- Quarterly Report (10-Q)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

[X]	Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

	For the quarterly period ended June 30, 2009

[ ]	Transition Report pursuant to 13 or 15(d) of the Securities Exchange Act of 1934

	For the transition period __________ to __________

	Commission File Number: 333-151960

Savoy Energy Corporation

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

Nevada	26-0429687
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

11200 Westheimer, Suite 900

Houston, TX 77042

(Address of principal executive offices)

713.243.8788

(Issuer’s telephone number)

________________________________________________________

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

Check whether the issuer (1) 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 issuer 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 (§ 229.405 of this chapter) during the preceeding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [ ] 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.

[ ] Large accelerated filer Accelerated filer	[ ] Non-accelerated filer
[X] Smaller reporting company

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

State the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date 28,996,000 common shares as of August 11, 2009.

Table of Contents

TABLE OF CONTENTS		Page
PART I – FINANCIAL INFORMATION
Item 1:	Financial Statements	3
Item 2:	Management’s Discussion and Analysis of Financial Condition and Results of Operations	4
Item 3:	Quantitative and Qualitative Disclosures About Market Risk	8
Item 4T:	Controls and Procedures	8
PART II – OTHER INFORMATION
Item 1:	Legal Proceedings	9
Item 1A:	Risk Factors	9
Item 2:	Unregistered Sales of Equity Securities and Use of Proceeds	9
Item 3:	Defaults Upon Senior Securities	9
Item 4:	Submission of Matters to a Vote of Security Holders	9
Item 5:	Other Information	9
Item 6:	Exhibits	9

Table of Contents

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

Our consolidated financial statements included in this Form 10-Q are as follows:
F-1	Consolidated Balance Sheets as of June 30, 2009 (unaudited) and December 31, 2008 (audited);
F-2	Consolidated Statements of Operations for the three and six months ended June 30, 2009 and 2008 (unaudited);
F-3	Consolidated Statements of Stockholders’ Equity (Deficit) for the period from December 31, 2007 to June 30, 2009 (unaudited)
F-4	Consolidated Statements of Cash Flows for the six months ended June 30, 2009 and 2007 (unaudited);
F-5	Notes to Consolidated Financial Statements;

These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and the SEC instructions to Form 10-Q. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the interim period ended June 30, 2009 are not necessarily indicative of the results that can be expected for the full year.

Table of Contents

SAVOY ENERGY CORPORATION

(FKA PLANTATION EXPLORATION, INC.)

Consolidated Balance Sheets

ASSETS
	June 30, 2009		December 31, 2008
	(Unaudited)
CURRENT ASSETS
Cash	$	13,115	$	-
Accrued production revenues		16,640		21,022

Total Current Assets		29,755		21,022

PROPERTY AND EQUIPMENT, net		98,785		99,080
OIL AND GAS PROPERTIES, full cost method
Costs subject to amortization		523,015		554,421
Costs not subject to amortization		-		-

Oil and Gas Properties, net		523,015		554,421

TOTAL ASSETS	$	651,555	$	674,523

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

CURRENT LIABILITIES
Accounts payable and accrued expenses	$	214,367	$	206,244
Notes payable		576,113		420,000
Bank overdraft		-		20,629

Total Current Liabilities		790,480		646,873

NON-CURRENT LIABILITIES
Asset retirement obligation		9,490		9,102

TOTAL LIABILITIES		799,970		655,975

STOCKHOLDERS' EQUITY (DEFICIT)
Common stock; 100,000,000 shares authorized at $0.0001 par value, 28,996,000 and 20,000,000 shares issued and outstanding, respectively		28,996		20,000
Additional paid-in capital		754,004		16,000
Accumulated deficit		(931,415)		(17,452)

Total Stockholders' Equity (Deficit)		(148,415)		18,548

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	$	651,555	$	674,523

The accompanying notes are an integral part of these financial statements.

F-1

Table of Contents

SAVOY ENERGY CORPORATION

(FKA PLANTATION EXPLORATION, INC.)

