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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 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 ending ~~April~~July 3031, 2011

[ X ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ~~_____________~~____________ to _____________

Commission file number: 001-05970

~~Silver~~Gulfmark ~~Butte~~Energy, ~~Company~~Inc.

(Exact name of registrant as specified in its charter)


NEVADA		82-0263301
(State or other jurisdiction of incorporation)		(IRS Employer Identification No.)


45 NE Loop 410, Ste. 495, San Antonio, TX		78216
(Address of principal executive offices)		(Zip Code)

210-524-9724

(Issuer's telephone number, including area code)

Indicate by check mark whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for at least the past 90 days. Yes [X] 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 (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [ ] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer”, and “smaller reporting company” in Rule 12b-2 of the Exchange:


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

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act.)

Yes [ ] No [X]

Indicate the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: At ~~June~~September 14, 2011, 27,292,~~0111~~2061 shares of the Company’s common stock were outstanding.

~~Note~~ 1. This figure represents the number of common shares issued and outstanding assuming the reverse stock split had been implemented. The reverse stock split has not been implemented. (See Part II, Item 5. Other Information)

~~SILVER~~GULFMARK ~~BUTTE~~ENERGY, ~~COMPANY~~INC.

FORM 10-Q

For the Quarter Ended ~~April~~July 3031, 2011

TABLE OF CONTENTS

			Page #
PART I - Financial Information
	Item 1	Financial Information	3
		Consolidated Balance Sheets at April 30, 2011 (Unaudited) and October 31, 2010	3
		Consolidated Statement of Operations for The Three and Six Month Periods Ended April 30, 2011 (Unaudited)	4
		Consolidated Statement of Cash Flows for The Six Month Period Ended April 30, 2011 (Unaudited)	5
		Notes to Consolidated Financial Statements (Unaudited)	6, 7, 8
	Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	9, 10
	Item 3	Quantitative and Qualitative Disclosures About Market Risk	10
	Item 4	Controls and Procedures	10, 11,12
PART II
	Item 1	Legal Proceedings	12
	Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	12
	Item 3	Defaults Upon Senior Securities	12
	Item 4	Removed and Reserved	12
	Item 5	Other Information	12, 13
	Item 6	Exhibits	13

PART I. FINANCIAL INFORMATION

~~PART I.~~ 3

ITEM 1. FINANCIAL ~~INFORMATION~~STATEMENTS

	SILVER BUTTE COMPANY
	CONSOLIDATED BALANCE SHEETS
			(Unaudited)
			At April 30,		At October 31,
			2011		2010
ASSETS
CURRENT ASSETS:
	Cash	$	62,467	$	48,225
	Prepaid expenses		8,750		8,750
	TOTAL CURRENT ASSETS		71,217		56,975
PROPERTY, PLANT, AND EQUIPMENT (Net of depreciation
	of $ 436,555 and $ 386,619 respectively)		673,408		713,855
OTHER ASSETS: Oil lease			49,489		-
	TOTAL ASSETS	$	794,114	$	770,830
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY
CURRENT LIABILITIES:
	Accounts payable and accrued liabilities	$	135,302	$	9,225
	Payable to related party		281,987		6,041
	Current portion of long term debt		207,399		162,834
	Total current liabilities		624,688		178,100
CONVERTIBLE NOTES PAYABLE			65,000		-
LONG TERM DEBT			86,747		171,166
STOCKHOLDER NOTE PAYABLE			210,100		210,100
	TOTAL LIABILITIES		986,535		559,366
STOCKHOLDERS’ (DEFICIT) EQUITY:
	Preferred stock, $.001 par, 50,000,000 authorized,
	11,000,000 issued and outstanding		11,000		11,000
	Common stock, $.001 par, 1,100,000,000 authorized
	27,292,011 and 26,950,000 shares issued and
	outstanding respectively		27,292		26,950
	Additional paid-in capital		162,018		196,483
	Accumulated deficit		(392,881)		(22,969)
	Non controlling interest		150		-
	TOTAL STOCKHOLDERS' (DEFICIT) EQUITY		(192,421)		211,464
	TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY	$	794,114	$	770,830
	The accompanying notes are an integral part of these unaudited financial statements

3ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

SILVER BUTTE COMPANY
CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE AND SIX MONTH PERIODS ENDING APRIL 30, 2011
(UNAUDITED)
			For the Three		For the Six
			Months Ending		Months Ending
			April 30, 2011		April 30, 2011
REVENUE		$	80,362	$	197,135
OPERATING EXPENSES:
	Wage expense		87,139		248,472
	Drilling expenses		64,873		166,235
	Administrative expenses		34,645		94,887
	Depreciation expense		22,583		49,936
	Total Operating Expenses		209,240		559,530
OPERATING LOSS			(128,878)		(362,395)
OTHER (EXPENSE): Interest			(3,412)		(7,517)
NET LOSS		$	(132,290)	$	(369,912)
NET LOSS PER COMMON SHARE		$	(0.00)	$	(0.01)
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING -			27,292,011		27,292,011
			-
The accompanying notes are an integral part of these unaudited financial statements

4ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

SILVER BUTTE COMPANY
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTH PERIOD ENDING APRIL 30, 2011
(UNAUDITED)
CASH FLOWS FROM OPERATING ACTIVITIES
	Net loss			$	(369,912)
	Adjustments to reconcile net loss to net cash
		used in operating activities:
		Depreciation			49,936
	Changes in assets and liabilities:
		Accounts payable and accrued liabilities			126,077
		Payable to related party			226,457
			Net cash provided by operating activities		32,558
CASH FLOWS FROM INVESTING ACTIVITIES:
	Purchase of equipment				(9,489)
	Net liabilities assumed in reverse merger				(33,973)
			Net cash (used) by investing activities		(43,462)
CASH FLOWS FROM FINANCING ACTIVITIES:
	Payments on long term debt				(39,854)
	Issuance of convertible notes				65,000
			Net cash provided by financing activities		25,146
			NET DECREASE IN CASH		14,242
			CASH AT BEGINNING OF PERIOD		48,225
			CASH AT END OF PERIOD	$	62,467
SUPPLEMENTAL CASH FLOW DISCLOSURES:
	Cash paid during the period for:
		Interest		$	4,105
		Income taxes		$	-
	Non-cash investing and financing activities:
		Acquisition of oil lease		$	49,489
		Assumption of related party debt to acquire oil lease		$	(49,489)
The accompanying notes are an integral part of these unaudited financial statements

5ITEM 4. CONTROLS AND PROCEDURES

~~SILVER BUTTE COMPANY~~8

~~NOTES~~PART ~~TO THE CONSOLIDATED FINANCIAL STATEMENTS~~II

~~(Unaudited)~~9

~~NOTE~~ITEM 1. LEGAL ~~– BASIS OF PRESENTATION~~PROCEEDINGS

The unaudited consolidated financial statements of Silver Butte Company (“The Company”) included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Although certain information normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted, the Company believes that the disclosures are adequate to make the information presented not misleading. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the fiscal year ended October 31, 2010 of Gulfmark Energy Group, Inc. and the proforma consolidated financial statements (combining Silver Butte Company and Gulfmark Energy Group, Inc.) which were filed in an 8-K in January, 2011 pursuant to a share exchange agreement between Silver Butte Company and Gulfmark Energy Group, Inc. 9

~~Prior~~ITEM ~~to the share exchange agreement, Silver Butte Company had a fiscal year end of August 31st~~3. DEFAULTS ~~Pursuant~~UPON toSENIOR the share exchange agreement; Silver Butte Company adopted the fiscal year end of Gulfmark Energy Group, Inc., which is October 31st. These consolidated financial statements for this 10-Q report include financial activity of Silver Butte Company and Gulfmark Energy Group, Inc. from February 1, 2011 through April 30, 2011. Comparative prior year financial statement information has not been presented in the consolidated statements of operations or the consolidated statement of cash flows as Gulfmark Energy Group, Inc. (which also includes its two wholly owned subsidiary corporations) did not commence business operations until August 9, 2011.SECURITIES

