UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x	REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~September~~March 3031, ~~2010~~ 2011

¨ o REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from _____________________ to ______________

File No. 333-127813

Majestic Oil & Gas, Inc.

(Name of small business issuer in our charter)

Nevada	4600	20-1673271
(State or other jurisdiction of incorporation or organization)	(Primary Standard Industrial Classification Code Number)	(I.R.S. Employer Identification Number)

P.O Box 488 Cut Bank, Montana	59427
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone 406-873-5580

Check 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 the past 90 days.

Yes x No ¨ o

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 Act.

Large accelerated filer ¨o Accelerated filer ¨o Non-accelerated filer ¨o Smaller Reporting Company x

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

Yes ¨o No x

As of ~~November~~ 11May 1, ~~2010~~2011, there were 9,118,000 shares issued and outstanding of the registrant’s common stock.

INDEX

PART I — FINANCIAL INFORMATION 3 Item 1. Financial Statements 3 Item 2. Management’s Discussion and Analysis or Plan of Operation 11 Item 3. Quantitative and Qualitative Disclosure about Market Risk 20 Item 4. Controls and Procedures 20 PART II — OTHER INFORMATION 20 Item 1. Legal Proceedings 20 Item 1A. Risk Factors 20 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 21 Item 3. Defaults Upon Senior Securities 21 Item 4. (Removed and Reserved) 21 Item 5. Other Information 21 Item 6. Exhibits 21

PART I — FINANCIAL INFORMATION			3
Item 1. Financial Statements			3
Item 2. Management’s Discussion and Analysis or Plan of Operation			10
Item 3. Quantitative and Qualitative Disclosure about Market Risk			16
Item 4. Controls and Procedures			16
PART II — OTHER INFORMATION			17
Item 1. Legal Proceedings			17
Item 1A. Risk Factors			17
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			17
Item 3. Defaults Upon Senior Securities			17
Item 4. (Removed and Reserved)			17
Item 5. Other Information			17
Item 6. Exhibits			17

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements

MAJESTIC OIL & GAS, INC. (A Development Stage Company)

CONDENSED CONSOLIDATED BALANCE SHEETS

	September 30
	March 31,
	2010			December 31
	2011			December 31
	UNAUDITED			~~2009~~2010
ASSETS
Cash and cash equivalents	$	3421,~~921~~100		$	~~110~~23,~~701~~200
Trade receivables		148,~~985~~213			519,~~823~~780
Total Current Assets		4929,~~905~~313			~~116~~42,~~524~~980
OIL AND GAS PROPERTIES
Oil and gas properties, using the full cost method of accounting:
Properties being amortized		455,894			455,894
Properties not subject to amortization		~~213~~214,~~852~~307			~~202~~213,~~531~~852
Less accumulated depletion, amortization and impairment		(~~183~~194,100	)		(~~164~~189,~~000~~200	)
Net Oil and Gas Properties		~~486~~476,~~646~~101			~~494~~480,~~425~~546
OTHER ASSETS
Total Assets	$	505,414		$	523,526
Website development costs (less accumulated amortization)		-			400
Total Other Assets		-			400
Total Assets	$	536,551		$	611,349
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Accounts payable and accrued liabilities	$	48,~~140~~367		$	~~5,028~~475
Production taxes and royalties payable		51,~~804~~816			15,~~379~~818
Well settlement payable		2223,~~959~~177			22,~~959~~919
Total Current Liabilities		3233,~~903~~361			29,~~366~~212
Asset retirement obligation		8,879			8,879
Total Liabilities		4142,~~782~~240			38,~~245~~091
STOCKHOLDERS' EQUITY
Common stock, no par value-
Authorized Shares - 100,000,000
Issued & Outstanding: 9,118,000 shares at September 30, 2010;
Issued & Outstanding: 9,118,000 shares at March 31, 2011;		1,314,500			1,314,500
8,918,000 at December 31, 2009		1,314,500			1,272,500
9,118,000 at December 31, 2010
Additional paid in capital		19,295			19,295
(Deficit) accumulated during the development stage		(~~839~~870,~~026~~621	)		(~~718~~848,~~691~~360	)
Total Stockholders' Equity		~~494~~463,~~769~~174			~~573~~485,~~104~~435
Total Liabilities & Stockholders' Equity	$	~~536~~505,~~551~~414		$	~~611~~523,~~349~~526

MAJESTIC OIL & GAS, INC. (A Development Stage Company)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

													Inception
	Three Months			Three Months			Inception
	Three Months			Three Months			Nine Months			Nine Months			(April 16, 2002)
	Ended			Ended			(April 16, 2002)
	Ended			Ended			Ended			Ended			through
	March 31,			March 31,			March 31,
	September 30,			September 30,			September 30,			September 30,			September 30,
	2011			2010			2011
	2010			2009			2010			2009			2010
	UNAUDITED			UNAUDITED			UNAUDITED
	UNAUDITED			UNAUDITED			UNAUDITED			UNAUDITED			UNAUDITED
REVENUE	$	8,213		$	6,821		$	510,486
REVENUE	$	12,445		$	7,046		$	26,225		$	25,294		$	481,902
PRODUCTION (LIFTING) COSTS		5,339			5,334			176,287
PRODUCTION (LIFTING) COSTS		9,315			3,660			20,194			13,189			160,157
EXPLORATION EXPENSES		-			-			3,862
EXPLORATION EXPENSES		-			-			-			-			3,862
DEPLETION, DEPRECIATION AND AMORTIZATION		4,900			6,710			196,600
DEPLETION, DEPRECIATION AND AMORTIZATION		6,900			8,410			19,500			31,130			185,600
INCOME FROM OIL & GAS PRODUCING ACTIVITIES		(2,026	)		(5,223	)		133,737
INCOME FROM OIL & GAS PRODUCING ACTIVITIES		(3,770	)		(5,024	)		(13,469	)		(19,025	)		132,283
SELLING, GENERAL & ADMINISTRATIVE EXPENSES		20,235			14,283			1,004,359
SELLING, GENERAL & ADMINISTRATIVE EXPENSES		14,358			9,303			106,865			47,532			971,308
NET (LOSS)	$	(22,261	)	$	(19,506	)	$	(870,621	)
NET (LOSS)	$	(18,129	)	$	(14,327	)	$	(120,335	)	$	(66,557	)	$	(839,026	)
EARNINGS PER SHARE
EARNINGS PER SHARE
Net Income, basic and diluted	$	(0.00	)	$	(0.00	)
Net Income, basic and diluted	$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.01	)
Weighted average number of shares outstanding		9,118,000			8,918,000
Weighted average number of shares outstanding		9,118,000			7,808,000			9,118,000			7,808,000
Diluted potential shares - stock warrants		-			-
Diluted potential shares - stock warrants		-			-			-			-
Adjusted weighted average shares		9,118,000			8,918,000
Adjusted weighted average shares		9,118,000			7,808,000			9,118,000			7,808,000

MAJESTIC OIL & GAS, INC. (A Development Stage Company)

