations which will resolve its liquidity problems. The accompanying consolidated financial statements do not include any adjustments that may result should the Company be unable to continue as a going concern.

The Company is attempting to obtain financing for its operations. There can be no assurance that the Company will be successful in its effort to secure additional equity financing. If operations and cash flows continue to improve through these efforts, management believes that the Company can continue to successfully maintain operations. However, no assurance can be given that management's actions will result in profitable operations or the resolution of its liquidity problems.

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Receivable From an Affiliated Entity

3 Months Ended

Sep. 30, 2011

Deferred Costs, Capitalized, Prepaid, and Other Assets

Other Assets Disclosure [Text Block]

NOTE 3 – RECEIVABLE FROM AN AFFILIATED ENTITY

In connection with the October 2007 Letter of Intent to acquire all of the issued and outstanding shares of 1132559 Alberta Ltd. (“Alberta”), the Company purchased advances due to shareholders of Alberta, directly from the shareholders for $548,500 (during the year ended March 31, 2011, there were repayments of $88,905). The amount is recorded as receivable from an affiliated entity, as Alberta and TAMM have officers and/or directors in common. These advances were purchased for their face amounts, and they have no terms of repayment. As of September 30, 2011 and March 31 2011 the balance outstanding was $315,494.

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Oil Sands Properties

3 Months Ended

Sep. 30, 2011

Extractive Industries

Oil and Gas Exploration and Production Industries Disclosures [Text Block]

NOTE 4 – OIL SANDS PROPERTIES

Union Energy, LLC

On June 12, 2009, the Company acquired Union Energy, LLC, a Colorado limited liability corporation, the sole asset of which was a 100% working interest in 5,120 acres of Oil Sands leases in the Province of Alberta in exchange for 1,000,000 shares of the Company’s common stock valued at $.80 per share, the fair market value on the date of acquisition, for a total investment of $800,000.

During the year ended March 31, 2011, the Company recorded an impairment loss of $800,000.

Peace River

The Company holdings include 14 sections of petroleum and natural gas (“P&NG”) leases in the Peace River region of northern Alberta that have a carrying value of $372,721.  In addition the Company leases 21 sections of oil sands leases in the Peace River region held at $718,903 adjacent to the above-mentioned sections.

Sawn Lake

The Company has a royalty agreement applicable to 32 sections of oil sands leases. The subject royalties are 2% of gross revenue prior to any expenses from oil sand production.  The value of these rights is recorded at $945,068, net of impairment adjustment of $2,929,868, as discussed below.

During the year ended March 31, 2010, the Company management performed an evaluation of its royalty agreement for purposes of determining the implied fair value of the assets at March 31, 2010. The test indicated that the recorded remaining book value of its royalty agreement exceeded its fair value for the year ended March 31, 2010.  As a result, upon completion of the assessment, management recorded a non-cash impairment charge of $2,929,868, net of tax, or $0.04 per share during the year ended March 31, 2010 to reduce the carrying value of the royalty agreement to $945,068. Considerable management judgment is necessary to estimate the fair value.  Accordingly, actual results could vary significantly from management’s estimates.

Alberta Crown

On September 24, 2009, the Company acquired a 100% working interest in 1,280 acres of oil sands leases with a 2% gross overriding royalty retained by the seller in exchange for 2,428,000 shares of the Company’s common stock. The value of these rights is recorded at $1,626,760.  In addition, the Company acquired 100% working interest in 6,400 acres of petroleum and natural gas leases with a 2% gross overriding royalty retained by the seller in exchange for 14,572,000 shares of the Company’s common stock. These rights are recorded at $9,763,240.

Farm Out Agreement

On March 15, 2011 the Company reached an agreement for a conventional industry farm in on the Manning properties with Cougar Oil and Gas Canada, Inc. (“Cougar”); a Company under common control.

Under the terms of the agreement – Cougar has two work commitments to earn working interest in the Manning properties.  The first work commitment of $2.5 million Cdn for the first year to perform certain activities consisting of drilling, seismic, coring and geologic reviews – including 3d party engineering reports -  to support an application to convert the P&NG leases to oil sands leases. After the first earning program, Cougar will earn 30% of the overall working interest and be designated operator on the Manning Project. The second work commitment of $6.5 million Cdn for the subsequent 24 months consisting of drilling, seismic, coring, and geologic reviews and updates to the various reports. Post the second earning program, Cougar will earn an additional 20% working interest.

