Indigo-energy, Inc - The unaudited condensed consolidated...

Indigo-energy, Inc - Recent Material Event

Item 1.	Financial Statements
	Condensed Balance Sheets -- (Unaudited)
	Condensed Statements of Operations -- (Unaudited)
	Condensed Statements of Cash Flows -- (Unaudited)
	Notes to Condensed Financial Statements

Item 2.	Management's Discussion and Analysis or Plan of Operation
Item 3.	Controls and Procedures

	PART II
	OTHER INFORMATION

Item 1	Legal Proceedings
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds
Item 6.	Exhibits
Signatures

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Table of Contents

PART I

FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

INDIGO-ENERGY, INC.

(An Exploration Stage Entity)

Condensed Consolidated Balance Sheets

ASSETS
	June 30,			December 31,

	(Unaudited)			(Audited)
Current assets
Cash and cash equivalents	$	72,914		$	66,663
Accounts receivable		239,338			—
Accounts receivable - related party		40,844			—
Due from related party		4,000			4,000
Prepaid expenses		364,147			423,290
Prepaid expenses - related party		20,800			30,000
Total current assets		742,043			523,953

Proved oil and gas properties, net		5,297,260			—
Unproved oil and gas properties		3,776,932			6,136,800
Net deferred loan costs		29,167			35,833
	$	9,845,402		$	6,696,586
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities
Accounts payable and accrued expenses	$	2,924,892		$	2,968,527
Accounts payable and accrued expenses - related party		228,087			7,503
Notes payable, net of discount		979,704			330,622
Liabilities to be settled in common stock		24,973			493,730
Due to related parties		333,415			377,526
Total current liabilities		4,491,071			4,177,908

Convertible notes, net		101,939			35,295
Total liabilities		4,593,010			4,213,203

Commitments and contingencies

Minority Interest		3,935,359			3,979,995

Stockholders’ equity (deficit)
Series A convertible super preferred stock; $.001 par value; 25,000,000
authorized; 2,662,100 issued and outstanding at June 30, 2007; 2,662,100
issuable at December 31, 2006; Liquidation preference: see Note 8		2,662			2,662
Series B convertible preferred stock; $.001 par value; 75,000,000 authorized;
0 issued and outstanding at June 30, 2007 and December 31, 2006;
7,500,000 unvested as of June 30, 2007; Liquidation preference: see Note 8		—			—
Common stock; $.001 par value; 600,000,000 shares authorized;
153,388,661 and 118,627,377 shares issued and outstanding at June 30,
2007 and December 31, 2006, respectively; 3,200,000 and 0 shares
issuable at June 30, 2007 and December 31, 2006, respectively		156,589			118,627
Additional paid-in capital		49,129,501			26,108,369
Deficit accumulated in the exploration stage since Quasi- reorganization
December 31, 2002		(47,971,719	)		(27,726,270	)
Total stockholders’ equity (deficit)		1,317,033			(1,496,612	)
	$	9,845,402		$	6,696,586

See notes to these condensed consolidated financial statements.

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Table of Contents

INDIGO-ENERGY, INC.

(An Exploration Stage Entity)

Condensed Consolidated Statements of Operations

(Unaudited)

									Since Quasi-
	Three Months Ended				Six Months Ended				Reorganization
	June 30,				June 30,				(1/1/03) to
									June 30, 2007

Revenues	$	219,582	$	—	$	261,085	$	—	$	261,085
Revenues - related party		33,579		—		33,579		—		33,579
Total revenue		253,161		—		294,664		—		294,664

Operating expenses
Impairment of oil and gas properties		—		—		—		—		530,004
Depletion		98,831		—		98,831		—		98,831
Operating expenses		25,519		—		68,949		—		160,214
General and administrative - related party