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

							(Deficit)			~~(Deficit)~~
							Accumulated			~~Accumulated~~
					Additional		~~Stock~~During			~~During~~
	Common Stock				Paid In		~~Subscription~~Development			~~Development~~
	Shares		Amount		Capital		~~Receivable~~Stage			~~Stage~~Total			~~Total~~
BEGINNING BALANCE, INCEPTION (APRIL 16, 2002) TO DECEMBER 31, 2004		-	$	-	$	-	$	-		$	-		$	-
Common stock issued		6,240,000		624,000		-		-			-624,000			~~624,000~~
Net (loss)		-		-		-		-(346,422	)		(346,422	)		~~(346,422~~	)
BALANCE, DECEMBER 31, 2004		6,240,000		624,000		-		-(346,422	)		~~(346~~277,~~422~~578	)		~~277,578~~
Common stock issued		-		-		-		-			-			-
Net income		-		-		-		-66,381			66,381			~~66,381~~
BALANCE, DECEMBER 31, 2005		6,240,000		624,000		-		-(280,041	)		~~(280~~343,~~041~~959	)		~~343,959~~
Common stock issued		-		-		-		-			-			-
Net (loss)		-		-		-		-(20,068	)		(20,068	)		~~(20,068~~	)
BALANCE, DECEMBER 31, 2006		6,240,000		624,000		-		-(300,109	)		~~(300~~323,~~109~~891	)		~~323,891~~
Common stock issued for services		330,000		147,000		-		-			-147,000			~~147,000~~
Common stock warrants exercised		938,000		234,500		-		-			-234,500			~~234,500~~
Common stock options issued		-		-		19,295		-			-19,295			~~19,295~~
Net (loss)		-		-		-		-(255,025	)		(255,025	)		~~(255,025~~	)
BALANCE, DECEMBER 31, 2007		7,508,000		1,005,500		19,295		-(555,134	)		~~(555~~469,~~134~~661	)		~~469,661~~
Common stock issued		300,000		150,000		-		-			-150,000			~~150,000~~
Net (loss)		-		-		-		-(68,680	)		(68,680	)		~~(68,680~~	)
BALANCE, DECEMBER 31, 2008		7,808,000		1,155,500		19,295		-(623,814	)		~~(623~~550,~~814~~981	)		~~550,981~~
Common stock issued for services		100,000		16,000		-		-			-16,000			~~16,000~~
Common stock issued		1,010,000		101,000		-		-			-101,000			~~101,000~~
Net (loss)		-		-				(94,877	)		(94,877	)		~~(94,877~~	)
BALANCE, DECEMBER 31, 2009		8,918,000		1,272,500		19,295		-(718,691	)		~~(718~~573,~~691~~104	)		~~573,104~~
Common stock issued for services		200,000		42,000		-		-			-42,000			~~42,000~~
Net (loss) for the nine months ended September 30, 2010 (UNAUDITED)		-		-		-		-			(120,335	)		(120,335	)
Net (loss)		-		-		-		(129,669	)		(129,669	)
BALANCE, SEPTEMBER 30, 2010		9,118,000	$	1,314,500	$	19,295	$	-		$	(839,026	)	$	494,770
BALANCE, DECEMBER 31, 2010		9,118,000		1,314,500		19,295		(848,360	)		485,435
Net (loss) for the three months		-		-		-		(22,261	)		(22,261	)
BALANCE, March 31, 2011		9,118,000	$	1,314,500	$	19,295	$	(870,621	)	$	463,174

MAJESTIC OIL & GAS, INC. (A Development Stage Company)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

							Inception
	Nine Months			Nine Months			(April 16, 2002)
	Three Months			Three Months			(April 16, 2002)
	Ended			Ended			Through
	September 30, 2010			September 30, 2009			September 30, 2010
	March 31, 2011			March 31, 2010			March 31, 2011
	UNAUDITED			UNAUDITED			UNAUDITED
OPERATING ACTIVITIES
Net (loss)	$	(~~120~~22,~~335~~261	)	$	(6619,~~557~~506	)	$	(~~839~~870,~~026~~621	)
Changes and credits to net (loss) not affecting cash					-
Depletion and amortization		194,~~500~~900			316,~~130~~710			~~185~~196,600
Organizational expenses paid with stock		~~42,000~~-			-			~~342~~300,000
Legal fees paid with stock		-			-			~~188~~230,000
Stock compensation expense		-			-			21,295
Changes in assets and liabilities
Trade receivables		(911,~~162~~566	)		~~17,024~~(998	)		(148,~~985~~213	)
Deposits		-			-			-
Accounts payable		8,150			(2,189	)		31,545
Production taxes and royalties payable		4,425			(2,821	)		5,804
Production taxes & royalties payable		(4,002	)		241			1,816
Accounts payable		(887	)		1			27,099
NET CASH (USED FOR) OPERATING ACTIVITIES		(1,645	)		(15,742	)		(97,578	)
NET CASH FROM (USED FOR) OPERATING ACTIVITIES		(64,459	)		(21,223	)		(84,211	)
INVESTING ACTIVITIES
Website development		-			-			(2,500	)
Additions to oil and gas properties		(~~11,321~~455	)		(~~7,018~~747	)		(~~500~~501,~~867~~322	)
NET CASH (USED FOR) INVESTING ACTIVITIES		(~~11,321~~455	)		(~~7,018~~747	)		(503,~~367~~822	)
FINANCING ACTIVITIES
Proceeds from sale of common stock		-			-			251,000
Proceeds from exercise of warrants		-			-			371,500
NET CASH PROVIDED BY FINANCING ACTIVITIES		-			-			622,500
NET CHANGE IN CASH AND CASH EQUIVALENTS		(752,~~780~~100	)		(2816,~~241~~489	)		3421,~~921~~100
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		~~110~~23,~~701~~200			79110,~~790~~701			-
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	3421,~~921~~100		$	5194,~~549~~212		$	3421,~~921~~100

MAJESTIC OIL & GAS, INC. (A Development Stage Company)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1 - Business Activity and Basis of Presentation

Principal Business Activity and Principles of Consolidation

~~Majestic Oil~~The &accompanying ~~Gas,~~interim ~~Inc.~~consolidated ~~(Company)~~financial isstatements ainclude ~~development~~the ~~stage~~accounts ~~enterprise and its operations consist~~ of ~~oil~~Majestic ~~and~~Oil ~~natural~~& ~~gas~~Gas, ~~development~~Inc. ~~and production in~~ (the ~~Rocky~~ ~~Mountain~~Company) ~~region. The financial statements~~ and ~~notes~~its towholly ~~the~~owned ~~financial statements~~subsidiary, ~~are~~Grizzly ~~the representation of the Company's management~~Energy, ~~who~~Inc. All ~~is responsible~~material ~~for~~inter-company ~~their~~transactions ~~integrity~~ and ~~objectivity.~~balances ~~The~~between ~~accounting policies of~~ the ~~Company~~ ~~are~~entities inhave ~~accordance~~been ~~with generally accepted accounting principles and conform to the standards applicable to development stage enterprises~~eliminated.

Basis of Presentation

The accompanying interim consolidated financial statements of the Company are unaudited. In the opinion of management, the interim data includes all adjustments, consisting only of normal recurring adjustments necessary for a fair presentation of the results for the interim period. The results of operations for the ~~nine~~three months ended ~~September~~March 3031, ~~2010~~2011 are not necessarily indicative of the operating results for the entire year. ~~These interim financial statements contain certain reclassification of prior period amounts to be consistent with the current period presentation with no effect on net income or loss.~~

We have prepared the interim consolidated financial statements included herein pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. We believe the disclosures made are adequate to make the information not misleading and recommend that these condensed financial statements be read in conjunction with the financial statements and notes included in our Form 10-~~KSB~~K for the year ended December 31, ~~2009~~ 2010.

Note 2 - Basis of Accounting

The accompanying interim consolidated financial statements have been prepared using accounting principles applicable to a going concern, which contemplates the realization of assets and extinguishment of liabilities in the normal course of business. As shown in the accompanying condensed balance sheet the Company has an accumulated deficit of ($~~839~~870,~~026~~621) through ~~September~~March 3031, ~~2010~~2011. This and other factors may indicate that the Company may be unable to continue in existence. The Company's financial statements do not include any adjustments related to the realization of the carrying value of assets or the amounts and classification of liabilities that might be considered necessary should the Company be unable to continue in existence. The Company's ability to establish itself as a going concern is dependent upon its ability to obtain additional financing in order to fund exploration and development activities of oil and gas interests and, ultimately, to achieve profitable operations. Management believes that it can be successful in obtaining either debt or equity financing that will enable the Company to continue in existence and establish itself as a going concern.