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)	3 Months Ended		6 Months Ended		72 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011
Comprehensive (loss) income:
Net (loss)	$ (33,027)	$ (67,568)	$ (100,475)	$ (133,883)	$ (70,307,151)
Foreign currency translation (loss) gain	(1,166,614)	457,571	(1,090,524)	(178,097)	(8,427)
Comprehensive (loss) income:	$ (1,199,641)	$ 390,003	$ (1,190,999)	$ (311,980)	$ (70,315,578)

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	6 Months Ended		72 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (100,475)	$ (133,883)	$ (70,307,151)
Depreciation	52	49	1,039
Impairment of property and equipment			37,032
Impairment of investments in stock and royalty agreements			64,193,028
Common stock to be issued in settlement of assumed debt			433,164
Loss on settlement of debt			3,340,173
Decrease (increase) in accounts receivable	(1,939)	(1,727)	(7,459)
Decrease (increase) in prepaid expenses	(10,837)		(10,582)
(Decrease) increase in accounts payable	103,218	112,275	1,156,774
Net cash (used in) operating activities	(9,981)	(23,286)	(1,163,982)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of oil and gas properties		(29,456)	(1,201,439)
Decrease in receivables, affiliates		51,669	228,570
Purchase of investment			(576,252)
Purchases of property and equipment			(38,223)
Net cash provided by (used in) investing activities		22,213	(1,587,344)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of common stock	50,000		1,854,000
Proceeds from notes payable			1,307,295
Repayments of notes payable	(9,034)		(535,023)
Net cash provided by financing activities	40,966		2,626,272
Effect of currency rate change on cash	(30,566)	72	128,623
Net (decrease) increase in cash and cash equivalents	419	(1,001)	3,569
Cash and cash equivalents at beginning of period	3,150	8,573
Cash and cash equivalents at end of period	3,569	7,572	3,569
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for interest
Cash paid during the period for taxes			2,509
NONCASH INVESTING AND FINANCING ACTIVITIES:
Issuance of common stock for royalty agreements			10,200,000
Issuance of common stock for undeveloped property			11,390,000
Issuance of common stock in exchange for common stock of an unaffiliated entity			54,263,160
Issuance of common stock in exchange for acquisition of Union Energy, LLC.			800,000
Fair value of warrants issued in settlement of debt			1,486,931
Common stock to be issued in settlement of debt			$ 3,616,857

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CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2011	Mar. 31, 2011
Current assets:
Cash	$ 3,569	$ 3,150
Accounts receivable	9,881	8,737
Other current assets	10,809	809
Total current assets	24,259	12,696
Property, plant and equipment:
Oil sands properties, unevaluated	13,713,587	14,825,270
Furniture and equipment, net	121	184
Total property, plant and equipment	13,713,708	14,825,454
Other assets:
Receivable from affiliated entity	315,494	315,494
Total other assets	315,494	315,494
Total assets	14,053,461	15,153,644
Current liabilities:
Accounts payable and accrued liabilities	600,987	546,476
Deposits		100,000
Advances from related party	57,103	70,799
Total current liabilities	658,090	717,275
Commitments and contingencies
Stockholders' equity:
Preferred stock; $0.001 par value; 1,000,000 shares authorized, none issued and outstanding
Common stock; $0.001 par value; 750,000,000 shares authorized, 92,582,524 and 80,780,000 shares issued and outstanding as of September 30, 2011 and March 31, 2011, respectively	92,583	80,780
Common stock to be issued	330,075	3,616,857
Additional paid in capital	83,288,291	79,863,311
(Deficit) accumulated during exploration stage	(70,307,151)	(70,206,676)
Accumulated other comprehensive (loss)	(8,427)	1,082,097
Total stockholders' equity	13,395,371	14,436,369
Total liabilities and stockholders' equity	$ 14,053,461	$ 15,153,644