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

Indigo-energy, Inc - Recent Material Event

Item 1.	Financial Statements

	Condensed Consolidated Balance Sheets — (Unaudited)

	Condensed Consolidated Statements of Operations — (Unaudited)

	Condensed Consolidated Statements of Cash Flows — (Unaudited)

	Notes to Unaudited Condensed Consolidated 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

PART I

FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

INDIGO-ENERGY, INC.

(An Exploration Stage Entity)

Condensed Consolidated Balance Sheets

	September 30,			December 31,

	(Unaudited)			(Audited)
ASSETS
Current assets
Cash and cash equivalents	$	-		$	66,663
Accounts receivable		193,448			-
Accounts receivable - related party		65,515			-
Prepaid expenses		415,197			423,290
Prepaid expenses - related party		45,800			30,000
Due from related party		4,000			4,000

Total current assets		723,960			523,953

Proved oil and gas properties, net		3,031,762			-
Unproved oil and gas properties		3,422,174			6,136,800

Other Assets
Deferred loan costs, net of accumulated amortization of $240,377 and
$230,377 at September 30, 2007 and December 31, 2006, respectively		25,833			35,833

	$	7,203,729		$	6,696,586
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities
Accounts payable and accrued expenses	$	2,861,269		$	2,968,527
Accounts payable and accrued expenses - related party		294,986			7,503
Notes payable, net of discount		1,855,813			330,622
Liabilities to be settled in common stock		-			493,730
Due to related parties		339,602			377,526

Total current liabilities		5,351,670			4,177,908

Convertible notes, net		134,577			35,295

Total liabilities		5,486,247			4,213,203

Commitments and contingencies

Minority interest		2,825,306			3,979,995

Stockholders’ deficit
Series A convertible super preferred stock; $.001 par value; 25,000,000
authorized; 700,000 issued and outstanding at September 30, 2007; 2,662,100
issuable at December 31, 2006; Liquidation preference: see Note 8					2,662
Series B convertible preferred stock; $.001 par value; 75,000,000 authorized;
0 issued and outstanding at September 30, 2007 and December 31, 2006;
7,500,000 unvested as of September 30, 2007; Liquidation preference: see Note 8		-			-
Common stock; $.001 par value; 600,000,000 shares authorized;
164,357,030 and 118,627,377 shares issued and outstanding at September 30,
2007 and December 31, 2006, respectively; 30,000 and 0 shares
issuable at September 30, 2007 and December 31, 2006, respectively		164,387			118,627
Additional paid-in capital		51,176,507			26,108,369
Deficit accumulated in the exploration stage since Quasi- reorganization
December 31, 2002		(52,449,418	)		(27,726,270	)

Total stockholders’ deficit		(1,107,824	)		(1,496,612	)

	$	7,203,729		$	6,696,586

See notes to these condensed consolidated financial statements.

INDIGO-ENERGY, INC.

(An Exploration Stage Entity)

Condensed Consolidated Statements of Operations

(Unaudited)

									Since Quasi-
									Reorganization
	Three Months Ended				Nine Months Ended				(1/1/03) to
	September 30,				September 30,				September 30,


Revenues	$	78,212	$	-	$	339,297	$	-	$	339,297
Revenues - related party		35,293		-		68,872		-		68,872

Net revenues		113,505		-