These interim financial statements are prepared using the significant accounting policies disclosed in the Company's December 31, ~~2009~~2010 annual audited financial ~~statements,~~ ~~except that certain significant accounting policies were adopted during the nine months ended September 30, 2010:~~statements.

~~Adopted prior~~Oil toand ~~the~~Gas ~~nine months ended September 30, 2010 -~~Properties

~~Oil~~ The Company utilizes the full cost method of accounting for oil and ~~Gas~~gas ~~Interests~~properties. Accordingly, all costs associated with the acquisition, exploration and development of oil and gas reserves (including costs of abandoned leaseholds, delay lease rentals, dry hole costs, geological and geophysical costs, certain internal costs associated directly with acquisition, drilling and well equipment inventory, exploration and development activities, estimated dismantlement and abandonment costs, site restoration and environmental exit costs, etc.) are capitalized.

The Company utilizes the full cost method of accounting for oil and gas activities. Under this method, subject to a limitation based on estimated value, all costs associated with property acquisition, exploration and development, including costs of unsuccessful exploration, are capitalized within a cost center. No gain or loss is recognized upon the sale or abandonment of undeveloped or producing oil and gas interests unless the sale represents a significant portion of oil and gas interests and the gain significantly alters the relationship between capitalized costs and proved oil and gas reserves of the cost center. Depreciation, depletion and amortization of oil and gas interests is computed on the units of production method based on proved reserves, or upon reasonable estimates where proved reserves have not yet been established due to the recent commencement of production. Amortizable costs include estimates of future development costs of proved undeveloped reserves.7

MAJESTIC OIL & GAS, INC. (A Development Stage Company)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~Capitalized~~ All capitalized costs of oil and gas ~~interests~~properties, ~~may~~net ~~not~~of ~~exceed~~estimated ansalvage ~~amount equal to the present value~~values, ~~discounted~~plus ~~at 10%, of~~ the estimated future ~~net~~costs ~~cash~~to ~~flows~~develop ~~from~~ proved ~~reserves~~ ~~plus the cost~~reserves, orare ~~estimated~~amortized ~~fair~~on ~~market~~the ~~value if lower,~~ unit-of-production ~~unproved interests.~~method ~~Should~~using ~~capitalized~~estimates ~~costs~~of ~~exceed~~proved ~~this~~reserves. Investments ~~ceiling,~~in anunproved ~~impairment~~properties ~~is recognized.~~and ~~The~~major ~~present~~development ~~value~~projects ofare ~~estimated~~not ~~future~~amortized ~~net~~until ~~cash~~proved ~~flows~~reserves isassociated ~~computed~~with ~~by applying~~the ~~year~~projects ~~end~~can ~~prices~~be ofdetermined ~~oil~~or ~~and~~until ~~gas~~impairment tooccurs. If ~~estimated~~the ~~future~~results ~~production~~ of ~~proved oil~~an ~~and~~assessment ~~gas~~indicate ~~reserves~~that asthe ofproperties ~~year~~are ~~end~~impaired, ~~less~~the ~~estimated~~amount ~~future~~of ~~expenditures~~the toimpairment ~~be incurred~~is inadded ~~developing~~to ~~and producing~~ the ~~proved~~capitalized ~~reserves~~costs ~~and~~to ~~assuming continuation~~be ~~of existing economic conditions~~amortized.

In addition, the capitalized costs are subject to a “ceiling test” which basically limits such costs to the aggregate of the “estimated present value,” discounted at a 10-percent interest rate, of future net revenues from proved reserves, based on current economic and operating conditions, plus the lower of cost or fair market value of unproved properties.

Gains or losses are not recognized upon the sale or other disposition of oil and gas properties, unless the sale represents a significant portion of oil and gas interests and the gain significantly alters the relationship between capitalized costs and proved oil and gas reserves of the cost center.

Revenue Recognition

The Company recognizes oil and gas revenues from its interests in producing wells as oil and gas is produced and sold from the wells and when ultimate collection is reasonably assured.

Website Development Costs

The Company has capitalized the costs associated with development of its website, and is amortizing the cost over a three year period.

Stock Based Compensation

The Company ~~accounts~~values ~~for~~its stock ~~based~~options ~~compensation~~awarded inon ~~accordance~~or ~~with~~after ~~current accounting~~January 1, ~~standards~~2006 ~~which~~at ~~specify~~ the ~~revised~~fair ~~accounting~~value ~~alternative requirements~~at ~~for~~grant ~~pre~~date using the Black-~~2006~~Scholes option pricing model. Compensation expense for stock ~~based~~options ~~compensation~~is ~~grants~~recorded ~~existing~~over the vesting period on a straight line basis. Compensation paid in vested stock is valued at ~~January 1,~~ ~~2006~~the ~~and~~fair value at the ~~required~~applicable ~~accounting~~measurement ~~for~~date ~~new~~and ~~grants~~charged ~~starting January 1,~~to ~~2006~~expense at that date. The Company ~~had~~did nonot make any stock ~~based~~option ~~compensation~~awards ~~grants~~prior ~~made before~~to ~~year~~January ~~2007~~1, 2006.

~~Accordingly,~~ During the ~~provisions~~three ~~pertaining~~month toperiod ~~pre-2006~~ending ~~grants~~March do31, ~~not~~2011 ~~apply.~~and ~~The Company values its stock options awarded on or after January 1~~2010, ~~2006 at~~ the ~~fair~~Company ~~value~~did ~~at grant~~not ~~date~~make ~~using~~any ~~the~~stock ~~Black-Scholes~~ option ~~pricing model~~awards. Compensation expense for stock options is recorded over the vesting period on a straight line basis. Compensation paid in vested stock is valued at the fair value at the applicable measurement date and charged to expense at that date.

Income Taxes

~~Effective January~~Income 1,taxes ~~2007,~~are ~~the~~provided ~~Company~~for ~~adopted~~ the ~~provisions~~tax ~~current~~effects ~~accounting~~of ~~standards related~~transactions toreported ~~accounting~~in ~~for~~the ~~uncertainty~~financial instatements ~~income~~and consist of taxes. ~~These~~currently ~~standards~~due ~~provide detailed~~plus ~~guidance~~deferred ~~for~~taxes ~~the~~related ~~financial~~primarily ~~statement~~to ~~recognition,~~differences ~~measurement~~between financial and ~~disclosure~~ ofincome ~~uncertain~~tax reporting. The deferred tax ~~positions~~assets ~~recognized~~and inliabilities, ~~the~~if ~~financial~~any, ~~statements. Tax~~represent ~~positions~~the ~~must~~future ~~meet~~tax areturn ~~“more-likely-than-not”~~consequences ~~recognition~~of ~~threshold~~those atdifferences, ~~the effective~~which ~~date~~will toeither be ~~recognized~~taxable ~~upon~~or ~~the~~deductible ~~adoption~~when of the ~~standards~~assets and ~~in subsequent~~liabilities ~~periods~~are recovered or settled. ~~Upon~~Deferred ~~the~~income ~~adoption~~tax ofassets, ~~the~~if ~~standards~~any, ~~the~~are ~~Company~~adjusted ~~had~~by ~~no unrecognized~~a ~~tax~~valuation ~~benefits.~~allowance, ~~During~~if ~~2009~~necessary, ~~and~~to ~~during~~recognize future tax benefits only to the ~~first~~extent, ~~nine~~based ~~months~~on ofavailable ~~2010~~evidence, ~~the~~ ~~Company~~it ~~recognized~~is nomore ~~adjustments~~likely ~~for~~than ~~uncertain~~not ~~tax~~such benefits will be realized.

Deferred income tax assets, if any, are adjusted by a valuation allowance, if necessary, to recognize future tax benefits only to the extent, based on available evidence, it is more likely than not such benefits will be realized. The Company would recognize interest and penalties, if any, related to uncertain tax positions in general and administrative expenses. No interest and penalties related to uncertain tax positions were accrued at September 30, 2010. The Company expects no material changes to unrecognized tax positions within the next twelve months.