Consolidated Statements of Operations

(Unaudited)

	For the Three Months Ended June 30, 2009		For the Three Months Ended June 30, 2008		For the Six Months Ended June 30, 2009		For the Six Months Ended June 30, 2008
REVENUES

Oil and gas revenues	$	8,747	$	88,516	$	24,211	$	150,122
Lease operating expenses		11,866		169,197		30,707		317,446
Depreciation and depletion		16,044		19,674		32,088		39,348
		-						-
Gross Loss		(19,163)		(100,355)		(38,584)		(206,672)

OPERATING EXPENSES

Professional fees		7,003		13,746		12,263		41,655
General and administrative		830,902		18,666		859,048		18,666

Total Operating Expenses		837,905		32,412		871,311		60,321

LOSS FROM OPERATIONS		(857,068)		(132,767)		(909,895)		(266,993)

OTHER INCOME (EXPENSES)

Interest expense		(2,000)		-		(4,068)		-
Gain (loss) on sale of assets		-		(186,604)		-		(44,988)

Total Other Income (Expenses)		(2,000)		(186,604)		(4,068)		(44,988)

NET LOSS BEFORE INCOME TAXES		(859,068)		(319,371)		(913,963)		(311,981)

Income tax expense		-		-		-		-

NET LOSS	$	(859,068)	$	(319,371)	$	(913,963)	$	(311,981)
BASIC AND DILUTED LOSS PER SHARE	$	(0.03)	$	(0.02)	$	(0.03)	$	(0.02)
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING		28,000,000		20,000,000		28,000,000		20,000,000

The accompanying notes are an integral part of these financial statements.

F-2

Table of Contents

SAVOY ENERGY CORPORATION

(FKA PLANTATION EXPLORATION, INC.)

Consolidated Statements of Stockholders' Equity (Deficit)

	Common Stock				Additional Paid-In		Accumulated Deficit/Retained
	Shares		Amount		Capital		Earnings		Total

Balance, December 31, 2007		20,000,000	$	20,000	$	16,000	$	341,099	$	377,099

Net (loss) for the year ended December 31, 2008		-		-		-		(358,551)		(358,551)

Balance, December 31, 2008		20,000,000		20,000		16,000		(17,452)		18,548

Shares issued in recapitalization (unaudited)		8,000,000		8,000		(8,000)		-		-

Shares issued for services at		996,000		996		746,004		-		747,000

Net (loss) for the six months ended June 30, 2009 (unaudited)		-		-		-		(913,963)		(913,963)

Balance, June 30, 2009 (unaudited)		28,996,000	$	28,996	$	754,004	$	(931,415)	$	(148,415)

The accompanying notes are an integral part of these financial statements.

F-3

Table of Contents

SAVOY ENERGY CORPORATION

(FKA PLANTATION EXPLORATION, INC.)

Consolidated Statements of Cash Flows

(Unaudited)

	For the Six Months Ended June 30, 2009		For the Six Months Ended June 30, 2008

OPERATING ACTIVITIES

Net loss	$	(913,963)	$	(311,981)
Adjustments to reconcile net loss to net cash used by operating activities:
Depreciation and depletion		32,088		-
(Gain) loss on sale of assets		-		44,988
Common stock issued for services		747,000		-
Changes in operating assets and liabilities
Change in accrued production revenues		4,382		-
Change in accounts payable and accrued expenses		8,124		94,090
Net Cash Provided by (Used in) Operating Activities		(122,369)		(172,903)

INVESTING ACTIVITIES		-		-

Sale of property and equipment		-		152,632
Purchase of property and equipment		-		(9,009)
Net Cash Provided by (Used in) Investing Activities		-		143,623

FINANCING ACTIVITIES

Repayment of bank overdraft		(20,629)		-
Proceeds from bank overdraft		-		6,654
Proceeds from notes payable		156,113		-
Net Cash Provided by (Used in) Financing Activities		135,484		6,654

NET INCREASE IN CASH		13,115		(22,626)

CASH AT BEGINNING OF PERIOD		-		22,626

CASH AT END OF PERIOD	$	13,115	$	-

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

CASH PAID FOR:

Interest	$	-	$	-
Income Taxes	$	-	$	-

The accompanying notes are an integral part of these financial statements.