The consolidated financial statements included herein reflect all normal recurring adjustments that, in the opinion of management, are necessary for a fair presentation. The results for interim periods are not necessarily indicative of trends or of results to be expected for the full year ended October 31, 2011. 10

~~NOTE~~ITEM 24. REMOVED –AND ~~GOING CONCERN~~RESERVED

During the three months ended April 30, 2011, Silver Butte Company incurred a net loss of $132,290, and as of April 30, 2011, had a negative net working capital balance of $553,471. These conditions raise substantial doubt as to the Company’s ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. 10

InITEM ~~April, 2011, the Company commenced to raise cash through the issuance of convertible promissory notes in a private placement offering to accredited investors~~5. OTHER ~~The terms of the promissory notes are summarized as follows:~~INFORMATION

610

·ITEM 6. EXHIBITS

~~Available to select accredited investors.~~10

·SIGNATURES

~~Original closing date was set for April 30, 2011. However, that close date has been extended to June, 30, 2011.~~11

·2

~~Total~~PART ~~aggregate amount of cash to be raised would not exceed $250,000~~I. FINANCIAL ~~However, this “ceiling” was raised to $400,000 subsequent to April 30th.~~INFORMATION

·ITEM 1. FINANCIAL STATEMENTS

Interest rate of 4% per annum. The Company has the option to pay interest in cash or to pay interest in kind.


	GULFMARK ENERGY, INC.
	CONSOLIDATED BALANCE SHEETS

			(Unaudited)		(Audited)
			At July 31,		At October 31,
			2011		2010
ASSETS
CURRENT ASSETS:
	Cash	$	118,643	$	48,225
	Prepaid expenses		8,750		8,750
	TOTAL CURRENT ASSETS		127,393		56,975

PROPERTY, PLANT, AND EQUIPMENT (Net of depreciation
	of $ 414,993 and $ 386,619 respectively)		112,645		713,855

OTHER ASSETS: Oil lease			49,489		-

	TOTAL ASSETS	$	289,527	$	770,830

LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY
CURRENT LIABILITIES:
	Accounts payable and accrued liabilities	$	104,724	$	9,225
	Payable to related party		262,573		6,041
	Current portion of long term debt		-		162,834
	Total current liabilities		367,297		178,100

CONVERTIBLE NOTES PAYABLE			284,400		-

LONG TERM DEBT			-		171,166

STOCKHOLDER NOTE PAYABLE			210,100		210,100

	TOTAL LIABILITIES		861,797		559,366

STOCKHOLDERS’ (DEFICIT) EQUITY:
	Preferred stock, $.001 par, 50,000,000 authorized,
	11,000,000 issued and outstanding		11,000		11,000
	Common stock, $.001 par, 1,100,000,000 authorized
	27,292,206 and 26,950,000 shares issued and
	outstanding respectively		27,292		26,950
	Additional paid-in capital		162,018		196,483
	Accumulated deficit		(772,730)		(22,969)
	Non controlling interest		150		-
	TOTAL STOCKHOLDERS' (DEFICIT) EQUITY		(572,270)		211,464
	TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY	$	289,527	$	770,830

· The accompanying notes are an integral part of these unaudited financial statements

~~The proceeds will be used for basic working capital requirements.~~ 3


GULFMARK ENERGY, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE AND NINE MONTH PERIODS ENDING JULY 31, 2011
(UNAUDITED)

			For the Three		For the Nine
			Months Ending		Months Ending
			July 31, 2011		July 31, 2011
REVENUE		$	-	$	197,135

OPERATING EXPENSES:
	Wage expense		42,000		265,095
	Drilling expenses		3,442		169,677
	Administrative expenses		126,442		246,706
	Depreciation expense		62,293		112,229
	Total Operating Expenses		234,177		793,707

OPERATING LOSS			(234,177)		(596,572)

OTHER (EXPENSE):
	Interest expense		(22,202)		(29,719)
	Loss on sale of drilling equipment		(123,470)		(123,470)

NET LOSS		$	(379,849)	$	(749,761)

NET LOSS PER COMMON SHARE		$	(0.01)	$	(0.03)

WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING -			27,292,206		27,189,408

The accompanying notes ~~have~~are aan ~~24-month~~integral ~~maturity.~~part ~~At the holder’s option, repayment shall be in cash or in shares~~ of ~~the~~these ~~Company’s~~unaudited ~~common~~financial ~~stock~~statements ~~at the rate of $0.42 per share after giving effect to the Company’s proposed reverse stock split of 40 to 1.~~

·4

The Company grants to the note holders piggyback registration rights for the shares of common stock underlying the convertible promissory notes. These registration rights will not apply to any “qualified financing” that prohibits the Company from adding the note holders to the registration statement.


GULFMARK ENERGY, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE NINE MONTH PERIOD ENDING July 31, 2011
(UNAUDITED)

CASH FLOWS FROM OPERATING ACTIVITIES
	Net loss			$	(749,761)
	Adjustments to reconcile net loss to net cash
		used in operating activities:
		Depreciation			112,229
		Loss on sale drilling equipment			123,470
	Changes in assets and liabilities:
		Accounts payable and accrued liabilities			118,549
		Payable to related party			207,043
		Interest payable

			Net cash used by operating activities		(188,470)

CASH FLOWS FROM INVESTING ACTIVITIES:
	Purchase of equipment				(9,489)
	Proceeds from sale of drilling equipment				57,804
	Net liabilities assumed in reverse merger				(33,973)

			Net cash provided by investing activities		14,342

CASH FLOWS FROM FINANCING ACTIVITIES:
	Payments on long term debt				(39,854)
	Issuance of convertible notes				284,400

			Net cash provided by financing activities		244,546

			NET INCREASE IN CASH		70,418

			CASH AT BEGINNING OF PERIOD		48,225

			CASH AT END OF PERIOD	$	118,643

SUPPLEMENTAL CASH FLOW DISCLOSURES:
	Cash paid during the period for:
		Interest		$	27,155
		Income taxes		$	-

	Non-cash investing and financing activities:
		Acquisition of oil lease		$	49,489
		Assumption of related party debt to acquire oil lease		$	(49,489)

· The accompanying notes are an integral part of these unaudited financial statements

In the event of any equity related issuance below the $0.42 conversion price (post reverse split), the conversion price will be reduced to the lowest price at which common stock is sold in a “qualified financing”. A “qualified financing” means an equity financing or series of related equity financings in which the Company receives at least $2,500,000 in gross aggregate cash proceeds (before commissions or other transaction related expenses, and including proceeds resulting from any conversion of the Silver Butte Company convertible promissory notes). As of April 30, 2011 the Company had raised $65,000 in cash from the issuance of these convertible promissory notes. 5

~~The~~GULFMARK ~~Company is aware that in order to be fully operational and profitable~~ENERGY, ~~it will have to raise substantial capital~~INC. This needed capital could be raised through a combination of debt financing, sale of common stock, or direct joint venture participation in various drilling sites. The Company has no assurance that future financing will be available. If this additional financing is not available, the Company may be unable to continue its operations. In addition, any equity financing or convertible debt financing could result in additional dilution to existing shareholders.

~~NOTE~~NOTES 3TO –THE ~~STOCKHOLDERS’~~CONSOLIDATED ~~EQUITY~~FINANCIAL STATEMENTS

On January 12, 2011, Silver Butte Company entered into a share exchange agreement with Gulfmark Energy Group, Inc. whereby Silver Butte Company committed to issue 1,072,000,027 shares of common stock and 11,000,000 shares of series “A” preferred stock to the shareholders of Gulfmark Energy Group, Inc. in exchange for 26,800,000 shares of Gulfmark Energy Group, Inc. common stock (there were a total of 26,950,000 shares of common stock outstanding prior to the share exchange agreement, and a shareholder representing 150,000 shares of common stock elected not to participate in the share exchange agreementUnaudited) and 11,000,000 shares of preferred stock. After the issuance of 1,072,000,027 shares of common stock (Silver Butte Company has only 300,000,000 authorized shares of common stock. Therefore, the articles of incorporation need to be amended in order to increase the authorized common stock to 1,100,000,000 shares.), Silver Butte Company plans to implement a forty to one reverse stock split. After this proposed reverse stock split is approved and implemented, there will be