Earnings per Share of Common Stock

Basic earnings per share is determined ~~in accordance with current accounting standards~~ using net income divided by the weighted average shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted average shares outstanding, assuming all dilutive potential common shares were issued. ~~The~~ There ~~effect~~were ofno outstanding common stock warrants ~~was anti-dilutive~~and options for the ~~nine~~three months ended ~~September~~March 3031, ~~2010~~2011 and ~~2009~~ 2010, that would create dilution.

~~Fair Value Measurement~~8

Effective January 1, 2008, the Company adopted accounting standards related to measurement of fair value in its financial statements. These standards provide a framework for measuring fair value under generally accepted accounting principles. These standards would apply to all financial instruments that are being measured and reported on a fair value basis. Currently, the Company has no financial instruments to which this statement would apply.

MAJESTIC OIL & GAS, INC. (A Development Stage Company)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~Recent Accounting~~Fair ~~Pronouncements~~Value of Financial Instruments

InThe ~~June 2009, accounting standards were issued related to the FASB'~~Company’s ~~codification~~financial ofinstruments ~~accounting standards~~consist ~~and the hierarchy~~ of ~~generally~~primarily ~~accepted accounting principles. The objective~~ of ~~these~~trade ~~standards~~receivables, ~~was~~accounts topayable ~~become~~and ~~the~~accrued ~~source~~production oftaxes ~~authoritative~~and Uroyalties.~~S. generally~~ ~~accepted~~The ~~accounting~~carrying ~~principles~~amount toof betrade ~~applied~~receivables, byaccounts ~~nongovernmental entities.~~payable ~~The~~and ~~standards~~accrued ~~became~~production ~~effective~~taxes ~~for~~and ~~financial~~royalties ~~statement~~approximates ~~issued~~its ~~for interim~~fair ~~and~~value ~~annual~~because ~~periods~~of ~~ending~~the ~~after~~short-term ~~September~~maturity ~~15,~~of ~~2009.~~such ~~Management has adopted these standards~~instruments.

In May 2009, accounting standards were issued related to events occuring subsequent to the balance sheet date, but prior to issuance of the financial statements. The objective of these standards is to establish general standards of accounting for and disclosure of events that occur after the balance sheet date but before the financial statements are issued or available to be issued. Management has adopted these standards.

In December 2008 the SEC unanimously approved amendments to revise its oil and gas reserves estimation and disclosure requirements. The amendments, among other things, allows the use of new technologies to determine proved reserves; permits the optional disclosure of probable and possible reserves; modifies the prices used to estimate reserves for SEC disclosure purposes to a 12-month average instead of a period end price; and requires that if a third party is primarily responsible for preparing or auditing reserve estimates, the Company make disclosures relating to the independence and qualifications of the third party, including filing as an exhibit any report received from the third party. The revised rules are effective January 1, 2010.

Note 3 - Organization and Development of the Company

The Company was formed on April 16, 2002 as a corporation. The Company is ~~considered~~ a development stage enterprise and it is management’s intention that operations will ultimately consist of oil and natural gas development and production in the Rocky Mountain region. The accompanying ~~interim~~ financial statements reflect organizational activities and limited oil and gas development and production activities and they are not necessarily indicative of what the financial statements will reflect once the intended operations of the Company are fully underway.

Note 4 - Asset Retirement Obligations

The Company ~~follows~~recognizes ~~current~~the ~~accounting~~present ~~standards~~value inof ~~accounting~~obligations ~~for~~associated ~~its~~with ~~asset~~ the retirement ~~obligations.~~of ~~These~~tangible ~~standards~~long-lived ~~address~~assets ~~financial~~in ~~accounting~~the ~~and reporting~~period ~~for~~in ~~obligations~~which ~~associated~~it ~~with~~is ~~the~~incurred. ~~retirement~~The ofliability ~~tangible~~is ~~long-lived assets~~capitalized ~~and~~as part of the ~~associated~~related asset’s ~~retirement~~carrying ~~costs~~amount. ~~These~~Over ~~accounting~~time, ~~standards require~~accretion ~~recognition~~ of the ~~present~~liability ~~value~~is ofrecognized ~~obligations~~as ~~associated~~an ~~with~~operating expense and the ~~retirement~~ ofcapitalized ~~tangible~~cost ~~long-lived~~is ~~assets~~depreciated inover the ~~period~~expected inuseful ~~which~~life itof isthe ~~incurred~~related asset. As ofThe ~~September~~Company’s 30retirement obligations are related to plugging, ~~2010~~dismantlement, ~~the~~removal, site reclamation and similar activities of its oil and gas exploration activities. The estimated future cost to plug and abandon the Company's gas wells was estimated to be $8,879 as of March 31, 2011 and December 31, 2010. The estimated liability is based on historical experience in plugging and abandoning wells, estimated cost to plug and abandon wells in the future and federal and state regulatory requirements.

Note 5 - Related Party Transactions

Altamont Oil & Gas, Inc. (Altamont), an entity related through common ownership and management, is the operator of the wells in which the Company owns its working interests. As the operator of the wells, Altamont is responsible for remitting production taxes to the taxing authorities and royalty payments to the royalty interest owners. The ~~As of September 30, 2010, the~~ Company had an outstanding receivable from Altamont of $148,~~985~~213 and $19,780 for oil and gas sales, and a payable to Altamont of $31,~~127~~816 and $5,818 for production taxes and royalties as of March 31, 2011 and December 31, 2010. The Company also received an Authorization for Expenditure (AFE) for its share of costs associated with the Jody Fields #4-1 well, which remains under development as of ~~September~~March 3031, ~~2010~~ 2011. The Company paid $5,547 to Altamont for development costs, and has a payable to Altamont of $2223,~~959~~177 for its remaining share of the AFE.

Note 6 - Farm Out Agreement

During 2007, the Company entered into a Farm-out Agreement with Altamont Oil & Gas, Inc and Numbers, Inc., an entity related through common ownership and management, to conduct a 10-well natural gas development program. This development program is still pending and will involve the drilling of 5 wells in the Lake Frances Gas Field and 5 wells in the Williams Gas Field, located in Pondera County, Montana. The Lake Frances Field is located south of Valier, Montana just offsetting the Lake Frances reservoir. The Williams Field is located 7 miles east of the town of Valier, Montana.

109

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

FORWARD LOOKING STATEMENTS

The following discussion and analysis is provided to increase the understanding of, and should be read in conjunction with, the Financial Statements of the Company and Notes thereto included elsewhere in this Report. Historical results and percentage relationships among any amounts in these financial statements are not necessarily indicative of trends in operating results for any future period. The statements, which are not historical facts contained in this Report, including this Plan of Operations, and Notes to the Financial Statements, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based on currently available operating, financial and competitive information, and are subject to various risks and uncertainties. Future events and the Company's actual results may ~~August~~ differ materially from the results reflected in these forward-looking statements. Factors that might cause such a difference include, but are not limited to, dependence on existing and future key strategic and strategic end-user customers, limited ability to establish new strategic relationships, ability to sustain and manage growth, variability of operating results, the Company's expansion and development of new service lines, marketing and other business development initiatives, the commencement of new engagements, competition in the industry, general economic conditions, dependence on key personnel, the ability to attract, hire and retain personnel who possess the technical skills and experience necessary to meet the service requirements of its clients, the potential liability with respect to actions taken by its existing and past employees, risks associated with international sales, and other risks described herein and in the Company's other SEC filings.

The following discussion of our financial condition and results of operations should be read in conjunction with the Financial Statements and Notes to the Condensed Consolidated Financial Statements appearing elsewhere in this report.