F-4

Table of Contents

Savoy Energy Corporation

(FKA Plantation Exploration, Inc.)

Condensed Notes to Financial Statements

June 30, 2009 and December 31, 2008

NOTE 1 - FINANCIAL STATEMENTS

The accompanying financial statements have been prepared by the 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 June 30, 2009 and for all periods presented have been made.

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 condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company's December 31, 2008 audited financial statements. The results of operations for the period ended June 30, 2009 and June 30, 2008 are not necessarily indicative of the operating results for the full year.

NOTE 2 - GOING CONCERN

The Company’s financial statements are prepared using generally accepted accounting principles applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has had no revenues and has generated losses from operations.

In order to continue as a going concern and achieve a profitable level of operations, the Company will need, among other things, additional capital resources and to develop a consistent source of revenues. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability to raise equity or debt financing, and the attainment of profitable operations from the Company's planned business.

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

NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

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

F-5

Table of Contents

Savoy Energy Corporation

(FKA Plantation Exploration, Inc.)

Condensed Notes to Financial Statements

June 30, 2009 and December 31, 2008

NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Recent Accounting Pronouncements

In May 2009, the FASB issued FAS 165, “Subsequent Events”. This pronouncement establishes standards for accounting for and disclosing subsequent events (events which occur after the balance sheet date but before financial statements are issued or are available to be issued). FAS 165 requires and entity to disclose the date subsequent events were evaluated and whether that evaluation took place on the date financial statements were issued or were available to be issued. It is effective for interim and annual periods ending after June 15, 2009. The adoption of FAS 165 did not have a material impact on the Company’s financial condition or results of operation.

In June 2009, the FASB issued FAS 166, “Accounting for Transfers of Financial Assets” an amendment of FAS 140. FAS 140 is intended to improve the relevance, representational faithfulness, and comparability of the information that a reporting entity provides in its financial statements about a transfer of financial assets: the effects of a transfer on its financial position, financial performance , and cash flows: and a transferor’s continuing involvement, if any, in transferred financial assets. This statement must be applied as of the beginning of each reporting entity’s first annual reporting period that begins after November 15, 2009. The Company does not expect the adoption of FAS 166 to have an impact on the Company’s results of operations, financial condition or cash flows.

In June 2009, the FASB issued FAS 167, “Amendments to FASB Interpretation No. 46(R) ”. FAS 167 is intended to (1) address the effects on certain provisions of FASB Interpretation No. 46 (revised December 2003), Consolidation of Variable Interest Entities , as a result of the elimination of the qualifying special-purpose entity concept in FAS 166, and (2) constituent concerns about the application of certain key provisions of Interpretation 46(R), including those in which the accounting and disclosures under the Interpretation do not always provided timely and useful information about an enterprise’s involvement in a variable interest entity. This statement must be applied as of the beginning of each reporting entity’s first annual reporting period that begins after November 15, 2009. The Company does not expect the adoption of FAS 167 to have an impact on the Company’s results of operations, financial condition or cash flows.

In June 2009, the FASB issued FAS 168, “The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles”. FAS 168 will become the source of authoritative U.S. generally accepted accounting principles (GAAP) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the Securities and Exchange Commission (SEC) under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. On the effective date of this Statement, the Codification will supersede all then-existing non-SEC accounting and reporting standards. All other nongrandfathered non-SEC accounting literature not included in the Codification will become nonauthoritative. This statement is effective for financial statements issued for interim and annual periods ending after September 15, 2009.The Company does not expect the adoption of FAS 168 to have an impact on the Company’s results of operations, financial condition or cash flows.

F-6

Table of Contents

Savoy Energy Corporation

(FKA Plantation Exploration, Inc.)