7NOTE 1 – BASIS OF PRESENTATION

~~27,292,011~~The ~~shares~~unaudited consolidated financial statements of ~~Silver~~Gulfmark ~~Butte~~Energy, Inc. (“The Company’s”) ~~stock~~included ~~outstanding~~herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. ~~The~~Although certain information normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted, the Company ~~also~~believes ~~plans~~that the disclosures are adequate to ~~increase~~make the ~~authorized~~information ~~preferred~~presented ~~shares~~not ~~from~~misleading. 10These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the fiscal year ended October 31,~~000~~ 2010 of Gulfmark Energy Group,~~000~~ toInc. 50and the proforma consolidated financial statements (combining Silver Butte Company and Gulfmark Energy Group,~~000~~ Inc.) which were filed in an 8-K in January,~~000~~ ~~authorized~~2011 ~~shares~~pursuant to a share exchange agreement between Silver Butte Company and Gulfmark Energy Group, Inc.

~~The~~Prior ~~Company’s~~to ~~financial~~the ~~statements~~share ~~assume~~exchange ~~that~~agreement, ~~the~~Silver ~~articles~~Butte ofCompany ~~incorporation~~had ~~has~~a ~~been~~fiscal ~~implemented~~year ~~and~~end of August 31st. Pursuant to the ~~corporate~~share ~~reorganization~~exchange ~~has~~agreement; ~~been~~Silver ~~completed~~Butte ~~and~~Company ~~that~~adopted the ~~company~~fiscal ~~has~~year 1end of Gulfmark Energy Group,~~100~~ Inc.,~~000,000~~ ~~authorized~~which ~~common~~is ~~shares,~~October ~~with~~31st. ~~27,292,011~~These ~~shares~~consolidated ~~issued~~financial ~~and~~statements ~~outstanding~~for this 10-Q report include financial activity of Silver Butte Company and 50Gulfmark Energy Group,~~000~~ Inc. from February 1,~~000~~ ~~authorized~~2011 ~~preferred~~through ~~shares~~July 31, ~~with~~2011. 11Comparative prior year financial statement information has not been presented in the consolidated statements of operations or the consolidated statement of cash flows as Gulfmark Energy Group,~~000~~ Inc. (which also includes its two wholly owned subsidiary corporations) did not commence business operations until August 9,~~000~~ ~~series~~2011. ~~“A”~~After ~~preferred~~the ~~shares~~share ~~outstanding~~exchange agreement was executed, Silver Butte Company changed its name to Gulfmark Energy, Inc.

~~Following~~The isconsolidated afinancial ~~schedule~~statements ofincluded herein reflect all normal recurring adjustments that, in the ~~common~~opinion ~~stock~~of ~~activity~~management, ~~pursuant~~are necessary for a fair presentation. The results for interim periods are not necessarily indicative of trends or of results to be expected for the ~~share~~full ~~exchange~~year ~~agreement:~~ended October 31, 2011.

Balance of shares outstanding prior to the share exchange agreement		19,680,412
Issuance of shares pursuant to the share exchange agreement		1,072,000,027
Balance prior to the reverse split		1,091,680,439
Balance adjusted for the 40:1 reverse split		27,292,011

NOTE 2 – GOING CONCERN

8During the three months ended July 31, 2011, the Company incurred a net loss of $379,849, and as of that date, the Company had a negative working capital balance of $239,904. These conditions raise substantial doubt as to the Company’s ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

In April, 2011, the Company commenced to raise cash through the issuance of convertible promissory notes in a private placement offering to accredited investors. The terms of the promissory notes are summarized as follows:

Available to select accredited investors.

Original closing date was set for April 30, 2011. However, that close date had been extended to June, 30, 2011.

Total aggregate amount of cash to be raised would not exceed $250,000. However, this “ceiling” was raised to $400,000 subsequent to April 30^th.

Interest rate of 4% per annum. The Company has the option to pay interest in cash or to pay interest in kind.