OVERVIEW

Majestic Oil & Gas, Inc. (Majestic) is engaged in the exploration, development, acquisition and operation of oil and natural gas properties. Because oil and natural gas exploration and development requires significant capital and because our assets and resources are limited, we participate in the gas industry through the purchase of interests in either producing wells or oil and natural gas exploration, development and production projects.

Majestic ~~Oil~~ ~~& Gas, Inc.~~ is a development stage company, and as such it is difficult for us to forecast our revenues or earnings accurately. We believe that period-to-period comparisons of our operating results may not be meaningful and should not be relied upon as an indication of future performance as we have and will have no backlog of orders. Our operating results in one or more future quarters may fall below investor expectations which, assuming our common stock trades on a recognized market, would almost certainly cause the future trading price of our common stock to decline. You should read the following discussion together with the ~~condensed~~ consolidated financial statements and their accompanying notes, included elsewhere in the report.

Majestic Oil & Gas, Inc. participated in drilling programs in the Lake Frances Field during 2007 and 2008. Four successful gas wells have been drilled to-date; the B Ag #25-1, Vandenbos #19-1, Boucher #18-1 and Stoltz #18-1. Majestic Oil & Gas, Inc. holds a 25% Working Interest in these four wells and the Company expects to see an increase in production volumes, as a result of these wells. In addition, Majestic Oil & Gas, Inc. participated in the drilling of the Vandenbos #19-2 and the Jody Fields #4-1. The Vandenbos #19-2 well was subsequently plugged and abandoned, as was the Jody Fields #4-1 well, which was a wildcat oil well.10

Majestic participated in drilling programs in the Lake Frances Field during 2007 and 2008. Four successful gas wells have been drilled to-date; the B Ag #25-1, Vandenbos #19-1, Boucher #18-1 and Stoltz #18-1. Majestic holds a 25% Working Interest in these four wells and Majestic expects to see an increase in production volumes, as a result of these wells. In addition, Majestic participated in the drilling of the Vandenbos #19-2 and the Jody Fields #4-1. The Vandenbos #19-2 well was subsequently plugged and abandoned, as was the Jody Fields #4-1 well, which was a wildcat oil well.

Majestic entered into a farm-out agreement with Mountain View Energy, Inc. (Mountain View Energy) on September 1, 2009, outlining parameters for Mountain View Energy to drill a test well in the NWSE-Section 33-T27N-R4W, Teton County, Montana at its sole cost, risk and expense. In doing so, Mountain View Energy, would acquire 75% of the Working Interest, while Majestic would retain a 25% Working Interest in any well drilled in the 40-acre tract.

Accordingly, on September 9, 2009, drilling commenced on the Donovan #33-3 well located in the West Pondera Field, SWNWSE – Section 33-T27N-R4W, Teton County, Montana. The well was successfully drilled and completed with an initial production of 15 barrels of oil per day with no water. The producing interval is the Madison/Sun River Dolomite with 20 feet of pay from 2,125’ to 2,145’.

Due to the success of the Donovan #33-3, a second oil well was drilled in the West Pondera Field. The Donovan #33-2 is located in the SENWSE - Section 33-T27N-R4W, Teton County, Montana. This Donovan #33-3 oil well was successfully drilled and completed with initial production of 2 to 4 barrels of oil per day. The two Donovan wells are currently in production status.

Majestic entered into a farm-out agreement with Altamont Oil and Gas, Inc. (Altamont), and subsequently with Hartford Energy, Inc., to conduct the re-entry of the Fields #14-34. As per the farm-out agreement with Hartford Energy, Inc., the Company retained a 25% Working Interest in this well. The Fields #14-34 is located in the Loneman Coulee Field, Pondera County, Montana and was completed as a Madison/Sun River oil well with initial production of 5 barrels of oil per day.

Majestic Oil & Gas, Inc. entered into a farm-out agreement with Mountain View Energy, Inc. on September 1, 2009, outlining parameters for Mountain View Energy, Inc. to drill a test well in the NWSE-Section 33-T27N-R4W, Teton County, MT at its sole cost, risk and expense. In doing so, Mountain View Energy, Inc., would acquire 75% of the Working Interest, while Majestic Oil & Gas, Inc. would retain a 25% Working Interest in any well drilled in the 40-acre tract.

Accordingly, on September 9, 2009, drilling commenced drilling on the Donovan #33-3 well located in the West Pondera Field, SWNWSE – Section 33-T27N-R4W, Teton County, Montana. The well was successfully drilled and completed with an initial production of 15 barrels of oil per day with no water. The producing interval is the Madison/Sun River Dolomite with 20 feet of pay from 2,125’ to 2,145’.

Due to the success of the Donovan #33-3, a second oil well was drilled in the West Pondera Field. The Donovan #33-2 is located in the SENWSE - Section 33-T27N-R4W, Teton County, Montana. This oil well was successfully drilled and completed with initial production of 2 to 4 barrels of oil per day.

Majestic Oil & Gas, Inc. entered into a farm-out agreement with Altamont Oil & Gas, Inc., and subsequently with Hartford Energy, Inc., to conduct the re-entry of the Fields #14-34. As per the farm-out agreement with Hartford Energy, Inc., the Company retained a 25% Working Interest in this well. The Fields #14-34 is located in the Loneman Coulee Field, Pondera County, Montana and was completed as a Madison/Sun River oil well with initial production of 5 barrels of oil per day.

Based upon our Management's experience in the oil and natural gas industry and on recent events, including increasing global demand for energy and energy disruptions caused by natural disasters, we believe the trend in oil and gas prices will remain relatively stable or decrease slightly, but over the long-term are more likely to increase. We expect to generate positive net income from operations in the future, although our revenue and expenses will increase as we expand our drilling and ownership activities. However, the current economic crisis could have a negative impact on the Company’s revenues due to the recent decrease in oil and natural gas prices. During the course of 2009, Majestic Oil & Gas, Inc. saw a significant decrease in the price received per MCF at a high of $3.09 and a low of $1.19, as detailed under “Results of Operation.” To-date in 2010, the Company received a high of $2.80 per MCF and a low of $1.60 per MCF. The current trend shows a continued decline in pricing. The price we receive for our production directly affects the amount of revenues we generate, which in turn affects the Company’s liquidity and overall financial position.

RESULTS OF OPERATIONS

Three Months ~~Ended~~ended ~~September 30~~March 31, ~~2010~~2011 vs. Three Months ~~Ended~~ended ~~September~~March 3031, ~~2009~~2010:

	Three Months Ended September 30, 2010		Three Months Ended September 30, 2009
	Thee Months Ended March 31, 2011		Three Months Ended March 31, 2010
Revenue	$	128,~~445~~213	$	76,~~046~~821
Expenses	$	30,~~574~~474	$	2126,~~373~~327
Net Income (Loss)	$	(18,129)	$	(14,327)
Net Loss	$	(22,261)	$	(19,506)

Revenues for the ~~three-month~~Three ~~period~~Months ended ~~September~~March 3031, ~~2010~~2011 were $128,~~445~~213 compared to $76,~~046~~821 for the ~~period~~Three Months ended ~~September~~March 3031, ~~2009~~2010. The increase in revenues is a result of oil sales from the Donovan Lease. Oil insales ~~which~~were ~~Majestic~~offset ~~Oil~~by &a ~~Gas,~~decrease ~~Inc owns~~in agas ~~25%~~production ~~Working~~and ~~Interest,~~price asper ~~detailed~~MCF inbetween the ~~table~~two ~~to follow~~years.