Condensed Notes to Financial Statements

June 30, 2009 and December 31, 2008

NOTE 4 – MERGER

On March 31, 2009, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Plantation Exploration, Inc., a privately held Texas corporation (“Plantation Exploration”), and Plantation Exploration Acquisition, Inc. (“Acquisition Sub”), the Company’s newly formed wholly-owned Nevada subsidiary. In connection with the closing of this merger transaction, Acquisition Sub merged with and into Plantation Exploration (the “Merger”) on April 2, 2009, with the filing of articles of merger with the Texas secretary of state. As a result of the Merger, Plantation Acquisition no longer exists and Plantation Exploration became the Company’s wholly-owned subsidiary.

Subsequently, on April 3, 2009, the Company merged with another wholly-owned subsidiary, known as Savory Energy Corporation, in a short-form merger transaction under Nevada law and, in connection with this short form merger, changed the Company’s name to Savoy Energy Corporation.

In addition, pursuant to the terms and conditions of the Merger Agreement

The sole shareholder of all of the capital stock of Plantation Exploration issued and outstanding immediately prior to the closing of the Merger exchanged his shares into 2,000,000 shares of the Company’s common stock. As a result, the sole shareholder of Plantation Exploration received 2,000,000 newly issued shares of the Company’s common stock.

Our board of directors was reconstituted to consist of Arthur Bertagnolli who, prior to the Merger, was the sole director of Plantation Exploration. In connection with such, we entered into an employment agreement (“Employment Agreement”) with Mr. Bertagnolli to serve as CEO and director of our company. The terms of the Employment Agreement are set forth below.

We entered into a non-competition and non-solicitation agreement (“Non-Competition and Non-Solicitation Agreement”) with Mr. Bertagnolli. The terms of the Non-Competition and Non-Solicitation Agreement are set forth below.

Employment Agreement

Pursuant to the terms and conditions of the Employment Agreement:

Mr. Bertagnolli will serve as President, CEO, Chairman and sole director of the Company and Plantation Exploration. The Company agreed to compensate Mr. Bertagnolli $14,000 per month for the first 12 months and $20,000 per month for the second 12 month period.

Mr. Bertagnolli will receive a stock bonus from the Company for meeting certain criteria, including: (i) 750,000 shares of our common stock if our company generates 100 barrels of oil per day in 180 days; (ii) 750,000 shares of our common stock if our company generates 300 or more barrels of oil per day in 365 days; and (iii) 1,000,000 shares of our common stock if our company completes a lease with reserves equal to 35,000,000 or more barrels of oil.

F-7

Table of Contents

Savoy Energy Corporation

(FKA Plantation Exploration, Inc.)

Condensed Notes to Financial Statements

June 30, 2009 and December 31, 2008

NOTE 4 – MERGER (CONTINUED)

Within 15 days after our second and fourth fiscal quarters, the Company will pay to Mr. Bertagnolli a cash bonus equal to 3% of our net revenues for the just completed and prior fiscal quarter, and each subsequent second and fourth quarter thereafter.

The Company will pay Mr. Bertagnolli a cash bonus of 5% of the net proceeds of any sale of our company to any larger oil and gas company, with an additional 5% if Mr. Bertagnolli secures the purchaser.

The Company agreed to issue Mr. Bertagnolli options to purchase 1,000,000 shares of our common stock at an exercise price of $1.00 per share that will vest in 2 years from the date of the agreement. The Company further agreed to issue Mr. Bertagnolli options to purchase up to 5% of our outstanding common stock at an exercise price of $1.00 per share that will vest in 2 years from the date of the agreement.

	The Company agreed to further compensate Mr. Bertagnolli in the event we are able to raise capital in connection with a private placement. Mr. Bertagnolli can only be terminated for cause.

Non-Competition and Non-Solicitation Agreement: Pursuant to the terms of the non-competition and non-solicitation agreement:

Mr. Bertagnolli shall not engage any in business that competes with the Company’s business in the United States of America during the two year period beginning with the execution of the agreement.

Mr. Bertagnolli will not solicit any employee, customer or potential customer of the Company that he comes in contact with during two year period beginning with the execution of the agreement.