The proceeds will be used for basic working capital requirements.

The notes have a 24-month maturity. At the holder’s option, repayment shall be in cash or in shares of the Company’s common stock at the rate of $0.42 per share after giving effect to the Company’s proposed reverse stock split of 40 to 1.

GULFMARK ENERGY, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

In the event of any equity related issuance below the $0.42 conversion price (post reverse split), the conversion price will be reduced to the lowest price at which common stock is sold in a “qualified financing”. A “qualified financing” means an equity financing or series of related equity financings in which the Company receives at least $2,500,000 in gross aggregate cash proceeds (before commissions or other transaction related expenses, and including proceeds resulting from any conversion of the Gulfmark Energy, Inc. convertible promissory notes).

This convertible note private placement funding was terminated on June 9, 2011, and a total of $284,400 in cash was raised through the issuance of these notes.

The Company is aware that in order to be fully operational and profitable, it will have to raise substantial capital. This needed capital could be raised through a combination of debt financing, sale of common stock, or direct joint venture participation in various drilling sites. The Company has no assurance that future financing will be available. If this additional financing is not available, the Company may be unable to continue its operations. In addition, any equity financing or convertible debt financing could result in additional dilution to existing shareholders.

NOTE 3 – SUBSEQUENT EVENT

On September 6, 2011, the Company's board of directors and majority shareholders authorized the company to change its name to Gambit Energy, Inc. in response to a trademark claim with another company named Gulfmark Energy, Inc, a Texas corporation.

The Company has evaluated subsequent events for recognition or disclosure through the date these financial statements were available to be issued.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

~~Management’s~~Results ~~discussion and analysis~~ of ~~financial condition and results of operations~~Operations

~~Forward~~The ~~Looking~~Company ~~Statements~~did not generate any revenue for the three month period ending July 31, 2011. Operating expenses totaled $234,177 for the quarter, and the Company sold a drilling rig and related equipment for a loss of $123,470. The Company incurred a net loss of $379,849 for the quarter.

Some of the statements contained in this Current Report that are not historical facts are “forward-looking statements” which can be identified by the use of terminology such as “estimates,” “projects,” “plans,” “believes,” “expects,” “anticipates,” “intends,” or the negative or other variations, or by discussions of strategy that involve risks and uncertainties. We urge you to be cautious of the forward-looking statements, that such statements, which are contained in this Current Report, reflect our current beliefs with respect to future events and involve known and unknown risks, uncertainties and other factors affecting our operations, market growth, services, products and licenses. No assurances can be given regarding the achievement of future results, as actual results may differ materially as a result of the risks we face, and actual events may differ from the assumptions underlying the statements that have been made regarding anticipated events. Factors that may cause actual results, our performance or achievements, or industry results, to differ materially from those contemplated by such forward-looking statements include without limitation:

our ability to raise capital when needed and on acceptable terms and conditions;

our ability to attract and retain management, and to integrate and maintain technical information and management information systems;

the intensity of competition; and

general economic conditions.

All written and oral forward-looking statements made in connection with this Current Report that are attributable to us or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. Given the uncertainties that surround such statements, you are cautioned not to place undue reliance on such forward-looking statements.

Revenues

Revenues for the quarter ended April 30, 2011 were $80,362, compared to revenues of $116,773 for the prior quarter ended January 31, 2011. For both quarters, the source of revenues was derived from drilling operations of a wholly owned subsidiary, which is Blanco Drilling, Inc. Due to the facts that there has been increased competition among oil well drilling contractors in Southwest Texas, and the contract price per foot drilled is only around $17 to $18, Blanco Drilling has decided to put up its drilling rig for sale at an auction in the near future. Any future drilling on the Kiefer Lease (owned by another wholly owned subsidiary, Gulfmark Resources, Inc.) would be performed by outside oil and gas well drilling contractors. It was originally anticipated that Blanco Drilling, Inc. would perform potential contract drilling operations on the Kiefer Lease.