Ludwig State 36-1	Share of Production Volumes		Price Per MCF		Share of Production Volumes		Price Per MCF
	2010				2009
July		168.51		2.05		211.41		1.39
August		167.06		2.00		201.92		1.40
September		161.29		1.60		190.58		1.19

Total expenses increased by $4,147 from $26,327 reported for the Three Months ended March 31, 2010 compared to $30,474 reported for the Three Months ended March 31, 2011. Of those expenses, Production (Lifting) Costs increased by an insignificant amount from $5,334 for the Three Months ended March 31, 2010 to $5,339 for the Three Months ended March 31, 2011. There was an increase in Selling, General & Administrative Expenses of $5,952 from $14,283 reported for the Three Months ended March 31, 2010 compared to $20,235 reported for the Three Months ended March 31, 2011. The increase is primarily attributed to professional fees, which comprised of an increase in accounting and auditing fees. Depletion, Depreciation and Amortization decreased by $1,810 from $6,710 reported for the Three Months ended March 31, 2010 compared to $4,900 reported for the Three Months ended March 31, 2011. This decrease is primarily attributed to the decrease in gas production volumes between the two periods.

Boucher 27-1	Share of Production Volumes		Price Per MCF		Share of Production Volumes		Price Per MCF
	2010				2009
July		44.34		2.05		49.50		1.39
August		44.14		2.00		47.85		1.40
September		43.31		1.60		44.76		1.19

Majestic showed a Net Loss of ($22,261) for the Three Months ended March 31, 2011. This compares to the Net Loss of ($19,506) for the Three Months ended March 31, 2010. The variance between the two years is directly related to the decrease in gas production volumes and an increase in selling, general, & administrative expense as discussed above. While it is the Company’s hope that production volumes increase as a result of its planned development and drilling program, Majestic’s revenues are subject to the volatility of oil and natural gas prices, which continue to fluctuate dramatically.

B. Ag #25-1	Share of Production Volumes		Price Per MCF		Share of Production Volumes		Price Per MCF
	2010				2009
July		33.60		2.05		38.80		1.39
August		31.60		2.00		35.20		1.40
September		30.80		1.60		33.60		1.19

Majestic also plans to continue its pursuit of oil prospects in the Lake Frances Area, which if successful, could contribute to an increase in future revenues. The price of crude oil also continues to fluctuate but not to the same extreme as the price of natural gas. In spite of the fluctuations in the price of oil and natural gas, Management is still confident that we will build the Company through continued drilling of oil and natural gas prospects.

Vandenbos #19-1	Share of Production Volumes		Price Per MCF		Share of Production Volumes		Price Per MCF
	2010				2009
July		265.44		2.05		449.21	1.39
August		263.38		2.00		434.36	1.40
September		256.99		1.60		388.58	1.19

Boucher #18-1	Share of Production Volumes		Price Per MCF		Share of Production Volumes			Price Per MCF
Ludwig State 36-1	Share of Production Volumes		Price Per MCF		Share of Production Volumes		Price Per MCF
	2010				2009
	2011				2010
July		140.75		2.05		187.69		1.39
January		155.31		2.15		185.83		2.90
August		138.50		2.00		194.49		1.40
February		147.06		2.00		157.37		3.05
September		164.75		1.60		189.75		1.19
March		162.11		1.88		175.93		2.80

Boucher 27-1	Share of Production Volumes		Price Per MCF		Share of Production Volumes		Price Per MCF
	2011				2010
January		32.38		2.15		47.03		2.90
February		32.18		2.00		34.86		3.05
March		33.41		1.88		43.11		2.80

B. Ag #25-1	Share of Production Volumes		Price Per MCF		Share of Production Volumes		Price Per MCF
	2011				2010
January		26.20		2.15		35.00		2.90
February		22.60		2.00		28.40		3.05
March		24.00		1.88		32.80		2.80

Vandenbos #19-1	Share of Production Volumes		Price Per MCF		Share of Production Volumes		Price Per MCF
	2011				2010
January		217.59		2.15		348.15		2.90
February		196.97		2.00		277.20		3.05
March		220.28		1.88		305.66		2.80

Boucher #18-1	Share of Production Volumes		Price Per MCF		Share of Production Volumes		Price Per MCF
	2011				2010
January		132.00		2.15		199.50		2.90
February		123.75		2.00		148.25		3.05
March		139.25		1.88		168.00		2.80

Stoltz #18-1	Share of Production Volumes		Price Per MCF		Share of Production Volumes		Price Per MCF	~~Price Per MCF~~
	2010				2009
	2011				2010
July		5.28		2.05		12.80		1.39
January		-		-		-		-
August		4.27		2.00		5.28		1.40
February		-		-		-		-
September		0.20		1.60		0.41		1.19
March		-		-		0.61		2.80

Donovan Lease	Share of Production Volumes		Price Per BBL		Share of Production Volumes			Price Per BBL
Donovan #33-3	Share of Production Volumes		Price Per BBL		Share of Production Volumes		Price Per BBL
July		89.18		64.54		0		0
	2011				2010
August		44.86		65.14		0		0
January		-		-		-		-
September						0		0
February		32.29		76.22		39.38		64.98
March		-		-		-		-

Majestic Oil & Gas Operations, Inc’s Net Share of the production volumes from the Ludwig State #36-1, Boucher #27-1, B. Ag #25-1, Vandenbos #19-1, Boucher #18-1 and Stoltz #18-1 wells for three month period ended September 30, 2010 were 1,964 MCF compared to 2,716 MCF for three month period ended September 30, 2009. The production decrease is a result of natural decline in production over time. The Company’s Net Share of production volumes from the Donovan Lease were 134 BBL for the three month period ending September 30, 2010.

Donovan #33-2	Share of Production Volumes		Price Per BBL		Share of Production Volumes		Price Per BBL
	2011				2010
January		-		-		-		-
February		13.83		76.22		-		-
March		-		-		-		-

Our total expenses increased by $9,200 from the $21,373 reported for the three months ended September 30, 2009 compared to the $30,573 reported for the three months ended September 30, 2010. Of those expenses, there was an increase in the Selling, General & Administrative Expenses of $5,055 from the $14,358 reported for the three month period ended September 30, 2010 compared to the $9,303 reported for the same three month period in 2009. The primary reason for the increase was an increase in engineering and professional fees incurred, which are comprised mainly of legal, accounting, and auditing fees and increased production costs due to the Company’s share of the costs associated with the new Donovan wells. As mentioned above, revenues for the three month period increased as a result oil sales from the Donovan Lease.

Fields #14-34	Share of Production Volumes		Price Per BBL		Share of Production Volumes		Price Per BBL
	2011				2010
January		-		-		-		-
February		-		-		-		-
March		-		-		-		-

~~The Company~~Majestic’s ~~showed a~~ Net ~~Loss~~Share of ~~($18,129)~~the ~~for~~production volumes from the ~~three~~Ludwig ~~months~~State ~~ended~~#36-1, ~~September~~Boucher 30#27-1, ~~2010~~ B. ~~This~~Ag ~~compares~~#25-1, toVandenbos ~~the~~#19-1, ~~Net~~Boucher ~~Loss~~#18-1 ofand ~~($14,327)~~Stoltz #18-1 wells for the ~~three~~Three ~~months~~Months ended ~~September~~ 30March 31, ~~2009.~~2011 ~~The~~were ~~variance~~1,665 ~~between~~MCF ~~these~~compared ~~three~~to ~~month~~2,188 ~~periods~~MCF isfor ~~directly related to~~ the ~~decrease~~Three inMonths ~~gas~~ended ~~revenues~~March ~~and~~31, ~~volumes~~2010. ~~during~~The ~~the~~production ~~Third~~decrease ~~Quarter 2010~~is ~~and~~a ~~increase~~result inof ~~selling,~~natural ~~general,~~decline &in ~~administrative~~production ~~expense~~over ~~as discussed above~~time. The ~~While it is the~~ Company’s ~~hope~~Net ~~that~~Share of production volumes ~~increase~~from asthe ~~a result~~Donovan ofLease ~~its~~was ~~planned~~46.12 ~~development~~BBL and ~~drilling~~there ~~program,~~were ~~the~~no ~~Company’s~~sales ~~revenues are~~during ~~subject to~~ the ~~volatility~~period ofending ~~natural~~March ~~gas prices~~31, ~~which~~2011 ~~continue~~for tothe ~~fluctuate dramatically~~Jody Fields well.