Stock Purchase Agreement

Immediately following the closing of the Merger, in a separate transaction, the Company’s former Chief Executive Officer and sole director, Mr. Arthur Kaplan, agreed to purchase the Company’s former cosmetics business in exchange for the cancellation and return all of his common stock into treasury and the forgiveness of debts owed to him. Specifically, in the stock purchase agreement, Mr. Kaplan retired 10,100,000 shares of the Company’s common stock and forgave the Company $33,194 in related party payables in exchange for our prior business of developing, manufacturing, and selling organic personal care products specifically for men and any assets that relate to that business.

The shareholder of Plantation Exploration, Inc. became the controlling shareholder of the Company following the merger. Accordingly, the transaction is accounted for as a recapitalization of Plantation Exploration, Inc. The transaction is accounted for as a reverse merger and the historical financial statements of Plantation Exploration, Inc. are presented as those of the Company.

F-8

Table of Contents

Savoy Energy Corporation

(FKA Plantation Exploration, Inc.)

Condensed Notes to Financial Statements

June 30, 2009 and December 31, 2008

NOTE 5 – SIGNIFICANT EVENTS

Effective June 2, 2009, the Company’s board of directors approved a forward split of the Company’s common stock on the basis of four shares for each share issued and outstanding. The total number of authorized shares has not been changed. The Company’s financial statements reflect the reverse stock split on a retro-active basis.

On June 4, 2009, the Company issued 996,000 shares of its common stock for services valued at $0.75 per share.

F-9

Table of Contents

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

Forward-Looking Statements

Certain statements, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives, and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements generally are identified by the words “believes,” “project,” “expects,” “anticipates,” “estimates,” “intends,” “strategy,” “plan,” “may,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. We intend such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and are including this statement for purposes of complying with those safe-harbor provisions. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse affect on our operations and future prospects on a consolidated basis include, but are not limited to: changes in economic conditions, legislative/regulatory changes, availability of capital, interest rates, competition, and generally accepted accounting principles. These risks and uncertainties should also be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Further information concerning our business, including additional factors that could materially affect our financial results, is included herein and in our other filings with the SEC.

Overview

We are in the business of re-entering, re-completing, extracting oil, and selling oil from previously drilled wells in the United States.

Expand Portfolio of Wells

We currently hold leases on and are producing oil from four wells: Ali-O No.1, Rozella Kifer, Zavadil No.1, and Wright. We will continue our workover efforts on these wells, and intend to seek to duplicate our successful efforts with other wells. We intend to work closely with Forrest A. Garb & Associates, a petroleum consulting firm specializing in geological analyses of oil wells, which we have retained as a consultant. Together we plan to locate and evaluate a number of abandoned oil wells. We will determine the production potential of each well using geological evaluations including seismic data. In addition to the four wells that we are currently operating, we have also already identified 18 other wells: two that are producing and 16 that have been abandoned but have seismic or other data indicating that they are favorable candidates for recompletion or workover.

Table of Contents

Once we have determined which wells have the greatest production potential and are most likely to respond to our workover efforts, we will then pursue leases to gain access to those wells. When we have secured leases, we will engage in workover operations as with our previous wells, primarily through horizontal drilling and acidization. We thus hope to extract and sell crude oil to major oil companies through a third party purchaser.

During the current reporting period, we signed a letter of intent to acquire 100% of the working interest in the Wright Well in Gonzalez County, Texas from Lucas Energy, Inc., an independent crude oil and gas company. The proposed transaction would raise our current working interest in the well by 65%, and give us full control of the producing well. As of the date of this report negotiations are continuing and we have not signed definitive agreements on the proposed transaction.

Also during the current reporting period, we entered into a joint venture with Masi Corp Holdings Limited and formed an oil exploration joint venture entity in Fiji, called Savoy-Masi Petroleum Corporation Limited (“Savoy-Masi”). Savoy-Masi has been designed to license properties in Fiji for oil exploration, recompletion and work-over activities. We can provide no assurance, however, that we will be able to license properties in Fiji or explore there. Although Savoy-Masi was granted a registration to undertake gas and oil exploration in Fiji, the company is still working with The Republic of Fiji Islands Ministry of Lands & Mineral Resources' Netani Sukanaivalu to establish our business there.

