UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-KSB

(Mark One)

x Annual Report under Section 13 or 15 (d) of the Securities Exchange Act of 1934

For the fiscal year ended March 31, 2008

(1) No wells are presently on stream.

Present Activities

To the date of this Annual Report, the Company participated in the drilling of three wells in Morgan County, Tennessee as to a 30% working interest. All three of these wells have been cased as potential oil wells.

Our properties are held in the form of farmout and participation agreements. If we fail to meet the specific requirements of the farmout and participation agreements, the agreements may terminate or expire. There can be no assurance that any of the obligations required to maintain the farmout and participation agreements will be met. The termination or expiration of our farmout and participation agreements or the working interest relating to the farmout and participation agreements may have a material adverse effect on our results of operation and business.

Anticipated Expenses over the Next Twelve Months

Over the next 12 months we anticipate that we will spend approximately $5,480,000 on our expenses as set out the following table.