The Company also plans to continue its pursuit of oil prospects in the Lake Frances Area, which if successful, could contribute to an increase in future revenues. The price of crude oil also continues to fluctuate but not to the same extreme as the price of natural gas. In spite of the fluctuations in the price of oil and natural gas, Management is still confident that we will build the Company through continued drilling of oil and natural gas prospects.

Drilling Activity

The following table sets forth the results of our drilling activities during the three months ended September 30, 2010 and 2009:

	Drilling Activity
	Gross Wells						Net Wells
Three Months ended September 30,	Total		Producing		Dry		Total		Producing		Dry
2010		0		0		0		0		0		0
2009		2		2		0		0.5		0.5		0

Net Production, Average Sales Price and Average Production Costs (Lifting)

The table below sets forth the net quantities of oil and gas production (net of all royalties, overriding royalties and production due to others) attributable to the Company for the three month periods ended September 30, 2010 and 2009, and the average sales price, and average production costs (including depreciation, depletion and amortization, lease operating costs and all associated taxes) on a per unit of production basis:

Three Months ended September 30,	2010			2009
Net Production
Oil (Bbls)		134.04		40.06
Gas (Mcf)		1,964.21		2,716.17
Average Sales Prices
Oil (per Bbl)	$	64.84		53.08
Gas (per Mcf)	$	1.88	$	1.33
Average Production Cost Per MCF	$	5.86	$	4.08

Nine Months Ended September 30, 2010 vs. Nine Months Ended September 30, 2009:

	Nine Months Ended September 30, 2010		Nine Months Ended September 30, 2009
Revenue	$	26,225	$	25,294
Expenses	$	146,560	$	91,851
Net Income (Loss)	$	(120,335)	$	(66,557)

Revenues for the nine-month period ended September 30, 2010 were $26,225 compared to $25,294 for the period ended September 30, 2009. There was a small increase in revenues between these two periods as a result of steady gas production and a slightly higher price received per MCF.

Ludwig State 36-1	Share of Production Volumes		Price Per MCF		Share of Production Volumes		Price Per MCF
	2010				2009
January		175.93		2.35		231.21		3.09
February		192.02		2.26		211.20		2.34
March		175.93		2.80		218.83		1.80
April		168.92		2.01		194.49		1.56
May		150.56		1.81		207.28		1.41
June		169.13		1.94		198.83		1.59
July		168.51		2.05		211.41		1.39
August		167.06		2.00		201.92		1.40
September		161.29		1.60		190.58		1.19

Boucher 27-1	Share of Production Volumes		Price Per MCF		Share of Production Volumes		Price Per MCF
	2010				2009
January		47.64		2.35		110.14		3.09
February		47.64		2.26		71.16		2.34
March		43.11		2.80		56.72		1.80
April		43.31		2.01		44.76		1.56
May		40.01		1.81		47.23		1.41
June		38.57		1.94		47.64		1.59
July		44.34		2.05		49.50		1.39
August		44.14		2.00		47.85		1.40
September		43.31		1.60		44.76		1.19

B. Ag #25-1	Share of Production Volumes		Price Per MCF		Share of Production Volumes		Price Per MCF
	2010				2009
January		33.80		2.35		38.80		3.09
February		31.00		2.26		33.80		2.34
March		32.80		2.80		36.80		1.80
April		32.40		2.01		35.60		1.56
May		27.80		1.81		37.80		1.41
June		34.60		1.94		38.60		1.59
July		33.60		2.05		38.80		1.39
August		31.60		2.00		35.20		1.40
September		30.80		1.60		33.60		1.19

Vandenbos #19-1	Share of Production Volumes		Price Per MCF		Share of Production Volumes		Price Per MCF
	2010				2009
January		361.56		2.35		708.06	3.09
February		352.48		2.26		632.57	2.34
March		305.66		2.80		683.72	1.80
April		298.24		2.01		551.10	1.56
May		247.91		1.81		494.59	1.41
June		278.03		1.94		451.69	1.59
July		265.44		2.05		449.21	1.39
August		263.38		2.00		434.36	1.40
September		256.99		1.60		388.58	1.19

Boucher #18-1	Share of Production Volumes		Price Per MCF		Share of Production Volumes		Price Per MCF
	2010				2009
January		211.00		2.35		413.33	3.09
February		212.25		2.26		356.40	2.34
March		168.00		2.80		365.48	1.80
April		149.75		2.01		299.89	1.56
May		130.25		1.81		237.81	1.41
June		147.75		1.94		196.76	1.59
July		140.75		2.05		187.69	1.39
August		138.50		2.00		194.49	1.40
September		164.75		1.60		189.75	1.19

Stoltz #18-1	Share of Production Volumes		Price Per MCF		Share of Production Volumes		Price Per MCF
	2010				2009
January		0.20		2.35		27.83	3.09
February		0.41		2.26		19.50	2.34
March		0.61		2.80		13.41	1.80
April		0.41		2.01		8.13	1.56
May		2.64		1.81		10.77	1.41
June		5.48		1.94		15.03	1.59
July		5.28		2.05		12.80	1.39
August		4.27		2.00		5.28	1.40
September		0.20		1.60		0.41	1.19

Donovan #33-3	Share of Production Volumes		Price Per BBL		Share of Production Volumes		Price Per BBL
	2010				2009
January
February		39.38		64.98		0	0
March		0		0		0	0
April		0		0		0	0
May		0		0		0	0
June		0		0		0	0
July		89.18		64.54		0	0
August		44.86		65.14		0	0
September		0		0		0	0

Majestic Oil & Gas Operations, Inc’s Net Share of the production volumes from the Ludwig State #36-1, Boucher #27-1, B. Ag #25-1, Vandenbos #19-1, Boucher #18-1 and Stoltz #18-1 wells for the nine month period ended September 30, 2010 were 6,322 MCF compared to 10,063 MCF for the nine month period ended September 30, 2009. The production decrease is a result of natural decline in production over time. The Company’s Net Share of production volumes from the Donovan Lease were 173.42 BBL for the nine month period ending September 30, 2010.

Our total expenses increased by $54,709 from the $91,851 reported for the nine months ended September 30, 2009 compared to the $146,560 reported for the nine months ended September 30, 2010. Of those expenses, Production (Lifting) Costs increased by $7,005 from $13,189 for the nine months ended September 30, 2009 to $20,194 for the nine months ended September 30, 2010. This increase is directly attributable to the Company’s share of the costs associated with the new Donovan wells. There was an increase in the Selling, General & Administrative Expenses of $59,333 from the $47,532 reported for the nine month period ended September 30, 2009 compared to the $106,865 reported for the same nine month period in 2010. The primary reason for the increase was an increase of approximately $44,300 in engineering, professional, and consulting fees incurred, which are comprised mainly of legal, accounting, and auditing fees. Professional fees included the issuance of $42,000 in Company stock for services provided. In addition, the Company saw a $4,060 in Public Relations costs associated with the design and maintenance of the Company’s new website. Depletion, Depreciation and Amortization decreased by $11,630 from $31,130 reported for the nine month period ended September 30, 2009 compared to the $19,500 reported for the same nine month period in 2010. This decrease is directly attributable to the decrease in production volumes between the two periods. As mentioned above, gas revenues for the nine month period decreased as a result of lower production volumes offset by a slightly higher price per MCF and oil sales during the period.

The Company showed a Net Loss of ($120,335) for the nine months ended September 30, 2010. This compares to the Net Loss of ($66,557) for the nine months ended September 30, 2009. The variance between these nine month periods is directly related to the decrease in revenues and volumes during the first three quarters of 2010 and increase in selling, general, & administrative expense as discussed above. While it is the Company’s hope that production volumes increase as a result of its planned development and drilling program, the Company’s revenues are subject to the volatility of oil and natural gas prices, which continue to fluctuate dramatically.