We are also currently in the process of becoming our own operator and plan to file a bond with the Railroad Commission of Texas to complete this course of action. Operative cost reduction will make our product more affordable and appealing to large oil companies. We feel our final product will compete effectively in the marketplace due to the high demand for domestic oil and its low cost relative to imported oil and oil extracted from new wells in the marketplace.

Transition to Bringing Operations In-house

As discussed above, we intend to seek more oil wells that will produce oil as a result of our re-entry and workover efforts after recompletion and workovers. However, because our contract operator conducts field operations for other companies and for their own wells as well, we feel that we can operate more efficiently and respond more immediately to market and operational concerns if we bring this function in-house. Therefore, we plan to hire employees to conduct our field operations for any new wells we acquire. We feel that this will reduce our operational costs and allow us a greater level of flexibility and control than we currently experience conducting field operations through a contract operator.

In order to become our own operator, we are required to file a bond with the Railroad Commission of Texas. We intend to do this prior to hiring field employees. As our field operations increase in fiscal and operational efficiency, we intend to expand their duties to include the field operations of the four wells we currently hold.

Table of Contents

Results of Operations for the Three and Six Months Ended June 30, 2009 and 2008

Revenues . Our total revenue reported for the quarter ended June 30, 2009 was $8,747, a decrease from $88,516 for the quarter ended June 30, 2008. Our total revenue reported for the six months ended June 30, 2009 was $24,211, a decrease from $150,122 for the six months ended June 30, 2008. The decrease in revenues for the quarter ended June 30, 2009 from the same quarter in 2008 is attributable to decreased oil revenues.

Cost of Revenues . Our revenues are offset by our lease operating expenses and depreciation and depletion of our wells. The cost of revenues for the quarter ended June 30, 2009 decreased to $27,910 from the same quarter in 2008 of $188,871. The cost of revenues for the six months ended June 30, 2009 decreased to $62,795 from the period in 2008 of $356,794. The decrease in our cost of revenues is attributable to the natural progression of a deleting asset. The byproduct of the deletion of production results in a decrease in costs.

Gross Loss . Gross loss for the quarter ended June 30, 2009 was $19,163, as compared with $100,355 for the same period in 2008. Gross loss was $38,584 for the six months ended June 30, 2009, as compared with $206,672 for the same period in 2008. The decrease in gross loss is attributable largely to a decrease in lease operating expenses.

Operating Expenses . Operating expenses increased to $830,902 for the quarter ended June 30, 2009 from $32,412 for the quarter ended June 30, 2008. Our operating expenses for the quarter ended June 30, 2009 consisted of professional fees of $7,003 and general and administrative expenses of $830,902. Our operating expenses for the quarter ended June 30, 2008 consisted of professional fees of $13,746 with general and administrative expenses of $18,666.

Operating expenses increased to $909,895 for the six months ended June 30, 2009 from $60,321 for the six months ended June 30, 2008. Our operating expenses for the six months ended June 30, 2009 consisted of professional fees of $12,263 and general and administrative expenses of $859,048. Our operating expenses for six months ended June 30, 2008 consisted of professional fees of $41,655 with general and administrative expenses of $18,666.

Other Income (Expenses) . We recorded interest expenses of $2,000 for the three ended June 30, 2009, compared with a gain on the sale of assets of $186,604 for the three months ended June 30, 2008. We recorded interest expenses of $4,068 for the six months ended June 30, 2009, compared with a gain on the sale of assets of $44,988 for the six months ended June 30, 2008. The increase in assets in 2008 was directly attributed to the increase in the price of oil and the decrease in lease operation expenses.