Expenses

The total operating expenses for the quarter ended April 30, 2011 were $209,240, and were primarily related to drilling operations (wages of $87,139, direct expenses to operate the drilling rig of $64,873, and depreciation of the drilling rig of $22,583). Direct drilling expenses will cease because the company does not envision contract drilling jobs as being profitable.

Liquidity and Capital Resources

AsThe ~~of April 30, 2011, the~~ Company had acurrent ~~cash~~assets ~~balance~~ of $62127,~~467~~393 ~~and~~as aof ~~current~~July ~~liability~~31, ~~balance~~2011 ofand ~~$624,688,~~current liabilities of ~~which~~ $~~281~~367,~~987~~297, isfor ~~owed~~a toworking ~~the~~capital ~~president~~deficiency of ~~the Company~~$239,904. ~~and~~The ~~$207,399~~Company ~~represents~~commenced ~~the~~to ~~current~~issue ~~portion~~$284,400 ofin aconvertible ~~contract~~notes payable onin athe ~~drilling~~prior ~~rig.~~quarter Onand ~~April~~terminated ~~30,~~this ~~2011,~~fund ~~the~~raising ~~Company~~effort ~~was~~in ~~three~~June ~~months~~2011. ~~delinquent~~Gulfmark onis ~~monthly~~seeking ~~payments~~to ~~($14,653~~raise ~~due~~additional ~~per~~capital ~~month) on the contract~~ for ~~the~~general ~~drilling~~administrative ~~rig.~~purposes ~~The~~and ~~total~~to ~~amount~~commence ~~due~~an onoil ~~this~~well ~~contract~~drilling ~~payable on April 30th was $294,146~~program.

During the quarter ended April 30, 2011, the Company started to raise cash through the issuance of convertible promissory notes (see Note 2 – Going Concern). As of April 30th, the Company had raised $65,000 through the issuance of these notes. Subsequent to April 30th, the Company has continued to raise funds through the issuance of these promissory notes.

Critical Accounting Policies

Our financial statements are prepared in accordance with accounting principles generally accepted in the United States of America, which 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.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements.

Inflation

It is our opinion that inflation has not had a material effect on our operations.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Not required for smaller reporting companies.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) that are designed to be effective in providing reasonable assurance that information required to be disclosed in our reports under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission (the “ SEC”), and that such information is accumulated and communicated to our management to allow timely decisions regarding required disclosure.

periods specified in the rules and forms of the Securities and Exchange Commission (the “ SEC”), and that such information is accumulated and communicated to our management to allow timely decisions regarding required disclosure.

In designing and evaluating disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable, not absolute assurance of achieving the desired objectives. Also, 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, 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. The design of any system of controls 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.

As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of management, including our Chief Executive Officer and Principal Financial Officer (Chairman of the Board), of the effectiveness of the design and operation of our disclosure controls and procedures. Based upon that evaluation, management concluded that our disclosure controls and procedures are effective at a reasonable assurance level as of ~~April~~July 3031, 2011 to cause the information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods prescribed by SEC, and that such information is accumulated and communicated to management, including our Chief Executive Officer and Principal Financial Officer (Chairman of the Board), as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

There was no change in our internal controls over financial reporting identified in connection with the requisite evaluation that occurred during our last fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Limitations

Our management, including our Chief Executive Officer and Principal Financial Officer (Chairman of the Board), does not expect that our disclosure controls or internal controls over financial reporting will prevent all errors or all instances of fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system's objectives will be met. 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 our 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. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design of any system of controls is based in part upon certain assumptions about the likelihood of future events, and any design may not succeed in achieving its stated goals under all potential future conditions. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures. Because of the inherent limitation of a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

controls is based in part upon certain assumptions about the likelihood of future events, and any design may not succeed in achieving its stated goals under all potential future conditions. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures. Because of the inherent limitation of a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

PART II

ITEM 1.

LEGAL PROCEEDINGS

~~None~~On August 17, 2011, Gulfmark Energy, Inc., a company with the same name as our company notified us that it had filed a lawsuit against Gulfmark Energy Group, Inc. and Gulfmark Resources, Inc., two of our subsidiaries, alleging trademark infringement. The Case was filed in the U.S. District Court, Southern District of Texas, Houston Division. To date, the Company has not been served a summons and complaint.

