Georgia Exploration - Our consolidated financial statements are...

Georgia Exploration - Recent Material Event

Item 1.

Financial Statements

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

GULF WESTERN PETROLEUM CORPORATION

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	May 31,			August 31,
ASSETS
Current assets
Cash	$	14,160		$	1,925
Accounts receivable - gas sales		218,900			-
Accounts receivable – joint interest		-			198,106
Accounts receivable – related party		-			11,488
Deferred financing costs, net of amortization of $253,633, and $0, respectively		98,367			-
Other current assets		1,200			-
Total current assets		332,627			211,519

Deferred financing costs, net of amortization of $63,138 and $7,015, respectively		-			56,123
Accrued receivable		198,073			-
Office equipment, net of depreciation of $12,819 and $6,507, respectively		17,932			13,185
Oil and gas properties, full cost method:
Properties subject to amortization, net of amortization of $226,469 and $0, respectively		,,			1,090,988
Properties not subject to amortization		,,			10,642,207

Total assets	$	13,175,701		$	12,014,022

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	351,890		$	1,065,092
Accounts payable – related parties		689,108			677,402
Advances from stockholders		180,996			120,000
Accrued interest		57,890			15,041
Accrued interest – convertible note related party		116,712			116,712
Convertible notes payable, net of unamortized debt discount of $430,475 and $11,290, respectively		3,294,525			238,710
Note payable, net of unamortized debt discount of 89,650 and $-0-, respectively		410,350			-
Stock payable		150,000			100,000
Total current liabilities		5,251,471			2,332,957

Convertible note – related party		2,000,000			2,000,000
Convertible notes payable, net of unamortized debt discount of $-0- and $17,536, respectively		-			482,464
Asset retirement obligation		52,535			50,949
Total liabilities		7,304,006			4,866,370

STOCKHOLDERS’ EQUITY
Common shares, $0.001 par value, 1.2 billion shares authorized, 57,853,107 and 53,489,662 shares issued and outstanding, respectively		57,853			53,490
Additional paid-in capital		13,884,430			10,911,412
Deficit accumulated during development stage		(3,817,250	)		(3,817,250	)
Accumulated deficit		(4,253,338	)		-
Total stockholders’ equity		5,871,695			7,147,652

Total liabilities and stockholders’ equity	$	13,175,701		$	12,014,022

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

GULF WESTERN PETROLEUM CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

For the Three and Nine Months Ended May 31, 2008 and May 31, 2007

(Unaudited)

	Three Months		Three Months		Nine Months		Nine Months
	Ended		Ended		Ended		Ended
	May 31,		May 31,		May 31,		May 31,


Oil and gas revenue	$	331,271	$	-	$	620,251	$	-

Operating expenses:
Production expenses		76,633		-		143,081		-
Depletion, depreciation and amortization		124,337		1,494		232,781		3,663
General & administrative		410,414		990,850		2,616,160		1,781,543
Total operating expenses		611,384		992,344		2,992,022		1,785,206