Net Income (Loss) . We reported a net loss of $859,068 or $0.03 per share for the three months ended June 30, 2009 compared with a net loss of $319,371 or $0.02 per share for the three months ended June 30, 2008. We reported a net loss of $913,963 or $0.03 per share for the six months ended June 30, 2009 compared with a net loss of $311,981 or $0.02 per share for the six months ended June 30, 2008.

Table of Contents

Liquidity and Capital Resources

As of June 30, 2009, we had total current assets of $29,755 and total assets in the amount of $651,555. Our total current liabilities as of June 30, 2009 were $790,480. Thus, we had a working capital deficit of $760,725 as of June 30, 2009.

Operating activities used $122,369 in cash for the six months ended June 30, 2009. Our net loss of $913,963 was the primary component of our negative operating cash flow, offset by common stock issued for services at $747,000. We recorded no cash flows by investing activities during the quarter ended June 30, 2009. Cash flows provided by financing activities during the quarter ended June 30, 2009 was $135,484 consisting of proceeds from notes payable in the amount of $156,113, offset by the repayment of a bank overdraft in the amount of $20,629.

Based upon our current financial condition, we do not have sufficient cash to operate our business at the current level for the next twelve months. We intend to fund operations through increased sales and debt and/or equity financing arrangements, which may be insufficient to fund expenditures or other cash requirements. We plan to seek additional financing in a private equity offering to secure funding for operations. There can be no assurance that we will be successful in raising additional funding. If we are not able to secure additional funding, the implementation of our business plan will be impaired. There can be no assurance that such additional financing will be available to us on acceptable terms or at all.

Going Concern

Our financial statements are prepared using generally accepted accounting principles applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. We have had no revenues and have generated losses from operations.

In order to continue as a going concern and achieve a profitable level of operations, we will need, among other things, additional capital resources and to develop a consistent source of revenues. Our continuation as a going concern is dependent upon the continued financial support from our shareholders, the ability to raise equity or debt financing, and the attainment of profitable operations from our planned business.

Our ability to continue as a going concern is dependent upon our ability to successfully accomplish the plan described in the preceding paragraph and eventually attain profitable operations. The accompanying financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern.

Off Balance Sheet Arrangements

As of June 30, 2009, there were no off balance sheet arrangements.

Table of Contents

Item 3. Quantitative and Qualitative Disclosures About Market Risk

A smaller reporting company is not required to provide the information required by this Item.

Item 4T. Controls and Procedures

We carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of June 30, 2009. This evaluation was carried out under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, Arthur Bertagnolli. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of June 30, 2009, our disclosure controls and procedures are effective. There have been no changes in our internal controls over financial reporting during the quarter ended June 30, 2009.

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act are recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

Limitations on the Effectiveness of Internal Controls

Our management does not expect that our disclosure controls and procedures or our internal control over financial reporting will necessarily prevent all fraud and material error. Our disclosure controls and procedures are designed to provide reasonable assurance of achieving our objectives and our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective at that reasonable assurance level. 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 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 internal 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, control may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate.

Table of Contents

PART II – OTHER INFORMATION

Item 1. Legal Proceedings

We are not a party to any pending legal proceeding. We are not aware of any pending legal proceeding to which any of our officers, directors, or any beneficial holders of 5% or more of our voting securities are adverse to us or have a material interest adverse to us.

Item 1A: Risk Factors

A smaller reporting company is not required to provide the information required by this Item.

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

During the current reporting period, we issued 996,000 shares of our common stock for consulting services rendered.

The above issuance was performed in reliance on the exemption from registration afforded by Section 4(2) of the Securities Act.

Item 3. Defaults upon Senior Securities

None

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

No matters have been submitted to our security holders for a vote, through the solicitation of proxies or otherwise, during the quarterly period ended June 30, 2009.

Item 5. Other Information

None

Item 6. Exhibits

Exhibit Number	Description of Exhibit
31.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Table of Contents

SIGNATURES

In accordance with the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	SAVOY ENERGY CORPORATION

Date:	August 20, 2009

	By: /s/ Arthur Bertagnolli Arthur Bertagnolli Title: Chief Executive Officer and Chief Financial Officer