Drilling Activity

The following table sets forth the results of our drilling activities during the ~~nine~~ ~~months~~Three Months ended ~~September~~March 3031, ~~2010~~2011 and ~~2009~~2010:

	Drilling Activity
	Gross Wells						Net Wells
Nine Months ended September 30,	Total		Producing		Dry		Total		Producing		Dry
Three months ended March 31,	Total		Producing		Dry		Total		Producing		Dry
2011		0		0		0		0		0		0
2010		0		0		0		0		0		0
2009		2		2		0		0.5		0.5		0

Net Production, Average Sales Price and Average Production Costs (Lifting)

The table below sets forth the net quantities of oil and gas production (net of all royalties, overriding royalties and production due to others) attributable to the Company for the three ~~and~~months ~~nine month periods~~ ended ~~September~~March 3031, ~~2010~~2011 and ~~2009~~ 2010, and the average sales price, and average production costs (including depreciation, depletion and amortization, lease operating costs and all associated taxes) on a per unit of production basis:

Three months ended March 31,	2011		2010
Net Production:
Oil (Bbls)		46.12
Gas (Mcf)		1665.08		2,392.05

Average Sales Prices:
Oil (per Bbl)	$	76.22	$
Gas (per Mcf)	$	2.01	$	2.47

Average Production Cost Per MCF	$	5.27	$	5.04

Nine Months ended September 30,	2010		2009
Net Production
Oil (Bbls)		173.42		40.06
Gas (Mcf)		6,322.21		10,063.08
Average Sales Prices
Oil (per Bbl)	$	64.89	$	53.08
Gas (per Mcf)	$	2.09	$	1.75
Average Production Cost Per MCF	$	5.39	$	4.30

LIQUIDITY AND RESOURCE CAPITAL

We are still a development stage company. From our inception to ~~September~~March 3031, ~~2010~~2011, we incurred an accumulated deficit of ($~~839~~870,~~026~~621). This deficit is primarily the result of approximately $300,000 in expenses associated with stock issuances during fiscal ~~Year~~year ~~Ended~~ended December 31, 2002, and $~~342~~421,000 in legal, accounting and filing fees incurred since inception associated with being a publicly traded company. As of ~~September~~March 3031, ~~2010~~2011, we had $3421,~~921~~100 of current cash available. Our cash resources of $3421,~~921~~100 are not sufficient to satisfy our cash requirements over the next 12 months.

We need an additional minimum of $1,000,000 to finance our planned expansion in the next 12 months, which funds will be used for drilling of development oil and natural gas wells in the Lake Frances, ~~and~~ Williams, Fields, and Donovan prospects. We hope to be able to raise additional funds from an offering of our stock in the future. However, ~~these~~this ~~offerings~~offering may not occur, or if ~~they occur~~it occurs, may not raise the required funding. We may also consider securing debt financing. We may not raise other equity or debt financing sufficient to fund ~~these~~ ~~plans~~this amount. If we don't raise or generate these funds, the implementation of our short-term business plan will be delayed or eliminated.

Our ability to continue as a going concern is dependent on our ability to raise funds to implement our planned development; however we August not be able to raise sufficient funds to do so. Our independent auditors have indicated that there is substantial doubt about our ability to continue as a going concern over the next twelve months. Our poor financial condition could inhibit our ability to achieve our business plan.15

Our ability to continue as a going concern is dependent on our ability to raise funds to implement our planned development; however we may not be able to raise sufficient funds to do so. Our independent auditors have indicated that there is substantial doubt about our ability to continue as a going concern over the next twelve months. Our poor financial condition could inhibit our ability to achieve our business plan.

COMMITMENTS AND CONTINGENCIES

On July 1, 2004, ~~the~~Majestic ~~Company~~ entered into an operating agreement with Altamont ~~Oil & Gas~~, ~~Inc.,~~ through which Altamont ~~Oil & Gas, Inc.~~ will operate the wells in which we have acquired a working interest. Our share of monthly operating costs will be deducted from our monthly share of production revenue.

Beginning in 2007, ~~the~~Majestic ~~Company~~ has acquired leases covering approximately 3,963 net acres of undeveloped land for the purpose of future oil and gas development. This acreage is located in Pondera County, Montana in the vicinity of the Williams and Lake Frances Gas Fields. These leases remain in good standing with the term of the leases being for periods of 3 or 5 years. Management considers the value of the properties to be as much or more than for what they were acquired.

Majestic ~~Oil~~ ~~& Gas, Inc.~~ entered into a farm-out agreement with Mountain View Energy~~, Inc.~~ on September 1, 2009, outlining parameters for Mountain View Energy, ~~Inc.~~ to drill a test well in the NWSE-Section 33-T27N-R4W, Teton County, MTMontana at its sole cost, risk and expense. In doing so, Mountain View Energy, ~~Inc.~~ would acquire 75% of the Working Interest, while Majestic ~~Oil & Gas, Inc.~~ would retain a 25% Working Interest in any well drilled in the 40-acre tract. Further detail with respect to wells currently producing on the Donovan Lease can be found under Results of Operations.

On June 17, 2010, the Company entered into a lease purchase agreement to acquire leases covering approximately 11,106 net acres of undeveloped land for the purpose of future oil and gas development. These acreages are located in Montana and North Dakota. The purchase is expected to close on August 30, 2010.

Item 3. Quantitative and Qualitative Disclosure about Market Risk

Not applicable

Item 4. Controls and Procedures.

The Company has established disclosure controls and procedures to ensure that information required to be disclosed in this quarterly report on Form 10-Q was properly recorded, processed, summarized and reported within the time periods specified in the Commission's rules and forms. The Company’s controls and procedures are designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Act is accumulated and communicated to the Company’s management, including its principal executive and principal financial officers to allow timely decisions regarding required disclosure.

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)) at ~~September~~March 3031, ~~2010~~2011 based on the evaluation of these controls and procedures required by paragraph (b) of Rule 13a-15 or Rule 15d-15 under the Exchange Act. This evaluation was carried out under the supervision and with the participation of our Chief Executive Officer/Chief Financial Officer. Based upon that evaluation, our Chief Executive Officer/Chief Financial Officer concluded that, at and as of ~~September~~March 3031, ~~2010~~2011, our disclosure controls and procedures are effective.

Changes in Internal Control over Financial Reporting

There have been no changes in the Company's internal control over financial reporting that occurred during the Company's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

PART II — OTHER INFORMATION

Item 1. Legal Proceedings.

None.

Item 1A. Risk Factors

Not applicable.

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

(a) Unregistered Sales of Equity Securities.

None.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. (Removed and Reserved).

Item 5. Other Information.

Not applicable.

Item 6. Exhibits.

(a)

Exhibits.

Exhibit		Item
31.1		Certification of Principal Executive and Principal Financial Officer pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002
32.1*		Certification of Principal Executive and Principal Financial Officer pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002

This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 of the Securities Exchange Act of 1934, whether made before or after the date hereof and irrespective of any general incorporation language in any filings.

SIGNATURES

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

	MAJESTIC OIL & GAS, INC.
Date: November 16, 2010	By:	/s/ Patrick Montalban
Date: May 16, 2011	By:	/s/ Patrick Montalban
		(Authorized Officer/principal Executive Officer, Principal Financial Officer/principal Financial Officer}
		[Authorized Officer/principal Executive Officer, Principal Financial Officer/ principal Financial Officer]

2118

EXHIBIT INDEX

Exhibit		Item
31.1		Certification of Principal Executive and Principal Financial Officer pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002
32.1*		Certification of Principal Executive and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

22* This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 of the Securities Exchange Act of 1934, whether made before or after the date hereof and irrespective of any general

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