Plaintiff claims a common law trademark to the word "Gulfmark" alleging that the Company's use of the word "Gulfmark" infringes upon their mark.

The Company settled the legal proceedings effective September 15, 2011 pursuant to a Settlement Agreement. Within six (6) weeks, the Company agrees to cease all use of, and thereafter refrain from using the term "Gulfmark" as a trademark, service mark or tradename including internet domain names. Notwithstanding, this requirement, if the SEC requests the Company to respond to an SEC Staff comment letter, or similar request, as a result of the name change, then the compliance period may be extended to November 30, 2011. The Company filed a preliminary Information Statement on Schedule PRE 14C on September 14, 2011 for the purpose of initiating steps to change its corporate name to Gambit Energy, Inc.

ITEM 2.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

WeDuring ~~had~~this noquarter ~~unregistered~~we ~~sales~~issued of equity securities ~~during~~as disclosed in Item 3.02 of the ~~quarter~~Current ~~ending~~Report ~~April~~filed 30on Form 8-K on June 28, 2011.

ITEM 3.

DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4.

REMOVED AND RESERVED

ITEM 5.

OTHER INFORMATION

~~(a)~~Trademark Matter:

~~Securities~~On September 6, 2011, our board of directors and ~~Exchange~~majority ~~Commission~~shareholders ~~(SEC)~~authorized ~~Staff~~the ~~Comments:~~Company to change its corporate name from Gulfmark Energy, Inc. to Gambit Energy, Inc. pursuant to a settlement agreement in connection with the legal proceeding set forth in Part II, Item 1. titled "Legal Proceedings" above.

ToThe ~~date, the~~ Company ~~has~~will ~~not~~also ~~completed~~change ~~its corporate reorganization because~~ the ~~Preliminary~~names ~~Information Statement filed on Schedule 14C on January 14, 2011 had been subject to review by the SEC staff. On June 2, 2011, the SEC completed a review~~ of ~~the~~its ~~Company's~~controlled ~~Form~~subsidiaries ~~10-K~~replacing ~~for~~ the ~~fiscal~~word ~~year~~" ~~ending~~Gulfmark" ~~August~~with 31, 2010, Form 10-Q for the fiscal quarter ending November 30, 2010, Form 8-K originally filed on January 14, 2011, as subsequently amended and Schedule Preliminary 14C originally filed on January 14, 2011, as amended"Gambit".

~~Clearance~~Reverse ofStock ~~the~~Split ~~Schedule 14C permits the Company to proceed with the completion of the corporate reorganization.~~ Matter:

~~(b)~~Our issued and outstanding common stock increased from 27,292,011 to 27,292,206 as a result of rounding up fractional shares resulting from the reverse stock split which was implemented on July 1, 2011.

Stockholders' Equity:

This report reflects stockholders' equity as though the articles of incorporation had been amended, the balance of the 1,072,000,027 shares issued to the Gulfmark shareholders and the reverse stock split implemented. After the issuance of 1,072,000,027 shares of its common stock for the reverse acquisition, Silver Butte will implement a 40 to 1 reverse stock split of the total 1,091,680,439 common shares outstanding. After the reverse stock, split there will be approximately 27, 292,011 outstanding shares of common stock.

For comparative purposes, the issued and outstanding number of shares of common stock in the financial statements included in this report have been given the effect and adjusted for the 40 to 1 reverse stock split as previously reported in the Pro Forma Consolidated Financial Statements at October 31, 2010.

ITEM 6.

EXHIBITS

Exhibit 31.1 – Certification required by Rule 13a-14(a) or Rule 15d-14(a)

Exhibit 32.1 – Certification required by Rule 13a-14(b) or Rule 15d-14(b) and section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

~~SILVER~~Gulfmark ~~BUTTE~~Energy, ~~COMPANY~~Inc.

(Registrant)

/s/ Michael R. Ward

By:________________________________

Michael R. Ward, President

Principal Executive Officer and Chief Financial Officer

Date: ~~June~~September 1619, 2011

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